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Texas Law of Contracts Questions with Correct Answers
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Texas Law of Contracts Questions with Correct Answers
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Texas Law of Contracts Questions with CorrectAnswers
abstract of title Correct Answer-the condensed history of a title to a
particular parcel of real estate, consisting of a summary of the original
grant and all subsequent conveyances and encumbrances affecting the
property and a certification by the abstractor that the history is complete
and accurate.
acceleration clause Correct Answer-the clause in a mortgage or deed of
trust than can be enforced to make the entire debt due immediately if the
borrower defaults on an installment payment or other covenant.
acceptance Correct Answer-an expression of intent to be bound by the
terms and conditions of an offer. To bind the agreement, this must be
communicated to the person making the offer, and both must be made in
writing.
accession Correct Answer-acquiring title to additions or improvements
to real property as a result of the annexation of fixtures or the accretion
of alluvial deposits along the banks of streams.
accretion Correct Answer-the increase or addition of land by the deposit
of sand or soil washed up naturally from a river, lake, or sea.
accrued depreciation Correct Answer-loss in value resulting from the
property's physical deterioration, functional obsolescence and external
decrease in price.
,acknowledgement Correct Answer-a formal declaration made before a
duly authorized officer, usually a notary public, by a person who has
signed a document.
acre Correct Answer-a measure of land equal to 43,560 square feet, 4840
square yards, 4047 square meters, 160 square rods, or 0.4047 hectares.
actual notice Correct Answer-express information or fact; that which is
known; direct knowledge.
ad valorem tax Correct Answer-a tax levied according to value,
generally used to refer to real estate tax; also called the general tax.
addendum Correct Answer-material added to a contract that is part of the
contract; must be signed by all parties.
adjustable-rate mortgage (ARM) Correct Answer-a loan, characterized
by a fluctuating interest rate, usually one tied to a bank or savings and
loan association cost-of-funds index.
adverse possession Correct Answer-the actual open, notorious, hostile,
and continuous possession of another's land under a claim of title.
Possession for a statutory period may be a means of acquiring title.
,affidavit of title Correct Answer-a written statement, made under oath by
a seller or grantor of real property and acknowledged by a notary public,
in which grantors (1) identify themselves and indicate marital status, (2)
certify that since the examination of the title no defects have occurred
and (3) certify that they are in possession of the property.
agency Correct Answer-the relationship between a principal and an
agent wherein the agent is authorized to represent the principal in certain
transactions.
agent Correct Answer-one who acts or has the power to act for another;
a fiduciary.
air lots Correct Answer-designated airspace over a piece of land; like
surface property, can be transferred.
air rights Correct Answer-the right to use the open space above a
property, usually allowing the surface to be used for another purpose.
alienation Correct Answer-the act of transferring property to another;
may be voluntary, such as by gift or sales, or involuntary, as through
eminent domain or adverse possession.
alienation clause Correct Answer-the clause in a mortgage or deed of
trust that states that the balance of the secured debt becomes
immediately due and payable at the lender's option if the property is sold
, by the borrower. In effect, the clause prevents the borrower from
assigning the debt without the lender's approval.
amendment Correct Answer-a change to the existing content of a
contract (i.le., if words or provisions are added to or deleted from the
body of the contract); must be initialed by all parties.
American Land Title Association (ATLA) policy Correct Answer-a title
insurance policy that protects the interest in a collateral property of a
mortgage lender who originates a new real estate loan.
Americans with Disabilities Act (ADA) Correct Answer-an act that
addresses rights of individuals with disabilities in employment and
public accommodations.
amortized loan Correct Answer-a loan in which the principal as well as
the interest is payable in monthly or other periodic installments over the
term of the loan.
annexation Correct Answer-process of converting personal property into
real property.
annual percentage rate (APR) Correct Answer-the relationship of the
total finance charges associated with a loan. This must be disclosed to
borrowers by lenders under the Truth in Lending Act.
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