Law of Contracts - Champions Test | Questions & Answers (Graded A+)

Law of Contracts - Champions Test | Questions & Answers (Graded A+) Law of Contracts - Champions Test | Questions & Answers (Graded A+) 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 __________ 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 A(n) __________ is a provision in a contract that requires that a certain act or event happens in order for the contract to be binding on the party. - ANSWER - contingency The Lead-Based Paint Disclosure is: - ANSWER - A federal requirement for residential property built prior to 1978 In Texas, real estate contracts are subject to satisfactory inspections. - ANSWER - false The term __________ is synonymous with contingent. - ANSWER - subject to Real estate agents play a role that includes arranging for the pre-qualification / pre-approval of buyers. - ANSWER - true Rule P-53 of the Texas Department of Insurance states that Title Companies: - ANSWER - Cannot provide food and beverages for a picnic for a single firm, Cannot provide an annual party for a single firm, Cannot provide continuing education classes unless they charge the market rate for those classes Bill is the buyer purchasing a property from Sally. All contingencies have been met and the parties are ready to close. One day prior to closing, Sally announces that she has changed her mind and is going to keep the property. Bill is determined to complete the purchase and acquire the property. The only default remedy in the contract that could result in Bill acquiring the property is___________________________. - ANSWER - specific performance Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a contract. The seller told Elmer that he wanted to stay in the property for at least a week after closing. Elmer said that would be no problem and entered the following text to Paragraph 11: "Seller and Buyer agree that Seller will remain in the Property for 7 days after closing and funding." In this case, Elmer has: - ANSWER - Engaged in the unlawful practice of law The four economic characteristics of land are: scarcity, fixity, situs and ________. - ANSWER - modification Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a property that is listed for $199,500. In a recent phone conversation, the seller told Joe he would accept no less than $185,000 for the property. Knowing the seller's "bottom line," what should Joe do with the offer? - ANSWER - Joe should present the offer to the seller An abstract of title is: - ANSWER - a complete written history of title an option is: - ANSWER - a unilateral contract A seller is going to continue to occupy a property for two days after closing. In this case, the parties should use the Buyer's Temporary Residential Lease form. - ANSWER - false A contract in which only one party is obligated to perform is a________ contract. - ANSWER - unilateral For tax prorations: - ANSWER - If taxes are not paid at or prior to closing the buyer shall pay for the current year, If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year are available, The tax proration may be calculated taking into consideration any change in the exemptions that will affect the current year's taxes ________ is the right of the government to regulate and control the way land is used. - ANSWER - police power A seller of coastal property abutting tidally influenced water must provide the ________. - ANSWER - Notice Regarding Coastal Area Property