Texas Promulgated Contract Forms -
Chapter 4 Exam Questions with Verified
Answers
Earnest money - Answer-A down payment made by a purchaser of real estate as
evidence of good faith is referred to as...?
Buy-down money
Earnest money
Discount money
Origination deposit
Trust funds - Answer-Money, or other things of value, that a real estate agent receives
on behalf of the principal or any other person involved in a transaction is known as...?
Earnest funds
Agent fees
Deposit funds
Trust funds
Earnest money - Answer-Which of the following acts as liquidated damages if the buyer
defaults on the purchase contract...?
Earnest money
Buy-down money
Discount money
Origination deposit
F (False) - Answer-An earnest money deposit is required in all residential
transactions...?
T (True)
F (False)
Option - Answer-Which of the following refers to a right given for a consideration to
purchase or lease a property upon specified terms within a specified time, without
obligating the party who receives the right to exercise the right...?
Exclusive agreement
Earnest agreement
Open agreement
Option
, Optionee - Answer-A person who receives an option is known as the...?
Optionee
Optionor
Trustee
Trustor
Optionor - Answer-A person who gives an option is known as the...?
Optionee
Optionor
Trustee
Trustor
Equitable title to the property - Answer-A buyer has ............ during the options period?
Legal title to the property
Full title to the property
Equitable title to the property
Interim title to the property
Perform his due diligence - Answer-Marcus has entered into a contract to purchase a
new house. What will Marcus do during the options period to ensure the property is in
the proper condition...?
Perform his due diligence
Obtain title insurance
Obtain a certificate of occupancy for the property
All of the above
3 - Answer-The buyer loses their right to a termination option if they fail to provide the
options money within how many days of the effective date of the contract...?
1
3
7
30
6A - Answer-The title policy for a property is discussed in paragraph ........of the One to
Four Family Residential Contract - Resale?
1
3A
5
6A
Chapter 4 Exam Questions with Verified
Answers
Earnest money - Answer-A down payment made by a purchaser of real estate as
evidence of good faith is referred to as...?
Buy-down money
Earnest money
Discount money
Origination deposit
Trust funds - Answer-Money, or other things of value, that a real estate agent receives
on behalf of the principal or any other person involved in a transaction is known as...?
Earnest funds
Agent fees
Deposit funds
Trust funds
Earnest money - Answer-Which of the following acts as liquidated damages if the buyer
defaults on the purchase contract...?
Earnest money
Buy-down money
Discount money
Origination deposit
F (False) - Answer-An earnest money deposit is required in all residential
transactions...?
T (True)
F (False)
Option - Answer-Which of the following refers to a right given for a consideration to
purchase or lease a property upon specified terms within a specified time, without
obligating the party who receives the right to exercise the right...?
Exclusive agreement
Earnest agreement
Open agreement
Option
, Optionee - Answer-A person who receives an option is known as the...?
Optionee
Optionor
Trustee
Trustor
Optionor - Answer-A person who gives an option is known as the...?
Optionee
Optionor
Trustee
Trustor
Equitable title to the property - Answer-A buyer has ............ during the options period?
Legal title to the property
Full title to the property
Equitable title to the property
Interim title to the property
Perform his due diligence - Answer-Marcus has entered into a contract to purchase a
new house. What will Marcus do during the options period to ensure the property is in
the proper condition...?
Perform his due diligence
Obtain title insurance
Obtain a certificate of occupancy for the property
All of the above
3 - Answer-The buyer loses their right to a termination option if they fail to provide the
options money within how many days of the effective date of the contract...?
1
3
7
30
6A - Answer-The title policy for a property is discussed in paragraph ........of the One to
Four Family Residential Contract - Resale?
1
3A
5
6A
