Download Law of Contracts: Key Concepts Q&A and more Exercises Medicine in PDF only on Docsity!
Law of Contracts Champions ACTUAL
UPDATED Questions and CORRECT
Answers
lot and block - CORRECT ANSWER - a way to describe land in a subdivision using a recorded map (plat) and lot numbers title - CORRECT ANSWER - legal ownership of property alienation - CORRECT ANSWER - the act of transferring property ownership to someone else voluntary alienation - CORRECT ANSWER - when the owner willingly transfers property ( like through a sale or a gift ) adverse possession - CORRECT ANSWER - when someone takes ownership of land by living on it without permission for a long time ( usually years ) under specific conditions interstate - CORRECT ANSWER - dying without a will chain of title - CORRECT ANSWER - history of all the past owners of a property abstract of title - CORRECT ANSWER - a summary of the property's ownership history and any legal issues abstractor/ examiner - CORRECT ANSWER - a person who researches and summarizes a property's title history
title examination - CORRECT ANSWER - the process of reviewing the property's ownership records to make sure the title is clear ( no legal problems) title insurance policy - CORRECT ANSWER - insurance that protects the buyer or lender if problems with the title come up after purchase home inspection - CORRECT ANSWER - a professional check of a home's condition before buying it closing disclosure - CORRECT ANSWER - a document that shows all the final costs and terms of the home loan and purchase proration - CORRECT ANSWER - splitting certain costs ( like taxes or utilities) fairly between buyer and seller at closing title commitment - CORRECT ANSWER - document from a title company promising to issue title insurance if certain conditions are meet subrogation clause - CORRECT ANSWER - a part of insurance policy that lets the insurance company take legal action to recover money from someone else who caused the loss closing - CORRECT ANSWER - the final step in a real estate deal when the property officially changes owners, and money and documents are exchanged controlled business arrangement - CORRECT ANSWER - when companies involved in real estate deal ( like a real estate agency and a title company) are owned by the same parent company and refer business to each other --- this must be disclosed to the buyer kickback - CORRECT ANSWER - an illegal payment or reward for referring business ( for example, a real estate agent getting a secret money fro recommending a certain lender or inspector )
gift deed - CORRECT ANSWER - a deed used to give property as a gift, without any money exchanged guardian's deed - CORRECT ANSWER - a deed used when a legal guardian sells property on behalf of a minor or someone who can't manage their own affairs sheriff's deed - CORRECT ANSWER - a deed given to the buyer of property sold at a court- ordered sale, usually due to foreclosure correction deed - CORRECT ANSWER - a deed used to fix a mistake in a previous deed (like a typo or wrong name) tax deed - CORRECT ANSWER - a deed given to someone who buys property at a tax sale ( because the previous owner didn't pay property taxes) assemblage - CORRECT ANSWER - the process of combining two or more pieces of land into one larger piece sovereignty of the soil - CORRECT ANSWER - the idea that the government originally owns all land before its granted to individuals probate - CORRECT ANSWER - the legal process of handling a person's property after they die, including paying debts and transferring ownership abstract of title - CORRECT ANSWER - a summary of all legal records and documents that show who has owned a property and any claims against it mortgage - CORRECT ANSWER - a loan used to buy a home, the home is collateral, meaning the lender can take it if the loan is not paid
promissory note - CORRECT ANSWER - a written promise from the borrower to repay the loan, it includes the loan amount, interest rate, and payment terms selling financing - CORRECT ANSWER - a seller acts as the lender, instead of a bank loan, the buyer makes payments directly to the seller over time foreclosure - CORRECT ANSWER - if the borrower fails to pay the mortgage, the lender can take and sell the home to get the money back short sale - CORRECT ANSWER - the home is sold for less than what is owed on the mortgage, the lender agrees to accept less to avoid foresclosure federal reserve (the fed) - CORRECT ANSWER - the central bank of the U.S , it controls interest rates and money supply, which affects mortgage rates secondary market - CORRECT ANSWER - where lenders sell mortgages to investors ( like Fannie Mae or Freddie Mac) this gives lenders money to make more loans mortgage banker - CORRECT ANSWER - a company or person who lends their own money to homebuyers, then often sells the loan to investors mortgage broker - CORRECT ANSWER - a person who connects borrowers with lenders, they don't lend money themselves--- they help you find the best loan correspondent lender - CORRECT ANSWER - a lender who makes the loan using their money, then sells the loan to a bigger lender or investor after closing origination - CORRECT ANSWER - the start of the mortgage process-- when the borrower applies and the lender begins working on the loan
