Texas Promulgated Forms ACTUAL EXAM TEST
QUESTIONS & ANSWERS (A+ GRADED 100%
VERIFIED) 2026 LATEST!
Save
Terms in this set (174)
The six elements of a valid real Competent parties
estate contract: Consideration
Mutual agreement (mutual assent)
Lawful objective
In writing and signed by the parties
Contain a legal description
Equitable Owner Buyer has equitable title and is known as the
owner in equity or equitable owner
Voidable Contrasts can include: - Minor
- Seller Disclosure
- Fraud
- Association Documents
- MUD
Bilateral Contract A promise in exchange for a promise
Unilateral Contract A promise in exchange for an act
,An independent contractor false. An independent contractor agreement is a
agreement is an example of a bilateral agreement; it defines the working
unilateral agreement. relationship between sales associate and
True sponsoring broker.
False
All six promulgated contract forms true. The six promulgated contract forms and four
include "time is of the essence." addenda include "time is of the essence":
True Addendum for Sale of Other Property by Buyer,
False Addendum for Back-Up Contract, Third Party
Financing Addendum, and Short Sale Addendum.
The statute of limitations requires false. The statute of frauds requires agreements
agreements affecting title to or affecting title to or interest in real estate in Texas
interest in real estate in Texas to be to be in writing to be enforceable.
in writing to be enforceable.
True
False
Even if a nonbreaching party to a false. Once one of the parties accepts the
contract accepts earnest money as earnest money as liquidated damages, everyone
liquidated damages, that party can is released from the contract with no further
still sue for damages. remedies.
True
False
,The painter contracts to paint the C)
exterior of the home for $1,750 plus substantial performance.
the cost of paint and any other
necessary materials. About three-
fourths of the way through the job,
the contractor breaks his leg and
can't finish. The owner offers to pay
the contract price less deductions
for the cost of having the job
completed by another painter, and
the original painter accepts the
offer. The contract has been
discharged under the principle of
A)
partial performance.
B)
mutual agreement.
C)
substantial performance.
D)
Impossibility.
, TREC promulgates the Loan A)
Assumption Addendum. In a TREC's Loan Assumption Addendum is required.
transaction where a buyer is
assuming a seller's loan
A)
TREC's Loan Assumption
Addendum is required.
B)
TREC's amendment is required.
C)
TREC's Loan Assumption
Addendum is required if the loan
being assumed is greater than
$50,000.
D)
the buyer and seller should hire an
attorney to draft an addendum to
address this.
The real estate agent representing A)
the seller should encourage the require as much earnest money as can be
seller to negotiated with the buyer.
A)
require as much earnest money as
can be negotiated with the buyer.
B)
accept only cash as earnest money
because that is necessary for a
binding contract.
C)
accept whatever earnest money is
offered.
D)
use only option contracts.
QUESTIONS & ANSWERS (A+ GRADED 100%
VERIFIED) 2026 LATEST!
Save
Terms in this set (174)
The six elements of a valid real Competent parties
estate contract: Consideration
Mutual agreement (mutual assent)
Lawful objective
In writing and signed by the parties
Contain a legal description
Equitable Owner Buyer has equitable title and is known as the
owner in equity or equitable owner
Voidable Contrasts can include: - Minor
- Seller Disclosure
- Fraud
- Association Documents
- MUD
Bilateral Contract A promise in exchange for a promise
Unilateral Contract A promise in exchange for an act
,An independent contractor false. An independent contractor agreement is a
agreement is an example of a bilateral agreement; it defines the working
unilateral agreement. relationship between sales associate and
True sponsoring broker.
False
All six promulgated contract forms true. The six promulgated contract forms and four
include "time is of the essence." addenda include "time is of the essence":
True Addendum for Sale of Other Property by Buyer,
False Addendum for Back-Up Contract, Third Party
Financing Addendum, and Short Sale Addendum.
The statute of limitations requires false. The statute of frauds requires agreements
agreements affecting title to or affecting title to or interest in real estate in Texas
interest in real estate in Texas to be to be in writing to be enforceable.
in writing to be enforceable.
True
False
Even if a nonbreaching party to a false. Once one of the parties accepts the
contract accepts earnest money as earnest money as liquidated damages, everyone
liquidated damages, that party can is released from the contract with no further
still sue for damages. remedies.
True
False
,The painter contracts to paint the C)
exterior of the home for $1,750 plus substantial performance.
the cost of paint and any other
necessary materials. About three-
fourths of the way through the job,
the contractor breaks his leg and
can't finish. The owner offers to pay
the contract price less deductions
for the cost of having the job
completed by another painter, and
the original painter accepts the
offer. The contract has been
discharged under the principle of
A)
partial performance.
B)
mutual agreement.
C)
substantial performance.
D)
Impossibility.
, TREC promulgates the Loan A)
Assumption Addendum. In a TREC's Loan Assumption Addendum is required.
transaction where a buyer is
assuming a seller's loan
A)
TREC's Loan Assumption
Addendum is required.
B)
TREC's amendment is required.
C)
TREC's Loan Assumption
Addendum is required if the loan
being assumed is greater than
$50,000.
D)
the buyer and seller should hire an
attorney to draft an addendum to
address this.
The real estate agent representing A)
the seller should encourage the require as much earnest money as can be
seller to negotiated with the buyer.
A)
require as much earnest money as
can be negotiated with the buyer.
B)
accept only cash as earnest money
because that is necessary for a
binding contract.
C)
accept whatever earnest money is
offered.
D)
use only option contracts.
