TEXAS PROMULGATED CONTRACT FORMS EXAM<\/p>\n\n\n\n
An agreement between a buyer and seller giving the buyer the right to purchase a property at a preset price for a given period of time.<\/p>\n\n\n\n
a. Mutual consent
b. Unilateral contract
c. Consideration
d. Option
e. Unenforceable contract
D<\/p>\n\n\n\n
A “meeting of the minds”<\/p>\n\n\n\n
a. Mutual consent
b. Unilateral contract
c. Consideration
d. Option
e. Unenforceable contract
A<\/p>\n\n\n\n
A contract that cannot be enforced due to some flaw or other issue in the contract.<\/p>\n\n\n\n
a. Mutual consent
b. Unilateral contract
c. Consideration
d. Option
e. Unenforceable contract
E<\/p>\n\n\n\n
Something given in exchange for a promise.<\/p>\n\n\n\n
a. Mutual consent
b. Unilateral contract
c. Consideration
d. Option
e. Unenforceable contract
C<\/p>\n\n\n\n
A contract in which only one party is obligated to perform.<\/p>\n\n\n\n
a. Mutual consent
b. Unilateral contract
c. Consideration
d. Option
e. Unenforceable contract
B<\/p>\n\n\n\n
The five essential elements that must exist for a real estate sales contract to be considered valid and enforceable are: legal purpose, competent parties, mutual assent, consideration and ___<\/em><\/strong><\/em><\/strong>.<\/p>\n\n\n\n a. Signature of witnesses If a contract has been entered into with a person who has been judged to be incompetent, that contract is considered _____<\/em><\/strong><\/em><\/strong> because that person never had the capacity to enter into it.<\/p>\n\n\n\n a. Executed ____<\/em><\/strong><\/em><\/strong> is defined as something given in exchange for a promise.<\/p>\n\n\n\n a. Mutual consent A buyer who has the right to purchase a property at a preset price and terms for a period of time has a(n) __<\/em><\/strong><\/em><\/strong>.<\/p>\n\n\n\n a. Option A(n) ___<\/em><\/strong><\/em><\/strong> contract is defined as a contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed.<\/p>\n\n\n\n a. Executory In Texas, the statute of limitations is __<\/strong><\/em><\/strong> for an oral agreement.<\/p>\n\n\n\n a. Four years A rejection of the original offer coupled with a new offer.<\/p>\n\n\n\n a. Promulgated forms License holder adding complex provisions to a contract.<\/p>\n\n\n\n a. Promulgated forms Contract forms published by TREC.<\/p>\n\n\n\n a. Promulgated forms The party making an offer.<\/p>\n\n\n\n a. Promulgated forms An agreement that allows a tenant to purchase a property during the lease term.<\/p>\n\n\n\n a. Promulgated forms TREC-promulgated lease forms are for a term of no more than ____<\/em><\/strong><\/em><\/strong> days.<\/p>\n\n\n\n a. 180 A(n) ____<\/em><\/strong><\/em><\/strong> is a rejection of the original offer coupled with a new offer.<\/p>\n\n\n\n a. Counteroffer The party to whom an offer is submitted is known as the ___<\/em><\/strong><\/em><\/strong>.<\/p>\n\n\n\n a. License holder TREC publishes promulgated forms for _____<\/em><\/strong><\/em><\/strong>.<\/p>\n\n\n\n a. Lease purchase agreements Brokers receiving multiple offers must submit __<\/em><\/strong><\/em><\/strong> to the seller.<\/p>\n\n\n\n a. Only those offers the broker deems serious An offer may be terminated ___<\/em><\/strong><\/em><\/strong>, prior to acceptance by the offeree.