LAW OF CONTRACT FINA L EXAM
Question 1: This generally refers to a governmental entity's
legal authority to force a private landowner to sell his or her real property for public use.
- Condemnation
- Taxation
- Police power
- Eminent domain
CORRECT ANSWER : D) Eminent domain
Question 2: Precedents are determined by:
- Statutory Law
- Case law
C) TRELA
D) DTPA
CORRECT ANSWER : B) Case law
Question 3: This estate may be terminated at will of either
party. It has no duration limitation.
- Estate at will
- Estate from period to period
- Estate for years
- Freehold estate
CORRECT ANSWER : A) Estate at will
Question 4: A form of shared property ownership in which
rights vest in several owners for a specified period each year.
- Cooperatives
- Time shares
- Townhomes
- Condominiums
CORRECT ANSWER : B) Time shares
Question 5: The law that established the Texas Real Estate
Commission.
A) TREC
B) TRELA
C) TAR
D) TCEQ
CORRECT ANSWER : A) TREC
Question 6: This act provides a three day right of rescission.
- Equal Credit Opportunity Act
- Truth-in-Lending
C) RESPA
- Fair Housing Act
CORRECT ANSWER : B) Truth-in-Lending
Question 7: Agency law consist of the:
- Texas law of agency
- Texas Real Estate License Act
- Texas Real Estate Commission
- Texas Constitution
CORRECT ANSWER : B) Texas Real Estate License Act
Question 8: In owner financing, who receives the DEED OF
TRUST?
- Buyer
- Escrow officer
- Seller
- Mortgage company
CORRECT ANSWER : C) Seller
Question 9: An automatic legal process by which an effect or
result, or liability or right, is created of extinguished without the consent of either party.
- Default
- Operation of law
- Breach
- Option
CORRECT ANSWER : B) Operation of law
Question 10: Who is responsible to search and examine the
public records for information related to the property's title?
- Buyer
- Broker