TEXAS PROMULGATED CONTRACTS
PRACTICE TEST 2026 COMPLETE
QUESTIONS AND ANSWERS FULLY SOLVED
◉With the Loan Assumption addendum, what happens if the seller
does not respond to the buyer's creditworthiness after seven days?.
Answer: contract is valid
◉2 of 3 - Why might a buyer want to assume a note and not
originate a new loan?
(2). Answer: lower interest rate then market
paid down note
◉What does "ad valorem" mean?. Answer: according to value
◉1 of 3 - When should the Seller Financing Addendum be used?.
Answer: It is used when the seller carries a note for a buyer for all or
any portion of the sales price.
, ◉2 of 3 - How many days is the buyer allowed to get financial
information to the seller in the Seller Financing Addendum?.
Answer: 7 days
◉3 of 3 - Addendum for Release of Liability on Assumed Loan
and/or Restoration of Seller's VA Entitlement is used for what type
of situation?. Answer: When a seller wants to be released from
further liability on the VA assumed loan and wants their VA
entitlement restored.
◉The buyer has to meet certain requirements to be approved to
assume a VA loan anyway, such as he or she:. Answer: Is a veteran
Has sufficient unused entitlement
Is otherwise qualified
◉TREC No. 40-7 is a document used as for third party financing
addendum. Answer: for credit approval. The Third Party Financing
Addendum for Credit Approval addendum is to be used if the buyer
is applying for a loan with conventional, FHA, VA or other forms of
financing.
◉TREC No. 41-2 form is used for the Loan Assumption Addendum..
Answer:
PRACTICE TEST 2026 COMPLETE
QUESTIONS AND ANSWERS FULLY SOLVED
◉With the Loan Assumption addendum, what happens if the seller
does not respond to the buyer's creditworthiness after seven days?.
Answer: contract is valid
◉2 of 3 - Why might a buyer want to assume a note and not
originate a new loan?
(2). Answer: lower interest rate then market
paid down note
◉What does "ad valorem" mean?. Answer: according to value
◉1 of 3 - When should the Seller Financing Addendum be used?.
Answer: It is used when the seller carries a note for a buyer for all or
any portion of the sales price.
, ◉2 of 3 - How many days is the buyer allowed to get financial
information to the seller in the Seller Financing Addendum?.
Answer: 7 days
◉3 of 3 - Addendum for Release of Liability on Assumed Loan
and/or Restoration of Seller's VA Entitlement is used for what type
of situation?. Answer: When a seller wants to be released from
further liability on the VA assumed loan and wants their VA
entitlement restored.
◉The buyer has to meet certain requirements to be approved to
assume a VA loan anyway, such as he or she:. Answer: Is a veteran
Has sufficient unused entitlement
Is otherwise qualified
◉TREC No. 40-7 is a document used as for third party financing
addendum. Answer: for credit approval. The Third Party Financing
Addendum for Credit Approval addendum is to be used if the buyer
is applying for a loan with conventional, FHA, VA or other forms of
financing.
◉TREC No. 41-2 form is used for the Loan Assumption Addendum..
Answer:
