Promulgated Contracts Exam
Study online at https://quizlet.com/_8pamks
1. According to the Environmental Assessment, Threatened or Endangered
Species, & Wetlands Addendum, what happens if the buyer can provide the
seller with a report proving that the use of the property is negatively affected
by one of the noted factors (before the agreed-upon deadline)?: The buyer can
terminate the contract and get their EARNEST money back
2. Which of these is an example of a time when it is acceptable not to use a
TREC promulgated form?: The US government requires a different form be used
3. A seller is selling a property that is under a lease. When does the seller
have to deliver a copy of the lease and any move-in condition form to the
buyer?: within seven days after the effective date
4. In a TREC promulgated contract, what is the Third Party Financing Adden-
dum concerned with?: Financing contingencies
5. Which of these is NOT a place where commission split agreements between
cooperating brokers can be determined?: the sales contract
6. The Seller's Disclosure Notice is a requirement of: The Texas property code
7. A stand-alone refrigerator would be considered .: A stand-alone
refrigerator is considered personal property and will not transfer in a sale unless
otherwise noted on the contract. If the refrigerator is built-in it is considered real
property and will transfer in the sale.
8. Which of these does NOT create housing occupancy standards?: the Federal
Housing Administration
9. According to the Addendum for Back-Up Contract, if a first contract is
terminated and the seller notifies the back-up buyer of the termination, what
happens?: that date becomes the effective date of the back-up contract
10. What information does the Disclosure of Relationship with Residential
Service Company form convey?: that it is a violation of RESPA for a license holder
to receive a referral fee for passing on a name to a service provider
11. Which of these is appropriate to put in the Special Provisions section of
the One to Four Family Residential Contract?: The names of sellers that wouldn't
fit in Paragraph 1
12. Which of these materials would be considered part of a property's mineral
estate?: Oil
13. Paragraph D of the Short Sale Addendum contains a date by which the
seller must get approval from their lender for the sale. What happens if the
lender does not give approval by the date?: The contract will terminate and the
earnest money will be refunded to the buyer
14. There are three different types of financing choices in Paragraph Three
of TREC's One to Four Family Residential Contract. They are:: Third party,
assumption, and seller financing
1/6
, Promulgated Contracts Exam
Study online at https://quizlet.com/_8pamks
15. What does Paragraph A of the Addendum for Back-Up Contract specify
a back-up contract holder do when they execute the contract?: Deposit the
earnest and option money agreed to in the contact
16. How can an agent help protect the earnest money of a buyer who is
financing their purchase?: by submitting a third party financing addendum
17. If an agent makes a change to Paragraph 6A8 in a TREC promulgated
contract, which of these is most likely to be the result?: The title policy will be
amended to read "shortage in area" rather than the standard exception
18. Which of these is an example of something that could go in Paragraph 12
of the One to Four Family Residential Contract?: The seller plans to pay some
of the buyers closing costs
19. Reggie made Betty an offer on her house. She countered, but Reggie
has not yet accepted. Then along comes Archie with a better offer. Before
accepting Archie's offer, what must Betty do?: Withdraw her counter to Reggie
20. Within how many days after the title company receiving a copy of the
contract will the buyer receive the title policy documents?: 20 days
21. When should a license holder use form T-47, Residential Real Property
Affidavit?: when a seller wants to use an existing survey
22. Which of these is NOT a protected class of people, according to Fair
Lending Laws?: Sexuality
23. What does the Residential Condominium Contract require in the legal
description of the property?: A unit number
24. What part of the Third Party Financing Addendum for Credit Approval
specifically pertains to people getting VA loans?: Paragraph D
25. When both parties mutually agree to terminate a contract, who provides
the appropriate form?: the title company
26. What is the purpose of the Short Sale Addendum?: to protect a seller who
is selling their home for less than they owe their lender
27. Agent Kara signed a buyer's representation agreement with her client that
set her commission at 3%. The listing broker of the home her client chose
offered 3.5% to the buyer's broker. What percentage of the sale price of the
home will Kara's commission be?: 3.5%
28. What are brokers required to do regarding Consumer Protection Notice
TREC No. CN 1-2?: Post it in each office
29. Where in the One to Four Family Residential Contract does it spell out what
remedy the buyer has if the property is damaged after going into contract but
before closing?: Paragraph 14
2/6
Study online at https://quizlet.com/_8pamks
1. According to the Environmental Assessment, Threatened or Endangered
Species, & Wetlands Addendum, what happens if the buyer can provide the
seller with a report proving that the use of the property is negatively affected
by one of the noted factors (before the agreed-upon deadline)?: The buyer can
terminate the contract and get their EARNEST money back
2. Which of these is an example of a time when it is acceptable not to use a
TREC promulgated form?: The US government requires a different form be used
3. A seller is selling a property that is under a lease. When does the seller
have to deliver a copy of the lease and any move-in condition form to the
buyer?: within seven days after the effective date
4. In a TREC promulgated contract, what is the Third Party Financing Adden-
dum concerned with?: Financing contingencies
5. Which of these is NOT a place where commission split agreements between
cooperating brokers can be determined?: the sales contract
6. The Seller's Disclosure Notice is a requirement of: The Texas property code
7. A stand-alone refrigerator would be considered .: A stand-alone
refrigerator is considered personal property and will not transfer in a sale unless
otherwise noted on the contract. If the refrigerator is built-in it is considered real
property and will transfer in the sale.
