CHAMPIONS PROMULGATED CONTRACT
FORMS EXAM SCRIPT 2026 QUESTIONS
AND ANSWERS GRADED A+
●● Residential Condominium (Resale).
Answer: A TREC promulgated contract for use where the seller does not
own fee simple title to the land beneath the unit.
●● New Home Contract (Completed Construction).
Answer: This contract form is used for new homes where the
construction has been completed by the builder and no one has
previously lived in the home.
●● New Home Contract (Incomplete Construction).
Answer: The contract is used for the sale of new homes when
construction has not yet been completed by the builder and when the
closing will occur after construction has been completed.
●● Unimproved Property Contract.
Answer: Used for the sale of properties with no existing structure. This
contract has no improvements, or accessories. No seller disclosure.
●● Farm and Ranch Contract.
,Answer: A TREC promulgated contract for use where the land being
sold is greater than 10 acres and includes land, improvements,
accessories and crops. Contains provisions for surface leases related to a
property
●● The parties to the contract specifically as noted in paragraph 18.A.
Answer: The escrow agent is not a party to this contract and does not
have liability for the performance or non-performance of any part of this
contract, or liable for any interest or loss on any earnest money cause by
the failure of any financial institution.
●● The purpose and use of Paragraph 6-.
Answer: The owner's Title policy being paid for by buyer or seller. The
Title company has 20 days from when they receive the contract to
furnish a commitment to buyer for Title Insurance. Objections, who will
furnish the survey, the intended use of the property (residential use) and
any membership in property associations.
●● Stigmatized properties.
Answer: Any property where there has been a murder, alleged haunting,
or in the vicinity of the residence of a known sexual offender
●● The unlawful practice of law.
Answer: License holders should not alter the pre-printed text of a
promulgated form. Specific examples - agents add provisions to
contracts other than business details: Example: Inserting terms into a
, contract when a TREC promulgated form is available. Adding terms into
a contract that are not addressed by a TREC promulgated form.
●● Items to be retained by the seller as specified in the contract.
Answer: any items retained should be written in Paragraph 2D.
EXCLUSIONS.
●● PARAGRAPH 5 features.
Answer: Earnest Money and Option periods. The option period is the
time allowed for inspections that Buyer may want. The buyer is required
to deposit the earnest money with the escrow agent within 3 calendar
days after the effective date of the contract.
●● Requirements for buyer approval according to the TREC Third Party
Financing Addendum.
Answer: allows the buyer to terminate the transaction if the property
doesn't meet the lender's underwriting requirements.
●● Closing Costs or settlement expenses.
Answer: if any of these listed expenses exceed what the party agreed to
pay, the contract will terminate, UNLESS the other party agrees to pay
the excess
●● Proration.
FORMS EXAM SCRIPT 2026 QUESTIONS
AND ANSWERS GRADED A+
●● Residential Condominium (Resale).
Answer: A TREC promulgated contract for use where the seller does not
own fee simple title to the land beneath the unit.
●● New Home Contract (Completed Construction).
Answer: This contract form is used for new homes where the
construction has been completed by the builder and no one has
previously lived in the home.
●● New Home Contract (Incomplete Construction).
Answer: The contract is used for the sale of new homes when
construction has not yet been completed by the builder and when the
closing will occur after construction has been completed.
●● Unimproved Property Contract.
Answer: Used for the sale of properties with no existing structure. This
contract has no improvements, or accessories. No seller disclosure.
●● Farm and Ranch Contract.
,Answer: A TREC promulgated contract for use where the land being
sold is greater than 10 acres and includes land, improvements,
accessories and crops. Contains provisions for surface leases related to a
property
●● The parties to the contract specifically as noted in paragraph 18.A.
Answer: The escrow agent is not a party to this contract and does not
have liability for the performance or non-performance of any part of this
contract, or liable for any interest or loss on any earnest money cause by
the failure of any financial institution.
●● The purpose and use of Paragraph 6-.
Answer: The owner's Title policy being paid for by buyer or seller. The
Title company has 20 days from when they receive the contract to
furnish a commitment to buyer for Title Insurance. Objections, who will
furnish the survey, the intended use of the property (residential use) and
any membership in property associations.
●● Stigmatized properties.
Answer: Any property where there has been a murder, alleged haunting,
or in the vicinity of the residence of a known sexual offender
●● The unlawful practice of law.
Answer: License holders should not alter the pre-printed text of a
promulgated form. Specific examples - agents add provisions to
contracts other than business details: Example: Inserting terms into a
, contract when a TREC promulgated form is available. Adding terms into
a contract that are not addressed by a TREC promulgated form.
●● Items to be retained by the seller as specified in the contract.
Answer: any items retained should be written in Paragraph 2D.
EXCLUSIONS.
●● PARAGRAPH 5 features.
Answer: Earnest Money and Option periods. The option period is the
time allowed for inspections that Buyer may want. The buyer is required
to deposit the earnest money with the escrow agent within 3 calendar
days after the effective date of the contract.
●● Requirements for buyer approval according to the TREC Third Party
Financing Addendum.
Answer: allows the buyer to terminate the transaction if the property
doesn't meet the lender's underwriting requirements.
●● Closing Costs or settlement expenses.
Answer: if any of these listed expenses exceed what the party agreed to
pay, the contract will terminate, UNLESS the other party agrees to pay
the excess
●● Proration.
