Texas Promulgated Contracts Exam Questions and Answers 100% Pass

Texas Promulgated Contracts Exam Questions and Answers 100% Pass addenda - ANSWER -additions to a completed contract that specify supplementary information to the contract amendment - ANSWER -change or modification to an already agreed-upon contract bilateral contract - ANSWER -a contract wherein both parties are obligated to perform in an exchange of promises buyer rebate - ANSWER -anything during a transaction that causes money to go back to the buyer, either at or after closing, without the knowledge of the lender casualty loss - ANSWER -a sudden, unexpected event like a fire, flood, storm, earthquake that causes damage to a property consideration - ANSWER -something of value exchanged by the parties as evidence of agreement to the terms of a contract contract - ANSWER -a legally enforceable and binding agreement between parties wherein a promise to do or not do something is given in exchange for valuable consideration counteroffer - ANSWER -a contract proposal submitted in response to a previous offer, modifying the terms of the original offer; considered a rejection of the original offer disability - ANSWER -a physical or mental impairment that substantially limits one or more major life activities, the record of such impairment, or being regarded as having such an impairment earnest money - ANSWER -funds paid to confirm or commit to a contract 2 | P a g e Created by Grace Amelia © 2025, All Rights Reserved. effective date - ANSWER -the date a contract becomes binding between the parties endorsement - ANSWER -additional coverage that can be added onto an insurance policy escrow - ANSWER -a process in which funds and/or financial documents are held by a disinterested third party on behalf of the other two parties in the real estate transaction until specific conditions are satisfied executed contract - ANSWER -a contract in which all terms have been fulfilled by all parties executory contract - ANSWER -a contract that has not yet been fully performed (both sides have not yet completed their obligations) Fair Housing Act of 1968 - ANSWER -a federal law that prohibits discrimination in housing based upon race, color, religion, or national origin and was amended to include sex, disability, and familial status fair lending laws - ANSWER -laws that prevent lenders from discriminating against protected classes when extending credit; protected classes include race, color, national origin, religion, sex, familial status, disability, gender expression, sexuality, age, marital status, or receipt of public income goodwill - ANSWER -good consideration, such as love and affection, that can be exchanged for valuable consideration in a contract or agreement; the exchange of which is generally seen as a gift on the part of the party giving up the valuable consideration house flipping - ANSWER -a mortgage fraud scheme that involves an inflated appraisal and a straw buyer legally competent - ANSWER -when a party can legally sign a binding contract; they have the age of majority and have not been declared mentally incompetent by a judge 3 | P a g e Created by Grace Amelia © 2025, All Rights Reserved. loan-to-value ratio - ANSWER -the amount of money being loaned compared to the value of the property mortgagee title policy - ANSWER -a title insurance policy that protects the lender's interests in the property should a problem with the title arise novation - ANSWER -a mutual agreement of the parties to replace an existing contract with a new one occupancy standards - ANSWER -rules about the maxi