TEXAS PROMULGATED CONTRACTS CHAMPIONS
EXAM 2026/2027 | Official Practice Exam | Verified
Q&A | Pass Guaranteed - A+ Graded
TABLE OF CONTENTS
Section 1: One to Four Family Residential Contract (Resale) [Questions 1-8]
Section 2: Unimproved Property Contract [Questions 9-16]
Section 3: New Home Contract (Incomplete Construction) [Questions 17-23]
Section 4: Farm and Ranch Contract [Questions 24-30]
Section 5: Addendums and Notices [Questions 31-38]
Section 6: Third Party Financing Addendum [Questions 39-45]
Section 7: Seller Financing Addendum [Questions 46-52]
Section 8: Lease with Option to Purchase [Questions 53-59]
Section 9: Notice of Buyer's Termination of Contract [Questions 60-65]
Section 10: TREC Rules and Contract Law [Questions 66-75]
[SECTION 1: Questions 1-8]
Q1: Under the One to Four Family Residential Contract (Resale), which clause
mandates the seller’s obligation to provide a title policy?
A. The seller must purchase a standard owner’s policy at their expense.
B. The buyer is responsible for obtaining title insurance.
C. The seller must provide a title policy at the buyer’s expense unless
negotiated otherwise. [CORRECT]
D. Title insurance is optional in Texas resale transactions.
Correct Answer: C
Rationale: TREC Rule 531.11 requires the seller to convey marketable title and
provide a title policy at the buyer’s expense unless the contract specifies otherwise.
Option A is incorrect because the seller’s obligation is conditional on negotiation.
Option B violates TREC’s default provision. Option D is false, as title insurance is
standard in Texas. Real-world application: A broker must clarify title policy terms in
the contract to avoid disputes.
Q2: In the Resale Contract, what is the default deadline for the buyer to deliver the
option fee?
A. Within 3 days of contract execution.
B. By the closing date.
C. Within the option period specified in the contract. [CORRECT]
D. Within 10 days after title commitment receipt.
Correct Answer: C
Rationale: The option fee deadline is contractually defined in Paragraph 23 of the
Resale Contract, tied to the option period. Option A is incorrect; the option fee is not
tied to a 3-day default. Option B is too late, as the option fee must precede closing.
,Option D refers to title commitment deadlines, not option fees. Real-world
application: A buyer’s agent must ensure timely option fee payment to avoid
contract termination.
Q3: Which fixture is automatically included in the Resale Contract unless explicitly
excluded?
A. A chandelier removed by the seller.
B. A built-in bookshelf.
C. A ceiling fan. [CORRECT]
D. A portable grill.
Correct Answer: C
Rationale: TREC defines fixtures as items permanently attached to the property;
ceiling fans are fixtures unless excluded. Option A is excluded if removed. Option B
(bookshelf) may be a fixture but requires case-specific analysis. Option D is personal
property. Real-world application: A seller must list excluded fixtures to avoid
disputes.
Q4: What is the buyer’s remedy if the seller fails to cure title defects by the closing
date?
A. Automatic contract termination.
B. Specific performance to force the sale.
C. Termination and earnest money refund. [CORRECT]
D. Monetary damages limited to $500.
Correct Answer: C
Rationale: Paragraph 10 of the Resale Contract allows buyer termination if title
defects are not cured, with earnest money refunded. Option A is incorrect;
termination requires buyer action. Option B is not the default remedy. Option D is
false; damages are not capped. Real-world application: A broker must advise the
buyer to formally terminate if title issues persist.
Q5: Which addendum is required for a property with a septic system?
A. The Seller’s Disclosure Notice.
B. The Lead-Based Paint Addendum.
C. The Septic System Addendum. [CORRECT]
D. The Survey Addendum.
Correct Answer: C
Rationale: TREC mandates the Septic System Addendum for properties with septic
systems to disclose condition and maintenance. Option A is general; B is for pre-1978
homes; D is for boundary issues. Real-world application: A listing agent must include
this addendum to comply with TREC rules.
Q6: In the Resale Contract, who pays for the survey?
