Law of Contracts - Champions School of Real Estate
EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS
QUESTION>Eminent Domain - ANSWER~- the right of the government to take private land for public use.
The action of taking the land is called condemnation. Easements by condemnation are also allowed
under the right of eminent domain
(inverse condemnation occurs when a landowner sues the government, to force the government to buy
his land)
QUESTION>Taxation - ANSWER~- the government retains the right to tax real property
- property taxes are known as ad valorem taxes
QUESTION>Escheat - ANSWER~- if a person dies interstate (without a will) and without heirs, the
government will take title to his real property under the rights of escheat
QUESTION>Statutory Estates - ANSWER~- Community property
- Homestead
- Dower and curtest
- Tenancy by the entirety
QUESTION >TERLA - ANSWER~- Texas Real Estate License Act
- Created in 1939
QUESTION>TREC - ANSWER~- Texas Real Estate Commission
- Created in 1949 to administer/enforce TERLA
, QUESTION>Real Estate Center - ANSWER~- Located at Texas A&M University
- Created in 1970
QUESTION>TREC-Promulgated Forms/Leases (Residential): - ANSWER~- One-to-Four Family Residential
Contract (Resale)
- New Home Contract (Completed Construction)
- Residential Condo Contract (Resale)
- New Home Contract (Incomplete Construction)
- Unimproved Property Contract
- Farm and Ranch
(Note: TREC has promulgated contract addenda and other forms, listed on Thepage 18)
QUESTION>Four categories of unlawful trade practices are: - ANSWER~1 - Misleading or deceptive
conduct employed by any person that was relied upon by the consumer to the consumer's detriment
2 - Breach of express or implied warranties
3 - Violation of the Texas Insurance Code (Chpt 51)
4 - An unconscionable action or course of action by any person
EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS
QUESTION>Eminent Domain - ANSWER~- the right of the government to take private land for public use.
The action of taking the land is called condemnation. Easements by condemnation are also allowed
under the right of eminent domain
(inverse condemnation occurs when a landowner sues the government, to force the government to buy
his land)
QUESTION>Taxation - ANSWER~- the government retains the right to tax real property
- property taxes are known as ad valorem taxes
QUESTION>Escheat - ANSWER~- if a person dies interstate (without a will) and without heirs, the
government will take title to his real property under the rights of escheat
QUESTION>Statutory Estates - ANSWER~- Community property
- Homestead
- Dower and curtest
- Tenancy by the entirety
QUESTION >TERLA - ANSWER~- Texas Real Estate License Act
- Created in 1939
QUESTION>TREC - ANSWER~- Texas Real Estate Commission
- Created in 1949 to administer/enforce TERLA
, QUESTION>Real Estate Center - ANSWER~- Located at Texas A&M University
- Created in 1970
QUESTION>TREC-Promulgated Forms/Leases (Residential): - ANSWER~- One-to-Four Family Residential
Contract (Resale)
- New Home Contract (Completed Construction)
- Residential Condo Contract (Resale)
- New Home Contract (Incomplete Construction)
- Unimproved Property Contract
- Farm and Ranch
(Note: TREC has promulgated contract addenda and other forms, listed on Thepage 18)
QUESTION>Four categories of unlawful trade practices are: - ANSWER~1 - Misleading or deceptive
conduct employed by any person that was relied upon by the consumer to the consumer's detriment
2 - Breach of express or implied warranties
3 - Violation of the Texas Insurance Code (Chpt 51)
4 - An unconscionable action or course of action by any person
