LAW OF CONTRACTS CHAMPIONS EXAM, PRACTICE
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
400 QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS) |ALREADY
GRADED A+
Wrongful or criminal deception intended to result in financial or personal gain is
called: - ANSWER: fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a lease
period not to exceed: - ANSWER: 90 days
__________ extend above the surface without limitation. - ANSWER: air rights
An example(s) of an appurtenance would be: - ANSWER: easements
There is no upper limit on the value of a Texas homestead. - ANSWER: true
A(n) __________ is one that combines some of the elements of a sale with a lease. -
ANSWER: lease purchase agreement
Which of the following requires a contract for the conveyance of real estate to be in
writing to be enforceable? - ANSWER: statute of frauds
If a broker receives more than one offer on a property: - 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: - 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. - ANSWER: contingency
The Lead-Based Paint Disclosure is: - ANSWER: A federal requirement for residential
property built prior to 1978
In Texas, real estate contracts are subject to satisfactory inspections. - ANSWER:
false
The term __________ is synonymous with contingent. - ANSWER: subject to
Real estate agents play a role that includes arranging for the pre-qualification / pre-
approval of buyers. - ANSWER: true
, Rule P-53 of the Texas Department of Insurance states that Title Companies: -
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___________________________. - 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: - ANSWER: Engaged in the
unlawful practice of law
The four economic characteristics of land are: scarcity, fixity, situs and ________. -
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? - ANSWER: Joe should present the offer to the
seller
An abstract of title is: - ANSWER: a complete written history of title
an option is: - 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. -
ANSWER: false
A contract in which only one party is obligated to perform is a________ contract. -
ANSWER: unilateral
For tax prorations: - ANSWER: If taxes are not paid at or prior to closing the buyer
shall pay for the current year, If taxes for the current year vary from the amount
prorated at closing, the parties shall adjust the prorations when tax statements for
the current year are available, The tax proration may be calculated taking into
consideration any change in the exemptions that will affect the current year's taxes
________ is the right of the government to regulate and control the way land is
used. - ANSWER: police power
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
400 QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS) |ALREADY
GRADED A+
Wrongful or criminal deception intended to result in financial or personal gain is
called: - ANSWER: fraud
The Buyer and Seller Temporary Residential Lease forms may be used for a lease
period not to exceed: - ANSWER: 90 days
__________ extend above the surface without limitation. - ANSWER: air rights
An example(s) of an appurtenance would be: - ANSWER: easements
There is no upper limit on the value of a Texas homestead. - ANSWER: true
A(n) __________ is one that combines some of the elements of a sale with a lease. -
ANSWER: lease purchase agreement
Which of the following requires a contract for the conveyance of real estate to be in
writing to be enforceable? - ANSWER: statute of frauds
If a broker receives more than one offer on a property: - 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: - 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. - ANSWER: contingency
The Lead-Based Paint Disclosure is: - ANSWER: A federal requirement for residential
property built prior to 1978
In Texas, real estate contracts are subject to satisfactory inspections. - ANSWER:
false
The term __________ is synonymous with contingent. - ANSWER: subject to
Real estate agents play a role that includes arranging for the pre-qualification / pre-
approval of buyers. - ANSWER: true
, Rule P-53 of the Texas Department of Insurance states that Title Companies: -
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___________________________. - 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: - ANSWER: Engaged in the
unlawful practice of law
The four economic characteristics of land are: scarcity, fixity, situs and ________. -
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? - ANSWER: Joe should present the offer to the
seller
An abstract of title is: - ANSWER: a complete written history of title
an option is: - 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. -
ANSWER: false
A contract in which only one party is obligated to perform is a________ contract. -
ANSWER: unilateral
For tax prorations: - ANSWER: If taxes are not paid at or prior to closing the buyer
shall pay for the current year, If taxes for the current year vary from the amount
prorated at closing, the parties shall adjust the prorations when tax statements for
the current year are available, The tax proration may be calculated taking into
consideration any change in the exemptions that will affect the current year's taxes
________ is the right of the government to regulate and control the way land is
used. - ANSWER: police power
