Texas Promulgated Contracts-CHAMPIONS Exam 2026
100% Correct Answers
The elements of a valid contract are, competent parties,
consideration, legal subject matter, in writing, and .
(a) Default
(b) Mutual consent
(c) Property condition
(d) Recording
B
A(n) contract is defined as a contract that
is binding on the parties, with one or more of the parties having
contractual duties that have not yet been performed.
(a) Executory
(b) Executed
(c) Bilateral
(d) Void
A
In the business of real estate, is defined as
something given in exchange for a promise.
(a) Consideration
(b) Mutual assent
(c) A bribe
(d) Legal subject matter
A
The TREC-promulgated contract forms:
(a) Are for optional use by real estate licensees
(b) Are drafted by the Broker-Lawyer Committee
,(c) Are promulgated by the legislature
(d) Are used in both commercial and residential transactions
B
In a lease with a "right of first refusal" provision:
(a) The price is set when the lease agreement is negotiated
(b) The tenant has promised to buy the property
(c) The TREC promulgated form must be used
(d) The tenant has the right to match or better any offer the
landlord receives to prevent the property from being sold to
someone else
D
TREC has promulgated forms for:
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions
D
An offer can be communicated by .
(a) Phone
(b) Hand delivery
(c) E-mail
(d) All of the above
B
The Third Party Financing Addendum For Credit Approval is used
when:
(a) The buyer is obtaining FHA financing
(b) Paragraph 4.A(2)(a) is checked in the contract
(c) The buyer is obtaining VA financing
(d) The buyer is obtaining any kind of financing
,B
In the Third Party Financing Addendum for Credit Approval:
(a) The buyer has no incentive to obtain financial approval
(b) The buyer has a definite time to notify seller of the inability to
obtain financing approval
(c) The buyer's earnest money will not be returned if the buyer
does not obtain financing
(d) The option period is explained
C
The Third Party Financing Addendum for Credit Approval cannot
be used for:
(a) VA guaranteed loans
(b) FHA insured loans
(c) Seller Financing
(d) Texas Veterans Loans
B
According to the Seller Financing Addendum, the interest rate is:
(a) Set at 6%
(b) Negotiated between the parties
(c) Set by TREC
(d) Determined at closing
A
occurs when a buyer assumes and
agrees to pay the seller's existing mortgage.
(a) Loan assumption
(b) Seller liability
(c) Seller lien
(d) Credit approval
A
, Land, improvements and accessories are collectively referred to
as:
(a) The estate
(b) The property
(c) The listing
(d) The homestead
B
According to the TREC contract, accessories include:
(a) Refrigerators
(b) Stoves
(c) Washing machines
(d) Gas dryers
A
Exclusions to the sale must be removed
(a) Prior to delivery of possession
(b) At the convenience of the seller
(c) When the offer becomes a binding contract
(d) Two days prior to closing
A
The loan amount in Paragraph 3.B. of the sales contract includes:
(a) The amount of the mortgage insurance
(b) The loan plus origination fees
(c) Only the amount borrowed by the buyer
(d) The loan amount minus the earnest money
C
The sales price in 3.C. is always:
(a) The loan amount plus the cash portion
(b) 3.A. + 3.B.
(c) The amount borrowed plus the down payment
(d) All of the above
100% Correct Answers
The elements of a valid contract are, competent parties,
consideration, legal subject matter, in writing, and .
(a) Default
(b) Mutual consent
(c) Property condition
(d) Recording
B
A(n) contract is defined as a contract that
is binding on the parties, with one or more of the parties having
contractual duties that have not yet been performed.
(a) Executory
(b) Executed
(c) Bilateral
(d) Void
A
In the business of real estate, is defined as
something given in exchange for a promise.
(a) Consideration
(b) Mutual assent
(c) A bribe
(d) Legal subject matter
A
The TREC-promulgated contract forms:
(a) Are for optional use by real estate licensees
(b) Are drafted by the Broker-Lawyer Committee
,(c) Are promulgated by the legislature
(d) Are used in both commercial and residential transactions
B
In a lease with a "right of first refusal" provision:
(a) The price is set when the lease agreement is negotiated
(b) The tenant has promised to buy the property
(c) The TREC promulgated form must be used
(d) The tenant has the right to match or better any offer the
landlord receives to prevent the property from being sold to
someone else
D
TREC has promulgated forms for:
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions
D
An offer can be communicated by .
(a) Phone
(b) Hand delivery
(c) E-mail
(d) All of the above
B
The Third Party Financing Addendum For Credit Approval is used
when:
(a) The buyer is obtaining FHA financing
(b) Paragraph 4.A(2)(a) is checked in the contract
(c) The buyer is obtaining VA financing
(d) The buyer is obtaining any kind of financing
,B
In the Third Party Financing Addendum for Credit Approval:
(a) The buyer has no incentive to obtain financial approval
(b) The buyer has a definite time to notify seller of the inability to
obtain financing approval
(c) The buyer's earnest money will not be returned if the buyer
does not obtain financing
(d) The option period is explained
C
The Third Party Financing Addendum for Credit Approval cannot
be used for:
(a) VA guaranteed loans
(b) FHA insured loans
(c) Seller Financing
(d) Texas Veterans Loans
B
According to the Seller Financing Addendum, the interest rate is:
(a) Set at 6%
(b) Negotiated between the parties
(c) Set by TREC
(d) Determined at closing
A
occurs when a buyer assumes and
agrees to pay the seller's existing mortgage.
(a) Loan assumption
(b) Seller liability
(c) Seller lien
(d) Credit approval
A
, Land, improvements and accessories are collectively referred to
as:
(a) The estate
(b) The property
(c) The listing
(d) The homestead
B
According to the TREC contract, accessories include:
(a) Refrigerators
(b) Stoves
(c) Washing machines
(d) Gas dryers
A
Exclusions to the sale must be removed
(a) Prior to delivery of possession
(b) At the convenience of the seller
(c) When the offer becomes a binding contract
(d) Two days prior to closing
A
The loan amount in Paragraph 3.B. of the sales contract includes:
(a) The amount of the mortgage insurance
(b) The loan plus origination fees
(c) Only the amount borrowed by the buyer
(d) The loan amount minus the earnest money
C
The sales price in 3.C. is always:
(a) The loan amount plus the cash portion
(b) 3.A. + 3.B.
(c) The amount borrowed plus the down payment
(d) All of the above