blanket mortgage - CORRECT ANSWER - one loan that covers multiple properties-- often used by builders or investors capacity - CORRECT ANSWER - a borrower's ability to repay a loan, based on income, job stability, and existing debts FHA loan program - CORRECT ANSWER - a loan program backed by the Federal Housing Administration (FHA) designed to help first-time or low income buyers with low down payments Texas Veterans Land (TVLB) - CORRECT ANSWER - a Texas program that helps veterans buy land, homes, or get home improvement loans with special benefits like lower interest rates contigency - CORRECT ANSWER - a condition in a real estate contract that must be met for the deal to go through, if not met the buyer or seller can cancel the contract title contingency - CORRECT ANSWER - lets the buyer cancel the deal if problems are found with the ownership history (title) like liens or disputes financing contingency - CORRECT ANSWER - allows the buyer to cancel the contract if they can't get a loan or mortgage to buy the house sale of other property contingency - CORRECT ANSWER - the buyer's purchase depends on selling their current home first appraisal contingency - CORRECT ANSWER - lets the buyer cancel or renegotiate if the home's appraised value is less than the purchase price inspection contingency - CORRECT ANSWER - gives the buyer time to have the home inspected and ask for repairs or cancel is serious issues are found
amendement - CORRECT ANSWER - a change or update to a real estate contract after both parties have signed it, both the seller and buyer must agree in writing to the changes for them to be valid addendum - CORRECT ANSWER - an extra document added to the original contract before its signed, adds more details or terms government survey system - CORRECT ANSWER - a federal land survey system used in the United States to divide and describe land, particularly in the western and southern states option - CORRECT ANSWER - legal agreement that gives a buyer the right, but not the obligation, to purchase a property within a specific timeframe and at a predetermined price. presentation of offers - CORRECT ANSWER - refers to the process where a real estate agent (or broker) presents a written offer to purchase a property to the seller (or their agent) offeror - CORRECT ANSWER - the person in a contract negotiation that makes an offer offeree - CORRECT ANSWER - the party in a contract negotiation that receives an offer and has the power to accept the offer, creating a binding contract counteroffer - CORRECT ANSWER - a rejection of an offer to enter into a contract , as well as a new offer that materially changes the terms of the original offer acceptance of offer - CORRECT ANSWER - This signifies that a contract is formed and both parties are legally obligated to fulfill their parts of the agreement. creation of a contract - CORRECT ANSWER - when there is an offer, consideration, and acceptance between two or more parties
proration - CORRECT ANSWER - the fair splitting of costs between the buyer and seller based on how long each owns the property during a billing period (like for taxes, rent, or utilities) statue of frauds - CORRECT ANSWER - a law requiring certain types of contracts to be in writing and signed to be enforceable exclusive right to sell - CORRECT ANSWER - a seller guarantees a brokerage or agent commission if the property sells, regardless if seller or broker finds the buyer offer - CORRECT ANSWER - a buyer's proposal to buy a home, usually in writing with the price and terms they're willing to agree to earnest money - CORRECT ANSWER - a deposit from the buyer to show they're serious about buying the home. it is held in escrow and later applied to the purchase or refunded if the deal falls through for a valid reason unlawful practice of law - CORRECT ANSWER - when someone who's not a licensed attorney gives legal advice or writes legal documents- something real estate agents are not allowed to do financing information - CORRECT ANSWER - details about how the buyer plans to pay for the home, like if they're getting a mortgage loam, paying cash, or using another method seller's disclosure - CORRECT ANSWER - a form the seller fills out to share what they know about the condition of the home--- like past repairs, damage, or problems ( leaks, foundation, issues, etc. ) seek the advice of an attorney - CORRECT ANSWER - by advising the party to get legal consult, you are protecting yourself from liability if something goes wrong, non-attorney parties can't give legal advice
