Chapter 1 quiz Flashcards by Dorothy Allan

The mission of TREC is to protect consumers’ economic welfare by ensuring that licensees properly carry out their fiduciary responsibilities to clients, are qualified and competent, and
adhere to professional standards.

True
False

True

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Texas Real Estate License Act is the law which established the Texas Real Estate Commission, who is responsible for its enforcement.

True
False

True

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A Listing contract that relates to the contractual obligations between a seller of real estate and a license holder acting as an agent for the seller must include a provision informing the parties to the contract that real estate commissions are negotiable.

True
False

True

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Drafting an instrument/document, other than a form described by Section 1101.155, that transfers or otherwise affects an interest in real property is considered the Unauthorized practice of law.

True
False

True

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The Texas Real Estate Broker-Lawyer Committee was created in ___. It drafts and revises contract forms for use by real estate licensees.

A 1938
B 1983
C 1991
D None of these

B 1983

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A license holder may not practice law, give advice or opinions concerning the status or validity of title, and or attempt to discourage any principal from employing a lawyer.

True
False

True

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Personal property is conveyed with a __________.

Bill of sale

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Real property is conveyed with a D—d.

Deed

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Many areas of the promulgated contract provide for termination. The most obvious is paragraph 23, “Termination Option.” For a sum of money negotiated between the parties, the buyer has a
time period, stated in this paragraph, for the Deed right to terminate.

True

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The _____________ must disclose the condition of the property to the buyer.

Seller

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The _____________ must disclose the condition of the property to the buyer.

Seller

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A lawsuit must be filed within ___________ after the date on which the false, misleading or deceptive act occurred.

A 1 Year
B 2 Year
C 3Year
D None of the above

B 2 Year

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In a legal subdivision, legal descriptions are recorded in the county courthouse where the property is located.
A. True
B. False

A. True

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“Unconscionable action or course of action” means an act or practice which, to a consumer’s disadvantage, takes benefit of the lack of knowledge, ability, experience, or capacity of the consumer to a grossly unfair degree.
A. True
B. False

A. True

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An auctioneer is required to have a real estate license.
A. True
B. False

B. False

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Acting as a principal, a person may purchase, sell, lease, or sublease real estate for profit without being licensed as a broker or salesperson.
A. True
B. False

A. True

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The maximum amount the Recovery Fund will pay for a single transaction is $200,000.
A. True
B. False

B. False

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The Joint Broker-Lawyer Committee has 6 members.
A. True
B. False

B. False (13 Members)

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The members of the Joint Broker-Lawyer Committee served six-year staggered terms.
A. True
B. False

A. True

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The term used for TREC’s approved contracts is “promulgated.”
A. True
B. False

A. True

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A licensee may give opinions concerning the status or validity of the title policy.
A. True
B. False

B. False

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The Joint Broker-Lawyer drafts long-term lease contracts as well as commercial contracts.
A. True
B. False

B. False (they do not do commercial contracts)

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An agreement created by the actions of the parties involved; but is not written or spoken:
A. Unilateral contract
B. Bilateral contract
C. Implied contract
D. Offer and acceptance

C. Implied contract

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A formal agreement between two parties that may be rendered unenforceable for a number
of legal reasons:
A. Void contract
B. Unenforceable contract
C. Voidable contract
D. Valid contract

C. Voidable contract

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``` Examples of this include lack of appraisal, financing, or completed repairs: A. Executed contract B. Void contract C. Unilateral contract D. Executory contract ```

