Champions Promulgated Contract Forms 2026 Practice
Quiz Latest Update 2026 | Exam Prep | 100% Accurate
Answers
1. What is the term used when a licensed real estate agent drafts legal
documents without being a licensed attorney?
Mortgage Fraud
Fair Housing Violations
Unauthorized Practice of Law
Conspiracy
2. Why is it considered unauthorized practice of law for a real estate agent to
draft a purchase contract?
Because it involves conspiracy to commit fraud.
Because it is not related to real estate transactions.
Because drafting legal documents requires a law degree and proper
licensing.
Because it violates fair housing regulations.
3. If Raul fails to disclose his relationship with Moises in the sales contract, what
potential legal issue could arise?
Misrepresentation of property value
Invalid contract
Breach of fiduciary duty
Conflict of interest
4. If a real estate agent encounters a situation where a landlord refuses to rent
, to a qualified tenant based on their gender, what legal framework would the
agent reference to address this discrimination?
Real estate commission guidelines
Federal fair housing laws
State licensing regulations
Local zoning laws
5. What is a counteroffer?
A rejection of an offer to buy or sell made with a simultaneous
substitute offer
A deposit made by a real estate buyer to show good faith
A type of agreement where the seller holds the title until the buyer
has fully paid
A contract whose terms have been completely fulfilled
6. If a homeowner in a propane gas service area fails to comply with the notice
requirements set forth in House Bill 2532, what potential legal consequences
might they face during a real estate transaction?
They may face legal challenges or disputes from the buyer
regarding the validity of the sale.
They would automatically lose their property rights.
They could be required to pay a fine to the state.
They would be exempt from any legal obligations related to the sale.
7. What is the definition of a counteroffer in real estate transactions?
The moment when an offer is presumed to have been delivered to the
principal.
, The right to purchase leased property by matching or bettering any
offer.
A rejection of the original offer coupled with a new offer.
The party to whom the offer is made.
8. When is the seller required to deliver a title commitment to the buyer?
20 days prior to closing.
15 days after the executed date of the contract.
20 days after the title company receives the contract.
20 days after the executed date of the contract.
9. Mutual consent is usually evidence by:
offer and acceptance
duress
fraud
none of these
10. What is the standard earnest money percentage required in Texas real estate
transactions?
15%
20%
10%
5%
11. Discuss the implications of entering into a contract with an incompetent
person in Texas real estate transactions.
The contract is valid until challenged in court.
, The contract is voidable at the discretion of the competent party.
The contract can be enforced if both parties agree.
The contract is void because the incompetent person lacks the
legal capacity to enter into a binding agreement.
12. What is the appropriate action for a sales agent when a new offer is received
after multiple offers have already been presented?
Wait for Tim to decide between the other four before presenting the
fifth
Nothing
Tell the offeror that their offer has been rejected because there are
already four offers on the table
Present the fifth offer to Tim
13. If the Seller fails to provide the requested survey and affidavit within the
specified five days, what potential action could the buyer take in
accordance with Texas real estate contract law?
The buyer may have grounds to terminate the contract.
The buyer must proceed with the purchase regardless.
The buyer can demand a price reduction.
The buyer can request additional time without consequences.
14. If a real estate agent is advising a client about title insurance, which
organization should they reference for the most accurate information
regarding exceptions?
Texas Department of Insurance
Texas Real Estate Commission
Consumer Financial Protection Bureau
Quiz Latest Update 2026 | Exam Prep | 100% Accurate
Answers
1. What is the term used when a licensed real estate agent drafts legal
documents without being a licensed attorney?
Mortgage Fraud
Fair Housing Violations
Unauthorized Practice of Law
Conspiracy
2. Why is it considered unauthorized practice of law for a real estate agent to
draft a purchase contract?
Because it involves conspiracy to commit fraud.
Because it is not related to real estate transactions.
Because drafting legal documents requires a law degree and proper
licensing.
Because it violates fair housing regulations.
3. If Raul fails to disclose his relationship with Moises in the sales contract, what
potential legal issue could arise?
Misrepresentation of property value
Invalid contract
Breach of fiduciary duty
Conflict of interest
4. If a real estate agent encounters a situation where a landlord refuses to rent
, to a qualified tenant based on their gender, what legal framework would the
agent reference to address this discrimination?
Real estate commission guidelines
Federal fair housing laws
State licensing regulations
Local zoning laws
5. What is a counteroffer?
A rejection of an offer to buy or sell made with a simultaneous
substitute offer
A deposit made by a real estate buyer to show good faith
A type of agreement where the seller holds the title until the buyer
has fully paid
A contract whose terms have been completely fulfilled
6. If a homeowner in a propane gas service area fails to comply with the notice
requirements set forth in House Bill 2532, what potential legal consequences
might they face during a real estate transaction?
They may face legal challenges or disputes from the buyer
regarding the validity of the sale.
They would automatically lose their property rights.
They could be required to pay a fine to the state.
They would be exempt from any legal obligations related to the sale.
7. What is the definition of a counteroffer in real estate transactions?
The moment when an offer is presumed to have been delivered to the
principal.
, The right to purchase leased property by matching or bettering any
offer.
A rejection of the original offer coupled with a new offer.
The party to whom the offer is made.
8. When is the seller required to deliver a title commitment to the buyer?
20 days prior to closing.
15 days after the executed date of the contract.
20 days after the title company receives the contract.
20 days after the executed date of the contract.
9. Mutual consent is usually evidence by:
offer and acceptance
duress
fraud
none of these
10. What is the standard earnest money percentage required in Texas real estate
transactions?
15%
20%
10%
5%
11. Discuss the implications of entering into a contract with an incompetent
person in Texas real estate transactions.
The contract is valid until challenged in court.
, The contract is voidable at the discretion of the competent party.
The contract can be enforced if both parties agree.
The contract is void because the incompetent person lacks the
legal capacity to enter into a binding agreement.
12. What is the appropriate action for a sales agent when a new offer is received
after multiple offers have already been presented?
Wait for Tim to decide between the other four before presenting the
fifth
Nothing
Tell the offeror that their offer has been rejected because there are
already four offers on the table
Present the fifth offer to Tim
13. If the Seller fails to provide the requested survey and affidavit within the
specified five days, what potential action could the buyer take in
accordance with Texas real estate contract law?
The buyer may have grounds to terminate the contract.
The buyer must proceed with the purchase regardless.
The buyer can demand a price reduction.
The buyer can request additional time without consequences.
14. If a real estate agent is advising a client about title insurance, which
organization should they reference for the most accurate information
regarding exceptions?
Texas Department of Insurance
Texas Real Estate Commission
Consumer Financial Protection Bureau
