Law of Contracts - Champions School of Real
Estate Final Exam Study Guide Latest Update
2025-2026 Actual Exam 140 Questions with 100%
Verified Correct Answers Guaranteed A+ Verified
by Professor
A contract is considered "discharged" when - CORRECT ANSWER: - all parties have
performed
- full execution most often is achieved at the closing of the transaction
A license holder must not prepare which of the following documents - CORRECT
ANSWER: 1 - Option agreements
2 - Title commitments
3 - Wills
*4 - A license holder must not prepare any of these documents*
An active sales agent license may only be issued under __________. - CORRECT
ANSWER: 1 - Court order
*2 - The sponsorship of a licensed broker*
3 - The supervision of a fellow sales agent
4 - The Deceptive Trade Practice Act
Appurtenance - CORRECT ANSWER: - a right or privilege or improvement that belongs
to and passes with land, but is not necessarily a part of the land
Bilateral Contract - CORRECT ANSWER: - A contract created by offer and acceptance
,Bill of Sale - CORRECT ANSWER: - used to accomplish the transfer of personal
property along with real property
Blockbusting - CORRECT ANSWER: - any attempt to induce panic selling in a
neighborhood for financial gain
Broker Bernardo has signed a sales contract that has not yet gone to the closing table.
Therefore, Bernardo has a(n) ______________ contract - CORRECT ANSWER: -
Executory
Bryan's client shows up to his closing after drinking three beers at a baseball game. Due
to his consumption of alcohol, the closing cannot take place because Bryan's client is
not legally __________ - CORRECT ANSWER: - Impaired
Buffer zone - CORRECT ANSWER: - an area of land separating one land use from
another
Building codes - CORRECT ANSWER: - apply to all types of commercial and residential
buildings
Buyer-agency agreement - CORRECT ANSWER: - employment agreement for selling
broker
Common addenda forms - CORRECT ANSWER: - financing addendum
- lead-based paint
- flood hazard
- mineral reservation
- seller financing
- property owners association
, Contract for deed - CORRECT ANSWER: - also called an installment contract, a land
contract or real estate contract
Contract vs Economic Rent - CORRECT ANSWER: Contract rent - the rental income
stipulated by the parties in a lease
Economic rent - the rent the property could currently command on the open market
Downzoning - CORRECT ANSWER: - changing the zoning of a property to a lower
value use
Easement appurtenant - CORRECT ANSWER: - runs with the land and passes to new
owners when the land is sold. The most common use of this easement is for ingress
and egress
Easement in gross - CORRECT ANSWER: - belongs to a person or corporation and
does not belong to the land. The most common example of this is utility easement
Easements can be terminated by - CORRECT ANSWER: - merger
- release
- abandonment
- death
Easements may be created by - CORRECT ANSWER: 1 - grant
2 - reservation
3- implied grant
3 - prescription
4 - necessity
5 - condemnation
Estate Final Exam Study Guide Latest Update
2025-2026 Actual Exam 140 Questions with 100%
Verified Correct Answers Guaranteed A+ Verified
by Professor
A contract is considered "discharged" when - CORRECT ANSWER: - all parties have
performed
- full execution most often is achieved at the closing of the transaction
A license holder must not prepare which of the following documents - CORRECT
ANSWER: 1 - Option agreements
2 - Title commitments
3 - Wills
*4 - A license holder must not prepare any of these documents*
An active sales agent license may only be issued under __________. - CORRECT
ANSWER: 1 - Court order
*2 - The sponsorship of a licensed broker*
3 - The supervision of a fellow sales agent
4 - The Deceptive Trade Practice Act
Appurtenance - CORRECT ANSWER: - a right or privilege or improvement that belongs
to and passes with land, but is not necessarily a part of the land
Bilateral Contract - CORRECT ANSWER: - A contract created by offer and acceptance
,Bill of Sale - CORRECT ANSWER: - used to accomplish the transfer of personal
property along with real property
Blockbusting - CORRECT ANSWER: - any attempt to induce panic selling in a
neighborhood for financial gain
Broker Bernardo has signed a sales contract that has not yet gone to the closing table.
Therefore, Bernardo has a(n) ______________ contract - CORRECT ANSWER: -
Executory
Bryan's client shows up to his closing after drinking three beers at a baseball game. Due
to his consumption of alcohol, the closing cannot take place because Bryan's client is
not legally __________ - CORRECT ANSWER: - Impaired
Buffer zone - CORRECT ANSWER: - an area of land separating one land use from
another
Building codes - CORRECT ANSWER: - apply to all types of commercial and residential
buildings
Buyer-agency agreement - CORRECT ANSWER: - employment agreement for selling
broker
Common addenda forms - CORRECT ANSWER: - financing addendum
- lead-based paint
- flood hazard
- mineral reservation
- seller financing
- property owners association
, Contract for deed - CORRECT ANSWER: - also called an installment contract, a land
contract or real estate contract
Contract vs Economic Rent - CORRECT ANSWER: Contract rent - the rental income
stipulated by the parties in a lease
Economic rent - the rent the property could currently command on the open market
Downzoning - CORRECT ANSWER: - changing the zoning of a property to a lower
value use
Easement appurtenant - CORRECT ANSWER: - runs with the land and passes to new
owners when the land is sold. The most common use of this easement is for ingress
and egress
Easement in gross - CORRECT ANSWER: - belongs to a person or corporation and
does not belong to the land. The most common example of this is utility easement
Easements can be terminated by - CORRECT ANSWER: - merger
- release
- abandonment
- death
Easements may be created by - CORRECT ANSWER: 1 - grant
2 - reservation
3- implied grant
3 - prescription
4 - necessity
5 - condemnation
