Law of Contracts Exam Prep Questions

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Law of Contracts Exam Prep Questions and Answers (Verified Answers)

• All of the following acts on the part of a real estate broker would constitute

steering and thus be prohibited under the Fair Housing Act EXCEPT:

• directing a prospective buyer of one minority group to work only with a

salesperson of the same minority group and to look at areas dominated by that minority group

• directing a member of one minority group away from properties located

in areas dominated by other races

• referring a member of one minority group to properties located only in

areas dominated by members of the same group

D) directing a minority buyer to an expensive subdivision ANS : D)

directing a minority buyer to an expensive subdivision

2. The One-to-Four Family Residential Contracts states:

• only the buyer needs to sign the contract
• licensees cannot give legal advice
• no more than four people may live on the property

D) it may be used for condominiums ANS : B) licensees cannot give legal

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• Which listing is a non-exclusive agreement that lets the owner sell the

property by themselves?

• Open listing
• Net listing
• Exclusive Agency listing

D) Exclusive Right To Sell listing ANS : A) Open listing

• In the deed, the clause which sets forth the extent of the title being

conveyed is:

• hereditaments
• the demising clause
• the indenture clause

D) the habendum clause ANS : D) the habendum clause

• When one of the parties of a contract may legally reject it, the contract is

said to be:

• voidable
• void
• unenforceable

D) valid ANS : A) voidable

6. Listing contracts obtained by a real estate salesman are considered to be:

• the salesman's own property 2 / 3

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• his personal property
• the property of the employing broker

D) negotiable instrument ANS : C) the property of the employing broker

• The seller and buyer enter into an oral contract and a written contract

concerning the same property. Which contracts will prevail in court?

• written contract
• oral contract
• the contract offering the highest price for the property

D) the contract offering the lowest price for the property ANS : A) written

contract

• A contract that has no legal effect because it does not contain all the

essential elements of a contract is:

• voidable
• unenforceable
• void

D) canceled ANS : C) void

• Which form is required for use in Texas for listing a property for sale?
• The TREC promulgated listing agreement
• The Texas Association of Realtors listing agreement
• Any form may be used with the agreement of both parties

D) The form required by the broker listing the property ANS : B) The Texas

Associ- ation of Realtors listing agreement

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