TEXAS PROMULGATED CONTRACTS FINAL EXAM TEST
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔Damage or destruction of a property under contract prior to closing: - ✔✔Can result
in termination of the contract
✔✔In a Farm and Ranch sale, the buyer will receive all of the following items except: -
✔✔Trucks
✔✔In the Farm and Ranch contract, the Seller generally has the right to harvest crops: -
✔✔until delivery of possession
✔✔Reservations of oil, gas and other minerals will generally be inserted in: - ✔✔TREC
Addenda form
✔✔If the sales priced is adjusted based upon a survey, either party may terminate the
contract if the sales price varies by more than: - ✔✔5%
✔✔If the property is currently under an agricultural exemption, and the use of the
property changes, the buyer may be charged a: - ✔✔Rollback tax
✔✔The buyer may terminate the contract and receive a refund of earnest money if
lender required repairs: - ✔✔Exceed 5% of the Sales Price
✔✔If in Paragraph B(2) is checked, and 50% entered in the Addendum for Reservation
of Oil, Gas, and Other Minerals, - ✔✔Seller reserves 50% of whatever mineral estate
the seller owns as of the closing date
✔✔A purchaser of property seaward of the Gulf Intracoastal Waterway must be given a
disclosure notice that - ✔✔Beach erosion and movement of the vegetation line could
cause an owner to lose the property
✔✔If a home is to be sold, with lender's consent, at a price less than the outstanding
balance on a mortgage, the sale is known as a - ✔✔Short sale
✔✔A building or community must not discriminate based on familial status, unless it
qualifies as housing for older persons. - ✔✔True
✔✔The commission agreement between the broker and the seller is usually found in
the: - ✔✔Listing agreement
✔✔_______________ occurs when a property is refinanced or resold immediately after
purchase for an artificially inflated value. - ✔✔Churning
, ✔✔A state government entity created to encourage agricultural development in Texas is
the: - ✔✔Texas Agricultural Development District
✔✔If a seller wants to continue to occupy the property for two days after the closing and
the buyer agrees: - ✔✔the Seller's Temporary Residential Lease form should be used
✔✔TREC promulgated contracts allow the Buyer to have the property inspected: -
✔✔by inspectors licensed by TREC or otherwise permitted by law
✔✔Buyer Sarah is purchasing a residential property. She plans to live in the home and
operate a daycare business in the home as well. Having mentioned this to her agent,
the agent should: - ✔✔specify the use as a daycare in Paragraph 6: Objection
✔✔If a property is under contract to a buyer, another buyer may use the
__________________ to enter into a contract for the property if the first contract fails to
close. - ✔✔Addendum for Back-up Contract
✔✔The title company is: - ✔✔Not a party to the transaction
✔✔A(n) property is one where a particular event has affected the desirability of said
property. - ✔✔Stigmatized
✔✔If an overage is incurred on new home construction due to a change order, the
excess is paid by: - ✔✔the buyer
✔✔The closing date: - ✔✔is an "on or before" date
✔✔When a seller wishes to retain certain fixtures or accessories, these items are
called: - ✔✔exclusions
✔✔Exclusions to the sale must be removed: - ✔✔prior to delivery of possession
✔✔Any material changes to subdivision information require the ________________ to
give notice of said changes promptly. - ✔✔Seller
✔✔Rollback taxes would most likely be imposed when: - ✔✔a property that has been
under an agricultural exemption is developed into a subdivision
✔✔In Texas, the statute of limitations is _________________ for an oral agreement. -
✔✔Two years
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔Damage or destruction of a property under contract prior to closing: - ✔✔Can result
in termination of the contract
✔✔In a Farm and Ranch sale, the buyer will receive all of the following items except: -
✔✔Trucks
✔✔In the Farm and Ranch contract, the Seller generally has the right to harvest crops: -
✔✔until delivery of possession
✔✔Reservations of oil, gas and other minerals will generally be inserted in: - ✔✔TREC
Addenda form
✔✔If the sales priced is adjusted based upon a survey, either party may terminate the
contract if the sales price varies by more than: - ✔✔5%
✔✔If the property is currently under an agricultural exemption, and the use of the
property changes, the buyer may be charged a: - ✔✔Rollback tax
✔✔The buyer may terminate the contract and receive a refund of earnest money if
lender required repairs: - ✔✔Exceed 5% of the Sales Price
✔✔If in Paragraph B(2) is checked, and 50% entered in the Addendum for Reservation
of Oil, Gas, and Other Minerals, - ✔✔Seller reserves 50% of whatever mineral estate
the seller owns as of the closing date
✔✔A purchaser of property seaward of the Gulf Intracoastal Waterway must be given a
disclosure notice that - ✔✔Beach erosion and movement of the vegetation line could
cause an owner to lose the property
✔✔If a home is to be sold, with lender's consent, at a price less than the outstanding
balance on a mortgage, the sale is known as a - ✔✔Short sale
✔✔A building or community must not discriminate based on familial status, unless it
qualifies as housing for older persons. - ✔✔True
✔✔The commission agreement between the broker and the seller is usually found in
the: - ✔✔Listing agreement
✔✔_______________ occurs when a property is refinanced or resold immediately after
purchase for an artificially inflated value. - ✔✔Churning
, ✔✔A state government entity created to encourage agricultural development in Texas is
the: - ✔✔Texas Agricultural Development District
✔✔If a seller wants to continue to occupy the property for two days after the closing and
the buyer agrees: - ✔✔the Seller's Temporary Residential Lease form should be used
✔✔TREC promulgated contracts allow the Buyer to have the property inspected: -
✔✔by inspectors licensed by TREC or otherwise permitted by law
✔✔Buyer Sarah is purchasing a residential property. She plans to live in the home and
operate a daycare business in the home as well. Having mentioned this to her agent,
the agent should: - ✔✔specify the use as a daycare in Paragraph 6: Objection
✔✔If a property is under contract to a buyer, another buyer may use the
__________________ to enter into a contract for the property if the first contract fails to
close. - ✔✔Addendum for Back-up Contract
✔✔The title company is: - ✔✔Not a party to the transaction
✔✔A(n) property is one where a particular event has affected the desirability of said
property. - ✔✔Stigmatized
✔✔If an overage is incurred on new home construction due to a change order, the
excess is paid by: - ✔✔the buyer
✔✔The closing date: - ✔✔is an "on or before" date
✔✔When a seller wishes to retain certain fixtures or accessories, these items are
called: - ✔✔exclusions
✔✔Exclusions to the sale must be removed: - ✔✔prior to delivery of possession
✔✔Any material changes to subdivision information require the ________________ to
give notice of said changes promptly. - ✔✔Seller
✔✔Rollback taxes would most likely be imposed when: - ✔✔a property that has been
under an agricultural exemption is developed into a subdivision
✔✔In Texas, the statute of limitations is _________________ for an oral agreement. -
✔✔Two years
