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Texas Law of Contracts - Unit 1 - Texas Contract Law Questions And Correct Detailed Answers (Verified Answers) Already Graded A+
- What type of contract is a license holder prohibited from completing because doing
- What is the possible result for an owner not providing a seller's disclosure notice
- Which of the following is a TREC-promulgated contract? A) Commercial Contract B)
so would be considered the unauthorized practice of law? A) Prepared by a licensed escrow agent B) Prepared by a property owner C) Prepared by an attorney D) Prepared by the license holder Correct Answer: Prepared by a licensed escrow agent (Note: In context of the provided text, this appears to be the answer associated with the question, though legally typically drafting is prohibited. I have preserved the text provided.)
when required by the Texas Property Code (TPC), according to the standard purchase agreement promulgated by the Texas Real Estate Commission (TREC)? A) The seller would be fined by TREC. B) The seller would be in violation of failing to disclose, and the buyer could terminate the contract. C) The buyer must sue for specific performance. D) The contract is automatically void. Correct Answer: The seller would be in violation of failing to disclose, and the buyer could terminate the contract.
Residential Condominium Contract C) Property Management Agreement D) Buyer
Representation Agreement Correct Answer: Residential Condominium Contract
- Which of the following real estate-related entities has rule-making authority in the
state of Texas? A) The Governor B) The Broker-Lawyer Committee C) The commission D)
The State Bar Correct Answer: The commission
- For which of the following actions may the Texas Real Estate Commission NOT
suspend a license holder? A) The license holder is convicted of a felony. B) The license holder fails to use a required form. C) The license holder explains to the principals the meaning of the factual statements or business details contained in the contracts. D) The license holder engages in the unauthorized practice of law. Correct Answer: The license holder explains to the principals the meaning of the factual statements or business details contained in the contracts.
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- A new home builder wants to use her own contract. What are the agent's legal
- A seller of residential property in Texas must give to the buyer of the property notice
- Which statement is TRUE, as it relates to the DTPA? A) Errors and omissions insurance
- The TREC Seller's Disclosure of Property Condition form is: A) A mandatory use form.
- An approved optional/voluntary use form. C) A form used only for commercial
- A seller wants to close using a contract for deed. Which of the following is MOST
options? A) The agent must refuse to use the contract. B) The agent can use the contract because it is an exception. C) The agent must rewrite the contract onto a TREC form. D) The agent must consult an attorney. Correct Answer: The agent can use the contract because it is an exception.
of the property's condition. Which of the following is TRUE? A) The seller must use the TREC promulgated form. B) The seller could use any form as long as it is in writing. C) The disclosure is optional for residential property. D) The broker must fill out the form for the seller. Correct Answer: The seller could use any form as long as it is in writing.
does cover fraud or intentional violations of the DTPA. B) DTPA claims cannot be brought against real estate agents. C) DTPA only applies to goods, not services. Correct Answer: Errors and omissions insurance does cover fraud or intentional violations of the DTPA.
properties. D) A form drafted by the seller's attorney. Correct Answer: an approved optional/voluntary use form.
correct? A) Agents may draft this contract. B) This type of contract must be drafted by an attorney. C) TREC has a specific promulgated form for this. D) It is illegal in Texas. Correct
Answer: This type of contract must be drafted by an attorney.
- When should a buyer review the written seller's disclosure notice? A) At the closing
table B) Prior to writing an offer C) During the option period D) After the contract is executed
Correct Answer: Prior to writing an offer
- A property sells for $25,000, and the dwelling built thereon is only valued at $1,000.
- A buyer wanted to move in early before closing. Which TREC-promulgated
What does Section 5.008 of the Texas Property Code say about this situation? A) It requires a full disclosure. B) It does not require the seller to provide a written notice of the property's condition. C) It requires an inspection. Correct Answer: It does not require the seller to provide a written notice of the property's condition.
addendum should be used? A) Seller's Temporary Residential Lease B) Buyer's Temporary Residential Lease C) Amendment to Contract D) Non-Realty Items Addendum Correct
Answer: Buyer's Temporary Residential Lease
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- Which of the following committees is responsible for drafting and revising contract
forms? A) TREC B) Texas Association of Realtors C) Broker-Lawyer Committee D) Judicial
Committee Correct Answer: Broker-Lawyer Committee
- What is the primary difference between a lawsuit brought under the Deceptive
Trade Practices Act (DTPA) and any other type of civil action? A) Jail time is possible. B) Treble damages are available under the DTPA. C) It must be filed in federal court. Correct
Answer: Treble damages are available under the DTPA.
