Download Texas Law of Contracts - Cumulative Latest Test With Complete Solution. and more Exams Law in PDF only on Docsity!
Texas Law of Contracts - Cumulative Latest
Test With Complete Solution
Abstract of title - ANSWER an abbreviated history of a property, including info on any transfers, grants, wills, conveyances, liens, and encumbrances
acceleration clause - ANSWER clause in a security instrument (mortgage/deed of trust) which makes the entire loan amount due immediately upon default
accessible - ANSWER that which can be approached, entered, or viewed without hazards, specialized equipment, or damaging property
accession - ANSWER refers to the acquisition of new land or real property by artificial or natural means
actual damages - ANSWER monetary compensation given to an injured party for losses that were a result of the actions or omissions of another party
actual notice - ANSWER notice given to a specific party regarding the ownership of a property
adaptation - ANSWER the use and modification of a particular item for a specific use in a property — specific use for a property could deem an item as real property
addenda - ANSWER documents containing additional terms, information, or obligations that are attached to a contract / a document that's attached to a purchase agreement that includes additional information or requests items not included in the purchase agreement
agency - ANSWER a relationship where one party is authorized to act on behalf of the other
air rights - ANSWER ownership rights to the air above a property, extending from the surface of the land up into space
alienation - ANSWER the process and act of transferring property from one party to another
allodial system - ANSWER system of ownership in which land is owned completely, without an obligation of services or duties to another
amendment - ANSWER a document that changes the terms in a sales contract that has been previously agreed to by all the parties; requires all parties to sign the amendment for it to be valid / a change in a legal document made by adding, altering, or omitting a certain part or term
Americans with Disabilities Act - ANSWER identified and defined protected disabilities, as well as required all new buildings with employees or public access to provide reasonable access for people with protected disabilities
annexation - ANSWER attaching (or affixing) personal property to real estate in a way that transforms the personal property into real property
approved contracts - ANSWER contracts that are allowed by the Texas Real Estate Commission but not required
assignment - ANSWER the transference of obligations in a contract from one party to another
beneficiary - ANSWER the recipient of advantage or gain from an act or instrument such as a trust, will, or insurance policy
constructive notice - ANSWER recording of a deed in publicly accessible records
Consumer Financial Protection Bureau (CFPB) - ANSWER independent agency created under the Dodd-Frank Wall Street Reform Act to supervise financial companies, banks, and credit unions as well as enforce federal consumer financial laws
contingency - ANSWER a provision within a contract that makes performance conditional upon the occurrence of a stated event
contract - ANSWER an agreement with two or more parties by which one party will receive consideration and the other will either perform an act or refrain from performing an act
contract for deed - ANSWER an agreement between the seller and buyer for the sale of real estate wherein the seller holds the legal title to the property until it is paid in full
conventional life estate - ANSWER a type of freehold life estate created by a deed or will that lasts for the duration of the tenant's life
conveyance - ANSWER the voluntary alienation and transfer of an interest and rights in real property
cooperative (co-op) - ANSWER a residential building in which the title is held by a corporation, the residents are stockholders in the corporation, and the residents have a lease
corporation - ANSWER a company or group of people recognized as one entity under the law; owners purchase stocks in the corporation (shareholder) and the corporation is run by the board of directors (elected by
the shareholders)
dedication - ANSWER the voluntary gift of one's land to the public
deed - ANSWER a legal written document that conveys the intangible ownership rights (title) of a real estate property to another party
deed in trust - ANSWER a security instrument that places the deed to the property in a trust held by the lender until the mortgage is paid off, at which point, the trustee will transfer the deed to the borrower
deed of trust - ANSWER security instrument which places the deed to the property in a trust held by the trustee, who holds it as security on behalf of the beneficiary (lender)
deed restriction - ANSWER a provision in a deed that restricts the land use of a property
default - ANSWER failure to fulfill an obligation by duty, contract, or law
defeasible fee estate - ANSWER also known as fee simple defeasible or qualified fee, is a type of freehold estate in which the person who has possession of the property is only able to hold the property until an event takes place or does not occur; two common defeasible fee estates are fee simple determinable and fee simple subject to condition subsequent
