Champions School Law Of Contracts
Questions With Complete Solution
unlawful practice of law - Correct Answer-When license holders
add provisions to contracts that go beyond factual business details.
Texas Real Estate Commission - Correct Answer-Texas Real Estate Commission
(TREC) was created by the Legislature in 1949. It is a
nine-member commission whose primary purpose is to carry out the provisions of the
License Act. Commission members are appointed by the governor and approved by the
Senate. Each serves for a six-year term, except the chairman of the Commission who
serves at the pleasure of the governor.
Six of the members of the Commission are broker members.
Broker-lawyer committee - Correct Answer-Drafts and revises contract forms for use
in real estate transactions in the state of
Texas
promulgated forms - Correct Answer-Forms published by TREC that are
mandatory for license holders to use in
real estate transactions in the state of
Texas
Buyer's Temporary Residential Lease - Correct Answer-for use when the buyer
occupies the property for no more than 90 days prior to closing.
Seller's Temporary Residential Lease - Correct Answer-for use when the seller occupies
the property for no more than 90 days after closing.
addendum - Correct Answer-a thing that is added; an appendix or addition to a book or
written document.
option to purchase - Correct Answer-Commonly known as a lease-purchase
agreement, it gives the tenant occupancy in the present time and the right to purchase
at a future date. In an option to purchase, the price is set when the lease agreement is
negotiated, which is advantageous to the tenant-buyer.
lease-purchase agreement - Correct Answer-gives the tenant occupancy in the present
time and the right to purchase at a future
date.
right of first refusal - Correct Answer-giving the tenant the right to purchase the
,leased property by matching or bettering any offer before the property will be sold to
someone else.
fraud - Correct Answer-A deliberate deception intended to secure an unfair or unlawful
gain
misrepresentation - Correct Answer-deliberately deceiving.
intent - Correct Answer-"Intentionally" means actual awareness of the falsity, deception,
or unfairness of the
act or practice, or the condition, defect, or failure constituting a breach of warranty
giving rise to the consumer's claim, coupled with the specific intent that the consumer
act in detrimental reliance on the falsity or deception or in detrimental ignorance of the
unfairness.
puffing - Correct Answer-Use of adjectives and opinions rather
than details or facts
monetary damages - Correct Answer-In addition to specific performance, the injured
party may "seek such
other relief as may be provided by law." This would be an award of monetary damages
by the court. Because monetary damages are awarded by the court, one never knows
what they will be until the court rules.
goods - Correct Answer-are defined as tangible chattels (real property is tangible when
purchased or leased.
Under DTPA, the sale of a house is considered a good).
services - Correct Answer-means work, labor, or repair of goods. Brokerage is a service
consumer - Correct Answer-an individual, corporation, partnership, or government
source who seeks to
acquire or purchase the goods or services.
knowingly - Correct Answer-Knowingly means with actual awareness of a falsity,
deception, or unfairness of an act.
intentionally - Correct Answer-Intentionally means with actual awareness, or flagrant
disregard of prudent and fair business practices.
deception - Correct Answer-misleading participants about the true purpose of a study or
the events that will actually transpire
producing cause - Correct Answer-Producing cause requires proof that the act or
omission was a significant factor in bringing about injury.
,seller's disclosure - Correct Answer-The purpose of the Seller's Disclosure Notice is to
have the owner of the property disclose all facts and defects concerning the property.
This is a good tool to use as a defense in a DTPA lawsuit. It should be filled out by the
seller, not the seller's agent.
statutory defense - Correct Answer-Statutory defenses are defenses that arise out of
law (statute).
deceptive trade practices act (DTPA) - Correct Answer-Allows an aggrieved consumer
to sue a
seller of goods for damages
TREC- promulgated - Correct Answer-Failure to use _____________ forms, a form
written by an attorney, or a form required
by a party can result in a license revocation or suspension by TREC.
conveys
affects - Correct Answer-A license holder must not prepare any document that
___________ or ____________
any interest in real property.
a commission - Correct Answer-A foreign broker or a broker from another state may
collect _____________ from a
Texas broker, as long as that broker does not negotiate in Texas.
Texas Real Estate Commission - Correct Answer-The _____________ was created by
the Legislature in 1949.
900 - Correct Answer-The educational requirements for the broker are _____________
hours.