TDB

``` All of the following are elements of a valid contract EXCEPT: A. Offer and acceptance B. Legal subject matter C. Source of financing D. Competent parties ```

C. Source of financing

Most contracts have monetary consideration? A. Yes B. No

A. Yes

Acceptance of a contract must be made without duress, undue influence, or misrepresentation. A. True B. False

A. True

Is a residential promulgated contract a bilateral contract? A. Yes B. No

A. Yes

An executed contract is one in which all parties to the contract have signed and initialed all changes. A. True B. False

A. True

A valid contract: A. Was created by the Joint Broker-Lawyer committee B. Is enforceable in a court of law C. Is a contract created by an offer that can only be accepted by performance D. Has all the elements of a contract but was created with fraudulent information

B. Is enforceable in a court of law

Minors, those who are mentally infirmed, and those under the influence are not considered competent parties. A. True B. False

A. True

A contract for an illegal purpose is legal in the state of Texas. A. True B. False

B. False

Consideration is an essential element of any valid contract. It is a present exchange bargained for, in return for a promise. A. True B. False

A. True

Sometimes called a “meeting of the minds” or “mutual assent,” an acceptance becomes binding when it has been communicated back to the one who made the offer/counteroffer. A. True B. False

A. True

In Texas, legal descriptions can be either oral or written. A. True B. False

B. False

An expressed contract is an agreement created by actions of the parties involved, but it is not written or spoken. A. True B. False

B. False

A bilateral contract is a reciprocal arrangement between two parties. This is called “quid pro quo” or a promise for a promise. A. True B. False

A. True

A formal agreement between two parties that may be rendered unenforceable for many legal reasons is called a voidable contract. A. True B. False

A. True

An assigned contract is one where the final contract is signed, agreed upon, and unequivocally agreed by all parties. A. True B. False

B. False

An example of an executory contract is one in which repairs need to be completed. A. True B. False

A. True

Consideration is in the form of earnest money in a residential contract. A. True B. False

A. True

``` What Act created the Texas Real Estate Commission? A. The Deceptive Trade Practices Act B. The Texas Real Estate License Act C. The Easement and Right of Way Act D. The Texas Property Code ```

B. The Texas Real Estate License Act

``` When was the Texas Real Estate Commission created? A. 1909 B. 1949 C. 1929 D. 1960 ```

B. 1949.

``` The Joint Broker-Lawyer Committee is made up of all of the following people EXCEPT: A. Real estate brokers B. Lawyers C. Public members D. Appraisers ```

The correct answer is D. Appraisers.

``` How many total members serve in the Joint Broker-Lawyer Committee? A. 10 B. 6 C. 13 D. 20 ```

Rationale: The correct answer is C. 13.

All of the following constitute the unauthorized practice of law EXCEPT: A. Anyone who drafts or revises a form or contract promulgated by TREC B. Anyone who advises a person regarding the legality of the title of a piece of property C. Anyone who prepares a net sheet for the seller D. Anyone who gives advice or opinions as to the legal effect of any contract

C. Anyone who prepares a net sheet for the seller.

Who does NOT need to use the TREC promulgated contract forms? A. A licensed residential real estate agent in Texas B. A licensed real estate broker in Texas C. A principal in a transaction D. A licensed commercial agent

C. A principal in a transaction.

All of the following are requirements to obtain a real estate license EXCEPT: A. Must be a citizen of the United States or a lawfully admitted alien B. Must be at least eighteen years old. C. Must meet the education requirements D. Must submit an application only with a sponsoring broker

D. Must submit an application only with a sponsoring broker.

What are the number of course “clock” hours to obtain a real estate license? A. 90 B. 180 C. 60 D. There are no specific hours necessary if you have a 4-year college degree.

The correct answer is B. 180.

The primary purpose of the Deceptive Trade Practices Act is to protect the consumer against false, misleading, and deceptive business practice and unconscionable actions. A. True B. False

A. True. The DTPA is also called the “Consumer Protection Act.”

Which of the following practices could be considered practicing law by a real estate broker for the sale or lease of real property? A. Use of a form prepared by the broker’s company B. Use of a form prepared by an attorney C. Use of a form prepared by the property owner D. Use of a form promulgated by TREC

The correct answer is A. Use of a form prepared by the broker’s company. Brokers and sales agent are not attorneys. They cannot practice law by drawing up legal documents for customers and clients. An owner selling his own property can use a form he created and an attorney, of course, can draw up legal documents.

2. When a seller and a buyer wish to convey personal property, this is done with: A. A deed B. A bill of sale C. A deed of Trust D. Nothing is required

The correct answer is B. A bill of sale. Any personal property that is conveyed should be conveyed with a bill of sale. You do not want the negotiation of personal property in the contract because the lenders and underwriters do not want to see it.

When an offer becomes a contract, which step is NOT required? A. Signatures of buyer and seller are required. B. Both agents must meet to review the contract. C. Notice must be delivered to all parties. D. All changes to offer must be initialed

The correct answer is B. Both agents must meet to review the contract. If the agents meet, it should be prior to the presentation of the offer. This will give the buyer’s agent the chance to present his offer, present his buyers, and explain any unusual or out of the ordinary requests in the contract. To finalize the contract, it must be initialed and signed by both parties and delivered to all parties

An act or practice which, to a consumer’s detriment, takes advantage of the lack of knowledge, ability, experience, or capacity to a grossly unfair degree is called a(n): A. Fraud B. Unauthorized practice of law by the broker C. Conveyance D. Unconscionable action

The correct answer is D. Unconscionable action. This concept is addressed in the Deceptive Trade Practices Act. Unconscionable actions can be dealt with by a ruling of treble damages (three times the amount of the actual damage incurred).

