LAW OF CONTRACTS CHAMPIONS EXAM, PRACTICE
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
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? - 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
, LAW OF CONTRACTS CHAMPIONS EXAM, PRACTICE
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
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: -
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
, LAW OF CONTRACTS CHAMPIONS EXAM, PRACTICE
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
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
, LAW OF CONTRACTS CHAMPIONS EXAM, PRACTICE
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
__________ 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
party financing
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
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? - 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
, LAW OF CONTRACTS CHAMPIONS EXAM, PRACTICE
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
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: -
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
, LAW OF CONTRACTS CHAMPIONS EXAM, PRACTICE
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
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
, LAW OF CONTRACTS CHAMPIONS EXAM, PRACTICE
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
__________ 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
party financing
