AYPO Real Estate Law of Contracts Final Exam
Review Latest Update 2025-2026 80 Questions
and 100% Verified Correct Answers Guaranteed
A+
"Consummation" as used here refers to: - CORRECT ANSWER: The specific point in
time where the borrower becomes contractually obligated to the lender.
A __________ clause states that a contract remains valid even if one provision of the
contract is rendered invalid. - CORRECT ANSWER: Severability
A "cloud" on a title meCORRECT ANSWER: - CORRECT ANSWER: There is a
possibility of another person or entity having a claim on the property.
A "good and indefeasible" title is the same as: - CORRECT ANSWER: 1. Clear title.
2. Free and clear title.
3. Clean title.
A "mirror" will is a: - CORRECT ANSWER: Reciprocal will.
A contract for deed is also known as: - CORRECT ANSWER: 1. Installment sales
contract
2. Real estate contract
A contract often created by a court based on the actions of the parties and not on a
written agreement is called a(n): - CORRECT ANSWER: Implied contract
, A housing cooperative is a co-op that: - CORRECT ANSWER: Owns real property,
usually residential
A major difference between a lien for federal or state income taxes versus a lien for
property taxes is: - CORRECT ANSWER: Federal and state income tax liens can be
placed against any individual property, while property taxes generally attach to the
property on which the tax is owed.
A new survey is not essential if: - CORRECT ANSWER: An existing survey is agreed to
by all parties in the transaction, including the lender and title company.
A promissory note is: - CORRECT ANSWER: A promise to pay a debt.
A tenant abandoning a leased property without providing proper notice or doing so
under a previously negotiated reason, is not released from their obligations. -
CORRECT ANSWER: TRUE
Acts of nature such as mudslides, earthquakes, and volcanic eruptions can have an
immediate and major impact on land known as: - CORRECT ANSWER: Avulsion
An advantage to buyers in a lease-purchase option is that: - CORRECT ANSWER: It
can be easier to get a difficult to qualify buyer into a home with a lower down payment.
An amendment must always reference: - CORRECT ANSWER: 1. The original contract.
2. Names of the parties.
3. Dates of ratification.
At what point has an acceptance of an offer been completed? - CORRECT ANSWER:
Once the offeror has been notified of the offeree's acceptance.
Review Latest Update 2025-2026 80 Questions
and 100% Verified Correct Answers Guaranteed
A+
"Consummation" as used here refers to: - CORRECT ANSWER: The specific point in
time where the borrower becomes contractually obligated to the lender.
A __________ clause states that a contract remains valid even if one provision of the
contract is rendered invalid. - CORRECT ANSWER: Severability
A "cloud" on a title meCORRECT ANSWER: - CORRECT ANSWER: There is a
possibility of another person or entity having a claim on the property.
A "good and indefeasible" title is the same as: - CORRECT ANSWER: 1. Clear title.
2. Free and clear title.
3. Clean title.
A "mirror" will is a: - CORRECT ANSWER: Reciprocal will.
A contract for deed is also known as: - CORRECT ANSWER: 1. Installment sales
contract
2. Real estate contract
A contract often created by a court based on the actions of the parties and not on a
written agreement is called a(n): - CORRECT ANSWER: Implied contract
, A housing cooperative is a co-op that: - CORRECT ANSWER: Owns real property,
usually residential
A major difference between a lien for federal or state income taxes versus a lien for
property taxes is: - CORRECT ANSWER: Federal and state income tax liens can be
placed against any individual property, while property taxes generally attach to the
property on which the tax is owed.
A new survey is not essential if: - CORRECT ANSWER: An existing survey is agreed to
by all parties in the transaction, including the lender and title company.
A promissory note is: - CORRECT ANSWER: A promise to pay a debt.
A tenant abandoning a leased property without providing proper notice or doing so
under a previously negotiated reason, is not released from their obligations. -
CORRECT ANSWER: TRUE
Acts of nature such as mudslides, earthquakes, and volcanic eruptions can have an
immediate and major impact on land known as: - CORRECT ANSWER: Avulsion
An advantage to buyers in a lease-purchase option is that: - CORRECT ANSWER: It
can be easier to get a difficult to qualify buyer into a home with a lower down payment.
An amendment must always reference: - CORRECT ANSWER: 1. The original contract.
2. Names of the parties.
3. Dates of ratification.
At what point has an acceptance of an offer been completed? - CORRECT ANSWER:
Once the offeror has been notified of the offeree's acceptance.
