UPDATED Law of Contracts - CHAMPIONS TEST 2023/2024 with correct answers

Wrongful or criminal deception intended to result in financial or personal gain is called: - CORRECT ANSWER fraud The Buyer and Seller Temporary Residential Lease forms may be used for a lease period not to exceed: - CORRECT ANSWER 90 days __________ extend above the surface without limitation. - CORRECT ANSWER air rights An example(s) of an appurtenance would be: - CORRECT ANSWER easements There is no upper limit on the value of a Texas homestead. - CORRECT ANSWER true A(n) __________ is one that combines some of the elements of a sale with a lease. - CORRECT ANSWER lease purchase agreement Which of the following requires a contract for the conveyance of real estate to be in writing to be enforceable? - CORRECT ANSWER statute of frauds If a broker receives more than one offer on a property: - CORRECT ANSWER All must be presented to the seller unless the seller has instructed the broker otherwise The most common form of financing used by buyers is: - CORRECT ANSWER third party financing A(n) __________ is a provision in a contract that requires that a certain act or event happens in order for the contract to be binding on the party. - CORRECT ANSWER contingency The Lead-Based Paint Disclosure is: - CORRECT ANSWER A federal requirement for residential property built prior to 1978 In Texas, real estate contracts are subject to satisfactory inspections. - CORRECT ANSWER false The term __________ is synonymous with contingent. - CORRECT ANSWER subject to Real estate agents play a role that includes arranging for the pre-qualification / pre- approval of buyers. - CORRECT ANSWER true Rule P-53 of the Texas Department of Insurance states that Title Companies: - CORRECT ANSWER Cannot provide food and beverages for a picnic for a single firm, Cannot provide an annual party for a single firm, Cannot provide continuing education classes unless they charge the market rate for those classes Bill is the buyer purchasing a property from Sally. All contingencies have been met and the parties are ready to close. One day prior to closing, Sally announces that she has changed her mind and is going to keep the property. Bill is determined to complete the purchase and acquire the property. The only default remedy in the contract that could result in Bill acquiring the property is___________________________. - CORRECT ANSWER specific performance Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a contract. The seller told Elmer that he wanted to stay in the property for at least a week after closing. Elmer said that would be no problem and entered the following text to Paragraph 11: "Seller and Buyer agree that Seller will remain in the Property for 7 days after closing and funding." In this case, Elmer has: - CORRECT ANSWER Engaged in the unlawful practice of law The four economic characteristics of land are: scarcity, fixity, situs and ________. - CORRECT ANSWER modification Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a property that is listed for $199,500. In a recent phone conversation, the seller told Joe he would accept no less than $185,000 for the property. Knowing the seller's "bottom line," what should Joe do with the offer? - CORRECT ANSWER Joe should present the offer to the seller An abstract of title is: - CORRECT ANSWER a complete written history of title an option is: - CORRECT ANSWER a unilateral contract A seller is going to continue to occupy a property for two days after closing. In this case, the parties should use the Buyer's Temporary Residential Lease form. - CORRECT ANSWER false