Law of Contracts and Real Estate: Exam Solutions for 2024, Exams of Law

Download Law of Contracts and Real Estate: Exam Solutions for 2024 and more Exams Law in PDF only on Docsity! LAW OF CONTRACTS CHAMPIONS EXAM-with 100% veirfied solutions 2024 Tutor verified An offer may be terminated if new laws... render the proposed contract illegal. An agent should never discourage a client from consulting ______ for advice in a transaction. an attorney The most common type of financing (97%) is obtained from a ______ such as a mortgage company or bank. third party Earnest money is deposited in ________ when the contract is signed by all parties and acceptance is communicated. an escrow account This space is where terms can be addressed that are not covered in standard contracts or addenda forms. Special Provisions Contracts for conveyance of ownership in real estate must be ______ to be enforceable. in writing In the case of two agreements, written agreements will always take precedence over ______ in the event of conflict. verbal agreements _________ 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. Contingency All sellers of homes built prior to ________ must provide a disclosure of their knowledge of possible lead based paint hazards. 1978 __________ are changes to details in the contract such as closing date, sale price, down payment, repair agreements, and removal of contingencies. Amendments A(n) _________ is an attachment that adds or further describes the rights and duties of the parties. Addendum A mortgage _________ provides its own funds for mortgage. banker The maximum amount per transaction for Real Estate Recovery is... $50,000 The maximum amount on behalf of any one license holder is... $100,000 Promulgated forms means... To make known by open declaration; publish. The Texas Real Estate Broker-Lawyer Committee consists of... 13 members. Of the 13 Lawyer-Broker Committee members, how many are appointed by TREC? 6 Of the 13 Lawyer-Broker Committee members, how many are members from the State Bar of Texas? 6 How many public members are appointed to the Lawyer-Broker Committee? 1 A licensed agent may not give this type of advice... Legal. How many types of promulgated lease forms does TREC provide? 2 What are the names of the promulgated lease forms? Buyer's and Seller's Temporary Residential Lease This gives the tenant the right to purchase the leased property by matching or bettering any offer before the property will be sold to someone else. Right of First Refusal. A residential lease may contain a Right of... First Refusal. "Goods" means... tangible or real property purchased or leased for use. "Services" means... work, labor, or services purchased or leased. What is the DTPA? Deceptive Trade Practices Act When a license holder is sued, it tends to be due to an action under the... DTPA If the judge or jury rule that the licensed agent knowingly or intentionally deceived the consumer, damages have the potential be... three times the offense. A seller of residential property must provide what type of document to a buyer? Seller's Disclosure Notice Who completes the Seller's Disclosure Notice? The seller should be the ONLY one completing the seller's disclosure notice. If the seller has never occupied the property, do they still have to fill out the disclosure? Yes, or no? Yes. What is the body of law developed in England and based upon "common sense"? Situs ...is a venture that is owned by a single individual. Sole Proprietorship An owner within a cooperative own how many specific units? Zero Units These members buy shares in a corporation and do not own specific units within a building... Cooperative Owners ...is an agreement between two or more parties to do something or to refrain from doing something. Contract In bilateral contract, which parties are obligated to perform the stated terms? Selling and buying parties must perform. In a unilateral contract, which party is obligated to perform the stated terms? Selling party. A seller, in exchange for some form of consideration (fee), gives the buyer the right to purchase the property at a preset price for a period of time. This is known as... An option. In order for a contract to be valid and enforceable, both parties must be... Competent This term, often referred to as 'mutual consent' or 'meeting of the minds' is required for a contract to be valid and enforceable... Offer and acceptance. What type of purpose must a contract have to be valid and enforceable? Legal purpose. A contract for the conveyance of an interest in real estate or lease for a term of more than one year must be... In writing. ...,defined as something given in exchange for a promise, is required in order for a contract to be valid and enforceable. Consideration. A contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed. Executory Contract. When a sale finally closes, the contract is said to be... Fully executed. ..., which means that both parties remain liable beyond closing for their representations made in the contract. 'Survive closing' ... is the right of the government to regulate and control the way land is used. Police power In real estate law, a(n)_______is the interest, or nature of the interest, a person has in real property. estate The most common example of police power is... zoning If the intended use of a property would be in violation of current zoning, the owners must request a ________, or permission to violate the rules. variance Exclusive Right to Sell In this type of listing, the seller agrees to list the property with only one broker during the listing term, with the provision that the seller can sell the property himself, without payment of commission. Exclusive Agency Because of potential ethical and legal issues, ________ are discouraged and subject to great scrutiny. net listings A broker should only take net listings when the principal _______, and when the principal appears to be familiar with current market values of real property. insists In a net listing, the licensed holder is obligated to advise the property owner as to the license holder's ________ of a property when negotiating a listing. opinion of the market value Only a broker may earn commission and only a _______ may sue to collect a commission. broker The broker may sue a ______ who has defaulted on a listing agreement. seller The broker may sue a ______ who has defaulted on a buyer's representation agreement. buyer _________ gives one possession and use of a property without ownership. Leasehold estate The person giving use (the owner, or landlord) is the _______. lessor A lease with a definite beginning date and definite ending date is a(n) ______. estate for years The person acquiring the use (the tenant) is the ______. lessee A lease that renews itself automatically for like periods of time is a(n) _________. periodic tenancy Requirements of a valid lease are: competent parties, _______, adequate consideration, legal purpose, and ________. let and take agreement, description of the property In the event of default by the BUYER, the SELLER can choose to accept the buyer's _______ as liquidated damages. earnest money In the event of default by the BUYER, the SELLER can choose to file suit against buyer for _______. This is the only remedy that would possibly result in the full execution of the transaction. specific performance The agent must present ______ offers. all A counteroffer is a _______ process. two-step A counteroffer is rejection of the original offer coupled with a _______. new offer Any change to an offer is considered a _______. counteroffer