Final Exam- Texas Promulgated Forms
Exam Questions and Answers
Which of the following is not addressed by a TREC-Promulgated form? - Answer-A
purchase using a contract for deed
Which law requires a contract for real property to be in writing and signed to be
enforceable? - Answer-Texas Statute of Frauds
Which of the following is the best way to extend the closing date on a contract? -
Answer-Using the TREC amendment to contract and have the buyers and the sellers
sign it
A buyer and seller enter into a written contract for the sale of a four-bedroom home. If
either party defaults under the contract, the other party has how much time to file a
lawsuit for specific performance? - Answer-Four years
When a legally enforceable promise is exchanged for a legally enforceable promise, -
Answer-A contract is created
Which of the following is not an essential element of a contract for the purchase of a
one to four family residential resale property? - Answer-Earnest money
When using a power of attorney to transfer title to real property, - Answer-The document
must include the legal description of the subject of the authority
Which of the following is an example of a bilateral contract? - Answer-purchase contract
In Texas, the statute of limitations for a non-defaulting party to an oral contract to
enforce their rights in the event of default is - Answer-Four years
All of the following promulgated forms provided that "time is of the essence" except -
Answer-Loan assumption addendum
When may a potential purchaser's offer to buy real estate be withdrawn? - Answer-
Anytime prior to seller acceptance and buyer notification of acception
How many resale certificates are currently promulgated by TREC? - Answer-two
Who may give opinions concerning the status or validity of title to real estate? - Answer-
An attorney
The promulgated form for the purchase of one to four family residential contract (resale)
was authorized by the - Answer-Texas broker lawyer committee
, Which of the following offers must be communicated to the seller by the listing agent? -
Answer-Offers made to the principal before the principal has accepted an offer
A seller's instruction not to present back-up offers - Answer-Must be given to the license
holder in writing
Which of the following is not an exception to the rules requiring that promulgated forms
be used by the license holders? - Answer-When the contract form has been prepared
by the buyer and the buyer wants the agent to fill in the blanks
How many contract forms are currently promulgated by TREC? - Answer-6
Which addendum is commonly used in a transaction involving an 80% fixed rate loan? -
Answer-Third Party Financing Addendum
In the third party financing addendum, what should be the cap on interest rates? -
Answer-A rate the buyer will pay that is available in the market
Which financing option listed in paragraph 3 requires the use of a promulgated
addendum? - Answer-Third party conventional, assumption, and seller finance
Which of the following is addressed as part of the real estate in paragraph 2 of the one
to four family residential contract (resale)? - Answer-Draperies
Paragraphs found in every purchase agreement include all of the following except? -
Answer-parcel
Which financing addendum will the purchaser use when purchasing a property for
cash? - Answer-none of these
Financing approval occurs when - Answer-The lender determines that the buyers
assets, income, and credit are satisfactory
A real estate license holder has a business relationship with a home warranty company
where the license holder receives a referral fee. Which form is required? - Answer-
Disclosure of relationship with residential service company
A seller furnishes the existing survey to the buyer, but it is not acceptable to the buyer's
lender. The cost of a new survey will be at whose expense? - Answer-A party
negotiated in the contract
When is the seller required to deliver a title commitment to the buyer? - Answer-20 days
after the title company receives the contract
The premium for title insurance policies - Answer-Is the same throughout the state
Exam Questions and Answers
Which of the following is not addressed by a TREC-Promulgated form? - Answer-A
purchase using a contract for deed
Which law requires a contract for real property to be in writing and signed to be
enforceable? - Answer-Texas Statute of Frauds
Which of the following is the best way to extend the closing date on a contract? -
Answer-Using the TREC amendment to contract and have the buyers and the sellers
sign it
A buyer and seller enter into a written contract for the sale of a four-bedroom home. If
either party defaults under the contract, the other party has how much time to file a
lawsuit for specific performance? - Answer-Four years
When a legally enforceable promise is exchanged for a legally enforceable promise, -
Answer-A contract is created
Which of the following is not an essential element of a contract for the purchase of a
one to four family residential resale property? - Answer-Earnest money
When using a power of attorney to transfer title to real property, - Answer-The document
must include the legal description of the subject of the authority
Which of the following is an example of a bilateral contract? - Answer-purchase contract
In Texas, the statute of limitations for a non-defaulting party to an oral contract to
enforce their rights in the event of default is - Answer-Four years
All of the following promulgated forms provided that "time is of the essence" except -
Answer-Loan assumption addendum
When may a potential purchaser's offer to buy real estate be withdrawn? - Answer-
Anytime prior to seller acceptance and buyer notification of acception
How many resale certificates are currently promulgated by TREC? - Answer-two
Who may give opinions concerning the status or validity of title to real estate? - Answer-
An attorney
The promulgated form for the purchase of one to four family residential contract (resale)
was authorized by the - Answer-Texas broker lawyer committee
, Which of the following offers must be communicated to the seller by the listing agent? -
Answer-Offers made to the principal before the principal has accepted an offer
A seller's instruction not to present back-up offers - Answer-Must be given to the license
holder in writing
Which of the following is not an exception to the rules requiring that promulgated forms
be used by the license holders? - Answer-When the contract form has been prepared
by the buyer and the buyer wants the agent to fill in the blanks
How many contract forms are currently promulgated by TREC? - Answer-6
Which addendum is commonly used in a transaction involving an 80% fixed rate loan? -
Answer-Third Party Financing Addendum
In the third party financing addendum, what should be the cap on interest rates? -
Answer-A rate the buyer will pay that is available in the market
Which financing option listed in paragraph 3 requires the use of a promulgated
addendum? - Answer-Third party conventional, assumption, and seller finance
Which of the following is addressed as part of the real estate in paragraph 2 of the one
to four family residential contract (resale)? - Answer-Draperies
Paragraphs found in every purchase agreement include all of the following except? -
Answer-parcel
Which financing addendum will the purchaser use when purchasing a property for
cash? - Answer-none of these
Financing approval occurs when - Answer-The lender determines that the buyers
assets, income, and credit are satisfactory
A real estate license holder has a business relationship with a home warranty company
where the license holder receives a referral fee. Which form is required? - Answer-
Disclosure of relationship with residential service company
A seller furnishes the existing survey to the buyer, but it is not acceptable to the buyer's
lender. The cost of a new survey will be at whose expense? - Answer-A party
negotiated in the contract
When is the seller required to deliver a title commitment to the buyer? - Answer-20 days
after the title company receives the contract
The premium for title insurance policies - Answer-Is the same throughout the state