``` Who does the Texas Real Estate Commission protect? A. Real estate brokers B. Consumers C. Real estate agents D. Title companies ```

The correct answer is B. Consumers. The Real Estate Commission’s purpose is to protect the public, not sales agents and brokers.

Listing contracts must include the verbiage that “commissions are negotiable.” A. True B. False

A. True. There is no “set” or “standard” commission fee in real estate. If commissions are fixed, this violates the Sherman Anti-Trust Act.

Paragraph 23 of the contract is called the Option paragraph. In essence, this paragraph gives the buyer the unrestricted right to terminate the contract for any reason within a certain time frame. A. True B. False

A. True. Usually, this time frame is seven or ten days. This gives the buyer time to have the property inspected and researched; however, note that the buyer can cancel the contract for ANY reason, not just for inspection results

``` ______________ is a law handed down by the legislature. A. International law B. Statutory law C. Federal Law D. Common law ```

The correct answer is B. Statutory law.

``` The defining characteristic of common law is that it arises from __________________. A. Statutory law B. Agency law C. Precedents D. None of the above ```

The correct answer is C. Precedents.

``` Method of annexation, fitness to the property, and intention of the parties are the three tests of a(n) _____________. A. Estimate B. Fixture C. Feature D. Trade ```

Rationale: The correct answer is B. Fixture.

The definition of real estate begins with the land. Added are all structures that are manmade. Land is composed of three parts: surface, subsurface, and all the airspace above. A. True B. False

Rationale: The correct answer is A. True.

Personal property would be sold with a bill of sale. A. True B. False

Rationale: The correct answer is A. True.

An appurtenance is a right or privilege attached to land that goes with the land when ownership of the land changes. Examples are condominium parking spaces, easements, and right-of-way. A. True B. False

Rationale: The correct answer is A. True.

The physical characteristics of real property are immobility, indestructibility, and no homogeneity. A. True B. False

Rationale: The correct answer is A. True.

Area preference, also call homogeneity, is the location of the property. A. True B. False

Rationale: The correct answer is B. False.

In the event of death of one of the owners, the rights of survivorship pass to the surviving owner. This is called tenancy by necessity. A. True B. False

Rationale: The correct answer is B. False.

Corporations are organizations that can own property and transact business in its name. A. True B. False

Rationale: The correct answer is A. True.

Condominiums are a form of ownership where the owner receives shares. A. True B. False

Rationale: The correct answer is B. False.

``` A form of ownership where the owner receives shares: A. Cooperatives B. Condominiums C. Townhomes D. Time Share ```

Rationale: The correct answer is: A. Cooperatives are more prevalent on the East Coast. Instead of purchasing a condominium, they purchase shares in the building made up of living units.

