Law of Contracts #1251 2026
Exam Questions and Correct
Answers | New Update
The mission of ________________________________________ is to
protect consumers' economic welfare by ensuring that licensees properly
carry out their fiduciary responsibilities to clients, are qualified and
competent, and adhere to professional standards. - 🧠 ANSWER ✔✔TREC
____________________________ is the law which established the Texas
Real Estate Commission, who is responsible for its enforcement. It governs
,the licensure and lawful behavior of real estate brokers and salespersons. -
🧠 ANSWER ✔✔TRELA
A _____________________that relates to the contractual obligations
between a seller of real estate and a license holder acting as an agent for
the seller must include a provision informing the parties to the contract that
real estate commissions are negotiable. - 🧠 ANSWER ✔✔listing contract
Drafting an instrument, other than a form described by Section 1101.155,
that transfers or otherwise affects an interest in real property is considered
the __________________________. - 🧠 ANSWER ✔✔unauthorized
practice of law
The Texas Real Estate Broker-Lawyer Committee was created in
________. It drafts and revises contract forms for use by real estate
licensees. - 🧠 ANSWER ✔✔1983
A license holder may not practice _________, give advice or opinions
concerning the status or validity of title, and or attempt to discourage any
principal from employing a lawyer. - 🧠 ANSWER ✔✔law
Personal property is conveyed with a __________. - 🧠 ANSWER ✔✔bill of
sale
,Real property is conveyed with a __________. - 🧠 ANSWER ✔✔deed
Many areas of the promulgated contract provide for termination. The most
obvious is paragraph 23, "Termination Option." For a sum of money
negotiated between the parties, the buyer has a time period, stated in this
paragraph, for the __________________ right to terminate. - 🧠 ANSWER
✔✔unrestricted
The ________ must disclose the condition of the property to the buyer. - 🧠
ANSWER ✔✔seller
A lawsuit must be filed within ___________ after the date on which the
false, misleading or deceptive act occurred. - 🧠 ANSWER ✔✔2 years
In a legal subdivision, legal descriptions are recorded in the county
courthouse where the property is located.
A. True
B. False - 🧠 ANSWER ✔✔True
"Unconscionable action or course of action" means an act or practice
which, to a consumer's disadvantage, takes benefit of the lack of
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, knowledge, ability, experience, or capacity of the consumer to a grossly
unfair degree.
A. True
B. False - 🧠 ANSWER ✔✔True
An auctioneer is required to have a real estate license.
A. True
B. False - 🧠 ANSWER ✔✔False
Acting as a principal, a person may purchase, sell, lease, or sublease real
estate for profit without being licensed as a broker or salesperson.
A. True
B. False - 🧠 ANSWER ✔✔True
The maximum amount the Recovery Fund will pay for a single transaction
is $200,000.
Exam Questions and Correct
Answers | New Update
The mission of ________________________________________ is to
protect consumers' economic welfare by ensuring that licensees properly
carry out their fiduciary responsibilities to clients, are qualified and
competent, and adhere to professional standards. - 🧠 ANSWER ✔✔TREC
____________________________ is the law which established the Texas
Real Estate Commission, who is responsible for its enforcement. It governs
,the licensure and lawful behavior of real estate brokers and salespersons. -
🧠 ANSWER ✔✔TRELA
A _____________________that relates to the contractual obligations
between a seller of real estate and a license holder acting as an agent for
the seller must include a provision informing the parties to the contract that
real estate commissions are negotiable. - 🧠 ANSWER ✔✔listing contract
Drafting an instrument, other than a form described by Section 1101.155,
that transfers or otherwise affects an interest in real property is considered
the __________________________. - 🧠 ANSWER ✔✔unauthorized
practice of law
The Texas Real Estate Broker-Lawyer Committee was created in
________. It drafts and revises contract forms for use by real estate
licensees. - 🧠 ANSWER ✔✔1983
A license holder may not practice _________, give advice or opinions
concerning the status or validity of title, and or attempt to discourage any
principal from employing a lawyer. - 🧠 ANSWER ✔✔law
Personal property is conveyed with a __________. - 🧠 ANSWER ✔✔bill of
sale
,Real property is conveyed with a __________. - 🧠 ANSWER ✔✔deed
Many areas of the promulgated contract provide for termination. The most
obvious is paragraph 23, "Termination Option." For a sum of money
negotiated between the parties, the buyer has a time period, stated in this
paragraph, for the __________________ right to terminate. - 🧠 ANSWER
✔✔unrestricted
The ________ must disclose the condition of the property to the buyer. - 🧠
ANSWER ✔✔seller
A lawsuit must be filed within ___________ after the date on which the
false, misleading or deceptive act occurred. - 🧠 ANSWER ✔✔2 years
In a legal subdivision, legal descriptions are recorded in the county
courthouse where the property is located.
A. True
B. False - 🧠 ANSWER ✔✔True
"Unconscionable action or course of action" means an act or practice
which, to a consumer's disadvantage, takes benefit of the lack of
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, knowledge, ability, experience, or capacity of the consumer to a grossly
unfair degree.
A. True
B. False - 🧠 ANSWER ✔✔True
An auctioneer is required to have a real estate license.
A. True
B. False - 🧠 ANSWER ✔✔False
Acting as a principal, a person may purchase, sell, lease, or sublease real
estate for profit without being licensed as a broker or salesperson.
A. True
B. False - 🧠 ANSWER ✔✔True
The maximum amount the Recovery Fund will pay for a single transaction
is $200,000.
