Law of Contracts - Champions Test Exam Questions And Answers Verified 100% Correct

Law of Contracts - Champions Test Exam Questions And Answers Verified 100% Correct The SAFE Act mandated the term ________. - ANSWER Residential Mortgage Loan Originator A(n) ________ occurs when a new contract is substituted for an existing one. - ANSWER novation A(n) ________ is a business venture that is owned by one individual. - CORRECT ANSWER Sole proprietorship A(n) ________ is a listing in which the real estate broker's commission is the difference between the minimum net established by the seller and the price that the buyer is willing to pay. - ANSWER net listing The requirements for a valid lease are, competent parties, let and take agreement, in writing and ________. - ANSWER description of the property ________ of an offer means that the accepting party does so with no change to the contract whatsoever. - ANSWER acceptance The ________ ensures that all consumers are given an equal chance to obtain credit - ANSWER Equal Credit Opportunity Act The formal judicial proceeding to prove the validity of a will and to distribute the assets of a decedent's estate is called: - ANSWER probate A ________ is a deed with no guarantees or warranties. - ANSWER quitclaim deed A ________ is the borrower's unconditional promise to repay the lender. - CORRECT ANSWER Promissory note A "Section 502 Loan" is insured by the ________. - ANSWER USDA ________ is evidence an individual has of his or her right to possess land. - CORRECT ANSWER Probate A(n) ________ mortgage covers more than one piece of property. - CORRECT ANSWER blanket Real property conveyed by will is called a ________. - ANSWER devise An offer may be withdrawn at any time prior to its acceptance by the offeree - ANSWER true The four categories of leasehold estates are: estate for years, tenancy at sufferance, tenancy at will and ________. - ANSWER Periodic tenancy Buyers' and sellers' marital status is not required in the contract. - ANSWER true Which of the following is a physical characteristic of land? - ANSWER indestructability Which disclosure is provided to comply with federal requirements for properties built before 1978? - ANSWER Lead-Based Paint Disclosure If the loan factor is $4.49 and the loan amount is $357,500, taxes are $7300/year and the insurance is $3103 per year, what is the monthly PITI payment? - CORRECT ANSWER $2,472.09 A loan assumption might be desirable because: - ANSWER The loan assumption is generally less costly than a new loan Earnest money is deposited in an escrow account when: - ANSWER The contract is signed by all parties and acceptance is communicated Jake (Seller) and Sarah (Buyer) entered into a contract for the sale of Jake's personal residence. In the contract, Jake promised to deliver a seller's disclosure of property condition within 5 days of the effective date of the contract. Jake never delivered the disclosure as promised. Which of the following statements is true? - ANSWER Sarah has the right to terminate the contract and receive a refund of earnest money prior to closing (Page 24) Damage or destruction of a property under contract prior to closing: - CORRECT ANSWER May result in termination of the contract When a party is considering consulting an attorney for advice in a transaction an agent should: - ANSWER Never discourage the use of an attorney Prior to closing, severe damage to or destruction of a property under contract: - ANSWER Can result in termination of the contract The four major types of listing agreements are, exclusive agency, net listing, exclusive right to sell and __________. - ANSWER open listing In a __________ lease, the tenant's rent is based, in whole or in part, on the receipts of his or her business. - ANSWER percentage lease A(n) __________ is a type of seller financing wherein the owner retains title to the property while the purchaser takes possession of the premises and pays on the principal. - ANSWER contract for deed A(n) __________ is an agreement between two or more parties to do something or to refrain from doing something. - ANSWER contract When an individual owns real property, he or she is said to have a (n) __________ in that property. - ANSWER freehold estate 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