The Real Estate License Act came out of a law passed by the Texas Legislature in 1965. A. True B. False

Rationale: The correct answer is: B. The law was passed in 1939.

``` “Land” is composed of three parts. Which one is NOT one of these parts? A. Surface B. Man-made structures C. Subsurface D. Air space ```

Rationale: The correct answer is: B. The man-made structure is part of the definition of real estate, not land.

``` Location of the property: A. Permanence B. Chattel C. Situs D. None of the above ```

Rationale: The correct answer is: C. Comes from the Latin word “site” and means when something exists or originates.

``` A form of ownership where the owner receives shares: A. Cooperatives B. Condominiums C. Townhomes D. Time Share ```

Rationale: The correct answer is: A. Cooperatives are more prevalent on the East Coast. Instead of purchasing a condominium, they purchase shares in the building made up of living units.

The Real Estate License Act came out of a law passed by the Texas Legislature in 1965. A. True B. False

Rationale: The correct answer is: B. The law was passed in 1939.

``` The land and all structures man-made: A. Real property B. Real estate C. Chattel D. Personal property ```

Rationale: The correct answer is: B. Real property also includes the rights as well as the real estate. Chattel is personal property--not real estate.

``` Which business organizations can own property and transact business in its name? A. Trusts B. Partnerships C. Corporations D. Associations ```

The correct answer is D. Associations. By definition, | associations can own property and transact business in its name.

``` All of the following are elements of a valid contract EXCEPT: A. Offer and acceptance B. Legal subject matter C. Source of financing D. Competent parties ```

Rationale: The correct answer is: C. The ability to obtain financing is a contingency in the contract but does not make the contract valid or invalid.

An executed contract is one in which all parties to the contract have signed and initialed all changes. A. True B. False

Rationale: The correct answer is: A. Until everyone has signed the contract and initialed all changes, the contract is still considered an “offer.”

Must contracts have monetary consideration? A. Yes B. No

Rationale: The correct answer is: B. Consideration is an essential element of any valid contract. It is a present exchange bargained for in return for a promise.

A quitclaim deed only transfers whatever ownership interest a grantor has in a property, but makes no guarantees about the extent of the grantor’s interest in such property, if any. A. True B. False

Rationale: The correct answer is A. True.

Eminent domain, taxation, escheat, police powers are corporate entity powers. A. True B. False

Rationale: The correct answer is B. False.

Escheat refers to a government’s legal authority to force a private landowner to sell their real property for public use. A. True B. False

Rationale: The correct answer is B. False.

If a person dies intestate without a will or heirs, their real and personal property is subject to escheat. A. True B. False

Rationale: The correct answer is A. True.

Laws, like zoning, land use, fire codes, are examples of police power. A. True B. False

Rationale: The correct answer is A. True

A general warranty deed gives clear title to a property all the way back to the sovereignty of the soil. A. True B. False

Rationale: The correct answer is A. True.

An estate in land has been defined as the degree, nature, quantity , and extent of interest that a person has in real property. A. True B. False

Rationale: The correct answer is A. True

A leasehold estate is one where the duration of ownership is indeterminate, which could be for a lifetime of an individual, or an unlimited duration. A. True B. False

Rationale: The correct answer is B. False.

Leasehold estates include homesteads, community property rights, and water rights. A. True B. False

Rationale: The correct answer is B. False

Tenancy for Years, Periodic Tenancy, Tenancy at Sufferance, and Tenancy at Will are the types of a non-freehold estate. A. True B. False

Rationale: The correct answer is A. True.

An individual who owns mineral rights has the right to enter land that is occupied by another and remove the minerals. A. True B. False

Rationale: The correct answer is: A. Someone other than the owner can own the minimal rights on a piece of property and if they do, they can legally be on the land and remove the minerals.

The government has the right to tax real property but NOT personal property A. True B. False

Rationale: The correct answer is: B. The government has the right to tax both.

Texas regulates environmental issues through the Texas Commission on Environmental Quality. A. True B. False

Rationale: The correct answer is: A. People often confuse this with the Texas Water Board.

``` All the following are rights of surface water EXCEPT: A. Riparian rights B. Mineral rights C. Littoral rights D. Prior appropriation ```

Rationale: The correct answer is: B. Mineral rights are below the ground. All others are rights of surface water.

