TEXAS PROMULGATED CONTRACTS COMPREHENSIVE
UPDATED LATEST QUESTIONS AND ANSWERS SURE A+
✔✔While no standard exists for the dollar amount of earnest money, it is often _____ of
the purchase price of the property.
a. 1%
b. 3%
c. 5%
d. 10% - ✔✔A
✔✔Processes of resolving contractual disagreements between parties.
a. Default
b. Mediation
c. Escrow
d. Option period
e. Prorations - ✔✔B
✔✔The time allowed for buyer-specified inspections.
a. Default
b. Mediation
c. Escrow
d. Option period
e. Prorations - ✔✔D
✔✔Expenses divided between parties at closing.
a. Default
b. Mediation
,c. Escrow
d. Option period
e. Prorations - ✔✔E
✔✔Failure to meet a contractural obligation.
a. Default
b. Mediation
c. Escrow
d. Option period
e. Prorations - ✔✔A
✔✔Funds held by a third party until performance of a contract.
a. Default
b. Mediation
c. Escrow
d. Option period
e. Prorations - ✔✔C
✔✔The ________________ is responsible for the expense of the release of any
existing liens.
a. Buyer
b. Title company
c. Seller
d. Lender - ✔✔C
✔✔A(n) ___________________ gives the buyer the unrestricted right to terminate the
contract within a specified period.
a. Clause
b. Abstract
c. Option
d. Annexation - ✔✔C
✔✔____________________ is the process of dividing ongoing expenses between the
buyer and the seller at closing.
a. Assessing
b. Prorating
c. Collecting expenses
d. Accounting - ✔✔B
, ✔✔At closing, the seller must _________________ a general warranty deed conveying
title to the property to the buyer.
a. Sign and mail
b. Execute and deliver
c. Execute and file
d. Deliver and certify - ✔✔B
✔✔Properties subject to a lease must have copies of the lease provided to a buyer
within _____________ days after the effective date of the contract.
a. 14
b. 30
c. 7
d. 60 - ✔✔C
✔✔Which of the following expenses is considered payable by the seller as part of the
settlement portion of the contract?
a. 1/2 of the escrow fee
b. Appraisal fees
c. Mortgage recording fees
d. Credit report fees - ✔✔A
✔✔In the event of default by the buyer, the seller may _________________.
a. Accept the buyer's earnest money as liquidated damages
b. File criminal charges against the buyer
c. Receive compensation from TREC
d. Renegotiate the terms of the contract - ✔✔A
✔✔If a dispute between buyer and seller cannot be resolved through mediation, the
parties ______________________.
a. Waive their right to file suit
b. Must proceed with the contract without resolution
c. Must terminate the contract
d. Have the option to file suit - ✔✔D
✔✔Escrow services are provided by _________________.
a. The lender
b. The title company
c. The seller's agent
d. The buyer's agent - ✔✔B
UPDATED LATEST QUESTIONS AND ANSWERS SURE A+
✔✔While no standard exists for the dollar amount of earnest money, it is often _____ of
the purchase price of the property.
a. 1%
b. 3%
c. 5%
d. 10% - ✔✔A
✔✔Processes of resolving contractual disagreements between parties.
a. Default
b. Mediation
c. Escrow
d. Option period
e. Prorations - ✔✔B
✔✔The time allowed for buyer-specified inspections.
a. Default
b. Mediation
c. Escrow
d. Option period
e. Prorations - ✔✔D
✔✔Expenses divided between parties at closing.
a. Default
b. Mediation
,c. Escrow
d. Option period
e. Prorations - ✔✔E
✔✔Failure to meet a contractural obligation.
a. Default
b. Mediation
c. Escrow
d. Option period
e. Prorations - ✔✔A
✔✔Funds held by a third party until performance of a contract.
a. Default
b. Mediation
c. Escrow
d. Option period
e. Prorations - ✔✔C
✔✔The ________________ is responsible for the expense of the release of any
existing liens.
a. Buyer
b. Title company
c. Seller
d. Lender - ✔✔C
✔✔A(n) ___________________ gives the buyer the unrestricted right to terminate the
contract within a specified period.
a. Clause
b. Abstract
c. Option
d. Annexation - ✔✔C
✔✔____________________ is the process of dividing ongoing expenses between the
buyer and the seller at closing.
a. Assessing
b. Prorating
c. Collecting expenses
d. Accounting - ✔✔B
, ✔✔At closing, the seller must _________________ a general warranty deed conveying
title to the property to the buyer.
a. Sign and mail
b. Execute and deliver
c. Execute and file
d. Deliver and certify - ✔✔B
✔✔Properties subject to a lease must have copies of the lease provided to a buyer
within _____________ days after the effective date of the contract.
a. 14
b. 30
c. 7
d. 60 - ✔✔C
✔✔Which of the following expenses is considered payable by the seller as part of the
settlement portion of the contract?
a. 1/2 of the escrow fee
b. Appraisal fees
c. Mortgage recording fees
d. Credit report fees - ✔✔A
✔✔In the event of default by the buyer, the seller may _________________.
a. Accept the buyer's earnest money as liquidated damages
b. File criminal charges against the buyer
c. Receive compensation from TREC
d. Renegotiate the terms of the contract - ✔✔A
✔✔If a dispute between buyer and seller cannot be resolved through mediation, the
parties ______________________.
a. Waive their right to file suit
b. Must proceed with the contract without resolution
c. Must terminate the contract
d. Have the option to file suit - ✔✔D
✔✔Escrow services are provided by _________________.
a. The lender
b. The title company
c. The seller's agent
d. The buyer's agent - ✔✔B