<\/p>\n\n\n\n a. Within 7 days Under the legal concept of ____<\/em><\/strong><\/em><\/strong>, an offer is presumed to have been delivered to the principal when it is delivered to the agent.<\/p>\n\n\n\n a. Presentation When a seller receives an offer, the ______<\/em><\/strong><\/em><\/strong> should prepare a net sheet, which is an estimate of the net proceeds of the offer.<\/p>\n\n\n\n a. Buyer The unauthorized practice of law by license holders led TREC to create the _<\/em><\/strong><\/em><\/strong>, which writes residential contract forms.<\/p>\n\n\n\n a. State Bar of Texas Personal property included in a sale.<\/p>\n\n\n\n a. Assumption Buyer and seller.<\/p>\n\n\n\n a. Assumption The specifics of the location and size of a property.<\/p>\n\n\n\n a. Assumption The agreement by the buyer to pay the seller’s existing mortgage as part of a contract for sale.<\/p>\n\n\n\n a. Assumption Mortgages insured or guaranteed by the U.S. Government.<\/p>\n\n\n\n a. Assumption _____<\/em><\/strong><\/em><\/strong> collectively refers to land, improvements and accessories.<\/p>\n\n\n\n a. The estate The Third Party Financing Addendum for Credit Approval cannot be used for ____<\/em><\/strong><\/em><\/strong>.<\/p>\n\n\n\n a. VA guaranteed loans The sales price is equal to ______<\/em><\/strong><\/em><\/strong> in the 1-4 Family Residential Contract.<\/p>\n\n\n\n a. The loan amount plus the cash portion Accessories include ___<\/em><\/strong><\/em><\/strong>, according to TREC-promulgated contract forms.<\/p>\n\n\n\n a. Refrigerators Exclusions to the sale must be removed ______<\/em><\/strong><\/em><\/strong>.<\/p>\n\n\n\n a. Prior to delivery of possession A(n) _____<\/em><\/strong><\/em><\/strong> occurs when a buyers assumes and agrees to pay the seller’s existing mortgage.<\/p>\n\n\n\n a. Loan assumption Paragraph C of the Seller Financing Addendum refers to the _____<\/em><\/strong><\/em><\/strong>, and specifies the method of repayment.<\/p>\n\n\n\n a. Taxes and insurance The Non-Realty Items Addendum may be used when ______<\/em><\/strong><\/em><\/strong> is\/are to be included in a sale.<\/p>\n\n\n\n a. Personal property A measurement of boundaries and land area required in some sale contracts.<\/p>\n\n\n\n a. Earnest money A change made to a standard insurance policy.<\/p>\n\n\n\n a. Earnest money Insurance policy against losses resulting form defects in title.<\/p>\n\n\n\n a. Earnest money A “deposit” paid upfront by the buyer.<\/p>\n\n\n\n a. Earnest money Form stating known facts and defects concerning a property.<\/p>\n\n\n\n a. Earnest money When the property ____<\/em><\/strong><\/em><\/strong>, a Seller’s Disclosure Notice is not required.<\/p>\n\n\n\n a. Is a previously unoccupied new home The Seller’s Disclosure Notice should be completed by ____<\/em><\/strong><\/em><\/strong>.<\/p>\n\n\n\n a. The agent The Texas Department of Insurance has promulgated _____<\/em><\/strong><\/em><\/strong> exceptions to title insurance policies.<\/p>\n\n\n\n a. Eight The title company has 20 days from the date that they receive the contract to furnish a(n) ___<\/em><\/strong><\/em><\/strong> to the buyer for title insurance.<\/p>\n\n\n\n a. Survey A survey must be acceptable to the _________<\/em><\/strong><\/em><\/strong>.