Law of Contracts
A buyer defaults on a contract and the seller chooses to receive the earnest money.
This is an example of: - ANSWER Liquidated damages
In a residential lease with a "right of first refusal" provision: - ANSWER The tenant has
the right to match or better any offer the landlo...
Law of Contracts
A buyer defaults on a contract and the seller chooses to receive the earnest money.
This is an example of: - ANSWER Liquidated damages
In a residential lease with a "right of first refusal" provision: - ANSWER The tenant has
the right to match or better any offer the landlord receives to prevent the property from
being sold to someone else
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
Texas Veteran's Housing Assistance Program loans can be: - ANSWER (a) FHA
(b) VA
(c) Conventional
(d) Any of the above
D
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 offe - ANSWER Joe should present the offer to the seller
An abstract of title is: - ANSWER A complete written history of title
The Buyer and Seller Temporary Residential Lease forms are good for any period up to:
- ANSWER 90 days
, An option is: - ANSWER unilateral contract
The Special Provisions paragraph of the contract allows license holders to insert: -
ANSWER (a) Factual business details
(b) Statements not addressed in the contract
(c) Information for which there is no TREC promulgated addendum, lease or mandatory
form
(d) All of the above
Correct answer: d
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 (a) If taxes are not paid at or prior to closing the buyer
shall pay for the current year
(b) 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
(c) The tax proration may be calculated taking into consideration any change in the
exemptions that will affect the current year's taxes
(d) All of the above
D
________ is the right of the government to regulate and control the way land is used. -
ANSWER Police power
A counteroffer is: - ANSWER a) A rejection
(b) A new offer
(c) Able to be withdrawn prior to acceptance
(d) All of the above
D
A seller of coastal property abutting tidally influenced water must provide the ________
- ANSWER Notice Regarding Coastal Area Property
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 in writing
RESPA prohibits ________, which is considered an abusive practice. - ANSWER
kickbacks
A claim, lien, charge, or liability attached to and binding real property is a(n) ________. -
ANSWER Encumbrance
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