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AYPO Real Estate Law of Contracts Exam 2025 –
Versions 1 & 2 Updated Practice Test, Study Guide &
Answer Key for Texas Real Estate License
Master the AYPO Real Estate Law of Contracts Exam with the 2025 updated study guide
and practice tests. Includes both Version 1 and Version 2 exams with detailed answer
explanations covering contract law, real estate transactions, legal principles, and TREC
guidelines. Ideal for Texas Real Estate Commission (TREC) students completing the AYPO
Real Estate course.
• AYPO Real Estate Law of Contracts Exam 2025
• AYPO Real Estate Law of Contracts version 1 and 2 answers
• AYPO Law of Contracts practice test
• AYPO Real Estate course exam 2025
Lease agreements lasting more than ________ must be in writing to be unenforceable under the Texas
Statute of Frauds. - ANSWER-One year
The leasehold estate owner is said to hold a ____________ interest. - ANSWER-Reversionary
Which of these would NOT be a requirement to create a valid lease agreement? - ANSWER-Financing
disclosure
Which form of these lease types is focused primarily on commercial lessees? - ANSWER-Percentage lease
A tenant abandoning a leased property without providing proper notice or doing so under a previously
negotiated reason, is not released from their obligations. - ANSWER-TRUE
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Which of these was NOT one of the key court rulings? - ANSWER-Earlier agreements supersede later
agreements
Which process requires the breaching party to complete their contractual obligations? - ANSWER-
Specific performance
The form that generally precedes the rest in most sales transactions is the: - ANSWER-Information About
Brokerage Services
Which type of listing agreement is the only one to guarantee the broker a commission in the event of a
successful sale? - ANSWER-Exclusive-right-to-sell
Buyer-broker agency is a relatively new concept in the Texas real estate profession? - ANSWER-TRUE
What type of contracts are options generally considered to be? - ANSWER-Unilateral
A contract for deed is also known as: - ANSWER-1. Installment sales contract
2. Real estate contract
An advantage to buyers in a lease-purchase option is that: - ANSWER-It can be easier to get a difficult to
qualify buyer into a home with a lower down payment.
The real estate sales contract becomes an offer as soon as: - ANSWER-It has been prepared and signed
by the purchaser.
At what point has an acceptance of an offer been completed? - ANSWER-Once the offeror has been
notified of the offeree's acceptance.
A __________ clause states that a contract remains valid even if one provision of the contract is
rendered invalid. - ANSWER-Severability
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Which of these IS NOT one of the major types of REITs? - ANSWER-Commercial
Buyer's agents aware of a "stigma." i.e., psychologically impactful event, on a property are required to
disclose the stigma. - ANSWER-FALSE
Buyer A purchases home from Seller B, but the home burns down the week before closing - the cause a
cigarette dropped by A during a walk-through. As a result: - ANSWER-A likely is obligated to complete the
purchase because the damage was A's fault.
Which of these IS NOT listed as a potential damages item for wrongfully failing or refusing to sign a
release acceptable to the escrow agent within 7 days of receipt of the request? - ANSWER-Broker's fees
In what instances may parol (oral) evidence be used to dispute a contractual obligation? - ANSWER-
When a party made promises that they never intended to fulfill but used to induced the other party to
sign the contract
Which of these is not a common defense to breach of contract? - ANSWER-Novation
Damages that are accounted for in advance by agreeing to a specific amount of compensation should the
anticipated event occur, are referred to as: - ANSWER-Liquidated damages
A "cloud" on a title means: - ANSWER-There is a possibility of another person or entity having a claim on
the property.
An amendment must always reference: - ANSWER-1. The original contract.
2. Names of the parties.
3. Dates of ratification.
Promulgated addenda forms may be found in Paragraph 22 of which addendum form? - ANSWER-One to
Four Family Residential Contract (Resale)
AYPO Real Estate Law of Contracts Exam 2025 –
Versions 1 & 2 Updated Practice Test, Study Guide &
Answer Key for Texas Real Estate License
Master the AYPO Real Estate Law of Contracts Exam with the 2025 updated study guide
and practice tests. Includes both Version 1 and Version 2 exams with detailed answer
explanations covering contract law, real estate transactions, legal principles, and TREC
guidelines. Ideal for Texas Real Estate Commission (TREC) students completing the AYPO
Real Estate course.
• AYPO Real Estate Law of Contracts Exam 2025
• AYPO Real Estate Law of Contracts version 1 and 2 answers
• AYPO Law of Contracts practice test
• AYPO Real Estate course exam 2025
Lease agreements lasting more than ________ must be in writing to be unenforceable under the Texas
Statute of Frauds. - ANSWER-One year
The leasehold estate owner is said to hold a ____________ interest. - ANSWER-Reversionary
Which of these would NOT be a requirement to create a valid lease agreement? - ANSWER-Financing
disclosure
Which form of these lease types is focused primarily on commercial lessees? - ANSWER-Percentage lease
A tenant abandoning a leased property without providing proper notice or doing so under a previously
negotiated reason, is not released from their obligations. - ANSWER-TRUE
,2|Page
Which of these was NOT one of the key court rulings? - ANSWER-Earlier agreements supersede later
agreements
Which process requires the breaching party to complete their contractual obligations? - ANSWER-
Specific performance
The form that generally precedes the rest in most sales transactions is the: - ANSWER-Information About
Brokerage Services
Which type of listing agreement is the only one to guarantee the broker a commission in the event of a
successful sale? - ANSWER-Exclusive-right-to-sell
Buyer-broker agency is a relatively new concept in the Texas real estate profession? - ANSWER-TRUE
What type of contracts are options generally considered to be? - ANSWER-Unilateral
A contract for deed is also known as: - ANSWER-1. Installment sales contract
2. Real estate contract
An advantage to buyers in a lease-purchase option is that: - ANSWER-It can be easier to get a difficult to
qualify buyer into a home with a lower down payment.
The real estate sales contract becomes an offer as soon as: - ANSWER-It has been prepared and signed
by the purchaser.
At what point has an acceptance of an offer been completed? - ANSWER-Once the offeror has been
notified of the offeree's acceptance.
A __________ clause states that a contract remains valid even if one provision of the contract is
rendered invalid. - ANSWER-Severability
, 3|Page
Which of these IS NOT one of the major types of REITs? - ANSWER-Commercial
Buyer's agents aware of a "stigma." i.e., psychologically impactful event, on a property are required to
disclose the stigma. - ANSWER-FALSE
Buyer A purchases home from Seller B, but the home burns down the week before closing - the cause a
cigarette dropped by A during a walk-through. As a result: - ANSWER-A likely is obligated to complete the
purchase because the damage was A's fault.
Which of these IS NOT listed as a potential damages item for wrongfully failing or refusing to sign a
release acceptable to the escrow agent within 7 days of receipt of the request? - ANSWER-Broker's fees
In what instances may parol (oral) evidence be used to dispute a contractual obligation? - ANSWER-
When a party made promises that they never intended to fulfill but used to induced the other party to
sign the contract
Which of these is not a common defense to breach of contract? - ANSWER-Novation
Damages that are accounted for in advance by agreeing to a specific amount of compensation should the
anticipated event occur, are referred to as: - ANSWER-Liquidated damages
A "cloud" on a title means: - ANSWER-There is a possibility of another person or entity having a claim on
the property.
An amendment must always reference: - ANSWER-1. The original contract.
2. Names of the parties.
3. Dates of ratification.
Promulgated addenda forms may be found in Paragraph 22 of which addendum form? - ANSWER-One to
Four Family Residential Contract (Resale)
