Texas Promulgated Contracts CHAMPIONS Study
Questions & Answers 2026 | Latest Review Guide
1. Which of the following should happen when an agent writes in special
provisions?
All of these should happen.
The agent should make sure that there is not a TREC-promulgated
addendum that addresses what the principal is attempting.
The agent should make sure that it is a factual statement or business
detail and not a legal right or remedy that the agent is writing.
The agent should make sure that there is not a TREC-promulgated
lease or form that addresses what the principal is attempting.
2. Under what circumstance is a Seller's Disclosure Notice not mandated in
Texas real estate transactions?
when the property has an out of state owner
when the property being sold is a previously unoccupied new home
when the property is sold to an investor
when the property is sold at auction
3. An injured party whose rights in a contract have been breached can bring a
________ against the other party.
arbitration
lawsuit
motion
mediation
,4. In a Farm and Ranch sale, the buyer will receive all of the following items
except:
Pens
Trucks
Windmills
Tanks
5. The earnest money is:
Always 5% of the purchase price
Always equal to the option fee
Set by the TREC
Negotiated between the parties
6. How long can a temporary lease last?
90 days
30 days
120 days
60 days
7. Which term refers to the process where a buyer takes over the seller's
existing mortgage in Texas real estate contracts?
Seller liability
Credit approval
Seller lien
Loan assumption
,8. The process of dividing ongoing expenses such as taxes and POA fees
between the buyer and seller at closing is called:
assessing
collecting expenses
prorating
accounting
9. Describe the significance of mutual consent in the context of real estate
contracts.
Mutual consent ensures that all parties agree to the terms of the
contract, which is essential for its validity.
Mutual consent allows one party to change the terms without the
other's agreement.
Mutual consent is irrelevant in real estate transactions.
Mutual consent is only necessary in verbal agreements.
10. Describe the implications for a buyer when purchasing property from a
foreign seller without a social security card or green card, particularly
regarding withholding requirements.
The buyer must only withhold if the seller is a U.S. citizen.
The buyer must withhold 10% of the sale proceeds in excess of
$300,000 to comply with IRS regulations.
The buyer must withhold 20% of the total sale price regardless of the
seller's status.
The buyer is not required to withhold any amount if the seller is
foreign.
, 11. In a scenario where a seller reserves 50% of their mineral estate, how might
this affect a buyer's plans for future development on the property?
The buyer may need to negotiate with the seller for access to the
reserved mineral rights for development.
The buyer can develop the property without considering the reserved
rights.
The buyer automatically owns all mineral rights upon purchase.
The buyer has full rights to all mineral resources without restrictions.
12. Where would the seller reserve the mineral rights?
On the Amendment to Contract form
Paragraph 11 of the One to Four Family Residential Contract (Resale)
Seller's Disclosure of Property Condition
Addendum for Reservation of Oil, Gas and Other Minerals
13. Describe the implications for a buyer who assumes the seller's existing
mortgage.
The buyer only pays the seller directly without any mortgage
obligations.
The seller retains all responsibilities for the mortgage after the
assumption.
The buyer becomes responsible for the mortgage payments and
may also take on the associated risks and benefits of the loan.
The buyer is exempt from any financial obligations related to the
mortgage.
Questions & Answers 2026 | Latest Review Guide
1. Which of the following should happen when an agent writes in special
provisions?
All of these should happen.
The agent should make sure that there is not a TREC-promulgated
addendum that addresses what the principal is attempting.
The agent should make sure that it is a factual statement or business
detail and not a legal right or remedy that the agent is writing.
The agent should make sure that there is not a TREC-promulgated
lease or form that addresses what the principal is attempting.
2. Under what circumstance is a Seller's Disclosure Notice not mandated in
Texas real estate transactions?
when the property has an out of state owner
when the property being sold is a previously unoccupied new home
when the property is sold to an investor
when the property is sold at auction
3. An injured party whose rights in a contract have been breached can bring a
________ against the other party.
arbitration
lawsuit
motion
mediation
,4. In a Farm and Ranch sale, the buyer will receive all of the following items
except:
Pens
Trucks
Windmills
Tanks
5. The earnest money is:
Always 5% of the purchase price
Always equal to the option fee
Set by the TREC
Negotiated between the parties
6. How long can a temporary lease last?
90 days
30 days
120 days
60 days
7. Which term refers to the process where a buyer takes over the seller's
existing mortgage in Texas real estate contracts?
Seller liability
Credit approval
Seller lien
Loan assumption
,8. The process of dividing ongoing expenses such as taxes and POA fees
between the buyer and seller at closing is called:
assessing
collecting expenses
prorating
accounting
9. Describe the significance of mutual consent in the context of real estate
contracts.
Mutual consent ensures that all parties agree to the terms of the
contract, which is essential for its validity.
Mutual consent allows one party to change the terms without the
other's agreement.
Mutual consent is irrelevant in real estate transactions.
Mutual consent is only necessary in verbal agreements.
10. Describe the implications for a buyer when purchasing property from a
foreign seller without a social security card or green card, particularly
regarding withholding requirements.
The buyer must only withhold if the seller is a U.S. citizen.
The buyer must withhold 10% of the sale proceeds in excess of
$300,000 to comply with IRS regulations.
The buyer must withhold 20% of the total sale price regardless of the
seller's status.
The buyer is not required to withhold any amount if the seller is
foreign.
, 11. In a scenario where a seller reserves 50% of their mineral estate, how might
this affect a buyer's plans for future development on the property?
The buyer may need to negotiate with the seller for access to the
reserved mineral rights for development.
The buyer can develop the property without considering the reserved
rights.
The buyer automatically owns all mineral rights upon purchase.
The buyer has full rights to all mineral resources without restrictions.
12. Where would the seller reserve the mineral rights?
On the Amendment to Contract form
Paragraph 11 of the One to Four Family Residential Contract (Resale)
Seller's Disclosure of Property Condition
Addendum for Reservation of Oil, Gas and Other Minerals
13. Describe the implications for a buyer who assumes the seller's existing
mortgage.
The buyer only pays the seller directly without any mortgage
obligations.
The seller retains all responsibilities for the mortgage after the
assumption.
The buyer becomes responsible for the mortgage payments and
may also take on the associated risks and benefits of the loan.
The buyer is exempt from any financial obligations related to the
mortgage.
