PROMULGATED CONTRACTS UPDATED latest QUESTIONS
AND ANSWERS GUARANTEE A+
✔✔The Doctrine of Laches is the same thing as the Statutes of Limitations. - ✔✔FALSE
(Explanation: The Doctrine of Laches is based on common law, while Statutes of
Limitations are written and codified.)
✔✔One-Year Limitation Period: - ✔✔Malicious prosecution, libel, slander, or breach of
promise of marriage not later than one year after the day the cause of action accrues
✔✔Two-Year Limitation Period: - ✔✔Trespass for injury to the estate or to the property
of another, conversion of personal property, taking or detaining the personal property of
another, personal injury, forcible entry and detainer, and forcible detainer not later than
two years after the day the cause of action accrues
✔✔Four-Year Limitation Period: - ✔✔Specific performance of a contract for the
conveyance of real property, penalty or damages on the penal clause of a bond to
convey real property, debt, fraud, or breach of fiduciary duty
✔✔Statutes of Limitations vary in length depending on the type of lawsuit or crime. -
✔✔TRUE
✔✔Paragraph 23 gives the buyer the unrestricted right to terminate the contract if
________. - ✔✔the buyer purchases the right to terminate
✔✔All of these are options in the Notice of Buyer's Termination of Contract EXCEPT: -
✔✔Buyer elects to terminate by the purchasing of a different property under Paragraph
13 of the contract
✔✔All of the following are elements of a contract EXCEPT: - ✔✔signatures of all the
involved parties.
✔✔What type of contract does not contain one or more of the essential elements of a
valid contract? - ✔✔Void
✔✔What type of contract has all the elements of a contract but cannot be enforced by
court due to a technicality of law? - ✔✔unenforceable
✔✔A law that limits the amount of time within which a lawsuit can be filed is the ______.
- ✔✔statute of limitations
✔✔Alice needs a place to live. Barbara has an apartment but wants to move in with her
boyfriend. They agree that Alice will move in and take over Barbara's lease. Later, Alice
,stopped paying the rent. Does Barbara have any liability if she can prove Alice has been
living there? - ✔✔Yes, an assignment does not relieve the original party of liability.
✔✔Dan wants to sell the equity in his home, and has found someone who will assume
his loan. However, his lender will not release him from liability for the loan. What is this
an example of? - ✔✔Assignment
✔✔TRUE or FALSE: License holders can always create their own forms to use in real
estate transactions. - ✔✔FALSE
(License holders CANNOT always create their own forms for transactions. The
Commission, however, does not prohibit a license holder from using a form that is
prepared by the property owner or prepared by a lawyer and required by the property
owner.)
✔✔Which of the following is NOT a form that a license holder could use? - ✔✔forms
created by a licensed broker
✔✔Which of the following is NOT true regarding what a license holder can do to help a
client with understanding the sales contract? - ✔✔License holders can give the client
their legal opinion of what to do.
✔✔A license holder may _________. - ✔✔explain the meaning of the factual
statements
✔✔Which of the following is TRUE? - ✔✔License holders can compete a contract form
prepared by the property owner
✔✔How many members serve on the Broker-Lawyer Committee? - ✔✔13
✔✔The Broker-Lawyer Committee: - ✔✔Drafts and edits forms
✔✔Does the Broker-Lawyer Committee approve (promulgate) the forms? - ✔✔No, the
Texas Real Estate Commission approves and promulgates the forms
✔✔The contract forms that are approved and promulgated by TREC are: - ✔✔Required
for license holder use
✔✔An agent needed to add some information to a TREC promulgated contract form.
She found a promulgated _________________ on the TREC website and will add that
to the contract. - ✔✔addendum
✔✔Offer: - ✔✔A promise made by one party requesting something in exchange for that
promise with the intention that the offeror will be bound to the terms if the offer is
accepted
, ✔✔Counteroffer: - ✔✔A contract proposal submitted in response to a previous offer,
modifying the terms of the original offer; considered a rejection of the original offer
✔✔Subagency: - ✔✔When an agent works with the buyer but is not representing the
buyer
✔✔The buyer and the seller have agreed on everything in the offer except the closing
date. Is the seller free to consider other offers? - ✔✔Yes, the seller should withdraw
their last counter offer to the first buyer before countering another.
✔✔The process of counter-offering can continue until: - ✔✔Both parties come to a
mutually acceptable agreement
✔✔The seller is obligated to accept an offer _____________. - ✔✔under no
circumstances
✔✔Listing agents and buyer's agents are legally obligated to follow ALL instructions
from their clients. - ✔✔FALSE
(Explanation: Listing agents and buyer's agents are legally obligated to follow all
instructions from their clients if those instructions are lawful and ethical.)
✔✔Effective date: - ✔✔The final date of acceptance, when the contract becomes
binding between the parties
✔✔The effective date of the contract is the date that: - ✔✔A written contract has been
accepted, signed and communicated to the other party.
✔✔Which of the following is required for a contract to become binding and effective? -
✔✔acceptance of the contract must be communicated to the other party
✔✔If a buyer is in the process of countering an offer, the seller cannot sell the property
to anyone else. - ✔✔FALSE
(Explanation: While buyers are countering, license holders should let them know that
the property is still available and the seller is free to sell it to someone else.)
✔✔Broker Adam found there was no promulgated listing contract. He had his Texas
licensed attorney draw up one that he liked. Is he violating the license act? - ✔✔No,
there was no standard form and he has a Texas attorney prepare it.