``` A burden, obstruction, or impediment on property: A. Police power B. Encumbrance C. Statutory estate D. Joint tenant ```

Rationale: The correct answer is: B. An encumbrance is also a claim against a property by a party that is not the owner. An example of encumbrances on a property are mortgages, easements, and property tax liens.

``` What is the degree, nature, quantity, and extent of interest that a person has in real estate called? A. Equitable title B. Estate in land C. Encumbrance D. Consideration ```

Rationale: The correct answer is: B. Interest in this context does not mean “interest rate.” It means the extent of ownership one has in the property called an “estate in land.”

``` Police power, taxation, eminent domain, and escheat are four examples of: A. Physical characteristics of land B. Economic characteristics of land C. Governmental Powers D. Estates in land ```

Rationale: The correct answer is: C. These are the four powers the government has in relation to setting rules and laws around real estate.

By signing the listing agreement, the seller is not giving the listing broker or listing agent any authority to sign any documents on their behalf. A. True B. False

Rationale: The correct answer is A. True.

If the seller and the listing broker agree to intermediary, the listing broker may also represent a buyer in the transaction. A. True B. False

Rationale: The correct answer is A. True

If the seller breaches the listing, the seller will NOT be liable to the broker for the commission. If the broker breaches the listing, the seller may use any remedy allowed by law. A. True B. False

Rationale: The correct answer is B. False.

The listing agreement states that all commissions are always negotiable and are not fixed or set by TREC or any organization. A. True B. False

Rationale: The correct answer is A. True.

The open listing is where the owner agrees to list the property with only one broker; however, the owner does reserve the right to sell the property themselves. A. True B. False

Rationale: The correct answer is B. False.

Buyer’s agency agreements can be created in the following three ways: expressed oral agreement, implied act, and agency by ratification. A. True B. False

Rationale: The correct answer is A. True

One of the most common contingencies in real estate contracts is a mortgager contingency. A. True B. False

Rationale: The correct answer is A. True.

With a contract for deed, the seller holds legal title to the property as security for payment while the buyer has equitable title. A. True B. False

Rationale: The correct answer is A. True

A gross lease is where a tenant pays a percentage of their gross sales as rent. A. True B. False

Rationale: The correct answer is B. False.

With an estate for years has a defined beginning date and ending date for a specific term. A. True B. False

Rationale: The correct answer is A. True.

A contract form that has been prepared by a(n) principal or prepared by a(n) attorney and required by a principal are all exceptions from using the promulgated forms by TREC. ASDAS True or False

True or False

A(n) _____________ is a legally binding agreement between parties, to do or not do something.

Rationale: contract

___________ is the use of force or pressure by one party to make the other party agree to the contract.

Rationale: Duress

It is not possible to seek specific performance AND collect earnest money at the same time. True of false

true

A way for the buyer to transfer obligations to another is called assignment

True

Sources of forms used by real estate agents in Texas include _____TREC & TAR and lawyers. true or false

true or false

To be valid, a listing agreement must have a termination date. The length of a listing term is often decided by the market conditions and the ___________ policy.

Rationale: broker's

The seller’s evidence of title is the title insurance policy True or False

True

The exclusive right to sell is the most widely used residential listing in Texas.

Rationale: exclusive right to sell

By law, the listing agreement must have a termination date. The agreement cannot automatically renew. True or False

True

A non-freehold estate is the same thing as a leasehold estate. A. True B. False

Rationale: The correct answer is A. Freehold is ownership. Non-freehold is a lease

``` The state of the contract between the execution date and the closing. A. Fully executed contracted B. Executed contract C. Option contract D. Executory contract ```

The correct answer is D. Executory means that there are things that still need to be executed.