defect - ANSWER an item that was installed or is attached to the home and has an imperfection
deficiency - ANSWER a condition that, in the reasonable judgment of the inspector, adversely and materially affects the performance of a system, or component or constitutes a hazard to life, limb, or property
equitable interest - ANSWER the right of a lender to claim ownership of a property if a borrower defaults on payments
equitable redemption - ANSWER occurs before the foreclosure sale (auction) of the property and allows defaulting debtors to pay the defaulted portion of the debt and prevent foreclosure
escheat - ANSWER the legal doctrine by which the decedent's property will pass to the state without their consent if that individual dies without a will, a surviving spouse, lineal descendants, or other known heirs
estate - ANSWER the degree, quantity, nature, and extent of one's interest in property
estate at will - ANSWER when a tenant is occupying a property with the landlord's knowledge and consent, but without a formal lease agreement
estate for years - ANSWER a leased possession of property for a certain, specific period of time; also known as a tenancy for years
eviction - ANSWER the process by which a tenant is expelled from a property
exclusive agency listing - ANSWER a listing agreement in which the owner retains the right to sell the property themselves without paying a commission, or the commission will be paid to the named broker if the broker or any other party sells the property
exclusive right to sell agreement - ANSWER a listing agreement which gives the agent the sole right to sell the property and guarantees that the broker receives a commission if the property is sold, even if the seller brings the buyer themselves
executed contract - ANSWER a contract in which all terms have been fulfilled
by all parties
executory contract - ANSWER a contract that is not completely executed or performed
exemplary damages - ANSWER fines used to punish the breaching party
express acceptance - ANSWER when the parties explicitly state that they agree to the terms of the offer
Fair Housing Act of 1968 - ANSWER a federal law that prohibits discrimination in housing based upon race, color, religion, or national origin and was amended to include sex, disability, and familial status
fee simple condition subsequent - ANSWER a defeasible fee estate in which a grantor conveys a parcel of real estate subject to a condition of ownership; the grantor must go to court to assert their right to retake ownership (right of re-entry)
fee simple determinable - ANSWER a defeasible fee estate that will come to an end automatically and immediately upon the occurrence of a designated event, the time of which is uncertain
fee simple estate - ANSWER maximum ownership of real property; also called a fee or a fee simple absolute; it is of indefinite duration, freely transferable, and freely inheritable
funding - ANSWER disbursal of funds after closing that usually precedes possession of a property
general partner - ANSWER person in a partnership who takes the lead on day-to-day relationships and assumes full liability for the business
general warranty deed, a.k.a. full covenant and warranty deed - ANSWER the most frequently used deed format, provides the greatest protection of all the deeds
good funds - ANSWER funds a buyer is expected to bring to or have available for closing in a format acceptable to the title company
graduated lease - ANSWER a variable lease agreement in which the amount of rent increases periodically at regular intervals
gross lease - ANSWER a lease in which the tenant will be responsible for the payment of a fixed monthly charge, while the landlord is responsible for paying all operating expenses
ground lease - ANSWER a leasing of bare, undeveloped land
homestead - ANSWER a personal residence that is protected from creditor seizure except for mortgage liens, tax liens, or mechanic's liens
Housing for Older Persons Act - ANSWER established that a planned living community could require a minimum age for new residents
implied acceptance - ANSWER when the parties bound by the contract act in a manner that just implies acceptance of the offer; unenforceable in Texas
improvement - ANSWER any non-natural structure built on or affixed to land
index lease - ANSWER a variable lease agreement that also allows for a graduated increase of rent at periodic intervals
inspection contingency - ANSWER gives the buyer the right to get the home inspected and negotiate further if there are repair issues
intention - ANSWER the owner's intent for an item — was it designed to be a part of the real property
Interest - ANSWER a right or legal share in a property
favorable treatment
land - ANSWER the surface of the earth, including all permanently attached natural features, extending downwards to the center of the earth and upwards to infinity
lease term - ANSWER the initial rental period from commencement to expiration; the duration of the lease
leasehold estate - ANSWER a type of property interest allowing tenants to occupy and use a property they do not own; contains a reversionary right