A. The seller always.
B. The buyer always.
C. Negotiated in the contract, defaulting to the buyer. [CORRECT]
D. Split equally between parties.
Correct Answer: C
, Rationale: Paragraph 5 of the Resale Contract defaults survey costs to the buyer
unless negotiated otherwise. Option A/B are incorrect as costs are negotiable. Option
D is not a TREC default. Real-world application: A broker should clarify survey costs in
the contract to avoid confusion.
Q7: What is the maximum option period allowed under TREC rules?
A. 10 days.
B. 30 days.
C. Unlimited, as negotiated. [CORRECT]
D. 60 days.
Correct Answer: C
Rationale: TREC does not cap option periods; they are contractually negotiated.
Options A/B/D are arbitrary limits not in TREC rules. Real-world application: A buyer
may negotiate a longer option period for due diligence.
Q8: Which document must accompany the Resale Contract for a property in a flood
zone?
A. The Flood Zone Addendum.
B. The Seller’s Disclosure Notice.
C. The Notice of Buyer’s Termination. [CORRECT]
D. The Title Commitment.
Correct Answer: C
Rationale: The Notice of Buyer’s Termination is required for flood zone properties to
inform buyers of termination rights. Option A is not a TREC form; B is general; D is
standard. Real-world application: A broker must ensure this notice is provided for
flood-prone properties.
[SECTION 2: Questions 9-16]
Q9: In the Unimproved Property Contract, what is the buyer’s obligation regarding
water well testing?
A. The seller must test the well.
B. The buyer is not responsible for testing.
C. The buyer must test the well at their expense. [CORRECT]
D. The cost is split between parties.
Correct Answer: C
Rationale: Paragraph 7 of the Unimproved Property Contract requires the buyer to
test wells/septic systems at their own cost. Option A/B/D are incorrect per TREC
rules. Real-world application: A buyer’s agent should recommend well testing to
avoid post-closing issues.
Q10: Which clause in the Unimproved Property Contract addresses access to the
property?
A. The survey clause.
B. The title policy clause.
C. The access/egress clause. [CORRECT]
D. The option fee clause.
Correct Answer: C
EXAM 2026/2027 | Official Practice Exam | Verified
Q&A | Pass Guaranteed - A+ Graded
TABLE OF CONTENTS
Section 1: One to Four Family Residential Contract (Resale) [Questions 1-8]
Section 2: Unimproved Property Contract [Questions 9-16]
Section 3: New Home Contract (Incomplete Construction) [Questions 17-23]
Section 4: Farm and Ranch Contract [Questions 24-30]
Section 5: Addendums and Notices [Questions 31-38]
Section 6: Third Party Financing Addendum [Questions 39-45]
Section 7: Seller Financing Addendum [Questions 46-52]
Section 8: Lease with Option to Purchase [Questions 53-59]
Section 9: Notice of Buyer's Termination of Contract [Questions 60-65]
Section 10: TREC Rules and Contract Law [Questions 66-75]
[SECTION 1: Questions 1-8]
Q1: Under the One to Four Family Residential Contract (Resale), which clause
mandates the seller’s obligation to provide a title policy?
A. The seller must purchase a standard owner’s policy at their expense.
B. The buyer is responsible for obtaining title insurance.
C. The seller must provide a title policy at the buyer’s expense unless
negotiated otherwise. [CORRECT]
D. Title insurance is optional in Texas resale transactions.
Correct Answer: C
Rationale: TREC Rule 531.11 requires the seller to convey marketable title and
provide a title policy at the buyer’s expense unless the contract specifies otherwise.
Option A is incorrect because the seller’s obligation is conditional on negotiation.
Option B violates TREC’s default provision. Option D is false, as title insurance is
standard in Texas. Real-world application: A broker must clarify title policy terms in
the contract to avoid disputes.
Q2: In the Resale Contract, what is the default deadline for the buyer to deliver the
option fee?
A. Within 3 days of contract execution.
B. By the closing date.
C. Within the option period specified in the contract. [CORRECT]
D. Within 10 days after title commitment receipt.
Correct Answer: C
Rationale: The option fee deadline is contractually defined in Paragraph 23 of the
Resale Contract, tied to the option period. Option A is incorrect; the option fee is not
tied to a 3-day default. Option B is too late, as the option fee must precede closing.