``` The most widely used residential listing form in Texas is: A. Exclusive agency B. Exclusive right–to–sell C. Exclusive open listing D. Exclusive net listing ```

Rationale: The correct answer is B. The exclusive right-to-sell provides the broker (and agent) the most protection, as the listing broker is paid no matter who sells the property.

``` This type of lease provides that if a tenant achieves a certain amount of gross sales in a given year, a percentage of such gross sales will be paid to the landlord as additional rent. A. Open lease B. Percentage lease C. Net lease D. No such thing exists ```

Rationale: The correct answer is B. A percentage lease is most often used in retail space. The landlord invests in the success of the tenant by giving him/her a lower rate of rent but participates in a percentage of the lessee’s profits.

A non-freehold estate is the same thing as a leasehold estate. A. True B. False

The correct answer is A. Lease hold and non-free hold are the same thing non-free hold is rental, Free -hold is owning.

``` What kind of listing is created when the owner wishes to receive a set amount of money from the sale of the property? A. Exclusive agency listing B. Open listing C. Net listing D. None of the above ```

Rationale: The correct answer is C. Normally in this situation the seller will say that he/she wants to net X amount from the sale of the property and anything over and above that net, the agent will receive as commission. This is used more with commercial properties.

``` What is the transfer of property from one person to another and the document and/or instrument by which this is affected called? A. Transfer B. Conveyance C. Title D. Deed ```

Rationale: The correct answer is B. Conveyance.

``` The One to Four Family Residential Contract (Resale) states the seller will deliver the buyer a ____________ deed. A. Specific Title B. General Warranty C. General Title D. None of the above ```

Rationale: The correct answer is B. General Warranty.

``` The right of the buyer or the seller to pursue the other party to complete a contract is called: A. Specific performance B. Time is of the essence. C. Specific warrant D. None of the above ```

Rationale: The correct answer is A. Specific performance.

``` A failure to perform. A refusal to honor a promise. A. Fraud B. Deceptive trade C. Default D. Breach ```

Rationale: The correct answer is D. Breach. Breach is defined as a break; a failure to perform and a failure to do one’s duty. Default is defined as a failure to file an answer or other response to a summons or complaint in a laws

The two types of Home Sale Contingencies, in which a transaction is dependent or contingent upon the sale of the buyer’s home, are the Sale and Settlement Contingency and the Settlement Contingency. A. True B. False

Rationale: The correct answer is A. True.

A financing contingency protects the buyer as it allows him/her time to apply for and obtain financing with the purchase of a property. He/she can also back out of the contract and reclaim his/her earnest money in the event he/she is unable to secure financing from a bank. A. True B. False

Rationale: The correct answer is A. True.

The addendum that refers to the loan that a buyer takes out to purchase a home, either through conventional loans, an FHA loan, or other type, is known as the Loan Assumption Addendum. A. True B. False

Rationale: The correct answer is B. False

A contingency is a provision that a certain act or event will happen for a contract to be binding. A. True B. False

Rationale: The correct answer is A. True

One of the most common contingencies in a contract is the homeowner association contingency. A. True B. False

Rationale: The correct answer is B. False

An addendum is something that is added to the contract. A. True B. False

Rationale: The correct answer is A. True.

A sale and settlement contingency means that the buyers are going to assist their children in the sale of their property. A. True B. False

Rationale: The correct answer is B. False

The Third-Party Financing Addendum is used when a buyer wants to obtain FHA or VA financing. A. True B. False

Rationale: The correct answer is A. True.

The addendum used when the buyer must show the seller’s his credit worthiness is the Loan Assumption Addendum. A. True B. False

Rationale: The correct answer is B. False.

The Amendment is used to make a change in the original executed contract. A. True B. False

Rationale: The correct answer is A. True

Both TREC and TAR addenda are acceptable for licensees to use. A. True B. False

Rationale: The correct answer is A. True.

What is the purpose of the Contingency Contract, created under the “Sale of Other Property” Addendum? A. It makes the contract contingent upon the buyers receiving funds from their home sale before they can close on the home they wish to purchase. B. It stipulates the maximum amount of money the seller can spend on property repairs. C. It maps out the public spaces that surround the property. D. All of the above

Rationale: The correct answer is A. It makes the contract contingent upon the buyers receiving funds from their home sale before they can close on the home they wish to purchase.

