Texas Promulgated Contracts – CHAMPIONS Exam
TREC Contract Forms Mastery Assessment Actual
Exam 2026/2027 Update Complete Questions and
Answers with Detailed Rationales – Pass Guaranteed
– A+ Graded
Core TREC Contract Forms & Their Uses (15 Questions)
Q1: A license holder is writing an offer for the resale of an existing single-family home
built in 2002 in a San Antonio subdivision. Which TREC-promulgated contract form is
the correct choice for this transaction?
A. Farm and Ranch Contract
B. New Home Contract (Complete Construction)
C. One to Four Family Residential Contract (Resale) [CORRECT]
D. Unimproved Property Contract
Correct Answer: C
Rationale: The best answer is C. The One to Four Family Residential Contract (Resale) is
the standard TREC form for buying an existing residential home from a private owner,
and it covers single-family homes, duplexes, triplexes, and fourplexes that are not new
construction from a builder.
,Q2: An investor wants to purchase a 200-acre working cattle ranch near Amarillo that
includes a ranch house, barns, and fencing. The property carries an agricultural tax
exemption. Which TREC form should the license holder use?
A. One to Four Family Residential Contract (Resale)
B. Condominium Contract (Resale)
C. Farm and Ranch Contract [CORRECT]
D. New Home Contract (Incomplete Construction)
Correct Answer: C
Rationale: The best answer is C. The Farm and Ranch Contract is specifically
promulgated for rural properties, agricultural land, and working ranches; it addresses
issues like livestock, equipment, water rights, and mineral interests that the residential
contract simply does not cover.
Q3: A buyer walks into a builder's model home and wants to purchase a spec home that
is 100% finished and ready for immediate move-in. Which TREC contract form applies?
A. One to Four Family Residential Contract (Resale)
B. New Home Contract (Complete Construction) [CORRECT]
C. Farm and Ranch Contract
D. Residential Lease
Correct Answer: B
,Rationale: The best answer is B. When a buyer purchases a finished new home directly
from a builder, the New Home Contract (Complete Construction) is the proper form
because it includes builder-specific warranties, final walkthrough provisions, and new
construction disclosures that a resale contract lacks.
Q4: A license holder's client wants to buy a vacant residential lot in a Plano subdivision
to build a custom home next year. There are no structures on the property. Which
promulgated form is appropriate?
A. One to Four Family Residential Contract (Resale)
B. Farm and Ranch Contract
C. Unimproved Property Contract [CORRECT]
D. New Home Contract (Incomplete Construction)
Correct Answer: C
Rationale: The best answer is C. The Unimproved Property Contract is designed for raw
land or lots without residential improvements; it addresses due diligence items like
surveys, soil tests, and utility access rather than building conditions or occupancy.
Q5: A buyer is making an offer on a duplex in Austin that is currently tenant-occupied.
The building was constructed in 1995 and is being sold by the current owner. Which
TREC form should the license holder use?
A. Residential Lease
B. One to Four Family Residential Contract (Resale) [CORRECT]
C. New Home Contract (Complete Construction)
, D. Condominium Contract (Resale)
Correct Answer: B
Rationale: The best answer is B. A duplex falls under the definition of a 1-to-4 family
residential dwelling, so the One to Four Family Residential Contract (Resale) is the
correct form regardless of whether it is owner-occupied or rented to tenants.
Q6: A young professional wants to buy a high-rise condominium unit in downtown
Dallas from the current owner. The unit is part of a condominium regime with common
elevators and a pool. Which form is correct?
A. One to Four Family Residential Contract (Resale)
B. Unimproved Property Contract
C. Condominium Contract (Resale) [CORRECT]
D. Farm and Ranch Contract
Correct Answer: C
Rationale: The best answer is C. The Condominium Contract (Resale) contains critical
provisions for condo transactions, including resale certificate requirements,
assessments, common element ownership, and association bylaws that the standard
residential contract does not address.
Q7: A license holder is helping a buyer write an offer on a property that includes 40
acres, a farmhouse, and agricultural tax exemption. The buyer plans to continue
operating the property as a small farm. Which TREC form best fits?
