Texas Promulgated Contract Forms
Exam Questions with Complete
Solutions 2023
1. The TREC promulgated contract forms: - Answer- Are drafted by the Broker-Lawyer
Committee
2. In a lease with "right of first refusal" provision: - Answer- The tenant has the right to
match or better any offer the landlord receives to prevent the property from being sold to
someone else
3. TREC promulgated forms for: - Answer- Residential transactions
4. TREC promulgated contract forms provide for: - Answer- -Third party financing
-Assumption
-Seller finance
5. A lender can withdraw the approval of the property: - Answer- At any time prior to
closing
6. The Third Party Financing Addendum For Credit Approval is used when: - Answer- If
paragraph 4.A(2)(a) is checked in the contract
7. A new survey is always required for all transactions. - Answer- FALSE
8. The number of days allowed for objections to title or survey is: - Answer- The number
of days entered in paragraph 6
9. TREC promulgated contracts allow the buyer to have the property inspected: -
Answer- By inspectors licensed by TREC or otherwise permitted by law
10. When a buyer defaults on a contract and the seller chooses to retain the buyer's
earnest money, the seller has agreed to: - Answer- Liquidated damages
11. When one party defaults under a contract, the other party is known as the: -
Answer- Injured party
12. Earnest money is first applied to the: - Answer- Buyer's down payment
13. The escrow agent is: - Answer- Not a party to the transaction
14. For a valid option to exist: - Answer- -The option fee must be paid directly to the
seller or listing broker
Exam Questions with Complete
Solutions 2023
1. The TREC promulgated contract forms: - Answer- Are drafted by the Broker-Lawyer
Committee
2. In a lease with "right of first refusal" provision: - Answer- The tenant has the right to
match or better any offer the landlord receives to prevent the property from being sold to
someone else
3. TREC promulgated forms for: - Answer- Residential transactions
4. TREC promulgated contract forms provide for: - Answer- -Third party financing
-Assumption
-Seller finance
5. A lender can withdraw the approval of the property: - Answer- At any time prior to
closing
6. The Third Party Financing Addendum For Credit Approval is used when: - Answer- If
paragraph 4.A(2)(a) is checked in the contract
7. A new survey is always required for all transactions. - Answer- FALSE
8. The number of days allowed for objections to title or survey is: - Answer- The number
of days entered in paragraph 6
9. TREC promulgated contracts allow the buyer to have the property inspected: -
Answer- By inspectors licensed by TREC or otherwise permitted by law
10. When a buyer defaults on a contract and the seller chooses to retain the buyer's
earnest money, the seller has agreed to: - Answer- Liquidated damages
11. When one party defaults under a contract, the other party is known as the: -
Answer- Injured party
12. Earnest money is first applied to the: - Answer- Buyer's down payment
13. The escrow agent is: - Answer- Not a party to the transaction
14. For a valid option to exist: - Answer- -The option fee must be paid directly to the
seller or listing broker
