Texas Promulgated Contracts (Champions) 2026 (175
Most Tested Questions) | Latest Update 2026 | 100%
Correct Answers | Actual Exam Prep
1. Being within the extraterritorial jurisdiction of a municipality is an indication
the property will:
Be unmarketable
Possibly be annexed in the future
Never be annexed by any municipality
Be condemned in the near future
2. What term is used to describe a property that has lost value due to a
negative event affecting its desirability?
Unsellable
Foreclosed
Undesirable
Stigmatized
3. If a real estate agent is representing a seller of a previously unoccupied new
home, what should they inform the buyer regarding the Seller's Disclosure
Notice?
The buyer will receive a Seller's Disclosure Notice only if they request
it.
The buyer should be aware that the Seller's Disclosure Notice is
optional in this case.
The buyer will receive a full Seller's Disclosure Notice detailing all
potential issues.
, The buyer will not receive a Seller's Disclosure Notice since the
property is a previously unoccupied new home.
4. If a buyer is faced with an unexpected overage due to a change order, what
steps should they take to address this issue within the framework of Texas real
estate contracts?
Ignore the overage and proceed with the transaction as planned.
Cancel the contract immediately without further discussion.
Negotiate with the seller to possibly share the cost or seek
alternative financing options.
Request that the agent cover the overage costs.
5. The process of dividing ongoing expenses such as taxes and POA fees
between the buyer and seller at closing is called:
assessing
collecting expenses
prorating
accounting
6. Offers and acceptance may be delivered via
Hand delivery
U.S. mail
Facsimile
All of the above
7. The Civil Rights Act of 1968 (Federal Fair Housing Laws) prohibits which of the
following as it applies to the practice of real estate:
, Discrimination by licensees towards clients and customers.
Refusing to show, rent, or sell based on the false claim that the
property is no longer available.
Offering less than optimal sales or loan terms based on the clients or
customers membership in a protected class.
All of the above
8. In a real estate transaction, if the buyer fails to provide earnest money as
stipulated in the contract, who is considered the injured party?
The seller
The buyer
The lender
The real estate agent
9. Describe the role of earnest money in Texas real estate transactions and how
it is established.
Earnest money is paid only at closing and is not negotiable.
Earnest money is a deposit made to demonstrate the buyer's
commitment and is negotiated between the parties.
Earnest money is determined solely by the seller's discretion.
Earnest money is a fixed amount set by TREC for all transactions.
10. In a scenario where a buyer and seller cannot agree on the interest rate
during negotiations for a Financing Addendum, what would be the most
appropriate course of action?
Seek mediation or alternative financing options
Set the interest rate at 6% by default
, Allow TREC to decide the interest rate
Postpone the transaction until an agreement is reached
11. Describe the significance of using licensed inspectors for property
inspections in Texas real estate transactions.
Licensed inspectors are only necessary for commercial properties.
Buyers can rely on informal inspections without legal implications.
Any inspector can provide a valid inspection regardless of licensing.
Using licensed inspectors ensures compliance with legal standards
and protects the buyer's interests.
12. The condominium resale certificate must have been prepared no more
than______________________ before the date it is delivered to the buyer.
3 months
1 month
2 months
4 months
13. A Buyer's Temporary Residential Lease of a Seller's Temporary Residential
Lease is for use up to __ days.
60
90
180
30
Most Tested Questions) | Latest Update 2026 | 100%
Correct Answers | Actual Exam Prep
1. Being within the extraterritorial jurisdiction of a municipality is an indication
the property will:
Be unmarketable
Possibly be annexed in the future
Never be annexed by any municipality
Be condemned in the near future
2. What term is used to describe a property that has lost value due to a
negative event affecting its desirability?
Unsellable
Foreclosed
Undesirable
Stigmatized
3. If a real estate agent is representing a seller of a previously unoccupied new
home, what should they inform the buyer regarding the Seller's Disclosure
Notice?
The buyer will receive a Seller's Disclosure Notice only if they request
it.
The buyer should be aware that the Seller's Disclosure Notice is
optional in this case.
The buyer will receive a full Seller's Disclosure Notice detailing all
potential issues.
, The buyer will not receive a Seller's Disclosure Notice since the
property is a previously unoccupied new home.
4. If a buyer is faced with an unexpected overage due to a change order, what
steps should they take to address this issue within the framework of Texas real
estate contracts?
Ignore the overage and proceed with the transaction as planned.
Cancel the contract immediately without further discussion.
Negotiate with the seller to possibly share the cost or seek
alternative financing options.
Request that the agent cover the overage costs.
5. The process of dividing ongoing expenses such as taxes and POA fees
between the buyer and seller at closing is called:
assessing
collecting expenses
prorating
accounting
6. Offers and acceptance may be delivered via
Hand delivery
U.S. mail
Facsimile
All of the above
7. The Civil Rights Act of 1968 (Federal Fair Housing Laws) prohibits which of the
following as it applies to the practice of real estate:
, Discrimination by licensees towards clients and customers.
Refusing to show, rent, or sell based on the false claim that the
property is no longer available.
Offering less than optimal sales or loan terms based on the clients or
customers membership in a protected class.
All of the above
8. In a real estate transaction, if the buyer fails to provide earnest money as
stipulated in the contract, who is considered the injured party?
The seller
The buyer
The lender
The real estate agent
9. Describe the role of earnest money in Texas real estate transactions and how
it is established.
Earnest money is paid only at closing and is not negotiable.
Earnest money is a deposit made to demonstrate the buyer's
commitment and is negotiated between the parties.
Earnest money is determined solely by the seller's discretion.
Earnest money is a fixed amount set by TREC for all transactions.
10. In a scenario where a buyer and seller cannot agree on the interest rate
during negotiations for a Financing Addendum, what would be the most
appropriate course of action?
Seek mediation or alternative financing options
Set the interest rate at 6% by default
, Allow TREC to decide the interest rate
Postpone the transaction until an agreement is reached
11. Describe the significance of using licensed inspectors for property
inspections in Texas real estate transactions.
Licensed inspectors are only necessary for commercial properties.
Buyers can rely on informal inspections without legal implications.
Any inspector can provide a valid inspection regardless of licensing.
Using licensed inspectors ensures compliance with legal standards
and protects the buyer's interests.
12. The condominium resale certificate must have been prepared no more
than______________________ before the date it is delivered to the buyer.
3 months
1 month
2 months
4 months
13. A Buyer's Temporary Residential Lease of a Seller's Temporary Residential
Lease is for use up to __ days.
60
90
180
30