A. One to Four Family Residential Contract (Resale)
TREC Contract Forms Mastery Assessment Actual
Exam 2026/2027 Update Complete Questions and
Answers with Detailed Rationales – Pass Guaranteed
– A+ Graded
Core TREC Contract Forms & Their Uses (15 Questions)
Q1: A license holder is writing an offer for the resale of an existing single-family home
built in 2002 in a San Antonio subdivision. Which TREC-promulgated contract form is
the correct choice for this transaction?
A. Farm and Ranch Contract
B. New Home Contract (Complete Construction)
C. One to Four Family Residential Contract (Resale) [CORRECT]
D. Unimproved Property Contract
Correct Answer: C
Rationale: The best answer is C. The One to Four Family Residential Contract (Resale) is
the standard TREC form for buying an existing residential home from a private owner,
and it covers single-family homes, duplexes, triplexes, and fourplexes that are not new
construction from a builder.
,Q2: An investor wants to purchase a 200-acre working cattle ranch near Amarillo that
includes a ranch house, barns, and fencing. The property carries an agricultural tax
exemption. Which TREC form should the license holder use?
A. One to Four Family Residential Contract (Resale)
B. Condominium Contract (Resale)
C. Farm and Ranch Contract [CORRECT]
D. New Home Contract (Incomplete Construction)
Correct Answer: C
Rationale: The best answer is C. The Farm and Ranch Contract is specifically
promulgated for rural properties, agricultural land, and working ranches; it addresses
issues like livestock, equipment, water rights, and mineral interests that the residential
contract simply does not cover.
Q3: A buyer walks into a builder's model home and wants to purchase a spec home that
is 100% finished and ready for immediate move-in. Which TREC contract form applies?
A. One to Four Family Residential Contract (Resale)
B. New Home Contract (Complete Construction) [CORRECT]
C. Farm and Ranch Contract
D. Residential Lease
Correct Answer: B
,Rationale: The best answer is B. When a buyer purchases a finished new home directly
from a builder, the New Home Contract (Complete Construction) is the proper form
because it includes builder-specific warranties, final walkthrough provisions, and new
construction disclosures that a resale contract lacks.
Q4: A license holder's client wants to buy a vacant residential lot in a Plano subdivision
to build a custom home next year. There are no structures on the property. Which
promulgated form is appropriate?
A. One to Four Family Residential Contract (Resale)
B. Farm and Ranch Contract
C. Unimproved Property Contract [CORRECT]
D. New Home Contract (Incomplete Construction)
Correct Answer: C
Rationale: The best answer is C. The Unimproved Property Contract is designed for raw
land or lots without residential improvements; it addresses due diligence items like
surveys, soil tests, and utility access rather than building conditions or occupancy.
Q5: A buyer is making an offer on a duplex in Austin that is currently tenant-occupied.
The building was constructed in 1995 and is being sold by the current owner. Which
TREC form should the license holder use?
A. Residential Lease
B. One to Four Family Residential Contract (Resale) [CORRECT]
C. New Home Contract (Complete Construction)
, D. Condominium Contract (Resale)
Correct Answer: B
Rationale: The best answer is B. A duplex falls under the definition of a 1-to-4 family
residential dwelling, so the One to Four Family Residential Contract (Resale) is the
correct form regardless of whether it is owner-occupied or rented to tenants.
Q6: A young professional wants to buy a high-rise condominium unit in downtown
Dallas from the current owner. The unit is part of a condominium regime with common
elevators and a pool. Which form is correct?
A. One to Four Family Residential Contract (Resale)
B. Unimproved Property Contract
C. Condominium Contract (Resale) [CORRECT]
D. Farm and Ranch Contract
Correct Answer: C
Rationale: The best answer is C. The Condominium Contract (Resale) contains critical
provisions for condo transactions, including resale certificate requirements,
assessments, common element ownership, and association bylaws that the standard
residential contract does not address.
Q7: A license holder is helping a buyer write an offer on a property that includes 40
acres, a farmhouse, and agricultural tax exemption. The buyer plans to continue
operating the property as a small farm. Which TREC form best fits?
A. One to Four Family Residential Contract (Resale)