<\/p>\n\n\n\n a. Title company and lender The T-47 Residential Real Property Affidavit should be completed _____<\/em><\/strong><\/em><\/strong>, in most cases.<\/p>\n\n\n\n a. At funding The ______<\/em><\/strong><\/em><\/strong> ensures compliance with TRELA, which requires that license holders advise buyers to have an abstract of title examined or to obtain title insurance.<\/p>\n\n\n\n a. Title commitment If an environmental assessment is performed and is shown to affect the intended use of the property, a buyer may _____<\/em><\/strong><\/em><\/strong>, providing a copy of the assessment to the seller at that time.<\/p>\n\n\n\n a. Submit a lower offer While no standard exists for the dollar amount of earnest money, it is often _<\/strong> of the purchase price of the property.<\/p>\n\n\n\n a. 1% Processes of resolving contractual disagreements between parties.<\/p>\n\n\n\n a. Default The time allowed for buyer-specified inspections.<\/p>\n\n\n\n a. Default Expenses divided between parties at closing.<\/p>\n\n\n\n a. Default Failure to meet a contractural obligation.<\/p>\n\n\n\n a. Default Funds held by a third party until performance of a contract.<\/p>\n\n\n\n a. Default The ____<\/em><\/strong><\/em><\/strong> is responsible for the expense of the release of any existing liens.<\/p>\n\n\n\n a. Buyer A(n) _______<\/em><\/strong><\/em><\/strong> gives the buyer the unrestricted right to terminate the contract within a specified period.<\/p>\n\n\n\n a. Clause ________<\/em><\/strong><\/em><\/strong> is the process of dividing ongoing expenses between the buyer and the seller at closing.<\/p>\n\n\n\n a. Assessing At closing, the seller must _____<\/em><\/strong><\/em><\/strong> a general warranty deed conveying title to the property to the buyer.<\/p>\n\n\n\n a. Sign and mail Properties subject to a lease must have copies of the lease provided to a buyer within _<\/em><\/strong><\/em><\/strong> days after the effective date of the contract.<\/p>\n\n\n\n a. 14 Which of the following expenses is considered payable by the seller as part of the settlement portion of the contract?<\/p>\n\n\n\n a. 1\/2 of the escrow fee
b. In writing
c. Acknowledgment by a notary
d. Recording in county clerk’s office
B<\/p>\n\n\n\n
b. Valid
c. Voidable
d. Void
D<\/p>\n\n\n\n
b. Legal subject matter
c. Consideration
d. Competent parties
C<\/p>\n\n\n\n
b. Novation
c. Bilateral contract
d. Deed
A<\/p>\n\n\n\n
b. Fully executed
c. Bilateral
d. Void
A<\/p>\n\n\n\n
b. Two years
c. Eight years
d. Six years
B<\/p>\n\n\n\n
b. Counteroffer
c. Unauthorized practice of law
d. Lease-purchase agreement
e. Offeror
B<\/p>\n\n\n\n
b. Counteroffer
c. Unauthorized practice of law
d. Lease-purchase agreement
e. Offeror
C<\/p>\n\n\n\n
b. Counteroffer
c. Unauthorized practice of law
d. Lease-purchase agreement
e. Offeror
A<\/p>\n\n\n\n
b. Counteroffer
c. Unauthorized practice of law
d. Lease-purchase agreement
e. Offeror
E<\/p>\n\n\n\n
b. Counteroffer
c. Unauthorized practice of law
d. Lease-purchase agreement
e. Offeror
D<\/p>\n\n\n\n
b. 30
c. 90
d. 60
C<\/p>\n\n\n\n
b. Acceptance
c. Net sheet
d. Notification
A<\/p>\n\n\n\n
b. Offeree
c. Buyer
d. Broker
B<\/p>\n\n\n\n
b. Cooperatives
c. Right of first refusal
d. Residential transactions
D<\/p>\n\n\n\n