Refusal - Correct Answer-Some residential leases contain a right of first
_____________, giving the tenant the
right to purchase the leased property by matching or bettering any offer before the
property will be sold to someone else.
Buyer's - Correct Answer-A _____________ Temporary Residential Lease is for use
when the buyer occupies the
property for no more than 90 days prior to closing.
Attorneys - Correct Answer-. ____________ licensed in Texas may represent clients in
real estate transactions without a license.
Lease-purchase - Correct Answer-A lease with an option to purchase is commonly
known as _____________ agreement
, Auctioneers - Correct Answer-_____________ may call an auction without the need for
a real estate license so long as
no other real estate services are being provided.
Seller's - Correct Answer-A _____________ Temporary Residential Lease for use when
the seller occupies the
property for no more than 90 days after closing.
False - Correct Answer-The Deceptive Trade Practices Act is a federal law. (T or F)
False - Correct Answer-Real estate license holders are rarely sued under an action of
DTPA. (T or F)
True - Correct Answer-All sellers have an obligation to disclose any known material
defects to a buyer. (T or F)
True - Correct Answer-A court of law cannot suspend or revoke and agent's license
under a DTPA violation. (T or F)
False - Correct Answer-In Texas, the agent is always responsible for the accuracy of
the Seller's Disclosure Notice. (T or F)
False - Correct Answer-Claims filed under DTPA will be thrown out if there is no
indication of intent to do harm. (T or F)
True - Correct Answer-Stating that an item is "new" or "original" when it is reconditioned
or secondhand is considered misleading or deceptive under DTPA. (T or F)
False - Correct Answer-The Deceptive Trade Practices Act can be found under the
Texas Occupations Code, Title 7. (T or F)
False - Correct Answer-Consumers can recover up to 4 times the amount of economic
damages if the defendant's conduct is found to be intentional. (T or F)
False - Correct Answer-A consumer can bring suit against any one who is proven to be
the procuring cause of the deceptive or misleading practice. (T or F)
1949 - Correct Answer-In ______ the Texas Real Estate Commission was established
to administer and enforce the
TRELA.
a. 1939
b. 1929
c. 1949
d. 1993
- Correct Answer-TREC has only _______ promulgated lease forms.
Questions With Complete Solution
unlawful practice of law - Correct Answer-When license holders
add provisions to contracts that go beyond factual business details.
Texas Real Estate Commission - Correct Answer-Texas Real Estate Commission
(TREC) was created by the Legislature in 1949. It is a
nine-member commission whose primary purpose is to carry out the provisions of the
License Act. Commission members are appointed by the governor and approved by the
Senate. Each serves for a six-year term, except the chairman of the Commission who
serves at the pleasure of the governor.
Six of the members of the Commission are broker members.
Broker-lawyer committee - Correct Answer-Drafts and revises contract forms for use
in real estate transactions in the state of
Texas
promulgated forms - Correct Answer-Forms published by TREC that are
mandatory for license holders to use in
real estate transactions in the state of
Texas
Buyer's Temporary Residential Lease - Correct Answer-for use when the buyer
occupies the property for no more than 90 days prior to closing.
Seller's Temporary Residential Lease - Correct Answer-for use when the seller occupies
the property for no more than 90 days after closing.
addendum - Correct Answer-a thing that is added; an appendix or addition to a book or
written document.
option to purchase - Correct Answer-Commonly known as a lease-purchase
agreement, it gives the tenant occupancy in the present time and the right to purchase
at a future date. In an option to purchase, the price is set when the lease agreement is
negotiated, which is advantageous to the tenant-buyer.
lease-purchase agreement - Correct Answer-gives the tenant occupancy in the present
time and the right to purchase at a future
date.
right of first refusal - Correct Answer-giving the tenant the right to purchase the
,leased property by matching or bettering any offer before the property will be sold to
someone else.
fraud - Correct Answer-A deliberate deception intended to secure an unfair or unlawful
gain
misrepresentation - Correct Answer-deliberately deceiving.
intent - Correct Answer-"Intentionally" means actual awareness of the falsity, deception,
or unfairness of the
act or practice, or the condition, defect, or failure constituting a breach of warranty
giving rise to the consumer's claim, coupled with the specific intent that the consumer
act in detrimental reliance on the falsity or deception or in detrimental ignorance of the
unfairness.
puffing - Correct Answer-Use of adjectives and opinions rather
than details or facts
monetary damages - Correct Answer-In addition to specific performance, the injured
party may "seek such
other relief as may be provided by law." This would be an award of monetary damages
by the court. Because monetary damages are awarded by the court, one never knows
what they will be until the court rules.
goods - Correct Answer-are defined as tangible chattels (real property is tangible when
purchased or leased.
