Promulgated contracts practice exam 2023 Already
Passed!!
Which of these forms is least likely to be involved in the sale of unimproved
property?
The Unimproved Property Contract would not be involved in the sale of a condo.
A buyer and seller have been in negotiations. They have everything in writing,
have agreed to all terms, the contract is signed and changes initialed. Today, the
written acceptance of the final agreement has been communicated to the other
party. What is today called?
the effective date
How many lawyers are on the Broker-Lawyer Committee?
six
According to the NAR Code of Ethics, unless the agent has written instructions
stating otherwise, they must present all offers until:
the closing
Buyer Javier sends a formal offer to Seller Joy: $250,000 and the appliances stay.
Joy counters: $250,000, no appliances. She then reconsiders and accepts the first
offer. Is Javier obligated to buy the home? Why or why not?
No, because the first offer was dead when Joy countered.
Which of these is NOT true about a Seller's Temporary Residential Lease?
the buyer/landlord has no recourse if the seller/tenant overstays
In which of these scenarios would it be correct to use the Residential
Condominium Contract (Resale)?
A client is buying a property where the land is not owned individually and the common
areas are shared equally among the community's owners.
What is special about the earnest money section (paragraph five) and the option
money section (paragraph 23) in the TREC promulgated sales contract?
they contain "time is of the essence" language
When seller financing is being used, the seller becomes:
the lender
A potential buyer's current home is under contract. He has found a home he
would like to make an offer on, but does not want to take a chance on being
obligated to buy if his current home does not close. What form can help this
buyer?
Addendum for Sale of Other Property by Buyer
Which of these is NOT necessary for a contract to be binding and effective?
For an offer to become a contract, it must be in writing, it has to be signed by all parties
with changes initialed, acceptance must be completed, and acceptance of the contract
must be communicated to the other party. There is not a faxing or delivery requirement.
Which of these is NOT a protected class of people, according to Fair Lending
Laws?
sexuality
Why are there multiple promulgated contracts for use in Texas?
because different types of properties have different specific contract needs
, A murder/suicide took place in a property. The crime was widely publicized. What
is the disclosure requirement for this crime?
It must be disclosed forever.
A contract that is fully performed is referred to as:
executed
Which is the purpose of the Information About Brokerage Services form?
to inform clients how a license holder can represent a party in a real estate transaction
In loan fraud, the lender is usually the .
victim
What is the statute of limitations to claim fraud or misrepresentation against a
license holder?
The statute of limitations to claim fraud or misrepresentation against a license holder is
4 years from discovery.
Per Paragraph 7D, what is it called when a buyer accepts the property, "with any
and all defects and without warranty"?
accepting it in "as is" condition
What should an agent do if asked to violate anti-discrimination laws by a client?
educate the seller about anti-discrimination laws and say they cannot honor the request
Emily and Josh signed a real estate contract with each other. The contract is now
fully executed. What does that mean that Josh and Emily have done?
fulfilled the material terms of the contract
Paragraph 7D(2) of the contract indicates:
repairs that must be completed by the seller before closing
If legal action is required regarding a TREC sales contract, what will the non-
prevailing party be responsible for?
the prevailing party's reasonable attorney fees and court costs
What does paragraph 7A of the One to Four Family Residential Contract grant
every buyer the right to do?
have the property inspected
As outlined in the TREC promulgated sales contracts, what obligations does the
seller have regarding the property condition at the time of sale?
Seller's obligations are a matter of negotiation with the buyer.
Agent Ralph has a buyer client that wants the seller to leave them the refrigerator,
built-in microwave, and vent hood. Ralph notes this expectation in the Special
Provisions section. What is wrong with this scenario?
It should be written in a Non-Realty Items Addendum, not in the Special Provisions
section.
Which of these is a possible result of when zoning is changed and a property no
longer qualifies for a previous exemption?
Rollback taxes can be assessed when zoning is changing and the property no longer
qualifies for a previous exemption.
In Paragraph 9 of the One to Four Family (Resale) contract, what must happen
"on or before" the specified date?
closing
Laura is in contract for a home. Her contract contains a Sale of Other Property by
Buyer Addendum. The seller has just accepted a back-up contract for the
Passed!!
