UPDATED Law of Contracts: Cumulative 2023/2024 with correct answers

abstract of title - CORRECT ANSWER an abbreviated history of a property, including info on any transfers, grants, wills, conveyances, liens, and encumbrances acceleration clause - CORRECT ANSWER clause in a security instrument (mortgage/deed of trust) which makes the entire loan amount due immediately upon default accession - CORRECT ANSWER refers to the acquisition of new land or real property by artificial or natural means actual damages - CORRECT ANSWER monetary compensation given to an injured party for losses that were a result of the actions or omissions of another party actual notice - CORRECT ANSWER notice given to a specific party regarding the ownership of a property adaptation - CORRECT ANSWER the use and modification of a particular item for a specific use in a property — specific use for a property could deem an item as real property addenda - CORRECT ANSWER documents containing additional terms, information, or obligations that are attached to a contract / a document that's attached to a purchase agreement that includes additional information or requests items not included in the purchase agreement agency - CORRECT ANSWER a relationship where one party is authorized to act on behalf of the other air rights - CORRECT ANSWER ownership rights to the air above a property, extending from the surface of the land up into space alienation - CORRECT ANSWER the process and act of transferring property from one party to another allodial system - CORRECT ANSWER system of ownership in which land is owned completely, without an obligation of services or duties to another amendment - CORRECT ANSWER a document that changes the terms in a sales contract that has been previously agreed to by all the parties; requires all parties to sign the amendment for it to be valid / a change in a legal document made by adding, altering, or omitting a certain part or term Americans with Disabilities Act - CORRECT ANSWER identified and defined protected disabilities, as well as required all new buildings with employees or public access to provide reasonable access for people with protected disabilities annexation - CORRECT ANSWER attaching (or affixing) personal property to real estate in a way that transforms the personal property into real property approved contracts - CORRECT ANSWER contracts that are allowed by the Texas Real Estate Commission but not required assignment - CORRECT ANSWER the transference of obligations in a contract from one party to another beneficiary - CORRECT ANSWER the recipient of advantage or gain from an act or instrument such as a trust, will, or insurance policy bilateral - CORRECT ANSWER having or involving two sides, often with some degree of reciprocal impact or obligation bill of sale - CORRECT ANSWER a certificate of transfer of personal property breach of contract - CORRECT ANSWER occurs when the terms or conditions of a contract have been violated closing - CORRECT ANSWER the final step in the home-buying process, during which the title to the property is transferred from the seller to the buyer and consideration is paid to the seller common law - CORRECT ANSWER the side of law which arises from judgements and decisions made in courts rather than explicit legislation community property - CORRECT ANSWER a special form of joint tenancy that exists between a married couple, with each owning a one-half interest; any house or real estate purchased during a marriage is considered community property Community Reinvestment Act - CORRECT ANSWER legislation that ensures depository institutions meet the credit needs of low- and moderate-income families competent - CORRECT ANSWER the mental capacity of an individual to participate in legal proceedings or transactions conditional acceptance - CORRECT ANSWER acceptance based upon a specific condition or event happening condominium - CORRECT ANSWER property where each owner has a separate interest in their own unit and undivided interest in the common areas consideration - CORRECT ANSWER something of value exchanged by the parties as evidence of agreement to the terms of a contract constructive notice - CORRECT ANSWER recording of a deed in publicly accessible records Consumer Financial Protection Bureau (CFPB) - CORRECT ANSWER independent agency created under the Dodd-Frank Wall Street Reform Act to supervise financial companies, banks, and credit unions as well as enforce federal consumer financial laws contingency - CORRECT ANSWER a provision within a contract that makes performance conditional upon the occurrence of a stated event contract - CORRECT ANSWER an agreement with two or more parties by which one party will receive consideration and the other will either perform an act or refrain from performing an act contract for deed - CORRECT ANSWER an agreement between the seller and buyer for the sale of real estate wherein the seller holds the legal title to the property until it is paid in full conventional life estate - CORRECT ANSWER a type of freehold life estate created by a deed or will that lasts for the duration of the tenant's life conveyance - CORRECT ANSWER the voluntary alienation and transfer of an interest and rights in real property cooperative (co-op) - CORRECT ANSWER a residential building in which the title is held by a corporation, the residents are stockholders in the corporation, and the residents have a lease corporation - CORRECT ANSWER a company or group of people recognized as one entity under the law; owners purchase stocks in the corporation (shareholder) and the corporation is run by the board of directors (elected by the shareholders) dedication - CORRECT ANSWER the voluntary gift of one's land to the public