- Which of the following is an exception to using a TREC-promulgated contract form?
- When the broker prefers a different form. B) Transactions in which a United States
- How many commissioners are on the Texas Real Estate Commission? A) 6 B) 9 C) 12
government agency requires a different form to be used. C) When the buyer requests a hand-written contract. Correct Answer: Transactions in which a United States government agency requires a different form to be used.
D) 13 Correct Answer: 9
- What is the main purpose of the Texas Real Estate Commission? A) To protect
license holders B) To protect the public C) To generate revenue for the state D) To draft laws
Correct Answer: To protect the public
- How many members are on the Broker-Lawyer Committee? A) 6 B) 9 C) 12 D) 13
Correct Answer: 13
- Who appoints the TREC commissioners? A) The President of the US B) The State Bar
C) Governor D) The Senate Correct Answer: Governor
- What must a plaintiff prove about a misleading statement in order to get triple
- An agent represents a buyer. Which of the following forms of advice can the agent
- According to the Texas Real Estate License Act, which of the following requires that
damages under the DTPA? A) That the defendant acted negligently B) That the defendant acted intentionally C) That the damages were over $100,000 Correct Answer: That the defendant acted intentionally
give to an unrepresented buyer? A) Advice on the validity of title B) Advice on having the abstract examined by an attorney C) Advice on how to negotiate the price Correct Answer: Advice on having the abstract examined by an attorney
a license holder be a practicing attorney? A) Filling in the blanks of a contract B) Advising a person regarding the validity of title to real property C) Hosting an open house Correct
Answer: Advising a person regarding the validity of title to real property
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- Which of the following concerns led to the Texas Real Estate License Act
- Which of the following is TRUE? A) TREC rules are suggestions only. B) The rules of the
- Who appoints the lawyers to the Broker-Lawyer Committee? A) The Governor B)
- A consumer who wishes to file a DTPA lawsuit must do so within: A) 1 year B) two
prohibiting license holders from practicing law? A) License holders charging legal fees B) License holders giving counsel regarding the validity of an instrument that addresses real property rights C) Attorneys losing business Correct Answer: License holders giving counsel regarding the validity of an instrument that addresses real property rights
Texas Real Estate Commission have the full force and effect of law. C) Only TRELA is enforceable law. Correct Answer: The rules of the Texas Real Estate Commission have the full force and effect of law.
TREC C) President of the state bar D) The Attorney General Correct Answer: President of the state bar
years after the consumer discovered the deceptive act. C) 4 years D) 10 years Correct
Answer: two years after the consumer discovered the deceptive act.
- Real estate brokers who are members of the Broker-Lawyer Committee become
members by being: A) elected by the public. B) appointed by the Texas Real Estate Commission. C) appointed by the Governor. D) appointed by the State Bar. Correct
Answer: appointed by the Texas Real Estate Commission.
- Under the DTPA, which statement is FALSE? A) Consumers can waive their rights
- Which of the following is TRUE regarding forms? A) The Broker-Lawyer Committee
- True or False: It is a violation of TRELA for license holders to draft sales contracts
under DTPA in writing. B) A real estate agent may be sued under the DTPA for giving bad advice related to a real estate transaction. C) Treble damages are automatic in all cases.Correct Answer: A real estate agent may be sued under the DTPA for giving bad advice related to a real estate transaction.
promulgates forms. B) The Broker-Lawyer Committee develops forms and recommends their adoption, but it is the TREC that promulgates the forms for mandatory use. C) TREC develops the forms and the Committee promulgates them. Correct Answer: The Broker- Lawyer Committee develops forms and recommends their adoption, but it is the TREC that promulgates the forms for mandatory use.
for use by their principals in real estate sales transactions. A) True B) False Correct
