TEXAS PROMULGATED CONTRACTS/CHAMPIONS EXAM 2024.

Texas Promulgated Contracts-CHAMPIONS COMPLETE
TEST QUESTIONS /2024
• The elements of a valid contract are,
competent par- Bties, consideration,
legal subject matter, in writing, and .

• Default

• Mutual consent

• Property condition

• Recording
• A(n) contract is
defined as a Acontract
that is binding on the parties, with
one or more of the parties having
contractual duties that have not yet
been performed.

• Executory

• Executed

• Bilateral

• Void
• In the business of real estate, is definedAas some

• Consideration

• Mutual assent

• A bribe

, • Legal subject matter
• The TREC-promulgated contract forms: B

• Are for optional use by real estate licensees

• Are drafted by the Broker-Lawyer Committee

• Are promulgated by the legislature

• Are used in both commercial and
residential trans-actions
• In a lease with a "right of first refusal" provision: D

• The price is set when the lease
agreement is ne-gotiated

• The tenant has promised to buy the property

• The TREC promulgated form must be used

• The tenant has the right to
match or better any offer the
landlord receives to prevent the
property from being sold to
someone else
• TREC has promulgated forms for: D

• lease purchase transactions

• cooperatives

• right of first refusal

, • residential transactions
• An offer can be communicated by D
.

• Phone

• Hand delivery

• E-mail


• All of the above
• The Third Party Financing Addendum For Credit
Approval is used when:

• The buyer is obtaining FHA financing

• Paragraph 4.A(2)(a) is checked in the contract

• The buyer is obtaining VA financing

• The buyer is obtaining any kind of financing
• In the Third Party Financing Addendum for Credit B
Approval:

• The buyer has no incentive
to obtain financialapproval

• The buyer has a definite time to
notify seller of theinability to obtain
financing approval

, • The buyer's earnest money will
not be returned ifthe buyer does
not obtain financing

• The option period is explained
• The Third Party Financing Addendum for Credit Ap- C
proval cannot be used for:

• VA guaranteed loans

• FHA insured loans

• Seller Financing

• Texas Veterans Loans
• B

According to the Seller Financing
Addendum, theinterest rate is:

• Set at 6%

• Negotiated between the parties

• Set by TREC

• Determined at closing
• occurs when a
buyer assumesAand agrees to pay
the seller's existing mortgage.

• Loan assumption