Chapter 1

Question 1

Texas Real Estate License Act

Answer 1

1949 Texas Real Estate Commission assumed the administrative responsibilities.

1.allows for real estate licensees to fill in the blanks of contracts between buyers and sellers for a fee.

2. Regulates a licensee when he or she is selling a house for a client.

Question 2

The Texas Recording Acts

Answer 2

claim, interest, or ownership in real estate be placed in the public records in the county where the property is located

Question 3

Elements of the Contracts

Answer 3

1. agreement,
2. consideration: is exchange of something for something else.
3. competency,
4. and legal objective A-C-C-L

Question 4

What is the Texas Statute of Frauds?

Answer 4

contracts for the purchase of real estate, including mortgages and rental leases longer than one year, must be in writing to be enforceable.

Question 5

Void

Answer 5

Should a contract fail any of the four essential elements, the contract becomes unenforceable, or void. Changes in law can also result in void contracts. A contract can become voidable by mistake or error, however, failure to read the contract does not make it voidable.

Question 6

unenforceable contract

Answer 6

Unenforceable contracts are those that courts will not enforce. However, if the parties perform to all of the terms of the agreement, it will be a valid contract.

Question 7

Express vs implied contracts

Answer 7

Express contracts are those that have been written down and are clear and definitive. Implied contracts lack these distinctions.

Question 8

unilateral contracts

Answer 8

one side has all of the rights while the other has all of the obligations.

Question 9

Novation

Answer 9

Novation is when the buyer and seller, after drafting an existing contract, end up making alterations to the deal that are so extensive that a new document is drafted. The parties remain the same, but the agreement is now different.

Question 10

Rectifying performance failures, just name

Answer 10

1. Open discussion,
2. Mediation,
3. Arbitration,
4. Litigation,

Question 11

Open discussion

Answer 11

when parties meet with the broker to discuss the situation.

Question 12

Mediation

Answer 12

NON-binding discussion carried out by an impartial third party.

Question 13

Arbitration

Answer 13

When a third party issues a BINDING ruling that prevents any further legal action.

Question 14

Litigation

Answer 14

occurs when the parties take their grievances to court.

Question 15

Reasonable Time

Answer 15

Reasonable time is the amount of time that is fairly necessary convenient to do what the contract requires to be done, as soon as circumstances permit.

Question 16

Time is of the essence

Answer 16

means there is a finite time frame for a contract to be executed. Failure to deliver in these circumstances constitutes breach of contract.

Question 17

Disclosures

Answer 17

Sellers must submit disclosures to buyers, giving them information about a property concerning things like asbestos, carbon monoxide, lead-based paint, mold, any endangered species of plants or animals, among others.

To close a contract, buyers and sellers must exchange all pertinent documents, including title, to make good on the deal.

Question 18

“FOUR CORNERS DOCTRINE “

Answer 18

Judge will use to resolve disputed contracts.The interpretation of any disputed clause will be influenced by the document as a whole. No phrase will be lifted out of the document to determine the meaning, but will be looked at completely in its context.

Question 19

Parol Evidence Rule

Answer 19

Prevents a party from presenting oral evidence that contradicts or adds to the written terms of contract.

Question 20

Statute of Limitations

Answer 20

In Texas, written contracts and oral contracts have a limit of four (4) years.

This is a law stating the length of time that is allowed to bring a civil lawsuit. The time limits depend on a number of factors, including if a crime has been committed and the type of crime. As far as the breach of contract statute, the amount of time varies from state to state.

Question 21

Discharge

Answer 21

When both parties wish to liberate themselves from a contract, that is known as discharge.