Chapter 1: Texas Contract Law

Question 1

___________ created by the legislature in the 1970s to collect and compare data about real estate in Texas

Answer 1

Real Estate Center

Question 2

__________ establish by TREC to write a mandatory residential contract forms for license holders

Answer 2

Broker-lawyer committee

Question 3

_____ created by the legislature in 1949 to carry out the provisions of TRELA

Answer 3

Texas real estate commission

Question 4

_______ administered by TREC to protect aggrieved individuals who suffer a monetary loss due to illegal acts of license holders

Answer 4

Real estate recovery trust account

Question 5

________ requires proof that the act or omission was a significant factor in bringing about an injury

Answer 5

Producing cause

Question 6

What year was the Texas real estate act created?

Answer 6

1939

Question 7

What year was the Texas real estate commission established to enforce the real estate act?

Answer 7

1949

Question 8

True or false: if an individual engages in a real estate transaction without first obtaining a license, they are guilty of a class a misdemeanor, which is punishable for a fine up to $4000, and or up to one year in the county jail

Answer 8

True

Question 9

In the real estate recovery trust account what is the maximum amount per transaction?

Answer 9

$125,000

Question 10

In the real estate recovery trust account what is the maximum amount any real estate license holder can use?

Answer 10

$250,000

Question 11

How much does an applicant have to pay towards the trust account?

Answer 11

$10

Question 12

True or false if an amount is paid up on the license individuals behalf their license can be revoked or suspended in, cannot be re-issued until the account has been repaid with interest

Answer 12

True 

Question 13

What documents can’t a license holder prepare

Answer 13

Deeds, wills, deeds of trust, option agreements, and lease purchase agreements

Question 14

What forms do the broker-lawyer committee write?

Answer 14

Promulgated forms

Question 15

What does the word promulgated mean?

Answer 15

To make known by open declaration or publish

Question 16

How many members does the broker-lawyer committee have?

Answer 16

13 members: six appointed by TREC
Six members from the state bar of Texas, and one public member

Question 17

Trec has only two promulgated lease forms. What are they?

Answer 17

Buyers temporary residential lease and sellers temporary residential lease

Question 18

In a buyers temporary residential lease, the buyer occupies the property for no more than ______________ to closing

Answer 18

90 days prior

Question 19

In a sellers temporary residential lease, the seller occupies the property for no more than _________ closing

Answer 19

90 days after

Question 20

What is a right of first refusal?

Answer 20

Gives the tenant the right to purchase the lease property by matching or bettering the offer before the property is sold to someone else.

Question 21

What Texas law applies to trade and commerce that was passed in 1973

Answer 21

Deceptive trade practices act

Question 22

The DTPA allows

Answer 22

And agreed consumer to sue a seller of goods for damages

Question 23

Goods are also known as

Answer 23

Chattel

Question 24

What does services mean?

Answer 24

Work labor or repair of goods

Question 25

True or false a brokerage is not a service

Answer 25

False

Question 26

An individual, corporation, partnership, or government source who seeks to acquire or purchase the goods or services is

Answer 26

A consumer

Question 27

What requires proof that an act or omission was a significant factor in bringing about injury?

Answer 27

Producing cause

Question 28

What is a good tool to use as a defense in a DTPA lawsuit?

Answer 28

Sellers disclosure notice

Question 29

True or false: a seller, or their agent has to release information, whether a death by natural causes suicide, or anyone on the property having HIV aids or any related illnesses

Answer 29

False