Texas Promulgated Contracts-CHAMPIONS Exam
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
Correct Answer: 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
Correct Answer: 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
Correct Answer: 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
Correct Answer: 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
Correct Answer: D
TREC has promulgated forms for:
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions
Correct Answer: D
An offer can be communicated by ___________________.
(a) Phone
(b) Hand delivery
(c) E-mail
(d) All of the above
Correct Answer: 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
Correct Answer: 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
Correct Answer: 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
Correct Answer: 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
Correct Answer: 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
Correct Answer: A
Land, improvements and accessories are collectively referred
to as:
(a) The estate
(b) The property
(c) The listing
(d) The homestead
Correct Answer: B
According to the TREC contract, accessories include:
(a) Refrigerators
(b) Stoves
(c) Washing machines
(d) Gas dryers
Correct Answer: A
Exclusions to the sale must be removed
(a) Prior to delivery of possession
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
Correct Answer: 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
Correct Answer: 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
Correct Answer: 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
Correct Answer: 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
Correct Answer: D
TREC has promulgated forms for:
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions
Correct Answer: D
An offer can be communicated by ___________________.
(a) Phone
(b) Hand delivery
(c) E-mail
(d) All of the above
Correct Answer: 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
Correct Answer: 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
Correct Answer: 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
Correct Answer: 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
Correct Answer: 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
Correct Answer: A
Land, improvements and accessories are collectively referred
to as:
(a) The estate
(b) The property
(c) The listing
(d) The homestead
Correct Answer: B
According to the TREC contract, accessories include:
(a) Refrigerators
(b) Stoves
(c) Washing machines
(d) Gas dryers
Correct Answer: A
Exclusions to the sale must be removed
(a) Prior to delivery of possession
