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Law of Contracts #1251 Questions with correct Answers
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Law of Contracts #1251
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Law of Contracts #1251The mission of ________________________________________ 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. – answer TREC
____________________________ is the law which established the Texas Real Estate
Commission, who is responsible for its enforcement. It governs the licensure and lawful
behavior of real estate brokers and salespersons. – answer TRELA
A _____________________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. - answerlisting contract
Drafting an instrument, other than a form described by Section 1101.155, that transfers
or otherwise affects an interest in real property is considered the
__________________________. - answer unauthorized practice of law
The Texas Real Estate Broker-Lawyer Committee was created in ________. It drafts
and revises contract forms for use by real estate licensees. - answer1983
A license holder may not practice _________, give advice or opinions concerning the
status or validity of title, and or attempt to discourage any principal from employing a
lawyer. - answerlaw
Personal property is conveyed with a __________. - answerbill of sale
Real property is conveyed with a __________. - answerdeed
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
__________________ right to terminate. - answerunrestricted
The ________ must disclose the condition of the property to the buyer. - answerseller
A lawsuit must be filed within ___________ after the date on which the false, misleading
or deceptive act occurred. - answer2 years
,In a legal subdivision, legal descriptions are recorded in the county courthouse where
the property is located.
A. True
B. False - answerTrue
"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 - answerTrue
An auctioneer is required to have a real estate license.
A. True
B. False - answerFalse
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 - answerTrue
The maximum amount the Recovery Fund will pay for a single transaction is $200,000.
A. True
B. False - answerFalse
The Joint Broker-Lawyer Committee has 6 members.
A. True
B. False - answerFalse
The members of the Joint Broker-Lawyer Committee served six-year staggered terms.
A. True
B. False - answerTrue
The term used for TREC's approved contracts is "promulgated."
A. True
B. False - answerTrue
A licensee may give opinions concerning the status or validity of the title policy.
.
,A. True
B. False - answerFalse
The Joint Broker-Lawyer drafts long-term lease contracts as well as commercial
contracts.
A. True
B. False - answerFalse
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 - answerThe Texas Real Estate License Act
When was the Texas Real Estate Commission created?
A. 1909
B. 1949
C. 1929
D. 1960 - answer1949
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 - answerAppraisers
How many total members serve in the Joint Broker-Lawyer Committee?
A. 10
B. 6
C. 13
D. 20 - answer13
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 -
answerAnyone 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 - answerA 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 - answerMust 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. -
answer180
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 - answerTrue
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 - answerUse of a form prepared by the broker's
company
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. - answerA bill of sale
When an offer becomes a contract, which step is NOT required?
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