Texas Promulgated Contracts-CHAMPIONS STUDY
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1. The elements of a valid contract are, competent parties, consideration, legal
subject matter, in writing, and .
(a) Default
(b) Mutual consent
(c) Property condition
(d) Recording: B
2. A(n) contract is defined as a contract that is binding
on the parties, with one or more of the parties having contractual duties that
have not yet been performed.
(a) Executory
(b) Executed
(c) Bilateral
(d) Void: A
3. In the business of real estate, is defined as something given
in exchange for a promise.
(a) Consideration
(b) Mutual assent
(c) A bribe
(d) Legal subject matter: A
4. The TREC-promulgated contract forms:
(a) Are for optional use by real estate licensees
(b) Are drafted by the Broker-Lawyer Committee
(c) Are promulgated by the legislature
, Texas Promulgated Contracts-CHAMPIONS STUDY
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(d) Are used in both commercial and residential transactions: B
5. In a lease with a "right of first refusal" provision:
(a) The price is set when the lease agreement is negotiated
(b) The tenant has promised to buy the property
(c) The TREC promulgated form must be used
(d) The tenant has the right to match or better any offer the landlord receives
to prevent the property from being sold to someone else: D
6. TREC has promulgated forms for:
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions: D
7. An offer can be communicated by .
(a) Phone
(b) Hand delivery
(c) E-mail
(d) All of the above: D
8. The Third Party Financing Addendum For Credit Approval is used when:
(a) The buyer is obtaining FHA financing
(b) Paragraph 4.A(2)(a) is checked in the contract
(c) The buyer is obtaining VA financing
(d) The buyer is obtaining any kind of financing: D
, Texas Promulgated Contracts-CHAMPIONS STUDY
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9. In the Third Party Financing Addendum for Credit Approval:
(a) The buyer has no incentive to obtain financial approval
(b) The buyer has a definite time to notify seller of the inability to obtain
financing approval
(c) The buyer's earnest money will not be returned if the buyer does not obtain
financing
(d) The option period is explained: B
10. The Third Party Financing Addendum for Credit Approval cannot be used
for:
(a) VA guaranteed loans
(b) FHA insured loans
(c) Seller Financing
(d) Texas Veterans Loans: C
11. According to the Seller Financing Addendum, the interest rate is:
(a) Set at 6%
(b) Negotiated between the parties
(c) Set by TREC
(d) Determined at closing: B
12. occurs when a buyer assumes and agrees to pay
the seller's existing mortgage.
(a) Loan assumption
(b) Seller liability
(c) Seller lien
Study online at https://quizlet.com/_4eo4z5
1. The elements of a valid contract are, competent parties, consideration, legal
subject matter, in writing, and .
(a) Default
(b) Mutual consent
(c) Property condition
(d) Recording: B
2. A(n) contract is defined as a contract that is binding
on the parties, with one or more of the parties having contractual duties that
have not yet been performed.
(a) Executory
(b) Executed
(c) Bilateral
(d) Void: A
3. In the business of real estate, is defined as something given
in exchange for a promise.
(a) Consideration
(b) Mutual assent
(c) A bribe
(d) Legal subject matter: A
4. The TREC-promulgated contract forms:
(a) Are for optional use by real estate licensees
(b) Are drafted by the Broker-Lawyer Committee
(c) Are promulgated by the legislature
, Texas Promulgated Contracts-CHAMPIONS STUDY
Study online at https://quizlet.com/_4eo4z5
(d) Are used in both commercial and residential transactions: B
5. In a lease with a "right of first refusal" provision:
(a) The price is set when the lease agreement is negotiated
(b) The tenant has promised to buy the property
(c) The TREC promulgated form must be used
(d) The tenant has the right to match or better any offer the landlord receives
to prevent the property from being sold to someone else: D
6. TREC has promulgated forms for:
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions: D
7. An offer can be communicated by .
(a) Phone
(b) Hand delivery
(c) E-mail
(d) All of the above: D
8. The Third Party Financing Addendum For Credit Approval is used when:
(a) The buyer is obtaining FHA financing
(b) Paragraph 4.A(2)(a) is checked in the contract
(c) The buyer is obtaining VA financing
(d) The buyer is obtaining any kind of financing: D
, Texas Promulgated Contracts-CHAMPIONS STUDY
Study online at https://quizlet.com/_4eo4z5
9. In the Third Party Financing Addendum for Credit Approval:
(a) The buyer has no incentive to obtain financial approval
(b) The buyer has a definite time to notify seller of the inability to obtain
financing approval
(c) The buyer's earnest money will not be returned if the buyer does not obtain
financing
(d) The option period is explained: B
10. The Third Party Financing Addendum for Credit Approval cannot be used
for:
(a) VA guaranteed loans
(b) FHA insured loans
(c) Seller Financing
(d) Texas Veterans Loans: C
11. According to the Seller Financing Addendum, the interest rate is:
(a) Set at 6%
(b) Negotiated between the parties
(c) Set by TREC
(d) Determined at closing: B
12. occurs when a buyer assumes and agrees to pay
the seller's existing mortgage.
(a) Loan assumption
(b) Seller liability
(c) Seller lien
