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58 Cards in this Set
- Front
- Back
What is an important legal characteristic of an option to buy agreement? |
The optionor must perform if the optionee takes the option, but the optionee is under no obligation to do so. |
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A contract for deed is also called a |
land contract |
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In what section of a sales contract would you find information regarding the acceptable use of funds by the escrow agent? |
Escrow agreement |
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Concerning contracts of deed, Texas ______________. |
has no standardized contract for deed. |
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A contact agreement to sell alcohol to minor would be considered |
void |
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Which of the following TREC rules gives information about the broker’s authority? |
537.11 |
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A contract for deed is attractive to |
marginally qualified buyers |
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a voidable contract is _____________________ |
subject to cancellation by a party to the contract who is believed to have acted under duress. |
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Which sales contract section allows parties to amend dates and deadlines if both give written approval? |
time is of the essence |
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Which of the following contracts must be in writing to be enforceable?A parol contrac |
a two-year lease |
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The guardian for a mentally incompetent party enters into an oral contract with another party to buy a trade fixture. What is true about this contract? |
it is possibly valid and enforcable |
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What is the most common sales contract addendum? |
Seller's property condition disclosure |
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Which of the following is NOT an acceptable method to send a sales contract notice? |
phone message |
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What action might a buyer take if the seller defaults? |
The buyer may sue for specific performance, or for cancellation of the agreement and damages. |
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Which contract provision allows for the transfer of the contract to another person? |
assignment of a contract |
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Which of the following is a good example of a unilateral contract? |
an option to buy |
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The breach of contract is also called ____________. |
default |
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An unscrupulous investor completes a contract with a buyer to sell a property the investor does not own. What is true about the sale contract for this transaction? |
it is void |
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What is the term given to a contract that has been fully performed and fulfilled? |
executed contract |
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Liquidated damages are ____________. |
a total amount due to a damaged party in the event of a breach, which is stated in a contract. |
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During the conditional sales contract period, |
the vendor retains legal title and the vendee acquires equitable title. |
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Which of these forms was NOT promulgated by TREC for use by licensees? |
improved property contract |
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What does the Statute of Limitations require that parties to a contract who have been damaged or who question the contract's provisions do? |
act within a statutory period |
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In what part of a sales contract would you find information regarding the owner's knowledge that there are no undisclosed building codes or zoning violations? |
compliance with laws |
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How is a back up contract recorded? |
filed as an addendum |
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Which of the following statements best defines an expressed contract? |
All the terms of a sales contract have been listed, but no offer has been made. |
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Which of the following contracts establish client relationships and provide for compensation? |
none of the above (lease contracts, mortgage contracts, promissory agreements) |
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A contract for deed is attractive to |
marginally qualified buyers |
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An unused option to buy |
terminates at the expiration date. |
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Buyer Bill has agreed to pay for a computer system after all hardware has been installed and operational. What type of contract does Bill hold? |
executory |
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Which of the following contracts must be in writing to be enforceable? |
a two year lease |
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In what part of a sales contract would you find information regarding property located seaward of the Gulf Intracoastal Waterway? |
in an addendum |
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In a sales contract, if mediation is chosen as an option, the costs will be |
divided equally between the parties. |
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What is the purpose of the Statute of Frauds? |
Require certain conveyance-related contracts to be in writing. |
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Liquidated damages are ____________. |
a total amount due to a damaged party in the event of a breach, which is stated in a contract. |
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Which of the following is NOT an acceptable method to send a sales contract notice? |
phone messages |
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Which document sets forth the terms and conditions between parties who are involved in an escrow? |
escrow agreement |
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In Texas, the statute of limitations to sue for breach of contract in real estate is: |
four years from the time the breach occurred. |
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What section of a sale contract describes the ramifications of the property being damaged or destroyed prior to closing? |
casualty loss |
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In what part of a sales contract would you set the transfer of occupancy date? |
possession |
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Which of the following contracts must be in writing to be enforceable?
|
a two year lease
|
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An option-to-buy is a(n) |
enforceable contract |
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In a option-to-buy, which party is the potential seller? |
the optionor |
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A contact agreement to sell alcohol to minor would be considered |
void |
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What section of a sale contract describes the ramifications of the property being damaged or destroyed prior to closing? |
casualty loss |
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Which provision of TREC NO 20-13 says that the buyer has a right to have inspections? |
property condition |
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Liquidated damages are ____________. |
a total amount due to a damaged party in the event of a breach, which is stated in a contract. |
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An option to buy is |
a unilateral agreement |
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Which of the following statements best defines an expressed contract? |
All the terms and covenants of the agreement have been clearly stated and agreed to by all parties, whether verbally or in writing. |
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In what section of a sales contract would you find information regarding the acceptable use of funds by the escrow agent? |
escrow agreement |
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Which of the following is a good examp`le of a unilateral contract? |
an option to buy |
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What occurs when a option to buy is exercised? |
A bilateral sale contract is created and both parties are bound to perform. |
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What is the most common sales contract addendum? |
sellers property conditions disclosure |
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Mike signed a rental agreement for his friend Norm. What must be enforced for this contract to be binding? |
power of attorney |
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According to the Texas Rules, which of the following reasons is NOT considered to be an exception to the requirement for using promulgated forms? |
Transactions for which a contract form has been prepared by a customer to the transaction |
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What action might a buyer take if the seller defaults? |
The buyer may sue for specific performance, or for cancellation of the agreement and damages. |
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What is one advantage of a contract for deed? |
Gives the seller certain tax benefits. |
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What are the four types of legal contracts? |
Valid valid but unenforceable void voidable |