PROMULGATED CONTRACT FORMS FINAL
MOCK EXAM AND STUDY MATERIAL WITH
CONTRACT APPLICATION SCENARIOS
◉ When a "fixture" in a property does not remain for the buyer, how
do we inform the buyer of that fact and make sure the item does not
convey with the property?
A) List the item as not included in the listing Agreement
B) List the item on the "Seller's Disclosure Notice"
C) List the item on the "Residential Contract"
D) List the item on the "Amendment" form.
Answer: C) List the item on the "Residential Contract"
◉ Paragraph 23 "termination option" of the TREC 1-4 Family
Residential Contract:
A) Binds the seller to complete the repairs needed
B) Requires option money that is refundable if the buyer does not
buy
C) Requires a fee for a specified period of time
, D) Allows the buyer to get his option fee back if he is disqualified for
the loan.
Answer: C) Requires a fee for a specified period of time
◉ A suit for specific performance is:
A) To force the buyer not to default on the contract
B) To force the seller not to default on the contract
C) To force either the buyer or the seller to perform on the terms of
the contract
D) Is a lawsuit against the inspection company.
Answer: C) To force either the buyer or the seller to perform on the
terms of the contract
◉ How does the Texas Real Estate License Act define the first face-
to-face meeting with required agency disclosure?
A) When a licensee first meets a prospect
B) When a prospect is ready to sign an agreement
C) Only when a specific property is being shown
D) When a substantive dialogue about a specific real property
occurs.
, Answer: D) When a substantive dialogue about a specific real
property occurs
◉ Brokers fees are included in the 1-4 Family Residential Contract
(resale) between the Buyer and the Seller.
A) True
B) False.
Answer: B) False
◉ Standard forms of TREC must be used unless:
A) A broker or salesperson wishes to use a different form
B) A principal in the transaction requests a different form to be used
C) The listing broker disagrees with certain language in the contract
D) A lender requires a different form to be used.
Answer: Wrong A) A broker or salesperson wishes to use a different
form
wrong D) A lender requires a different form to be used
◉ According to the TREC 1-4 Residential Contract (Resale), who is
responsible for paying the owner policy of title insurance fee?
MOCK EXAM AND STUDY MATERIAL WITH
CONTRACT APPLICATION SCENARIOS
◉ When a "fixture" in a property does not remain for the buyer, how
do we inform the buyer of that fact and make sure the item does not
convey with the property?
A) List the item as not included in the listing Agreement
B) List the item on the "Seller's Disclosure Notice"
C) List the item on the "Residential Contract"
D) List the item on the "Amendment" form.
Answer: C) List the item on the "Residential Contract"
◉ Paragraph 23 "termination option" of the TREC 1-4 Family
Residential Contract:
A) Binds the seller to complete the repairs needed
B) Requires option money that is refundable if the buyer does not
buy
C) Requires a fee for a specified period of time
, D) Allows the buyer to get his option fee back if he is disqualified for
the loan.
Answer: C) Requires a fee for a specified period of time
◉ A suit for specific performance is:
A) To force the buyer not to default on the contract
B) To force the seller not to default on the contract
C) To force either the buyer or the seller to perform on the terms of
the contract
D) Is a lawsuit against the inspection company.
Answer: C) To force either the buyer or the seller to perform on the
terms of the contract
◉ How does the Texas Real Estate License Act define the first face-
to-face meeting with required agency disclosure?
A) When a licensee first meets a prospect
B) When a prospect is ready to sign an agreement
C) Only when a specific property is being shown
D) When a substantive dialogue about a specific real property
occurs.
, Answer: D) When a substantive dialogue about a specific real
property occurs
◉ Brokers fees are included in the 1-4 Family Residential Contract
(resale) between the Buyer and the Seller.
A) True
B) False.
Answer: B) False
◉ Standard forms of TREC must be used unless:
A) A broker or salesperson wishes to use a different form
B) A principal in the transaction requests a different form to be used
C) The listing broker disagrees with certain language in the contract
D) A lender requires a different form to be used.
Answer: Wrong A) A broker or salesperson wishes to use a different
form
wrong D) A lender requires a different form to be used
◉ According to the TREC 1-4 Residential Contract (Resale), who is
responsible for paying the owner policy of title insurance fee?
