Champions Promulgated Contract Forms Mock Exam
2026 | Trusted Questions & Answers
1. If a seller fails to include the required information in the Lead Based Paint
disclosure form, what potential consequences could arise?
Increased property value and buyer interest.
Legal liability and potential financial penalties.
A requirement to repaint the property immediately.
No consequences as the form is optional.
2. If a buyer discovers that a property is located near a wetland, what steps
should they take to assess the impact on their purchase?
Ask the seller for a discount without further investigation.
Conduct an environmental assessment and consult local
regulations.
Ignore the wetland and proceed with the purchase.
Only consider the property's market value.
3. Describe the implications of defaulting on a contract.
Defaulting on a contract allows for renegotiation without penalties.
Defaulting on a contract can lead to legal consequences and
potential damages.
Defaulting on a contract means the contract is automatically void.
Defaulting on a contract has no legal implications.
4. If a real estate agent adds a clause to a contract that is not included in TREC
forms, what potential legal consequences could arise?
, The seller can renegotiate the terms of the contract.
The agent may receive a commission for the added clause.
The buyer may be required to pay additional fees.
The contract may be deemed invalid or unenforceable.
5. Describe the role of option money in a real estate contract.
Option money is a deposit that guarantees the buyer's loan approval.
Option money is used to pay for property taxes.
Option money creates an option period during which the buyer can
decide whether to proceed with the purchase.
Option money is a fee paid to the seller for repairs.
6. Which of the following is not true of consideration?
In a contract, the parties promise to exchange legal value.
The central question in a contract is the value of the exchange.
The central question in a contract is that something of value is traded.
A contract must include consideration.
7. Which of these scenarios describes steering?
A licensee shows a buyer properties in only the areas that seem
consistent with the buyer's race.
A licensee locates properties that fall within the parameters the buyer
has requested.
A licensee helps a buyer find a house in a neighborhood selected by
the buyer.
, A licensee limits the properties she shows a buyer to those within the
buyer's price range.
8. Which of the following are considered common amendments?
Changes to the closing date
Changes to the sales price, down payment and/or amount financed
Repairs that the seller agrees to perform
Removal or waiver of contingencies
All of the above
9. Describe the implications of accepting an offer versus countering it.
Accepting an offer is a sign of weakness, while countering it
demonstrates strength.
Accepting an offer is final, while countering it allows for more options.
Accepting an offer indicates agreement, while countering it
suggests negotiation for better terms.
Accepting an offer means you are not interested in negotiation, while
countering it shows you want to discuss further.
10. What actions are considered unlawful in the practice of law regarding real
estate contracts?
Providing legal advice to clients about real estate transactions.
Altering the pre-printed text of a promulgated form or adding
terms not addressed by TREC forms.
Negotiating terms of a real estate contract on behalf of a client.
Filing real estate contracts with the county clerk.
, 11. Describe why altering a promulgated form or adding unauthorized terms is
considered unlawful in real estate contracts.
It allows for more flexibility in contract negotiations.
It ensures that all parties are aware of the contract terms.
It simplifies the process of drafting real estate contracts.
It undermines the standardized legal framework established by
TREC and can lead to legal disputes.
12. In a scenario where two companies have a contractual dispute, how might
arbitration be beneficial compared to going to court?
Arbitration guarantees a public trial.
Arbitration can provide a quicker resolution and maintain
confidentiality.
Arbitration requires a jury to make the final decision.
Arbitration allows for unlimited appeals.
13. Describe the key elements that make a contract valid.
A valid contract requires only a written document.
A valid contract is only enforceable if notarized.
A valid contract can be formed without mutual consent.
A valid contract must include mutual consent, a lawful object,
consideration, and the capacity of the parties involved.
14. What is the definition of contingencies in the context of real estate
contracts?
Provisions for dispute resolution.
2026 | Trusted Questions & Answers
1. If a seller fails to include the required information in the Lead Based Paint
disclosure form, what potential consequences could arise?
Increased property value and buyer interest.
Legal liability and potential financial penalties.
A requirement to repaint the property immediately.
No consequences as the form is optional.
2. If a buyer discovers that a property is located near a wetland, what steps
should they take to assess the impact on their purchase?
Ask the seller for a discount without further investigation.
Conduct an environmental assessment and consult local
regulations.
Ignore the wetland and proceed with the purchase.
Only consider the property's market value.
3. Describe the implications of defaulting on a contract.
Defaulting on a contract allows for renegotiation without penalties.
Defaulting on a contract can lead to legal consequences and
potential damages.
Defaulting on a contract means the contract is automatically void.
Defaulting on a contract has no legal implications.
4. If a real estate agent adds a clause to a contract that is not included in TREC
forms, what potential legal consequences could arise?
, The seller can renegotiate the terms of the contract.
The agent may receive a commission for the added clause.
The buyer may be required to pay additional fees.
The contract may be deemed invalid or unenforceable.
5. Describe the role of option money in a real estate contract.
Option money is a deposit that guarantees the buyer's loan approval.
Option money is used to pay for property taxes.
Option money creates an option period during which the buyer can
decide whether to proceed with the purchase.
Option money is a fee paid to the seller for repairs.
6. Which of the following is not true of consideration?
In a contract, the parties promise to exchange legal value.
The central question in a contract is the value of the exchange.
The central question in a contract is that something of value is traded.
A contract must include consideration.
7. Which of these scenarios describes steering?
A licensee shows a buyer properties in only the areas that seem
consistent with the buyer's race.
A licensee locates properties that fall within the parameters the buyer
has requested.
A licensee helps a buyer find a house in a neighborhood selected by
the buyer.
, A licensee limits the properties she shows a buyer to those within the
buyer's price range.
8. Which of the following are considered common amendments?
Changes to the closing date
Changes to the sales price, down payment and/or amount financed
Repairs that the seller agrees to perform
Removal or waiver of contingencies
All of the above
9. Describe the implications of accepting an offer versus countering it.
Accepting an offer is a sign of weakness, while countering it
demonstrates strength.
Accepting an offer is final, while countering it allows for more options.
Accepting an offer indicates agreement, while countering it
suggests negotiation for better terms.
Accepting an offer means you are not interested in negotiation, while
countering it shows you want to discuss further.
10. What actions are considered unlawful in the practice of law regarding real
estate contracts?
Providing legal advice to clients about real estate transactions.
Altering the pre-printed text of a promulgated form or adding
terms not addressed by TREC forms.
Negotiating terms of a real estate contract on behalf of a client.
Filing real estate contracts with the county clerk.
, 11. Describe why altering a promulgated form or adding unauthorized terms is
considered unlawful in real estate contracts.
It allows for more flexibility in contract negotiations.
It ensures that all parties are aware of the contract terms.
It simplifies the process of drafting real estate contracts.
It undermines the standardized legal framework established by
TREC and can lead to legal disputes.
12. In a scenario where two companies have a contractual dispute, how might
arbitration be beneficial compared to going to court?
Arbitration guarantees a public trial.
Arbitration can provide a quicker resolution and maintain
confidentiality.
Arbitration requires a jury to make the final decision.
Arbitration allows for unlimited appeals.
13. Describe the key elements that make a contract valid.
A valid contract requires only a written document.
A valid contract is only enforceable if notarized.
A valid contract can be formed without mutual consent.
A valid contract must include mutual consent, a lawful object,
consideration, and the capacity of the parties involved.
14. What is the definition of contingencies in the context of real estate
contracts?
Provisions for dispute resolution.
