Texas Real Estate Prep Questions and 100% Correct Answers
6 views 0 purchase
Course
Texas Real Estate
Institution
Texas Real Estate
Unilateral Contract - Answer A one-sided agreement. Only one party makes a promise.
The second party does not have to act, but if they do, the first party must keep the
promise. Paragraph 23 is a unilateral contract within the bilateral contract.
Bilateral Contract - Answer Both parties to the c...
Texas Real Estate Prep Questions and 100%
Correct Answers
Unilateral Contract - Answer A one-sided agreement. Only one party makes a promise.
The second party does not have to act, but if they do, the first party must keep the
promise. Paragraph 23 is a unilateral contract within the bilateral contract.
Bilateral Contract - Answer Both parties to the contract must promise to do something.
A sales contract is a
BILATERAL contract because both the buyer and seller make a promise.
Consideration - Answer Something of a legal value, usually one party suffering a legal
detriment bargained for and given in exchange for a promise or an act. Any return
promise to perform that has been bargained for and exchanged is legally sufficient to
satisfy the element.
Executory Contract - Answer The contract is not executed. Something remains to be
done by one or both parties.
Executed Contract - Answer Both parties have fulfilled their promises and performed on
the contract.
Valid Contract - Answer A binding and enforceable contract.
Void Contract - Answer Has no legal force or effect because it does not meet the
essential elements of a contract.
,Voidable Contract - Answer A valid contract that may be terminated or rescinded by one
of the parties. Binds one party, but not on the other party.
Unenforceable Contract - Answer An oral contract.
Assignment of a Contract - Answer Transfer of the rights and duties from one principal
to another.
Novation - Answer Substitution of a new contract for an existing agreement with the
intent of getting rid of the old contract.
Contingency - Answer A condition in a contract that has not been met.
Time is of the Essence - Answer The contract must be performed within the time limits
specified and that any party who has not performed on time is liable for breach of
contract.
Computing Time - Answer Today is zero, tomorrow is day 1.
Addendum - Answer A format to add additional terms and conditions to the approved
forms incorporating them into the legal document.
Amendment - Answer A form used to change the language in either the listing
agreement or the purchase contract. Not effective until all parties agree to the change.
Earnest Money - Answer Money deposited by a prospective buyer as evidence of good
faith under the terms of the contract, that is to be forfeited if the buyer defaults but is
applied to the purchase price if the sale is closed.
, Commingling - Answer A broker or salesperson may not mix a client or customer's
money from an escrow account with their personal or business account.
Equitable Title - Answer Is the beneficial interest of one person in real property,
although the legal title is vested in another. Buyer has the right to buy the property. You
have this as soon as both parties sign the agreement.
Specific Performance - Answer When a principal is taken to court and is sued to perform
the requirements of the contract.
Option - Answer A contract in which a seller gives a potential buyer the right to buy the
property at a fixed price within a stated period of time.
Optionee - Answer Has no obligation to buy. he may decide to either exercise the option
right and buy or allow the option right to expire. Buyer must pay a fee for the option
right.
Option Contract - Answer Is not a sales contract. It merely gives that the optionee the
right to buy. The owner will be obligated to sell if the optionee decides to
Contract for Deed - Answer Under this form of contract, the SELLER RETAINS LEGAL
TITLE until the terms of the contract have been satisfied, and the buyer pays the debt in
full. The buyer has equitable title during the life of the contract. This is a type of seller
financing. Also referred to as a land contract.
Law of Agency - Answer A body of laws that govern the relationship between a principal
and his/her agent. It defines the right and duties of the parties in a real estate
transaction. These laws are based on common law.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Examsplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