legal description - ANSWER a description of a property that is distinct and precise enough to distinguish it from all other properties
legal life estate - ANSWER a type of freehold life estate created by an act of law; a Texas homestead would be one example
lien - ANSWER the claim made by a creditor against real or personal property pledged by a debtor as collateral
lien theory state - ANSWER principle where mortgagors (borrower) retain
legal and equitable rights to their property; mortgagee (lender) has a lien on the property until payment of loan
life estate - ANSWER an interest in property for the duration of an individual's life, usually the person receiving the property
limited partner - ANSWER person in a partnership who is only liable for the amount they have invested into the business venture
liquidated damages - ANSWER sum of money established by the contract as compensation in the event of default
living trust - ANSWER a trust created during someone's life to manage their assets in life and in death
malfunction - ANSWER when something is designed or built to perform a certain function and no longer does so
market value - ANSWER the price for which a property will sell if offered openly under normal conditions
mechanic's lien - ANSWER a lien that establishes a claim against a property
option - ANSWER an agreement that gives one party the right to perform a non-obligatory action within a time period (ex: terminating a contract or the right of first refusal)
option period - ANSWER the window of time during which a buyer can opt out of a contract without penalty; a right that is purchased by the buyer
ownership interest - ANSWER an undisputed right of an owner to their property
partial performance - ANSWER when one or more of the contracting parties perform only a portion of the agreed-upon contractual duties
partnership - ANSWER a business entity legally formed for two or more individuals to share profits
percentage lease - ANSWER a commercial lease in which the tenant pays a base rent amount and a percentage of their business profits to the landlord
performance agreement - ANSWER part of a contract that requires the contracting parties either to perform certain actions or to uphold certain contractual promises
periodic estate - ANSWER has a fixed lease period, meaning that the lease is automatically renewed at the end of each lease period until the landlord or tenant acts to terminate it; also known as periodic tenancy
personal property - ANSWER any moveable, unattached property that is not real property; also known as chattel or personalty
police power - ANSWER right of the state to regulate and restrict land-use in order to protect the public, including enforcing zoning and building codes
power of attorney - ANSWER a legal document conferring the right for one individual to act on behalf of another
power-of-sale clause - ANSWER gives lenders the ability to post property for foreclosure if the debtor is behind on payments
principle of supply and demand - ANSWER the existing inventory of a commodity, product, or service available and the desire of consumers for it; factors that combine to influence price
private land-use controls - ANSWER land-use controls that are put into place
pur autre vie - ANSWER a life estate characterized by ownership lasting only for the duration of a designated party's lifetime
real estate - ANSWER a part of the surface of land to the center of the earth and upward to space, plus all improvements made by man or nature
remainderman - ANSWER the recipient of the remainder — either the grantor who set up the life estate or a designated third party
rescission - ANSWER the act of terminating the contract without suffering any consequences
RESPA - ANSWER legislation designed to protect consumers from predatory lending and educate them about closing and settlement services
reversion - ANSWER a future interest in land that is created when a grantor transfers a qualified interest to another party for a specific amount of time, under the condition that the interest will revert to the grantor when that period expires
reversionary interest - ANSWER refers to an estate wherein, upon the death of the life estate owner, full ownership reverts to the original fee simple owner; also known as a reversionary right
reversionary right - ANSWER refers to an estate wherein, upon the occurrence of a certain condition or event, full ownership reverts back to the grantor
riparian rights - ANSWER rights that govern the use of flowing water, such as rivers and streams that pass through or border a property
S corp - ANSWER a corporation (that can only be formed with less than 100 shareholders) that is similarly taxed like a partnership to avoid double taxation
sale and leaseback agreement - ANSWER a way for landowners to free up capital while maintaining the same overhead expenses by selling their interest in a property and leasing it back at the same monthly rate
sale of other property contingency - ANSWER makes the transaction contingent on the buyer selling their current property first
security deposit - ANSWER an advance of money (other than a rental application deposit or an advance payment of rent) given to secure a residential lease
