Promulgated Contract Forms (Champions) Latest Update
2026 | Exam Prep | 100% Accurate Answers
1. What does the acronym COLIC stand for in the context of contract validity?
Competent parties, offer, legal purpose, consideration, and mutual
consent.
Competent parties, offer and acceptance, legal purpose, in writing,
and consideration.
Contractual obligations, legal intent, offer, in writing, and
consideration.
Competent parties, offer and acceptance, legal purpose,
consideration, and mutual agreement.
2. Forms published and promoted by the TREC for use in the Texas real estate
profession are referred to as which of these?
Generic forms
Common forms
Promulgated forms
TRELA forms
3. What is the primary intention behind chunking in real estate fraud?
To assist investors in finding properties.
To provide legitimate investment opportunities.
To scam investors by promising wealth through real estate
investments.
To educate investors about real estate laws.
,4. Describe the significance of promulgated forms in real estate transactions in
Texas.
Promulgated forms are outdated and not used in current practices.
Promulgated forms are optional templates that can be modified by
any party.
Promulgated forms standardize contracts and ensure compliance
with state regulations.
Promulgated forms are only used for residential transactions.
5. Which of the following is true of an addendum to a contract?
It is a provision in a contract that requires that a certain act or event
happen for the contract to be binding on the party
It is subject to contingency-
It is an attachment that adds or further describes the rights and
duties of the parties.
All of these are correct
6. A contract is unenforceable if:
there is a counteroffer after the original offer is accepted
none of the above.
one of the parties is legally incompetent
one of the parties is an emancipated minor
7. What is the purpose of a non-realty items addendum in a real estate
transaction?
To outline the terms of the mortgage
, To define the legal obligations of the buyer
To include personal property in a sale
To specify the closing date
8. Describe how chunking can impact investors in the real estate market.
Chunking can lead investors to lose money by luring them into
fraudulent schemes.
Chunking provides a legal framework for real estate transactions.
Chunking guarantees a return on investment.
Chunking helps investors make informed decisions.
9. Who publishes the promulgated forms used in real estate transactions in
Texas?
Texas Department of Housing
Texas Real Estate Commission (TREC)
Texas Land Office
Texas Association of Realtors
10. Describe the significance of a non-realty items addendum in a real estate
contract.
It allows for the inclusion of personal property in the sale,
clarifying what is being transferred.
It serves to outline the responsibilities of the seller in the transaction.
It specifies the legal consequences of breaching the contract.
It details the financing options available to the buyer.
, 11. What is the primary function of the addendum for sale of other property by
buyer in real estate transactions?
To establish a contingency for selling another property before
purchase.
To specify the closing date for the transaction.
To outline the terms of financing for the property.
To provide a warranty for the property.
12. * to establish the value of a property for a VA guaranteed loan, a lender must
obtain what document?
Certificate of reasonable value.
Appraisal.
Certificate of eligibility.
DD - 214.
13. What does the term 'improvements' specifically refer to in real estate
contracts?
Permanently installed and built-in items such as a house and
garage.
Temporary structures like tents and canopies.
Landscaping features such as trees and shrubs.
Furniture and appliances that can be moved.
14. Which of the following statements regarding title insurance is true?
When a lender requires an American Land Title Association (ALTA)
extended policy of title insurance to cover its interest, the policy is
2026 | Exam Prep | 100% Accurate Answers
1. What does the acronym COLIC stand for in the context of contract validity?
Competent parties, offer, legal purpose, consideration, and mutual
consent.
Competent parties, offer and acceptance, legal purpose, in writing,
and consideration.
Contractual obligations, legal intent, offer, in writing, and
consideration.
Competent parties, offer and acceptance, legal purpose,
consideration, and mutual agreement.
2. Forms published and promoted by the TREC for use in the Texas real estate
profession are referred to as which of these?
Generic forms
Common forms
Promulgated forms
TRELA forms
3. What is the primary intention behind chunking in real estate fraud?
To assist investors in finding properties.
To provide legitimate investment opportunities.
To scam investors by promising wealth through real estate
investments.
To educate investors about real estate laws.
,4. Describe the significance of promulgated forms in real estate transactions in
Texas.
Promulgated forms are outdated and not used in current practices.
Promulgated forms are optional templates that can be modified by
any party.
Promulgated forms standardize contracts and ensure compliance
with state regulations.
Promulgated forms are only used for residential transactions.
5. Which of the following is true of an addendum to a contract?
It is a provision in a contract that requires that a certain act or event
happen for the contract to be binding on the party
It is subject to contingency-
It is an attachment that adds or further describes the rights and
duties of the parties.
All of these are correct
6. A contract is unenforceable if:
there is a counteroffer after the original offer is accepted
none of the above.
one of the parties is legally incompetent
one of the parties is an emancipated minor
7. What is the purpose of a non-realty items addendum in a real estate
transaction?
To outline the terms of the mortgage
, To define the legal obligations of the buyer
To include personal property in a sale
To specify the closing date
8. Describe how chunking can impact investors in the real estate market.
Chunking can lead investors to lose money by luring them into
fraudulent schemes.
Chunking provides a legal framework for real estate transactions.
Chunking guarantees a return on investment.
Chunking helps investors make informed decisions.
9. Who publishes the promulgated forms used in real estate transactions in
Texas?
Texas Department of Housing
Texas Real Estate Commission (TREC)
Texas Land Office
Texas Association of Realtors
10. Describe the significance of a non-realty items addendum in a real estate
contract.
It allows for the inclusion of personal property in the sale,
clarifying what is being transferred.
It serves to outline the responsibilities of the seller in the transaction.
It specifies the legal consequences of breaching the contract.
It details the financing options available to the buyer.
, 11. What is the primary function of the addendum for sale of other property by
buyer in real estate transactions?
To establish a contingency for selling another property before
purchase.
To specify the closing date for the transaction.
To outline the terms of financing for the property.
To provide a warranty for the property.
12. * to establish the value of a property for a VA guaranteed loan, a lender must
obtain what document?
Certificate of reasonable value.
Appraisal.
Certificate of eligibility.
DD - 214.
13. What does the term 'improvements' specifically refer to in real estate
contracts?
Permanently installed and built-in items such as a house and
garage.
Temporary structures like tents and canopies.
Landscaping features such as trees and shrubs.
Furniture and appliances that can be moved.
14. Which of the following statements regarding title insurance is true?
When a lender requires an American Land Title Association (ALTA)
extended policy of title insurance to cover its interest, the policy is
