PROMULGATED CONTRACT FORMS FINAL
EXAM COMPLETE STUDY GUIDE AND REAL
ESTATE CONTRACTS REVIEW 2026
◉ Who is responsible for filling in the effective date, who, when &
what?
Answer: Broker. Between the buyer and the seller, The date on which
the communication was made. The date of initialing and signing of
the parties. The last party to initial/Sign fills in the day. Broker. Last
party to accept must communicate back to other party & fill in the
date
◉ What is a legal proceeding brought by a party to a contract against
another party to compel action called for in the agreement?
Answer: Breach of a contract, one-party defaults, sues for specific
performance, seek other relief - arbitration, mediation, injunction to
sue for compensatory Damages.
◉ If a seller fails to provide the buyer with the seller's disclosure of
property condition as required by Section 5.008 of the Texas
Property Code, what is the status of the purchase contract?
Answer: Voidable at the option of the buyer. Voidable by buyer any
time prior to closing and the earnest money will be refunded to the
buyer.
,◉ Which term identifies the substitution of a new contract for an
existing contract?
Answer: Novation
◉ When using a Power of Attorney to transfer title to real property?
Answer: Attorney-in-fact - Legal description and the subject of the
authority
◉ Who must convey to the principal all known information that
would affect the principal's decision to accept or reject offers?
Answer: Licensee - the listing agent/selling agent
◉ When a legally enforceable promise is exchanged for a legally
enforceable promise?
Answer: It is a Bilateral Contract.
◉ If the seller has already sent a counteroffer to a prospective buyer
and then receives another offer that is even better, the seller:
Answer: Withdraw the counteroffer first then consider new offer
◉ Which law requires the contract for real property to be in writing
and signed to be enforceable?
, Answer: Statute of Frauds
◉ To have a valid real property contract, something of value must be
exchanged. This is called:
Answer: Consideration
◉ When may a potential purchase's offer to buy real estate be
withdrawn?
Answer: at any time before it's accepted
◉ Which of the following is NOT addressed by a TREC-promulgated
contract?
Answer: Lease with an option to purchase. Lease purchase - new
Condo contract
◉ When is a financing addendum not required?
Answer: When the buyer pays in cash. When third financing
addendum is waived
◉ Items that are preprinted in paragraphs 1 and 2 of the contract
include all the following except?
Answer: Exclusions
EXAM COMPLETE STUDY GUIDE AND REAL
ESTATE CONTRACTS REVIEW 2026
◉ Who is responsible for filling in the effective date, who, when &
what?
Answer: Broker. Between the buyer and the seller, The date on which
the communication was made. The date of initialing and signing of
the parties. The last party to initial/Sign fills in the day. Broker. Last
party to accept must communicate back to other party & fill in the
date
◉ What is a legal proceeding brought by a party to a contract against
another party to compel action called for in the agreement?
Answer: Breach of a contract, one-party defaults, sues for specific
performance, seek other relief - arbitration, mediation, injunction to
sue for compensatory Damages.
◉ If a seller fails to provide the buyer with the seller's disclosure of
property condition as required by Section 5.008 of the Texas
Property Code, what is the status of the purchase contract?
Answer: Voidable at the option of the buyer. Voidable by buyer any
time prior to closing and the earnest money will be refunded to the
buyer.
,◉ Which term identifies the substitution of a new contract for an
existing contract?
Answer: Novation
◉ When using a Power of Attorney to transfer title to real property?
Answer: Attorney-in-fact - Legal description and the subject of the
authority
◉ Who must convey to the principal all known information that
would affect the principal's decision to accept or reject offers?
Answer: Licensee - the listing agent/selling agent
◉ When a legally enforceable promise is exchanged for a legally
enforceable promise?
Answer: It is a Bilateral Contract.
◉ If the seller has already sent a counteroffer to a prospective buyer
and then receives another offer that is even better, the seller:
Answer: Withdraw the counteroffer first then consider new offer
◉ Which law requires the contract for real property to be in writing
and signed to be enforceable?
, Answer: Statute of Frauds
◉ To have a valid real property contract, something of value must be
exchanged. This is called:
Answer: Consideration
◉ When may a potential purchase's offer to buy real estate be
withdrawn?
Answer: at any time before it's accepted
◉ Which of the following is NOT addressed by a TREC-promulgated
contract?
Answer: Lease with an option to purchase. Lease purchase - new
Condo contract
◉ When is a financing addendum not required?
Answer: When the buyer pays in cash. When third financing
addendum is waived
◉ Items that are preprinted in paragraphs 1 and 2 of the contract
include all the following except?
Answer: Exclusions