exclusive agency - CORRECT ANSWER - a seller guarantees one agent at one brokerage the right to find a buyer, but the seller retains the right to find their own buyer, so commission is not guaranteed to agent open listing - CORRECT ANSWER - a non-exclusive agreement where a property owner can list their property with multiple agents, and the agent who procures the buyer is paid a commission net listing - CORRECT ANSWER - a type of real estate listing agreement where the seller sets a minimum price they want to receive from the sale of their property multiple listing services - CORRECT ANSWER - a database of property listings maintained by a brokerage or properties in the area comparative market analysis - CORRECT ANSWER - a report prepared by real estate agents to estimate the fair market value of a property by comparing it to similar properties that have recently been sold, are currently on the market, or were recently listed but didn't sell in the same area buyer-agency agreements - CORRECT ANSWER - a legally binding contract between a homebuyer and a real estate agent, outlining the terms of their representation during the home buying process procuring cause of sale - CORRECT ANSWER - the action or person that directly leads to the sale of a property property management agreement - CORRECT ANSWER - a contract between a property owner and a manager outlining duties and responsibilities lease - CORRECT ANSWER - a legal agreement where a tenant pays to use property for a set time
listing agreement - CORRECT ANSWER - a contract between a property owner and a real estate agent to sell or lease the property contract - CORRECT ANSWER - a written agreement between two or more parties that outlines the terms and conditions of a property transaction, such as a purchase sale, or lease bilateral contract - CORRECT ANSWER - an agreement where both parties, the buyer and the seller make legally binding promises to each other unilateral contract - CORRECT ANSWER - a one-sided agreement where one party makes a promise to perform something and the other party's acceptance is demonstrated by completing a specific act valid contract - CORRECT ANSWER - an agreement that is legally binding and enforceable assignment - CORRECT ANSWER - a legal process where one party ( the assignor) transfers their rights and obligations under a real estate contract to another party (the assignee) implied contract - CORRECT ANSWER - a legal agreement, not explicitly stated in writing or verbally but understand and inferred from the actions and circumstances of the parties involved option - CORRECT ANSWER - a contract that gives a buyer the right, but not the obligation to purchase a property within a specific timeframe at a predetermined price void contract - CORRECT ANSWER - one that is considered invalid from the start and has no legal effect, meaning it cannot be enforced in court
novation - CORRECT ANSWER - a process where a new party replaces an existing one in a contract like a purchase agreement or a lease express contract - CORRECT ANSWER - a written or verbal agreement between parties involved in a property transaction that clearly outlines the terms and conditions of the deal voidable contract - CORRECT ANSWER - is a contract that is valid and enforceable until one party who has the right to do so, chooses to cancel or void it executory contract - CORRECT ANSWER - an agreement where both parties have ongoing obligations that need to be fulfilled over time fully executed contract - CORRECT ANSWER - all parties involved have signed the agreement and all conditions necessary for it to take effect have been met statue of frauds - CORRECT ANSWER - requires contracts for the sale or transfer of land be in writing and signed by all parties involved to be enforceable elements of a valid and enforceable contract - CORRECT ANSWER - it must include: an offer and acceptance, a mutual understanding of the terms, consideration, capacity, and legality of purpose, where the terms are lawful and enforceable agency law - CORRECT ANSWER - the legal relationship between the agent and client personal property - CORRECT ANSWER - items that are owned but moveable, different from real property where items are fixed to property common law - CORRECT ANSWER - a body of unwritten laws based on legal precedents established by the courts.