8. Which of these does NOT create housing occupancy standards?: the Federal
Housing Administration
9. According to the Addendum for Back-Up Contract, if a first contract is
terminated and the seller notifies the back-up buyer of the termination, what
happens?: that date becomes the effective date of the back-up contract
10. What information does the Disclosure of Relationship with Residential
Service Company form convey?: that it is a violation of RESPA for a license holder
to receive a referral fee for passing on a name to a service provider
11. Which of these is appropriate to put in the Special Provisions section of
the One to Four Family Residential Contract?: The names of sellers that wouldn't
fit in Paragraph 1
12. Which of these materials would be considered part of a property's mineral
estate?: Oil
13. Paragraph D of the Short Sale Addendum contains a date by which the
seller must get approval from their lender for the sale. What happens if the
lender does not give approval by the date?: The contract will terminate and the
earnest money will be refunded to the buyer
14. There are three different types of financing choices in Paragraph Three
of TREC's One to Four Family Residential Contract. They are:: Third party,
assumption, and seller financing
1/6
, Promulgated Contracts Exam
Study online at https://quizlet.com/_8pamks
15. What does Paragraph A of the Addendum for Back-Up Contract specify
a back-up contract holder do when they execute the contract?: Deposit the
earnest and option money agreed to in the contact
16. How can an agent help protect the earnest money of a buyer who is
financing their purchase?: by submitting a third party financing addendum
17. If an agent makes a change to Paragraph 6A8 in a TREC promulgated
contract, which of these is most likely to be the result?: The title policy will be
amended to read "shortage in area" rather than the standard exception
18. Which of these is an example of something that could go in Paragraph 12
of the One to Four Family Residential Contract?: The seller plans to pay some
of the buyers closing costs
19. Reggie made Betty an offer on her house. She countered, but Reggie
has not yet accepted. Then along comes Archie with a better offer. Before
accepting Archie's offer, what must Betty do?: Withdraw her counter to Reggie
20. Within how many days after the title company receiving a copy of the
contract will the buyer receive the title policy documents?: 20 days
21. When should a license holder use form T-47, Residential Real Property
Affidavit?: when a seller wants to use an existing survey
22. Which of these is NOT a protected class of people, according to Fair
Lending Laws?: Sexuality
23. What does the Residential Condominium Contract require in the legal
description of the property?: A unit number
24. What part of the Third Party Financing Addendum for Credit Approval
specifically pertains to people getting VA loans?: Paragraph D
25. When both parties mutually agree to terminate a contract, who provides
the appropriate form?: the title company
26. What is the purpose of the Short Sale Addendum?: to protect a seller who
is selling their home for less than they owe their lender
27. Agent Kara signed a buyer's representation agreement with her client that
set her commission at 3%. The listing broker of the home her client chose
offered 3.5% to the buyer's broker. What percentage of the sale price of the
home will Kara's commission be?: 3.5%
28. What are brokers required to do regarding Consumer Protection Notice
TREC No. CN 1-2?: Post it in each office
29. Where in the One to Four Family Residential Contract does it spell out what
remedy the buyer has if the property is damaged after going into contract but
before closing?: Paragraph 14
2/6
