Texas Promulgated Contracts-CHAMPIONS COMPLETE TEST WITH
ANSWERS 2026-2027
1. The elements of a valid contract are, competent par- B
ties, consideration, legal subject matter, in writing,
and .
(a) Default
(b) Mutual consent
(c) Property condition
(d) Recording
2. A(n) contract is defined as a A
contract that is binding on the parties, with one or
more of the parties having contractual duties that
have not yet been performed.
(a) Executory
(b) Executed
(c) Bilateral
(d) Void
3. In the business of real estate, is definedA
as something given in exchange for a promise.
(a) Consideration
(b) Mutual assent
(c) A bribe
(d) Legal subject matter
4. The TREC-promulgated contract forms: B
(a) Are for optional use by real estate licensees
, Texas Promulgated Contracts-CHAMPIONS STUDY
(b) Are drafted by the Broker-Lawyer Committee
(c) Are promulgated by the legislature
(d) Are used in both commercial and residential trans-
actions
5. In a lease with a "right of first refusal" provision: D
(a) The price is set when the lease agreement is ne-
gotiated
(b) The tenant has promised to buy the property
(c) The TREC promulgated form must be used
(d) The tenant has the right to match or better any
offer the landlord receives to prevent the property
from being sold to someone else
6. TREC has promulgated forms for: D
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions
7. An offer can be communicated by D
.
(a) Phone
(b) Hand delivery
(c) E-mail
, Texas Promulgated Contracts-CHAMPIONS STUDY
(d) All of the above
8. The Third Party Financing Addendum For Credit Ap- D
proval is used when:
(a) The buyer is obtaining FHA financing
(b) Paragraph 4.A(2)(a) is checked in the contract
(c) The buyer is obtaining VA financing
(d) The buyer is obtaining any kind of financing
9. In the Third Party Financing Addendum for Credit B
Approval:
(a) The buyer has no incentive to obtain financial
approval
(b) The buyer has a definite time to notify seller of the
inability to obtain financing approval
(c) The buyer's earnest money will not be returned if
the buyer does not obtain financing
(d) The option period is explained
10. The Third Party Financing Addendum for Credit Ap- C
proval cannot be used for:
(a) VA guaranteed loans
(b) FHA insured loans
(c) Seller Financing
(d) Texas Veterans Loans
11. B
, Texas Promulgated Contracts-CHAMPIONS STUDY
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
12. occurs when a buyer assumesA
and agrees to pay the seller's existing mortgage.
(a) Loan assumption
(b) Seller liability
(c) Seller lien
(d) Credit approval
13. Land, improvements and accessories are collectively B
referred to as:
(a) The estate
(b) The property
(c) The listing
(d) The homestead
14. According to the TREC contract, accessories include:B
(a) Refrigerators
(b) Stoves
ANSWERS 2026-2027
1. The elements of a valid contract are, competent par- B
ties, consideration, legal subject matter, in writing,
and .
(a) Default
(b) Mutual consent
(c) Property condition
(d) Recording
2. A(n) contract is defined as a A
contract that is binding on the parties, with one or
more of the parties having contractual duties that
have not yet been performed.
(a) Executory
(b) Executed
(c) Bilateral
(d) Void
3. In the business of real estate, is definedA
as something given in exchange for a promise.
(a) Consideration
(b) Mutual assent
(c) A bribe
(d) Legal subject matter
4. The TREC-promulgated contract forms: B
(a) Are for optional use by real estate licensees
, Texas Promulgated Contracts-CHAMPIONS STUDY
(b) Are drafted by the Broker-Lawyer Committee
(c) Are promulgated by the legislature
(d) Are used in both commercial and residential trans-
actions
5. In a lease with a "right of first refusal" provision: D
(a) The price is set when the lease agreement is ne-
gotiated
(b) The tenant has promised to buy the property
(c) The TREC promulgated form must be used
(d) The tenant has the right to match or better any
offer the landlord receives to prevent the property
from being sold to someone else
6. TREC has promulgated forms for: D
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions
7. An offer can be communicated by D
.
(a) Phone
(b) Hand delivery
(c) E-mail
, Texas Promulgated Contracts-CHAMPIONS STUDY
(d) All of the above
8. The Third Party Financing Addendum For Credit Ap- D
proval is used when:
(a) The buyer is obtaining FHA financing
(b) Paragraph 4.A(2)(a) is checked in the contract
(c) The buyer is obtaining VA financing
(d) The buyer is obtaining any kind of financing
9. In the Third Party Financing Addendum for Credit B
Approval:
(a) The buyer has no incentive to obtain financial
approval
(b) The buyer has a definite time to notify seller of the
inability to obtain financing approval
(c) The buyer's earnest money will not be returned if
the buyer does not obtain financing
(d) The option period is explained
10. The Third Party Financing Addendum for Credit Ap- C
proval cannot be used for:
(a) VA guaranteed loans
(b) FHA insured loans
(c) Seller Financing
(d) Texas Veterans Loans
11. B
, Texas Promulgated Contracts-CHAMPIONS STUDY
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
12. occurs when a buyer assumesA
and agrees to pay the seller's existing mortgage.
(a) Loan assumption
(b) Seller liability
(c) Seller lien
(d) Credit approval
13. Land, improvements and accessories are collectively B
referred to as:
(a) The estate
(b) The property
(c) The listing
(d) The homestead
14. According to the TREC contract, accessories include:B
(a) Refrigerators
(b) Stoves
