PROMULGATED CONTRACTS FINAL EXAM QS |PROMULGATED CONTRACTS FINAL EXAM
CONTAINING 70 QUESTIONS WITH CERTIFIED SOLUTIONS 2025-2026 LATEST UPDATE
A buyer leases a property for a period of time and then exercises an option to buy. Which of the
following best describes TREC's position regarding the licensee's role in the option contract?
TREC discourages licensees from getting involved in the negotiations.
TREC prohibits licensees from getting involved.
TREC encourages licensees to negotiate these contracts.
TREC takes no position on whether licensees should be involved in these contracts. TREC
discourages licensees from getting involved in the negotiations.
TREC No. 10-6 Addendum for Sale of Other Buyer Property by Buyer is used when
the mortgage lender requires a larger downpayment.
the buyer needs a co-signer.
the buyer must sell his current home before closing on his contract.
the seller needs to lease back the home after closing. the buyer must sell his current home
before closing on his contract.
If a home is being leased back to the seller under TREC 16-5 - Buyer's Temporary Residential
Lease, when does the lease commence?
No more than 90 days prior to closing, depending upon the agreement
At closing and funding
After the buyer alienates the property
When the buyer takes possession No more than 90 days prior to closing, depending upon
the agreement
All oil, gas, and other minerals in or under a property, including any royalties, production and
drilling rights, lease payments and all related benefits are known as a seller's
,mineral estate.
subsurface rights.
real property.
real estate. mineral estate.
Who normally pays for environmental assessments?
The buyer
The seller
The cost is divided between the buyer and seller
Only the EPA requires assessments The buyer
Due to _________________ property purchased along the coastline can change.
the Realignment Act of 2011
land disputes
the lasting effects of Hurricane Katrina
erosion erosion
What is the name of the 1,300 mile canal that runs from Brownsville, Texas to St. Mark's,
Florida?
Texas/Florida Trans State Water Channel
Brownsville Inland Waterway
Gulf Intracoastal Waterway
Strait of St. Marks Gulf Intracoastal Waterway
Which of the following is the worst action for a licensee in regards to mineral rights?
, Using TREC 44-1 Addendum for Reservation of Oil, Gas and Other Minerals to deal with mineral
rights.
Writing the terms of the agreement into the special provisions section of the TREC Residential
Contract.
Asking his or her broker for direction on the best course of action.
Advising the client to seek legal counsel. Writing the terms of the agreement into the special
provisions section of the TREC Residential Contract.
What action by an owner may be a violation of federal wetland laws?
Landscaping with flora native to the area
Filing an affidavit of protest with the state of Texas
Filling in areas with topsoil
Occupying a pre-existing home in a designated wetland Filling in areas with topsoil
According to TREC Residential Contract, who is to advise the buyer to have an attorney examine
the abstract or obtain a title policy?
The licensee
The seller
The title officer
No one is required The licensee
What does the use of the TREC OP-H Seller's Disclosure of Property Condition form facilitate?
The transition of possession between the buyer and seller
The disclosure of any structural defects that are in need of repair that exceed 5% of the sales
price.
The seller meeting regulations concerning the disclosure of the condition of the property
The prioritized repair agreement between the buyer and the seller. The seller meeting
regulations concerning the disclosure of the condition of the property
CONTAINING 70 QUESTIONS WITH CERTIFIED SOLUTIONS 2025-2026 LATEST UPDATE
A buyer leases a property for a period of time and then exercises an option to buy. Which of the
following best describes TREC's position regarding the licensee's role in the option contract?
TREC discourages licensees from getting involved in the negotiations.
TREC prohibits licensees from getting involved.
TREC encourages licensees to negotiate these contracts.
TREC takes no position on whether licensees should be involved in these contracts. TREC
discourages licensees from getting involved in the negotiations.
TREC No. 10-6 Addendum for Sale of Other Buyer Property by Buyer is used when
the mortgage lender requires a larger downpayment.
the buyer needs a co-signer.
the buyer must sell his current home before closing on his contract.
the seller needs to lease back the home after closing. the buyer must sell his current home
before closing on his contract.
If a home is being leased back to the seller under TREC 16-5 - Buyer's Temporary Residential
Lease, when does the lease commence?
No more than 90 days prior to closing, depending upon the agreement
At closing and funding
After the buyer alienates the property
When the buyer takes possession No more than 90 days prior to closing, depending upon
the agreement
All oil, gas, and other minerals in or under a property, including any royalties, production and
drilling rights, lease payments and all related benefits are known as a seller's
,mineral estate.
subsurface rights.
real property.
real estate. mineral estate.
Who normally pays for environmental assessments?
The buyer
The seller
The cost is divided between the buyer and seller
Only the EPA requires assessments The buyer
Due to _________________ property purchased along the coastline can change.
the Realignment Act of 2011
land disputes
the lasting effects of Hurricane Katrina
erosion erosion
What is the name of the 1,300 mile canal that runs from Brownsville, Texas to St. Mark's,
Florida?
Texas/Florida Trans State Water Channel
Brownsville Inland Waterway
Gulf Intracoastal Waterway
Strait of St. Marks Gulf Intracoastal Waterway
Which of the following is the worst action for a licensee in regards to mineral rights?
, Using TREC 44-1 Addendum for Reservation of Oil, Gas and Other Minerals to deal with mineral
rights.
Writing the terms of the agreement into the special provisions section of the TREC Residential
Contract.
Asking his or her broker for direction on the best course of action.
Advising the client to seek legal counsel. Writing the terms of the agreement into the special
provisions section of the TREC Residential Contract.
What action by an owner may be a violation of federal wetland laws?
Landscaping with flora native to the area
Filing an affidavit of protest with the state of Texas
Filling in areas with topsoil
Occupying a pre-existing home in a designated wetland Filling in areas with topsoil
According to TREC Residential Contract, who is to advise the buyer to have an attorney examine
the abstract or obtain a title policy?
The licensee
The seller
The title officer
No one is required The licensee
What does the use of the TREC OP-H Seller's Disclosure of Property Condition form facilitate?
The transition of possession between the buyer and seller
The disclosure of any structural defects that are in need of repair that exceed 5% of the sales
price.
The seller meeting regulations concerning the disclosure of the condition of the property
The prioritized repair agreement between the buyer and the seller. The seller meeting
regulations concerning the disclosure of the condition of the property