b. Offers in the order in which they were submitted
c. All offers, regardless of the timing of submission
d. Offers which exceed the seller’s asking price
C<\/p>\n\n\n\n
b. At any time
c. Within 24 hours
d. Within 72 hours
B<\/p>\n\n\n\n
b. Imputed notice
c. Notification
d. Lis pendens
B<\/p>\n\n\n\n
b. Seller
c. Listing Agent
d. Buyer’s Agent
C<\/p>\n\n\n\n
b. Broker-Lawyer Committee
c. Texas Association of REALTORS\u00ae
d. Federal Housing Administration
B<\/p>\n\n\n\n
b. Parties
c. Government loans
d. Non-realty items
e. Legal description
D<\/p>\n\n\n\n
b. Parties
c. Government loans
d. Non-realty items
e. Legal description
B<\/p>\n\n\n\n
b. Parties
c. Government loans
d. Non-realty items
e. Legal description
E<\/p>\n\n\n\n
b. Parties
c. Government loans
d. Non-realty items
e. Legal description
A<\/p>\n\n\n\n
b. Parties
c. Government loans
d. Non-realty items
e. Legal description
C<\/p>\n\n\n\n
b. The property
c. The listing
d. The homestead
B<\/p>\n\n\n\n
b. FHA insured loans
c. Seller Financing
d. Texas Veterans Loans
C<\/p>\n\n\n\n
b. Paragraph 3.A plus Paragraph 3.B
c. The amount borrowed plus the down payment
d. All of the above
D<\/p>\n\n\n\n
b. Stoves
c. Washing machines
d. Gas dryers
B<\/p>\n\n\n\n
b. At the convenience of the seller
c. When the offer becomes a binding contract
d. Two days prior to closing
A<\/p>\n\n\n\n
b. Seller liability
c. Seller lien
d. Credit approval
A<\/p>\n\n\n\n
b. Deed of trust
c. Credit documentation
d. Promissory note
D<\/p>\n\n\n\n
b. Accessories
c. Emblements
d. Improvements
A<\/p>\n\n\n\n
b. Survey
c. Title policy
d. Endorsement
e. Seller’s Disclosure
B<\/p>\n\n\n\n
b. Survey
c. Title policy
d. Endorsement
e. Seller’s Disclosure
D<\/p>\n\n\n\n
b. Survey
c. Title policy
d. Endorsement
e. Seller’s Disclosure
C<\/p>\n\n\n\n
b. Survey
c. Title policy
d. Endorsement
e. Seller’s Disclosure
A<\/p>\n\n\n\n
b. Survey
c. Title policy
d. Endorsement
e. Seller’s Disclosure
E<\/p>\n\n\n\n
b. Is sold to an investor
c. Has an out-of-state owner
d. Is sold “as-is”
A<\/p>\n\n\n\n
b. The seller
c. The buyer
d. The title company
B<\/p>\n\n\n\n
b. Five
c. Nine
d. Three
A<\/p>\n\n\n\n
b. Objection
c. Inspection
d. Commitment
D<\/p>\n\n\n\n
b. Broker
c. Buyer and seller
d. Listing agent
A<\/p>\n\n\n\n
b. After inspection
c. At closing
d. When the listing is taken
D<\/p>\n\n\n\n
b. Notice to Prospective Buyer
c. Seller’s Disclosure
d. Inspection report
B<\/p>\n\n\n\n
b. Terminate the contract
c. Ask for an allowance
d. Request a new inspection
B<\/p>\n\n\n\n
b. 3%
c. 5%
d. 10%
A<\/p>\n\n\n\n
b. Mediation
c. Escrow
d. Option period
e. Prorations
B<\/p>\n\n\n\n
b. Mediation
c. Escrow
d. Option period
e. Prorations
D<\/p>\n\n\n\n
b. Mediation
c. Escrow
d. Option period
e. Prorations
E<\/p>\n\n\n\n
b. Mediation
c. Escrow
d. Option period
e. Prorations
A<\/p>\n\n\n\n
b. Mediation
c. Escrow
d. Option period
e. Prorations
C<\/p>\n\n\n\n
b. Title company
c. Seller
d. Lender
C<\/p>\n\n\n\n
b. Abstract
c. Option
d. Annexation
C<\/p>\n\n\n\n
b. Prorating
c. Collecting expenses
d. Accounting
B<\/p>\n\n\n\n
b. Execute and deliver
c. Execute and file
d. Deliver and certify
B<\/p>\n\n\n\n
b. 30
c. 7
d. 60
C<\/p>\n\n\n\n
b. Appraisal fees
c. Mortgage recording fees
d. Credit report fees
A<\/p>\n\n\n\n