Texas Promulgated Contract Forms Final Exam 2026 |
Latest Update 2026 | 100% Correct Answers | Actual
Exam Prep
1. Describe the implications of a Seller's default on the earnest money in a real
estate transaction.
The earnest money should be returned to the Buyer as a remedy for
the Seller's default.
The Seller keeps the earnest money as compensation for their time.
The Broker retains the earnest money for their services.
The title company distributes the earnest money according to the
contract terms.
2. Which type of financing is specifically excluded from the use of the Third
Party Financing Condition Addendum?
FHA Financing
VA Financing
Conventional financing
Seller financing
3. Interpret the implications of the Buyer's Agency Agreement allowing agents
to show properties to multiple clients.
It suggests that agents cannot work with more than one buyer at a
time.
It indicates that agents must inform clients about all other interested
buyers.
It means that agents can represent different buyers for the same
property, which may lead to competition among clients.
, It ensures that agents must prioritize one client over another when
showing properties.
4. In a binding real estate contract, consideration can be:
Money only
Not required
Earnest money only
An exchange of promises
5. What form must be completed and signed if a seller remains in the property
after closing?
A verbal agreement between buyer and seller is sufficient.
The listing agent must draft a new contract.
A Buyer’s Temporary Lease Form promulgated by TREC should be
completed.
A Seller's Temporary Lease Form promulgated by TREC should be
completed and signed by buyer and seller and attached to the
contract.
6. Which of the following is an accurate statement about fraud?
For every type of contract, the plaintiff must elect a remedy of either
money damages or rescission of the contract—but never both
Both (a) and (b)
Neither (a) nor (b)
Sometimes, silence can constitute fraud
,7. According to the Texas Real Estate License Act, when must the written
statement providing the Information about Brokerage Services be provided?
first substantive dialogue
first contact
at open houses
first face-to-face meeting
8. Which of these is addressed in the Farm and Ranch Contract and not in the
other TREC-promulgated contract forms?
Surface rights
Accessories
Lead-based paint
Improvements
9. What must a Buyer do within the specified number of days in a real estate
contract regarding credit approval?
Submit a loan application
Provide proof of income
Give notice to the Seller
Pay earnest money
10. A Buyer/Tenant Representation Agreement is:
only available through TREC
available to the public on the TREC website
only available through TAR
, sometimes available through local Realtors Boards
11. Buyer representation agreements are required when licensees are beginning
to work with prospective buyers. What exactly is a buyer representation
agreement?
A temporary, non-binding agreement between a potential buyer of a
property and an individual licensee
A binding oral agreement between a brokerage firm and the potential
buyer of a property
A written contract between the potential buyer of a property and a
broker
An employment contract between an individual licensee and a
managing broker
12. Interpret the implications of a Buyer failing to notify the Seller about credit
approval within the contractually agreed timeframe.
The contract will still be subject to the buyer's credit approval if
notice is not given.
The contract becomes void immediately without notice.
The Seller can terminate the contract without any consequences.
The Buyer automatically loses their earnest money.
13. If a broker does not inform a buyer to obtain title insurance and a dispute
arises over property ownership, what potential consequences could the
broker face?
The broker may face suspension or revocation of their license and
lose any commissions from the sale.
The broker will receive a warning but keep their license.
Latest Update 2026 | 100% Correct Answers | Actual
Exam Prep
1. Describe the implications of a Seller's default on the earnest money in a real
estate transaction.
The earnest money should be returned to the Buyer as a remedy for
the Seller's default.
The Seller keeps the earnest money as compensation for their time.
The Broker retains the earnest money for their services.
The title company distributes the earnest money according to the
contract terms.
2. Which type of financing is specifically excluded from the use of the Third
Party Financing Condition Addendum?
FHA Financing
VA Financing
Conventional financing
Seller financing
3. Interpret the implications of the Buyer's Agency Agreement allowing agents
to show properties to multiple clients.
It suggests that agents cannot work with more than one buyer at a
time.
It indicates that agents must inform clients about all other interested
buyers.
It means that agents can represent different buyers for the same
property, which may lead to competition among clients.
, It ensures that agents must prioritize one client over another when
showing properties.
4. In a binding real estate contract, consideration can be:
Money only
Not required
Earnest money only
An exchange of promises
5. What form must be completed and signed if a seller remains in the property
after closing?
A verbal agreement between buyer and seller is sufficient.
The listing agent must draft a new contract.
A Buyer’s Temporary Lease Form promulgated by TREC should be
completed.
A Seller's Temporary Lease Form promulgated by TREC should be
completed and signed by buyer and seller and attached to the
contract.
6. Which of the following is an accurate statement about fraud?
For every type of contract, the plaintiff must elect a remedy of either
money damages or rescission of the contract—but never both
Both (a) and (b)
Neither (a) nor (b)
Sometimes, silence can constitute fraud
,7. According to the Texas Real Estate License Act, when must the written
statement providing the Information about Brokerage Services be provided?
first substantive dialogue
first contact
at open houses
first face-to-face meeting
8. Which of these is addressed in the Farm and Ranch Contract and not in the
other TREC-promulgated contract forms?
Surface rights
Accessories
Lead-based paint
Improvements
9. What must a Buyer do within the specified number of days in a real estate
contract regarding credit approval?
Submit a loan application
Provide proof of income
Give notice to the Seller
Pay earnest money
10. A Buyer/Tenant Representation Agreement is:
only available through TREC
available to the public on the TREC website
only available through TAR
, sometimes available through local Realtors Boards
11. Buyer representation agreements are required when licensees are beginning
to work with prospective buyers. What exactly is a buyer representation
agreement?
A temporary, non-binding agreement between a potential buyer of a
property and an individual licensee
A binding oral agreement between a brokerage firm and the potential
buyer of a property
A written contract between the potential buyer of a property and a
broker
An employment contract between an individual licensee and a
managing broker
12. Interpret the implications of a Buyer failing to notify the Seller about credit
approval within the contractually agreed timeframe.
The contract will still be subject to the buyer's credit approval if
notice is not given.
The contract becomes void immediately without notice.
The Seller can terminate the contract without any consequences.
The Buyer automatically loses their earnest money.
13. If a broker does not inform a buyer to obtain title insurance and a dispute
arises over property ownership, what potential consequences could the
broker face?
The broker may face suspension or revocation of their license and
lose any commissions from the sale.
The broker will receive a warning but keep their license.
