Texas Promulgated Contracts LATEST UPDATE 2025-2026
addenda -(ANSWER)additions to a completed contract that specify supplementary information
to the contract
amendment -(ANSWER)change or modification to an already agreed-upon contract
bilateral contract -(ANSWER)a contract wherein both parties are obligated to perform in an
exchange of promises
buyer rebate -(ANSWER)anything during a transaction that causes money to go back to the
buyer, either at or after closing, without the knowledge of the lender
casualty loss -(ANSWER)a sudden, unexpected event like a fire, flood, storm, earthquake that
causes damage to a property
consideration -(ANSWER)something of value exchanged by the parties as evidence of
agreement to the terms of a contract
contract -(ANSWER)a legally enforceable and binding agreement between parties wherein a
promise to do or not do something is given in exchange for valuable consideration
counteroffer -(ANSWER)a contract proposal submitted in response to a previous offer,
modifying the terms of the original offer; considered a rejection of the original offer
disability -(ANSWER)a physical or mental impairment that substantially limits one or more
major life activities, the record of such impairment, or being regarded as having such an
impairment
earnest money -(ANSWER)funds paid to confirm or commit to a contract
effective date -(ANSWER)the date a contract becomes binding between the parties
endorsement -(ANSWER)additional coverage that can be added onto an insurance policy
escrow -(ANSWER)a process in which funds and/or financial documents are held by a
disinterested third party on behalf of the other two parties in the real estate transaction until
specific conditions are satisfied
executed contract -(ANSWER)a contract in which all terms have been fulfilled by all parties
executory contract -(ANSWER)a contract that has not yet been fully performed (both sides have
not yet completed their obligations)
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addenda -(ANSWER)additions to a completed contract that specify supplementary information
to the contract
amendment -(ANSWER)change or modification to an already agreed-upon contract
bilateral contract -(ANSWER)a contract wherein both parties are obligated to perform in an
exchange of promises
buyer rebate -(ANSWER)anything during a transaction that causes money to go back to the
buyer, either at or after closing, without the knowledge of the lender
casualty loss -(ANSWER)a sudden, unexpected event like a fire, flood, storm, earthquake that
causes damage to a property
consideration -(ANSWER)something of value exchanged by the parties as evidence of
agreement to the terms of a contract
contract -(ANSWER)a legally enforceable and binding agreement between parties wherein a
promise to do or not do something is given in exchange for valuable consideration
counteroffer -(ANSWER)a contract proposal submitted in response to a previous offer,
modifying the terms of the original offer; considered a rejection of the original offer
disability -(ANSWER)a physical or mental impairment that substantially limits one or more
major life activities, the record of such impairment, or being regarded as having such an
impairment
earnest money -(ANSWER)funds paid to confirm or commit to a contract
effective date -(ANSWER)the date a contract becomes binding between the parties
endorsement -(ANSWER)additional coverage that can be added onto an insurance policy
escrow -(ANSWER)a process in which funds and/or financial documents are held by a
disinterested third party on behalf of the other two parties in the real estate transaction until
specific conditions are satisfied
executed contract -(ANSWER)a contract in which all terms have been fulfilled by all parties
executory contract -(ANSWER)a contract that has not yet been fully performed (both sides have
not yet completed their obligations)
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