Under DTPA, the sale of a house is considered a good).
services - Correct Answer-means work, labor, or repair of goods. Brokerage is a service
consumer - Correct Answer-an individual, corporation, partnership, or government
source who seeks to
acquire or purchase the goods or services.
knowingly - Correct Answer-Knowingly means with actual awareness of a falsity,
deception, or unfairness of an act.
intentionally - Correct Answer-Intentionally means with actual awareness, or flagrant
disregard of prudent and fair business practices.
deception - Correct Answer-misleading participants about the true purpose of a study or
the events that will actually transpire
producing cause - Correct Answer-Producing cause requires proof that the act or
omission was a significant factor in bringing about injury.
,seller's disclosure - Correct Answer-The purpose of the Seller's Disclosure Notice is to
have the owner of the property disclose all facts and defects concerning the property.
This is a good tool to use as a defense in a DTPA lawsuit. It should be filled out by the
seller, not the seller's agent.
statutory defense - Correct Answer-Statutory defenses are defenses that arise out of
law (statute).
deceptive trade practices act (DTPA) - Correct Answer-Allows an aggrieved consumer
to sue a
seller of goods for damages
TREC- promulgated - Correct Answer-Failure to use _____________ forms, a form
written by an attorney, or a form required
by a party can result in a license revocation or suspension by TREC.
conveys
affects - Correct Answer-A license holder must not prepare any document that
___________ or ____________
any interest in real property.
a commission - Correct Answer-A foreign broker or a broker from another state may
collect _____________ from a
Texas broker, as long as that broker does not negotiate in Texas.
Texas Real Estate Commission - Correct Answer-The _____________ was created by
the Legislature in 1949.
900 - Correct Answer-The educational requirements for the broker are _____________
hours.
Refusal - Correct Answer-Some residential leases contain a right of first
_____________, giving the tenant the
right to purchase the leased property by matching or bettering any offer before the
property will be sold to someone else.
Buyer's - Correct Answer-A _____________ Temporary Residential Lease is for use
when the buyer occupies the
property for no more than 90 days prior to closing.
Attorneys - Correct Answer-. ____________ licensed in Texas may represent clients in
real estate transactions without a license.
Lease-purchase - Correct Answer-A lease with an option to purchase is commonly
known as _____________ agreement
, Auctioneers - Correct Answer-_____________ may call an auction without the need for
a real estate license so long as
no other real estate services are being provided.
Seller's - Correct Answer-A _____________ Temporary Residential Lease for use when
the seller occupies the
property for no more than 90 days after closing.
False - Correct Answer-The Deceptive Trade Practices Act is a federal law. (T or F)
False - Correct Answer-Real estate license holders are rarely sued under an action of
DTPA. (T or F)
True - Correct Answer-All sellers have an obligation to disclose any known material
defects to a buyer. (T or F)
True - Correct Answer-A court of law cannot suspend or revoke and agent's license
under a DTPA violation. (T or F)
False - Correct Answer-In Texas, the agent is always responsible for the accuracy of
the Seller's Disclosure Notice. (T or F)
False - Correct Answer-Claims filed under DTPA will be thrown out if there is no
indication of intent to do harm. (T or F)
True - Correct Answer-Stating that an item is "new" or "original" when it is reconditioned
or secondhand is considered misleading or deceptive under DTPA. (T or F)
False - Correct Answer-The Deceptive Trade Practices Act can be found under the
Texas Occupations Code, Title 7. (T or F)
False - Correct Answer-Consumers can recover up to 4 times the amount of economic
damages if the defendant's conduct is found to be intentional. (T or F)
False - Correct Answer-A consumer can bring suit against any one who is proven to be
the procuring cause of the deceptive or misleading practice. (T or F)
1949 - Correct Answer-In ______ the Texas Real Estate Commission was established
to administer and enforce the
TRELA.
a. 1939
b. 1929
c. 1949
d. 1993
- Correct Answer-TREC has only _______ promulgated lease forms.
