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Law of Contracts Chapter Quizzes

Terms in this set (43)

Which of the following is a requirement for a Texas real estate sales agent license?
show competency by passing the exam
An active sales agent may only be issued under
the sponsorship of a licensed broker
A license holder must NOT prepare which of the following documents?
option agreements, title commitments and wills
When Myra told Kristina that the roofing contractor only uses "top-of-the-line material" and that the roof should last a very long time, she was most likely guilty of:
misrepresentation
What conditions are present in this situation that give Kristina the right to file a lawsuit against Myra and Dirt Cheap Realty?
the misrepresentation was a key element in Kristina's decision to purchase the property and the buyers was harmed by the purchase
If a lawsuit is filed, all of the following defenses could potentially help Myra EXCEPT
a certificate showing that Myra took an online class about visual roof inspections
Todd planted two live oaks and four magnolia trees on his 3-acre property. These trees are examples of
improvements
Patti, David, and Arthur inherited several acres from their parents. They received unequal shares of the estate. What type of ownership do the siblings have?
tenancy in common
If you hire a mold remediator, he must give you a(n) _____ no later than 10 days after work is complete
certificate of mold remediation
In order to comply with the _____, contracts for the conveyance of an interest in real estate or leases for a term of more than one year must be in writing
statute of frauds
Broker Bernardo has a signed sales contract that has not yet gone to the closing table; therefore, Bernardo has a(n) _____ contract
executory
Bryan's client shows up to his closing after drinking three beers at a baseball game. Due to his consumption of alcohol, the closing cannot take place because Bryan's client is not legally _____ to sign
competent
Lynne purchased a lake front lot in order to build her dream home. Under _____, Lynne has the right to construct a boat dock and anchor her pontoon boat on the water
littoral rights
Cities and municipalities have the right to regulate the type of buildings constructed in an area through _____
zoning
Many states recognize statutory estates, including:
community property, homestead, tenancy by the entirety
Only a(n) _____ may earn a commission, and only a(n) _____ may sue to collect a
broker, broker
Regardless of representation, all buyers should be provided with a(n) _____ disclosure of representation at first contact
oral, written, email
Which of the following is an example of a contract used often in the real estate business?
property management agreement, listing agreement, lease agreement
What does a real estate agent do with multiple offers on a property?
the agent must present all offers to the client
Agent Jay has received an offer on his client's property, but they are still considering it. What is true of this situation?
the offer is not yet a contract because Agent Jay's clients have not accepted it
The Reeves's agent submitted an offer of $349,500 on a property priced at $365,000. The seller's agent informed the buyer's agent that the sellers have made a(n) _____ of $359,900 instead
counteroffer
Which offers should Gary present to Simon?
gary should present all offers
What can Gary do to look out for his client's best interest?
gary can make sure that all offerers know that this is a multiple offer situation, so they can all make their highest and best offer
How can Gary help Simon evaluate the offers?
he can prepare net sheets on the offers being considered so Simon can compare all of the details and better determine the bottom line for each offer
What options does Simon have when responding to the offers?
accept, reject, counter offer, or do nothing
Gerald and Finn are selling their classic 1959 Mid-Century Modern home. What form must they complete when they list their property?
Addendum for Seller's Disclosure of Information on the Lead-Based Paint Hazards
Sellers can __________ the oil, gas, and minerals associated when their property
sell, reserve, divide
Which of the following is NOT considered a common addenda form?
exclusive right to sell
Which of the following options is NOT available to Lin?
Lin can terminate the contract but she will forfeit her earnest money
What should Barbara do to make sure she is fulfilling her fiduciary responsibilities to Lin?
Barbara should keep Lin informed of her options as well as the approaching deadline(s)
What additional amendments, contingencies, or addenda may be used if Lin and the other seller decide to proceed with the sale at a lower sales price?
Barbara must submit an amendment that reflects the new, lower sales price
A _________ may take place when a seller is unable to sell his or her property at or above what the seller owes the lender
short sale
The __________ exists for the purchase and sale of existing mortgages to investors
secondary market
In a(n) __________ a mortgage is an actual transfer of ownership from the borrower to the lender
title theory state
Gene made a will naming his oldest daughter as executor. His other children are noted as heirs. In this circumstances, Gene is referred to as the
testator
The key to determining whether a conveyance is voluntary is the __________
absence of force
Much to her six children's dismay, single mom Nancy died without making a will. Who will inherit her estate?
her children
Which of the following closing would be covered by RESPA?
a condominium
If someone claims an interest in the purchaser's property after issuing a title insurance policy, a title company will defend the title under which of the following circumstances?
a charge by property owners or condominium association - a mortgage or deed of trust - a judgement, tax, or special assessment
The T-47 Affidavit must be signed in the presence of __________
notary
If the agent fails to put a(n) _____ on the contract, there can be disputes over the deadlines for performance.
effective date
Which disclosure in the contract requires the broker or sales agent to inform the other seller if he/she is licensed to practice real estate in Texas?
broker or sales agent disclosure
The _____ section of the contract allows the seller to remove and retain any listed improvements or accessories from the property.
exclusions
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