Which of these forms is least likely to be involved in the sale of unimproved
property?
The Unimproved Property Contract would not be involved in the sale of a condo.
A buyer and seller have been in negotiations. They have everything in writing,
have agreed to all terms, the contract is signed and changes initialed. Today, the
written acceptance of the final agreement has been communicated to the other
party. What is today called?
the effective date
How many lawyers are on the Broker-Lawyer Committee?
six
According to the NAR Code of Ethics, unless the agent has written instructions
stating otherwise, they must present all offers until:
the closing
Buyer Javier sends a formal offer to Seller Joy: $250,000 and the appliances stay.
Joy counters: $250,000, no appliances. She then reconsiders and accepts the first
offer. Is Javier obligated to buy the home? Why or why not?
No, because the first offer was dead when Joy countered.
Which of these is NOT true about a Seller's Temporary Residential Lease?
the buyer/landlord has no recourse if the seller/tenant overstays
In which of these scenarios would it be correct to use the Residential
Condominium Contract (Resale)?
A client is buying a property where the land is not owned individually and the common
areas are shared equally among the community's owners.
What is special about the earnest money section (paragraph five) and the option
money section (paragraph 23) in the TREC promulgated sales contract?
they contain "time is of the essence" language
When seller financing is being used, the seller becomes:
the lender
A potential buyer's current home is under contract. He has found a home he
would like to make an offer on, but does not want to take a chance on being
obligated to buy if his current home does not close. What form can help this
buyer?
Addendum for Sale of Other Property by Buyer
Which of these is NOT necessary for a contract to be binding and effective?
For an offer to become a contract, it must be in writing, it has to be signed by all parties
with changes initialed, acceptance must be completed, and acceptance of the contract
must be communicated to the other party. There is not a faxing or delivery requirement.
Which of these is NOT a protected class of people, according to Fair Lending
Laws?
sexuality
Why are there multiple promulgated contracts for use in Texas?
because different types of properties have different specific contract needs
, A murder/suicide took place in a property. The crime was widely publicized. What
is the disclosure requirement for this crime?
It must be disclosed forever.
A contract that is fully performed is referred to as:
executed
Which is the purpose of the Information About Brokerage Services form?
to inform clients how a license holder can represent a party in a real estate transaction
In loan fraud, the lender is usually the .
victim
What is the statute of limitations to claim fraud or misrepresentation against a
license holder?
The statute of limitations to claim fraud or misrepresentation against a license holder is
4 years from discovery.
Per Paragraph 7D, what is it called when a buyer accepts the property, "with any
and all defects and without warranty"?
accepting it in "as is" condition
What should an agent do if asked to violate anti-discrimination laws by a client?
educate the seller about anti-discrimination laws and say they cannot honor the request
Emily and Josh signed a real estate contract with each other. The contract is now
fully executed. What does that mean that Josh and Emily have done?
fulfilled the material terms of the contract
Paragraph 7D(2) of the contract indicates:
repairs that must be completed by the seller before closing
If legal action is required regarding a TREC sales contract, what will the non-
prevailing party be responsible for?
the prevailing party's reasonable attorney fees and court costs
What does paragraph 7A of the One to Four Family Residential Contract grant
every buyer the right to do?
have the property inspected
As outlined in the TREC promulgated sales contracts, what obligations does the
seller have regarding the property condition at the time of sale?
Seller's obligations are a matter of negotiation with the buyer.
Agent Ralph has a buyer client that wants the seller to leave them the refrigerator,
built-in microwave, and vent hood. Ralph notes this expectation in the Special
Provisions section. What is wrong with this scenario?
It should be written in a Non-Realty Items Addendum, not in the Special Provisions
section.
Which of these is a possible result of when zoning is changed and a property no
longer qualifies for a previous exemption?
Rollback taxes can be assessed when zoning is changing and the property no longer
qualifies for a previous exemption.
In Paragraph 9 of the One to Four Family (Resale) contract, what must happen
"on or before" the specified date?
closing
Laura is in contract for a home. Her contract contains a Sale of Other Property by
Buyer Addendum. The seller has just accepted a back-up contract for the