police power - CORRECT ANSWER - the inherent authority of a government ( state or local) to enact laws and regulations for the purpose of promoting the public health, safety, morals, and general welfare of its citizens eminent domain - CORRECT ANSWER - the power the government to take private property for public use, even against the owner's will, with fair compensation condemnation - CORRECT ANSWER - the process where a government entity takes private property for public use, even if the owner doesn't want to sell, as long as they receive just compensation taxation - CORRECT ANSWER - refers to the system of levying taxes on property, particularly land and the structures built upon it escheat - CORRECT ANSWER - the state's rights to claim ownership of property when the owner dies without a will ( interstate ) and has no known heirs who can inherit the property freehold estate - CORRECT ANSWER - an indefinite ownership of land, granting the owner the right o possess, use, and transfer the property indefinitely, often passing it on to heirs statutory estate - CORRECT ANSWER - refers to an estate in real property defined and created by law, rather than by the actions of the owner or through common law equittable estate - CORRECT ANSWER - where one party has the beneficial rights to a property while the ownership is legally held by a trustee or a person who is considered a trustee under equity law encumbrance - CORRECT ANSWER - a claim, lien or restriction that affects the ownership of use of a property
easement - CORRECT ANSWER - grants someone the right to use another person's property, without owning it easement of necessity - CORRECT ANSWER - a legal right that arises out of practical necessity riparian rights - CORRECT ANSWER - let property owners make reasonable use of water that touches or flows through their properties littoral rights - CORRECT ANSWER - prior appropriation theory of water - CORRECT ANSWER - appurtenance - CORRECT ANSWER - refers to a right, benefit, privilege, or improvement that is legally attached to a piece of property and automatically transfers with the property to any new owner encroachment - CORRECT ANSWER - a structure improvement, or part of a property intrudes onto the land of another, without their permission environmental site assessment - CORRECT ANSWER - a systematic process used to evaluate the potential environmental condition of a property, including existing or potential contamination buffer zone - CORRECT ANSWER - designated area of land separating two different land uses, often to reduce conflicts or mitigate potential issues between them lead - CORRECT ANSWER - lead-based paint has to be disclosed in homes built before 1978 because they may have it
surface rights - CORRECT ANSWER - trade fixture - CORRECT ANSWER - is personal property owned and affixed to a rented property by a tenant for business use, and it can be removed by the tenant at the end of the lease term. improvement - CORRECT ANSWER - generally refers to any permanent addition or alteration to a property that increases its value and/or useful life. These co-ownership - CORRECT ANSWER - a situation where two or more individuals hold title to a property, sharing ownership rights and responsibilities. '1101' laws are associated with... - CORRECT ANSWER - TRELA '535' laws are associated with... - CORRECT ANSWER - TREC TRELA was established in... - CORRECT ANSWER - 1939 TREC was established in... - CORRECT ANSWER - 1949 The Real Estate Recovery Trust Account is used to... - CORRECT ANSWER - Protect aggrieved individuals who suffer a monetary loss due to illegals acts of license holders. The maximum amount per transaction for Real Estate Recovery is... - CORRECT ANSWER - $50, The maximum amount on behalf of any one license holder is... - CORRECT ANSWER - $100,
Promulgated forms means... - CORRECT ANSWER - To make known by open declaration; publish. The Texas Real Estate Broker-Lawyer Committee consists of... - CORRECT ANSWER - 13 members- 6 brokers, 6 attorneys, 1 public member Of the 13 Lawyer-Broker Committee members, how many are appointed by TREC? - CORRECT ANSWER - 6 Of the 13 Lawyer-Broker Committee members, how many are members from the State Bar of Texas? - CORRECT ANSWER - 6 How many public members are appointed to the Lawyer-Broker Committee? - CORRECT ANSWER - 1 A licensed agent may not give this type of advice... - CORRECT ANSWER - Legal. How many types of promulgated lease forms does TREC provide? - CORRECT ANSWER - 2 What are the names of the promulgated lease forms? - CORRECT ANSWER - 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. - CORRECT ANSWER - Right of First Refusal. A residential lease may contain a Right of... - CORRECT ANSWER - First Refusal. Real Estate Research Center - CORRECT ANSWER - Created by the Legislature in the
