Laws of Contract Test: Questions

Laws of Contract Test: Questions &

Answers

Which of the following are NOT included in the description of land?

• The earth's surface extending downward to the center of the earth.
• A sewer system.
• Trees and water on the earth's surface.
• Formations such as hills and plateaus.

(Ans- b.

A property is owned as joint tenants. If one of the owners dies,

• his share of the property passes to the surviving owner immediately.
• the surviving tenant has to wait for the property to go through probate.
• the owner who died share is passed to his heirs.
• the surviving owner will receive half a share of ownership, with the other

share going to the deceased owner's heirs.(Ans- his share of the property passes to the surviving owner immediately.

Which of the following is TRUE regarding manufactured housing in Texas?

• It is always considered personal property.
• It is always considered real property.
• It is considered real property even if it is not permanently affixed to the

land.

• It can be considered real property if the owner chooses to treat it as such

and files the proper paperwork.(Ans- It can be considered real property if the owner chooses to treat it as such and files the proper paperwork.

A house for sale has a huge deck on its west side. The deck is permanently attached to the house and removing it would damage the house and the landscaping. The deck will transfer with the property when it is sold via a

• bill of sale
• deed of trust 1 / 3

• conveyance deed
• promissory note

(Ans- conveyance deed

An abstract of title

• is the record of a property's ownership.
• is a summary of what the title search found in the public record.
• includes liens but does not include encumbrances.
• includes encumbrances but does not include liens.

(Ans- b.

When one party in a joint tenancy dies, the deceased tenant's interest in the property

• transfers directly to the surviving joint tenant(s).
• transfers to the heirs, not to the surviving joint tenant(s).
• is transferred through probate to the surviving joint tenant(s).
• transfers to the estate, not to the surviving joint tenant(s).

(Ans- a.

Which of the following is FALSE regarding community property?

• It can be mortgaged or conveyed by one spouse without the consent of

the other.

• It consists of real and personal property acquired by either spouse during

the marriage.

• Its conveyance requires the signature of both spouses.
• The spouses can will their half of the property to whomever they desire.

(Ans- a.

A business organization may NOT own property as a

• partnership
• corporation
• tenancy by the entirety.
• limited liability company.

(Ans- c.

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Fee simple ownership, shared walls, and a fractional interest in common areas are all characteristics of

• single-family home ownership.
• cooperative ownership.
• town-house ownership.
• time-share ownership.

(Ans- c.

The person who prepares an abstract of title for a parcel of real estate

• searches the public records and then summarizes the events and

proceedings that affect title.

• insures the condition of the tile.
• inspects the property.
• issues title insurance.

(Ans- a.

Which of the following is a physical characteristic of land?

• improvements
• indestructibility
• area preference
• scarcity

(Ans- b.

Enacting zoning ordinances is an example of which government power?

• eminent domain
• police power
• condemnation
• escheat

(Ans- b.

All of the following are true about estates in real property EXCEPT

• freehold estates are estates of ownership
• they are created by a deed or a bill of sale.
• leasehold estates are estates of possession.
• they are created by a deed and a lease. (Ans- b.
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