Promulgated Contracts Final 2023 Already Graded A+
If an Agent receives confidential information from a Client while the agency
agreement is in force, that agent may:
A) Share that information once the agreement expires
B) Share that information if the Client authorizes the agent to share it
C) Never share the information with another client
D) share the information, but only to another agent
B. Share that information if the Client authroizes the agent to share it
A Buyer/Tenant Representation Agreement is only available through the Texas
Real Estate Commission (TREC) T/F
If a buyer and/or seller agree to mediate, they are giving up their right to pursue
relief through the courts. T/F
FALSE
**if the buyer and seller do not agree on some aspect of the contract, they can seek
mediation before they sue each other.
The agreement to mediate does not preclude a party from seeking relief from a court of
competent jurisdiction and neither party is giving up the right to have a court review the
dispute.
What is the status of a contract if the seller does not make the buyer aware of a
property being located with a municipal utility district?
A) Voidable by the buyer
B) Void
C) Voidable by the seller
D) Voidable by the buyer or the seller
A. Voidable by buyer
**A voidable contract is binding on one party but not the other. (Unilateral contracts are
voidable by the unbound party.)
For example, a contract with a minor would be voidable at the option of the minor, while
the legally competent party would be bound to its terms.
Federal Fair Housing Laws forbids discriminatory practices by parties including:
A) Owners of properties
B) Lenders
C) Real estate brokers
D) All of the above
D. All of the above
Any changes to the original contract once it is finalized and receipted must be
done:
A) At the title company on the original contract
B) On an amendment
, C) On the 3rd Party Financing Addendum
D) On a real estate change form
B. On an amendment
Intermediary requires:
A) Disclosure of who represents whom in a transaction
B) Written agreement by both seller and buyer
C) involvement of only one company
D) All of the above
A. All of the above
If the contract includes an option period for the buyer and the buyer does not
tender the option fee to the Seller within the time limit (currently with 3 days from
effective date of the contract) the Buyer no longer has an unrestricted right to
terminate under the option. T/F
TRUE (hint: unrestricted rights?)
The Condominium Resale Certificate called for in paragraph 2 of the TREC
Residential Condominium Contract (Resale) must have been prepared no more
than _________ before the date it is delivered to the buyer.
A) 7 days
B) 20 Days
C) 6 months
D) 3 months
D. 3 months
**The buyer should receive a Condominium Resale Certificate. The certificate is from
the condominium owner's association and should not be more than 3 months old
Earnest money:
A) Constitutes the consideration
B) Is used to make the offer more enticing to the seller
C) Is required in the contract
D) Always equals 1% of the sales price.
B. Is used to make the offer more enticing to the seller
**Earnest money does not represent consideration.
Earnest money is merely an enticement to the seller to accept the offer, and a gesture
of good faith.
If there is an existing survey on the property, what does the seller take to the title
company and the lender?
A) The existing survey
B) The existing survey and a notarized affidavit stating if there have been any
changes in the survey since the time the existing survey was completed
C) A copy of the deed and the existing survey
D) The seller's appraisal and a copy of the survey
If an Agent receives confidential information from a Client while the agency
agreement is in force, that agent may:
A) Share that information once the agreement expires
B) Share that information if the Client authorizes the agent to share it
C) Never share the information with another client
D) share the information, but only to another agent
B. Share that information if the Client authroizes the agent to share it
A Buyer/Tenant Representation Agreement is only available through the Texas
Real Estate Commission (TREC) T/F
If a buyer and/or seller agree to mediate, they are giving up their right to pursue
relief through the courts. T/F
FALSE
**if the buyer and seller do not agree on some aspect of the contract, they can seek
mediation before they sue each other.
The agreement to mediate does not preclude a party from seeking relief from a court of
competent jurisdiction and neither party is giving up the right to have a court review the
dispute.
What is the status of a contract if the seller does not make the buyer aware of a
property being located with a municipal utility district?
A) Voidable by the buyer
B) Void
C) Voidable by the seller
D) Voidable by the buyer or the seller
A. Voidable by buyer
**A voidable contract is binding on one party but not the other. (Unilateral contracts are
voidable by the unbound party.)
For example, a contract with a minor would be voidable at the option of the minor, while
the legally competent party would be bound to its terms.
Federal Fair Housing Laws forbids discriminatory practices by parties including:
A) Owners of properties
B) Lenders
C) Real estate brokers
D) All of the above
D. All of the above
Any changes to the original contract once it is finalized and receipted must be
done:
A) At the title company on the original contract
B) On an amendment
, C) On the 3rd Party Financing Addendum
D) On a real estate change form
B. On an amendment
Intermediary requires:
A) Disclosure of who represents whom in a transaction
B) Written agreement by both seller and buyer
C) involvement of only one company
D) All of the above
A. All of the above
If the contract includes an option period for the buyer and the buyer does not
tender the option fee to the Seller within the time limit (currently with 3 days from
effective date of the contract) the Buyer no longer has an unrestricted right to
terminate under the option. T/F
TRUE (hint: unrestricted rights?)
The Condominium Resale Certificate called for in paragraph 2 of the TREC
Residential Condominium Contract (Resale) must have been prepared no more
than _________ before the date it is delivered to the buyer.
A) 7 days
B) 20 Days
C) 6 months
D) 3 months
D. 3 months
**The buyer should receive a Condominium Resale Certificate. The certificate is from
the condominium owner's association and should not be more than 3 months old
Earnest money:
A) Constitutes the consideration
B) Is used to make the offer more enticing to the seller
C) Is required in the contract
D) Always equals 1% of the sales price.
B. Is used to make the offer more enticing to the seller
**Earnest money does not represent consideration.
Earnest money is merely an enticement to the seller to accept the offer, and a gesture
of good faith.
If there is an existing survey on the property, what does the seller take to the title
company and the lender?
A) The existing survey
B) The existing survey and a notarized affidavit stating if there have been any
changes in the survey since the time the existing survey was completed
C) A copy of the deed and the existing survey
D) The seller's appraisal and a copy of the survey
