Texas Promulgated Contract Forms: Mini-Quizzes | All Answered with Complete Verified Solutions 2023/2024

Texas Promulgated Contract Forms: Mini-Quizzes | All Answered with Complete Verified Solutions 2023/2024 Performance The execution of a contract by which the contracting parties are automatically discharged of their obligations under it is known as...? All of the above Which of the following is an example of consideration...? - Money - Personal services - Cash - All of the above Statute of Frauds A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...? Options contract What is an example of a forbearance contract...? Binding A valid contract must be .......... and enforceable? Competent parties A party to a contract that is forced to sign a contract under duress violates this element of a valid contract...? Leases under one year What real estate contract does not have to be in-writing...? Mutual agreement If one of the parties to a contract does not voluntarily agree to the contract, this element of a valid contract is violated...? Void To have no force or effect is referred to as a .......... contract? Voidable That which is capable of being adjusted void, but is not unless action is taken to make it so, is referred to as a/an ............ contract? Majority In order to be considered a competent party, an individual must be of the age of the...? Voidable Contract A contract in which one of the parties is a minor is considered a...? Non-fraudulent party A contract in which there is fraud by either commission or omission is voidable by the...? Void A contract that is missing one or more of the elements of a valid contract is considered...? Bilateral contract A contract in which each party promises to do something is referred to as a...? Unilateral Contract When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it, it is referred to as a...? Unilateral contract An options contract is an example of a/an...? All of the Above Which of the following is an example of a bilateral contract...? - Listing contract - Sales contract - Independent contractor agreement - All of the above Assignment A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a/an...? Novation The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties is known as...? Executory An assignment can occur when a contract is...? Amend the existing contract Which of the following may be used as an alternative to novation...? Statute of Limitations A law establishing the time period within which certain lawsuits may be brought is known as the...? Breach of Contract A violation of any of the terms or conditions of a contract without legal reason leads to a/an...? All of the Above Which of the following is an example of a termination of a contract...? - Substantial performance - Partial performance - Impossibility of performance - All of the above A buyer has entered into a contract to purchase a commercial property but the city has now rezoned the property as residential What is an example of a termination of a contract by operation of law...? 1949 The Texas Real Estate Commission was created in what year...? Texas Real Estate License Act The Texas Real Estate Commission was created to administer what...? Texas Real Estate Commission Who is responsible for issuing real estate licenses in Texas...? All of the Above The Texas Real Estate Commission is responsible for regulating which of the following...? - Residential service companies - Real estate inspectors - Real estate brokers - All of the above Texas Real Estate License Act What describes how a contract becomes a promulgated form...? The Most Current Version Real estate professionals must use ........... of any promulgated forms? All of the Above According to TREC, a real estate licensee may not do which of the following...? - Practice law - Give legal advice - Discourage a client from hiring a lawyer - All of the above F (False) (T/F) A real estate salesperson is allowed to provide legal advice to clients if it is in the best interest of the client...? Unauthorized Practice of Law A real estate agent who gives legal advice to a client is in violation of the...? Revealing Material Facts about the Property What would not fall under the unauthorized practice of law...? All of the Above When filling out a pre-printed form, a real estate agent cannot do which of the following...? - Add sections to the form - Strike-out sections of the form - Sign on behalf of the principal - All of the above T (True) (T/F) A real estate agent cannot pay for a lawyer to act on behalf of his/her client...? Binding A real estate agent should advise their client that any contract they sign is...? Revoked According to TRELA, a salesperson's license may be suspended or ............. for the unauthorized practice of law? Special Provisions Which part of a sales contract most leaves an agent liable for the unauthorized practice of law...? TREC Who approves the contract forms drafted by the Broker/Lawyer Committee...? 13 The Broker/Lawyer Committee is comprised of ......... members? Texas State Bar What appoints 6 of the members to the Broker/Lawyer Committee...? 1 How many members of the public are appointed to the Broker/Lawyer Committee by the State Governor...? Mandatory A promulgated form means the use of the form is...? Immediately According to TREC, an offer received by an agent must be presented to the principal...? Back-Up Offer A ..........is submitted by a prospective buyer who wants the right of first refusal is the event the current buyer backs out of the contract during the options period? Termination If a prospective buyer decides to rescind their offer before the seller responds, the prospective buyer should submit what...? Initialed by All Parties Any changes to a contract must be...? When all essential elements of a contract are met. When does an offer become a valid contract...? The name of the seller(s) as listed on the deed What does an agent first need from the seller when preparing a contract...? The seller's title policy When preparing a contract, where should the agent look to find the name of the seller(s)...? 1 The names of the parties are included in paragraph .......of the promulgated sales contract? All of the Above Which of the following is included in the legal description of a property...? - Section number - Lot number - Block number - All of the above $225,000 If a buyer is providing a down payment of $50,000, and is obtaining a loan from a bank in the amount of $175,000, what is the purchase price of the property...? Temporary Lease If the buyer will occupy the property prior to closing, what needs to be included with the sales contract...? Appraisal District's Website Where can an agent search to find the legal description of a property...? Seller The "excluded fixtures and accessories" section of the contract is completed by which party...? Residential Service Contract A home warranty is also known as a...? Condominiums The One to Four Family Residential Contract - Resale is NOT used for which properties...? John Doe, An Unmarried Person John Doe is an unmarried individual who is buying his first house. How should John's name be listed on the purchase contract...? ABC Corporation, a Texas Corporation ABC Corporation is purchasing a residential property in Houston. How should the corporation's name appear on the purchase contract...? Unincorporated If a property is not located within a city, what should be included in the legal description of the property on the purchase contract...? All of the Above Which of the following are considered improvements to a property...? - Fences - A shed - A garage - All of the above 2D Improvements and accessories that the seller would like to retain should be listed in paragraph .........of the One to Four Family Residential Contract - Resale? Buyer If the seller does not specify improvements and accessories to be excluded from the sale of the property, who will claim ownership of these items...? TREC Loan Assumption Addendum If a buyer is purchasing a property involving the assumption of an existing loan, which document must be included with the purchase contract...? TREC Seller Financing Addendum If a buyer is purchasing a property with the help of seller financing, what must be included with the purchase contract...? $64,000 A buyer needs to obtain a loan to purchase a $320,000 house. If the lender is willing to loan at an 80% LTV, how much of a down payment must the buyer put down...? All of the Above If a buyer is obtaining a conventional mortgage, they must include which of the following information on the TREC Third Party Financing Addendum...? - Amount of the loan - Interest rate of the loan - Term of the loan - All of the above Third Party Financing Addendum