addenda - correct answer additions to a completed contract that specify supplementary information to the contract
amendment - correct answer change or
... [Show More] modification to an already agreed-upon contract
bilateral contract - correct answer a contract wherein both parties are obligated to perform in an exchange of promises
buyer rebate - correct answer anything during a transaction that causes money to go back to the buyer, either at or after closing, without the knowledge of the lender
casualty loss - correct answer a sudden, unexpected event like a fire, flood, storm, earthquake that causes damage to a property
consideration - correct answer something of value exchanged by the parties as evidence of agreement to the terms of a contract
contract - correct answer a legally enforceable and binding agreement between parties wherein a promise to do or not do something is given in exchange for valuable consideration
counteroffer - correct answer a contract proposal submitted in response to a previous offer, modifying the terms of the original offer; considered a rejection of the original offer
disability - correct answer a physical or mental impairment that substantially limits one or more major life activities, the record of such impairment, or being regarded as having such an impairment
earnest money - correct answer funds paid to confirm or commit to a contract
effective date - correct answer the date a contract becomes binding between the parties
endorsement - correct answer additional coverage that can be added onto an insurance policy
escrow - correct answer a process in which funds and/or financial documents are held by a disinterested third party on behalf of the other two parties in the real estate transaction until specific conditions are satisfied
executed contract - correct answer a contract in which all terms have been fulfilled by all parties
executory contract - correct answer a contract that has not yet been fully performed (both sides have not yet completed their obligations)
Fair Housing Act of 1968 - correct 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
fair lending laws - correct answer laws that prevent lenders from discriminating against protected classes when extending credit; protected classes include race, color, national origin, religion, sex, familial status, disability, gender expression, sexuality, age, marital status, or receipt of public income
goodwill - correct answer good consideration, such as love and affection, that can be exchanged for valuable consideration in a contract or agreement; the exchange of which is generally seen as a gift on the part of the party giving up the valuable consideration
house flipping - correct answer a mortgage fraud scheme that involves an inflated appraisal and a straw buyer
legally competent - correct answer when a party can legally sign a binding contract; they have the age of majority and have not been declared mentally incompetent by a judge
loan-to-value ratio - correct answer the amount of money being loaned compared to the value of the property
mortgagee title policy - correct answer a title insurance policy that protects the lender's interests in the property should a problem with the title arise
novation - correct answer a mutual agreement of the parties to replace an existing contract with a new one
occupancy standards - correct answer rules about the maximum number of people that are allowed to live together in a single dwelling
offer - correct answer a proposition made by an offeror to an offeree to agree to the terms of a binding contract; becomes a contract upon acceptance
option money - correct answer a payment that the prospective buyer makes to the seller in exchange for the exclusive option to terminate the sales contract within a specified period of time (known as the "option period") without penalty; also known as the option fee
option period - correct 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
performance - correct answer the fulfillment of an obligation, duty, or contract
predatory lending - correct answer imposing unfair and abusive loan terms on borrowers
promulgated contracts - correct answer contracts prepared and authorized by the Texas Real Estate Commission that must be used by real estate license holders; there are a few exceptions to this rule
quitclaim deed - correct answer a type of deed that conveys any interest, title, or right to a parcel of land the grantor has at the time the deed is executed
Residential Real Property Affidavit (form T-47) - correct answer a way for the seller to assure the buyer that they haven't changed the boundaries of the property
residential service contract - correct answer policy that insures household items such as the air conditioner, heater, and large kitchen appliances
restrictive covenant - correct answer a type of provision in a deed limiting the use of the property and prohibiting certain uses
rollback taxes - correct answer taxes that can be assessed if the zoning of the property changes when it is sold
statute of limitations - correct answer a legal concept that establishes time limits for bringing certain kinds of legal actions
subagency - correct answer a form of agency that arises when an agent enlists the use of other agents to accomplish a client's goal
survey - correct answer the process and physical product of finding and measuring the boundaries of a piece of real estate, including the location of improvements, encroachments, and easements
title policy - correct answer a policy that protects homeowners (and likewise, lenders) from certain financial losses due to title issues, such as defects, encumbrances, and liens
unenforceable contract - correct answer a contract lacking the essential elements necessary to be legally binding and obligate performance of a valid contract [Show Less]