✔✔Which of the following is NOT an exception to the rule requiring that promulgated
forms be used by the license holder? - ✔✔when the contract form has been prepared
by the buyer's agent and is approved by the buyer
AND ANSWERS GUARANTEE A+
✔✔The Doctrine of Laches is the same thing as the Statutes of Limitations. - ✔✔FALSE
(Explanation: The Doctrine of Laches is based on common law, while Statutes of
Limitations are written and codified.)
✔✔One-Year Limitation Period: - ✔✔Malicious prosecution, libel, slander, or breach of
promise of marriage not later than one year after the day the cause of action accrues
✔✔Two-Year Limitation Period: - ✔✔Trespass for injury to the estate or to the property
of another, conversion of personal property, taking or detaining the personal property of
another, personal injury, forcible entry and detainer, and forcible detainer not later than
two years after the day the cause of action accrues
✔✔Four-Year Limitation Period: - ✔✔Specific performance of a contract for the
conveyance of real property, penalty or damages on the penal clause of a bond to
convey real property, debt, fraud, or breach of fiduciary duty
✔✔Statutes of Limitations vary in length depending on the type of lawsuit or crime. -
✔✔TRUE
✔✔Paragraph 23 gives the buyer the unrestricted right to terminate the contract if
________. - ✔✔the buyer purchases the right to terminate
✔✔All of these are options in the Notice of Buyer's Termination of Contract EXCEPT: -
✔✔Buyer elects to terminate by the purchasing of a different property under Paragraph
13 of the contract
✔✔All of the following are elements of a contract EXCEPT: - ✔✔signatures of all the
involved parties.
✔✔What type of contract does not contain one or more of the essential elements of a
valid contract? - ✔✔Void
✔✔What type of contract has all the elements of a contract but cannot be enforced by
court due to a technicality of law? - ✔✔unenforceable
✔✔A law that limits the amount of time within which a lawsuit can be filed is the ______.
- ✔✔statute of limitations
✔✔Alice needs a place to live. Barbara has an apartment but wants to move in with her
boyfriend. They agree that Alice will move in and take over Barbara's lease. Later, Alice
,stopped paying the rent. Does Barbara have any liability if she can prove Alice has been
living there? - ✔✔Yes, an assignment does not relieve the original party of liability.
✔✔Dan wants to sell the equity in his home, and has found someone who will assume
his loan. However, his lender will not release him from liability for the loan. What is this
an example of? - ✔✔Assignment
✔✔TRUE or FALSE: License holders can always create their own forms to use in real
estate transactions. - ✔✔FALSE
(License holders CANNOT always create their own forms for transactions. The
Commission, however, does not prohibit a license holder from using a form that is
prepared by the property owner or prepared by a lawyer and required by the property
owner.)
✔✔Which of the following is NOT a form that a license holder could use? - ✔✔forms
created by a licensed broker
✔✔Which of the following is NOT true regarding what a license holder can do to help a
client with understanding the sales contract? - ✔✔License holders can give the client
their legal opinion of what to do.
✔✔A license holder may _________. - ✔✔explain the meaning of the factual
statements
✔✔Which of the following is TRUE? - ✔✔License holders can compete a contract form
prepared by the property owner
✔✔How many members serve on the Broker-Lawyer Committee? - ✔✔13
✔✔The Broker-Lawyer Committee: - ✔✔Drafts and edits forms
✔✔Does the Broker-Lawyer Committee approve (promulgate) the forms? - ✔✔No, the
Texas Real Estate Commission approves and promulgates the forms
✔✔The contract forms that are approved and promulgated by TREC are: - ✔✔Required
for license holder use
✔✔An agent needed to add some information to a TREC promulgated contract form.
She found a promulgated _________________ on the TREC website and will add that
to the contract. - ✔✔addendum
✔✔Offer: - ✔✔A promise made by one party requesting something in exchange for that
promise with the intention that the offeror will be bound to the terms if the offer is
accepted
, ✔✔Counteroffer: - ✔✔A contract proposal submitted in response to a previous offer,
modifying the terms of the original offer; considered a rejection of the original offer
✔✔Subagency: - ✔✔When an agent works with the buyer but is not representing the
buyer
✔✔The buyer and the seller have agreed on everything in the offer except the closing
date. Is the seller free to consider other offers? - ✔✔Yes, the seller should withdraw
their last counter offer to the first buyer before countering another.
✔✔The process of counter-offering can continue until: - ✔✔Both parties come to a
mutually acceptable agreement
✔✔The seller is obligated to accept an offer _____________. - ✔✔under no
circumstances
✔✔Listing agents and buyer's agents are legally obligated to follow ALL instructions
from their clients. - ✔✔FALSE
(Explanation: Listing agents and buyer's agents are legally obligated to follow all
instructions from their clients if those instructions are lawful and ethical.)
✔✔Effective date: - ✔✔The final date of acceptance, when the contract becomes
binding between the parties
✔✔The effective date of the contract is the date that: - ✔✔A written contract has been
accepted, signed and communicated to the other party.
✔✔Which of the following is required for a contract to become binding and effective? -
✔✔acceptance of the contract must be communicated to the other party
✔✔If a buyer is in the process of countering an offer, the seller cannot sell the property
to anyone else. - ✔✔FALSE
(Explanation: While buyers are countering, license holders should let them know that
the property is still available and the seller is free to sell it to someone else.)
✔✔Broker Adam found there was no promulgated listing contract. He had his Texas
licensed attorney draw up one that he liked. Is he violating the license act? - ✔✔No,
there was no standard form and he has a Texas attorney prepare it.
✔✔Which of the following is NOT an exception to the rule requiring that promulgated
forms be used by the license holder? - ✔✔when the contract form has been prepared
by the buyer's agent and is approved by the buyer