,Option D refers to title commitment deadlines, not option fees. Real-world
application: A buyer’s agent must ensure timely option fee payment to avoid
contract termination.
Q3: Which fixture is automatically included in the Resale Contract unless explicitly
excluded?
A. A chandelier removed by the seller.
B. A built-in bookshelf.
C. A ceiling fan. [CORRECT]
D. A portable grill.
Correct Answer: C
Rationale: TREC defines fixtures as items permanently attached to the property;
ceiling fans are fixtures unless excluded. Option A is excluded if removed. Option B
(bookshelf) may be a fixture but requires case-specific analysis. Option D is personal
property. Real-world application: A seller must list excluded fixtures to avoid
disputes.
Q4: What is the buyer’s remedy if the seller fails to cure title defects by the closing
date?
A. Automatic contract termination.
B. Specific performance to force the sale.
C. Termination and earnest money refund. [CORRECT]
D. Monetary damages limited to $500.
Correct Answer: C
Rationale: Paragraph 10 of the Resale Contract allows buyer termination if title
defects are not cured, with earnest money refunded. Option A is incorrect;
termination requires buyer action. Option B is not the default remedy. Option D is
false; damages are not capped. Real-world application: A broker must advise the
buyer to formally terminate if title issues persist.
Q5: Which addendum is required for a property with a septic system?
A. The Seller’s Disclosure Notice.
B. The Lead-Based Paint Addendum.
C. The Septic System Addendum. [CORRECT]
D. The Survey Addendum.
Correct Answer: C
Rationale: TREC mandates the Septic System Addendum for properties with septic
systems to disclose condition and maintenance. Option A is general; B is for pre-1978
homes; D is for boundary issues. Real-world application: A listing agent must include
this addendum to comply with TREC rules.
Q6: In the Resale Contract, who pays for the survey?
A. The seller always.
B. The buyer always.
C. Negotiated in the contract, defaulting to the buyer. [CORRECT]
D. Split equally between parties.
Correct Answer: C
, Rationale: Paragraph 5 of the Resale Contract defaults survey costs to the buyer
unless negotiated otherwise. Option A/B are incorrect as costs are negotiable. Option
D is not a TREC default. Real-world application: A broker should clarify survey costs in
the contract to avoid confusion.
Q7: What is the maximum option period allowed under TREC rules?
A. 10 days.
B. 30 days.
C. Unlimited, as negotiated. [CORRECT]
D. 60 days.
Correct Answer: C
Rationale: TREC does not cap option periods; they are contractually negotiated.
Options A/B/D are arbitrary limits not in TREC rules. Real-world application: A buyer
may negotiate a longer option period for due diligence.
Q8: Which document must accompany the Resale Contract for a property in a flood
zone?
A. The Flood Zone Addendum.
B. The Seller’s Disclosure Notice.
C. The Notice of Buyer’s Termination. [CORRECT]
D. The Title Commitment.
Correct Answer: C
Rationale: The Notice of Buyer’s Termination is required for flood zone properties to
inform buyers of termination rights. Option A is not a TREC form; B is general; D is
standard. Real-world application: A broker must ensure this notice is provided for
flood-prone properties.
[SECTION 2: Questions 9-16]
Q9: In the Unimproved Property Contract, what is the buyer’s obligation regarding
water well testing?
A. The seller must test the well.
B. The buyer is not responsible for testing.
C. The buyer must test the well at their expense. [CORRECT]
D. The cost is split between parties.
Correct Answer: C
Rationale: Paragraph 7 of the Unimproved Property Contract requires the buyer to
test wells/septic systems at their own cost. Option A/B/D are incorrect per TREC
rules. Real-world application: A buyer’s agent should recommend well testing to
avoid post-closing issues.
Q10: Which clause in the Unimproved Property Contract addresses access to the
property?
A. The survey clause.
B. The title policy clause.
C. The access/egress clause. [CORRECT]
D. The option fee clause.
Correct Answer: C
