Module 2

Question 1

License holders who perform activities outside of the scope of their license

Answer 1

Unauthorized practice of law

Question 2

Standardized documents drafted by the Broker – Lawyer Committee and published by the Texas Real Estate Commission for mandatory use by license holders

Answer 2

TREC-promulgated forms

Question 3

A properly completed form with a price less than, equal to, or more than the seller’s asking price and signed by the buyer

Answer 3

Offer

Question 4

The party who makes an offer

Answer 4

Offeror

Question 5

The party who receives an offer

Answer 5

Offeree

Question 6

A rejection of an offer and the presentation of a new offer

Answer 6

Counteroffer

Question 7

Meeting of the minds or mutual agreement – all parties concerned understand and agree to all the terms of the contract

Answer 7

Acceptance

Question 8

Gives notice of acceptance of an offer, creating a contract

Answer 8

Communication

Question 9

What can happen if there is proof that the license holder drew a deed, note, deed of trust, will, or other written instrument that transferred or affected the title to or an interest in land

Answer 9

TREC can suspend or revoke a license suspended

Question 10

This provision in a lease 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.

Answer 10

right of first refusal

Question 11

An offer is assumed to have been delivered to the principal when

Answer 11

it is delivered to the agent

Question 12

Under this concept, an offer is presumed to have been delivered to the principal when it is delivered to the agent

Answer 12

imputed notice

Question 13

Options for response to an offer include:

Answer 13

Do nothing, Reject, Accept, Counteroffer

Question 14

Acceptance of an offer occurs when

Answer 14

All parties have signed, and the acceptance has been communicated.

Question 15

All offers must be

Answer 15

presented