If the owner of a home is already under contract to sell the property, and a second offer is made and accepted, this second offer becomes what type of contract? A. A secondary contract B. A back-up contract C. A contingency contract D. The seller cannot accept a second offer.

Rationale: The correct answer is B. A back-up contract

``` Which of the following would be an example of an amendment in the TREC contract? A. Inspection and repairs B. Change of assigning fees C. Closing dates D. All of the above ```

Rationale: The correct answer is D. All of the above.

``` A contingency added by sellers to provide a measure of protection in a house sale. A. Amendment B. Addenda C. Kick-out clause D. Kick back . ```

Rationale: The correct answer is C. The kick-out clause allows the seller to continue to market the property and upon receiving an offer from another buyer will give notice to buyer 1 to remove the contingency

Changes made to an existing contract are using an “Amendment.” A. True B. False

Rationale: The correct answer is A. Often confused with “addenda,” notice that for the “Amendment” the contract is already in existence.

Mistakes made on a contract voidable? True False

True

Contracts made under duress (provable) can make a contract Voidable.

True | False

Are voidable contracts fixable Yes No

Yes

Default is defined as (contract ending) One of the parties to the contract has failed (breeched) to complete their obligations and bring the contract to its completion. True False

True ``` Paragraph 15 (Default) of the One-to-Four Family Residential Contract (Resale) form offers options to the non-defaulting party. ```

Breech of promise can results in default Example Seller promises to leave the curtains upon walk through they are no longer there, the Seller and is now in default. True False

True

In a default A) damaged party keeps the earnest money B) damaged party may sue for specific performance and or C) sue for damages D) all of the above True False

True

Exercise the option period (Paragraph 23) means The buyer pays for the unrestricted right to terminate and the seller has not say, it is a nonmenial fee True False

True

Assignment, does not end the contract, it ends the liability of whomever was taken off the contract, whomever is being put on is taking the liability True False

True

(Texas Questions) Listing Agreement an Exclusive Right to Sell contract (provided by Texas Realtors) determines that No matter who brings the buyer the broker gets paid. True False

True

Texas Realtors supplies all Texas agreements True False

True

TREC Protect Consumers True False

True

Exclusive Agency addenda added to the Exclusive Right to Sell. Brokers gets paid unless the seller procures a buyer. True False

True

The four types of listings are A Exclusive Right to Sell B Exclusive agency C Open Listing & Net Listing D all of the above

D None of the above

Open listing can use as many brokers as he wants whomever sells gets paid. True False

True

Net listing Sellers means everything over the net number wanted by the seller is commission to the agent (goes against old car). True False

True

Encumbrance. This is a burden, obstruction, or impediment on property that can lessen its value or make it less marketable.

True

Surface water rights The riparian doctrine and the prior appropriation doctrine are two legal doctrines of this.

True

Water Rights Adjudication Act, This required any person claiming a riparian water right to file a claim for the right by 1969 with the Texas Water Commission.

True

Community property This includes everything a couple acquires after marriage through labor.

True

Homestead This protects qualifying real estate property from forced sale by general creditors.

True

Exclusive agency listing; The type of listing where the owner agrees to list the property with only one broker; however, the owner reserves the right to sell the property himself.

True

Expressed oral agreement; Buyer agency agreements can be created in three ways. Name one.

True

Agency by ratification; An agency relationship which is created after the fact when the principal agrees to be bound by the actions of another person who was acting without authority.

True

Net listing; A listing where the owner wants to receive a set amount.

True

Open listing, A listing where the owner employs as many brokers as they wish, as well as retain the right to sell the property themselves.

True

Exclusive right-to-sell The listing that affords the broker the most protection.

True

Contingency. A condition that must be met to close a real estate transaction

True

Duress The use of force or pressure to make one party agree to a contract.

True

Freehold estates The conveyance of real estate is covered by real estate contracts. =

True

Leasehold estate means you are renting True False

True

Non-Freehold means not ownership True False

True

Chapter 1 quiz Flashcards

(174 cards)