Texas Promulgated Contracts-CHAMPIONS
STUDY- Questions and Answers
When a party fails to perform according to the terms of a contract, the party is said to be:
(a) in default
(b) in avoidance
(c) terminated
(d) in violation Correct Ans-A
____________________ is defined as something given in exchange for a promise.
(a) Consideration
(b) Legal subject matter
(c) Mutual assent
(d) Competent parties Correct Ans-A
,Usual expenses of the buyer as stated in the contract include:
(a) deed preparation fee
(b) release of existing liens
(c) loan application fees
(d) tax statements Correct Ans-C
If a buyer makes an offer without having received the Seller's Disclosure Notice, how many days
does the seller have to provide the notice?
(a) not less than 3 days prior to closing
(b) not more than 5 days after the effective date of the contract
(c) within 7 days of loan approval
(d) the number of days negotiated in the contract Correct Ans-D
,When should a licensee advise a client to consult an attorney:
(a) at first contact with the client
(b) before signing the contract if the client does not understand the effect of signing the sales
contract or the terms or conditions in the agreement
(c) after the contract has been signed by all parties
(d) a licensee should never advise a client to consult an attorney Correct Ans-B
One possible issue with using the Seller's existing survey is that the Buyer may have no cause of
action against the original surveyor in the event that an error is discovered.
(a) True
(b) False Correct Ans-B
All of the TREC promulgated contracts provide that the Buyer is purchasing the property "as-is".
(a) True
, (b) False Correct Ans-A
According to the Third Party Financing Addendum for Credit Approval of a VA loan, if the
purchase price or cost exceeds the reasonable value of the property as determined by the
Department of Veterans Affairs the Buyer:
(a) Can terminate the transaction without penalty
(b) Can pay the excess amount in cash from a source which Buyer agrees to disclose to the VA
(c) Can negotiate with the seller to have the seller lower the sales price to an amount equal to
the VA reasonable value
(d) All of the above Correct Ans-D
If in Paragraph B(2) is checked, and 50% entered in the Addendum for Reservation of Oil, Gas,
and Other Minerals, ________________.
(a) Seller reserves 50% of all of the mineral estate
(b) Seller reserves 50% of whatever mineral estate seller owns as of the closing date Correct
Ans-B
STUDY- Questions and Answers
When a party fails to perform according to the terms of a contract, the party is said to be:
(a) in default
(b) in avoidance
(c) terminated
(d) in violation Correct Ans-A
____________________ is defined as something given in exchange for a promise.
(a) Consideration
(b) Legal subject matter
(c) Mutual assent
(d) Competent parties Correct Ans-A
,Usual expenses of the buyer as stated in the contract include:
(a) deed preparation fee
(b) release of existing liens
(c) loan application fees
(d) tax statements Correct Ans-C
If a buyer makes an offer without having received the Seller's Disclosure Notice, how many days
does the seller have to provide the notice?
(a) not less than 3 days prior to closing
(b) not more than 5 days after the effective date of the contract
(c) within 7 days of loan approval
(d) the number of days negotiated in the contract Correct Ans-D
,When should a licensee advise a client to consult an attorney:
(a) at first contact with the client
(b) before signing the contract if the client does not understand the effect of signing the sales
contract or the terms or conditions in the agreement
(c) after the contract has been signed by all parties
(d) a licensee should never advise a client to consult an attorney Correct Ans-B
One possible issue with using the Seller's existing survey is that the Buyer may have no cause of
action against the original surveyor in the event that an error is discovered.
(a) True
(b) False Correct Ans-B
All of the TREC promulgated contracts provide that the Buyer is purchasing the property "as-is".
(a) True
, (b) False Correct Ans-A
According to the Third Party Financing Addendum for Credit Approval of a VA loan, if the
purchase price or cost exceeds the reasonable value of the property as determined by the
Department of Veterans Affairs the Buyer:
(a) Can terminate the transaction without penalty
(b) Can pay the excess amount in cash from a source which Buyer agrees to disclose to the VA
(c) Can negotiate with the seller to have the seller lower the sales price to an amount equal to
the VA reasonable value
(d) All of the above Correct Ans-D
If in Paragraph B(2) is checked, and 50% entered in the Addendum for Reservation of Oil, Gas,
and Other Minerals, ________________.
(a) Seller reserves 50% of all of the mineral estate
(b) Seller reserves 50% of whatever mineral estate seller owns as of the closing date Correct
Ans-B
