Texas Promulgated Contracts-CHAMPIONS STUDY EXAM COMPLETE
QUESTIONS AND ANSWERS 2025| 100% RATED CORRECT!!!
addenda - (answers)additions to a completed contract that specify supplementary information to
the contract
amendment - (answers)change or modification to an already agreed-upon contract
bilateral contract - (answers)a contract wherein both parties are obligated to perform in an
exchange of promises
buyer rebate - (answers)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 - (answers)a sudden, unexpected event like a fire, flood, storm, earthquake that
causes damage to a property
consideration - (answers)something of value exchanged by the parties as evidence of agreement
to the terms of a contract
contract - (answers)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 - (answers)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 - (answers)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 - (answers)funds paid to confirm or commit to a contract
, effective date - (answers)the date a contract becomes binding between the parties
endorsement - (answers)additional coverage that can be added onto an insurance policy
escrow - (answers)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 - (answers)a contract in which all terms have been fulfilled by all parties
executory contract - (answers)a contract that has not yet been fully performed (both sides have
not yet completed their obligations)
Fair Housing Act of 1968 - (answers)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 - (answers)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 - (answers)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 - (answers)a mortgage fraud scheme that involves an inflated appraisal and a
straw buyer
legally competent - (answers)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
QUESTIONS AND ANSWERS 2025| 100% RATED CORRECT!!!
addenda - (answers)additions to a completed contract that specify supplementary information to
the contract
amendment - (answers)change or modification to an already agreed-upon contract
bilateral contract - (answers)a contract wherein both parties are obligated to perform in an
exchange of promises
buyer rebate - (answers)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 - (answers)a sudden, unexpected event like a fire, flood, storm, earthquake that
causes damage to a property
consideration - (answers)something of value exchanged by the parties as evidence of agreement
to the terms of a contract
contract - (answers)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 - (answers)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 - (answers)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 - (answers)funds paid to confirm or commit to a contract
, effective date - (answers)the date a contract becomes binding between the parties
endorsement - (answers)additional coverage that can be added onto an insurance policy
escrow - (answers)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 - (answers)a contract in which all terms have been fulfilled by all parties
executory contract - (answers)a contract that has not yet been fully performed (both sides have
not yet completed their obligations)
Fair Housing Act of 1968 - (answers)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 - (answers)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 - (answers)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 - (answers)a mortgage fraud scheme that involves an inflated appraisal and a
straw buyer
legally competent - (answers)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
