TEXAS PROMULGATED CONTRACTS RELIABLE EXAM
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔The Third Party Financing Addendum for Credit Approval cannot be used for:
(a) VA guaranteed loans
(b) FHA insured loans
(c) Seller Financing
(d) Texas Veterans Loans - ✔✔B
✔✔According to the Seller Financing Addendum, the interest rate is:
(a) Set at 6%
(b) Negotiated between the parties
(c) Set by TREC
(d) Determined at closing - ✔✔A
✔✔___________________ occurs when a buyer assumes and agrees to pay the
seller's existing mortgage.
(a) Loan assumption
(b) Seller liability
(c) Seller lien
(d) Credit approval - ✔✔A
✔✔Land, improvements and accessories are collectively referred to as:
(a) The estate
(b) The property
(c) The listing
(d) The homestead - ✔✔B
✔✔According to the TREC contract, accessories include:
,(a) Refrigerators
(b) Stoves
(c) Washing machines
(d) Gas dryers - ✔✔A
✔✔Exclusions to the sale must be removed
(a) Prior to delivery of possession
(b) At the convenience of the seller
(c) When the offer becomes a binding contract
(d) Two days prior to closing - ✔✔A
✔✔The loan amount in Paragraph 3.B. of the sales contract includes:
(a) The amount of the mortgage insurance
(b) The loan plus origination fees
(c) Only the amount borrowed by the buyer
(d) The loan amount minus the earnest money - ✔✔C
✔✔The sales price in 3.C. is always:
(a) The loan amount plus the cash portion
(b) 3.A. + 3.B.
(c) The amount borrowed plus the down payment
(d) All of the above - ✔✔D
✔✔The earnest money is:
(a) Always 5% of the purchase price
(b) Set by TREC
, (c) Negotiated between the parties
(d) Paid at closing - ✔✔D
✔✔The T-47 Residential Real Property Affidavit is not completed until
________________, in most cases.
(a) Funding
(b) Inspection
(c) Closing
(d) The listing is taken - ✔✔B
✔✔The __________________ ensures compliance with TRELA, which requires that
license holders advise buyers to have an abstract of title examined or to obtain title
insurance.
(a) Title commitment
(b) Notice to Prospective Buyer
(c) Seller's Disclosure
(d) Inspection report - ✔✔A
✔✔A Seller's Disclosure Notice is not required
(a) When the property being sold is a previously unoccupied new home
(b) When the property is sold to an investor
(c) When the property has an out of state owner
(d) When the property is sold "as i" - ✔✔A
✔✔If a buyer is concerned about the presence of endangered species, toxic substances
or wetlands on a property, the agent should
(a) Add the Environmental Assessment Addendum to the contract
(b) Avoid the property at all costs
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔The Third Party Financing Addendum for Credit Approval cannot be used for:
(a) VA guaranteed loans
(b) FHA insured loans
(c) Seller Financing
(d) Texas Veterans Loans - ✔✔B
✔✔According to the Seller Financing Addendum, the interest rate is:
(a) Set at 6%
(b) Negotiated between the parties
(c) Set by TREC
(d) Determined at closing - ✔✔A
✔✔___________________ occurs when a buyer assumes and agrees to pay the
seller's existing mortgage.
(a) Loan assumption
(b) Seller liability
(c) Seller lien
(d) Credit approval - ✔✔A
✔✔Land, improvements and accessories are collectively referred to as:
(a) The estate
(b) The property
(c) The listing
(d) The homestead - ✔✔B
✔✔According to the TREC contract, accessories include:
,(a) Refrigerators
(b) Stoves
(c) Washing machines
(d) Gas dryers - ✔✔A
✔✔Exclusions to the sale must be removed
(a) Prior to delivery of possession
(b) At the convenience of the seller
(c) When the offer becomes a binding contract
(d) Two days prior to closing - ✔✔A
✔✔The loan amount in Paragraph 3.B. of the sales contract includes:
(a) The amount of the mortgage insurance
(b) The loan plus origination fees
(c) Only the amount borrowed by the buyer
(d) The loan amount minus the earnest money - ✔✔C
✔✔The sales price in 3.C. is always:
(a) The loan amount plus the cash portion
(b) 3.A. + 3.B.
(c) The amount borrowed plus the down payment
(d) All of the above - ✔✔D
✔✔The earnest money is:
(a) Always 5% of the purchase price
(b) Set by TREC
, (c) Negotiated between the parties
(d) Paid at closing - ✔✔D
✔✔The T-47 Residential Real Property Affidavit is not completed until
________________, in most cases.
(a) Funding
(b) Inspection
(c) Closing
(d) The listing is taken - ✔✔B
✔✔The __________________ ensures compliance with TRELA, which requires that
license holders advise buyers to have an abstract of title examined or to obtain title
insurance.
(a) Title commitment
(b) Notice to Prospective Buyer
(c) Seller's Disclosure
(d) Inspection report - ✔✔A
✔✔A Seller's Disclosure Notice is not required
(a) When the property being sold is a previously unoccupied new home
(b) When the property is sold to an investor
(c) When the property has an out of state owner
(d) When the property is sold "as i" - ✔✔A
✔✔If a buyer is concerned about the presence of endangered species, toxic substances
or wetlands on a property, the agent should
(a) Add the Environmental Assessment Addendum to the contract
(b) Avoid the property at all costs
