Law of contracts-FINAL EXAM

• / 8

Law of contracts-FINAL EXAM Questions and Answers (Verified Answers)

1. Texas Real Estate License Act: the law which established the Texas Real

Estate Commission, who is responsible for its enforcement

2. what law established the texas real estate commission?: the texas real

estate license act

3. whose mission is the following: to protect consumers' economic welfare

by ensuring that licensees properly can carry out their fiduciary responsi- bilities to clients, are qualified and competent, and adhere to professional

standards: TREC

• personal property is conveyed with a " " and real

property with a " ": personal property is conveyed with a bill of sale and real property is conveyed with a deed

• What does the termination option state in a contract?: the termination option 1 / 3

• / 8

states that for a sum of money negotiated between the parties, the buyer has a time period for the "unrestricted right" to terminate

6. When does an offer become a contract?: 1. must be signed by all parties, all

changes must be initialed, and a broker or his agent must complete the "executed date" on the form

• the broker must deliver "notice" to the other party. If several days pass between

the signatures and the delivery, the executed date will be the later day

7. what does unconscionable action or course of action mean?: This means

an act or practice which, to a consumer's detriment, takes advantage of the lack of knowledge, ability, experience, or capacity of the consumer to a grossly unfair degree

8. What three things will a licensee be held liable for if they do?: 1. commits

an unconscionable act

• misrepresent a material fact
• fail to disclose information with the intention of inducing a consumer into a

transaction

• Which of the following practices could be considered practicing law by a

real estate broker for the sale or lease of real property?

• Use of a form prepared by the broker's company 2 / 3

• / 8

• Use of a form prepared by an attorney
• Use of a form prepared by the property owner

D. Use of a form promulgated by TREC: A

• / 3