Texas Promulgated Contracts Exam Questions with Correct Answers

What's a Promulgate? - Answer-means that it is a widely used contract or form endorsed by a governing group. This group can be a trade association or a government entity. In Texas, what are the two entities that promulgate contracts? - Answer-Texas Real Estate Commission (TREC) or the Texas Association of REALTORS® (TAR). TREC does not furnish - Answer-employment contracts like the listing agreement, buyer's representation agreement, property management agreement, etc. But, the Texas Association of REALTORS® (TAR) attorneys have created promulgated employment agreements for their members to use. If a broker is not a member of TAR, the broker will have to - Answer-have those forms created by a Texas licensed attorney. All real estate contracts must be in writing to be enforceable. when a form is promulgated by TREC, real estate license holders MUST use that particular form for that particular situation except: - Answer-another contract form has been prepared by, and is REQUIRED by, the property owner. Real estate agents cannot create their own real estate contracts - Answer-that would be the unauthorized practice of law What is the Practice of Law? - Answer-is a general term that encompasses the actions of giving legal advice to clients, drafting legal documents for clients, and representing clients in legal negotiations and court proceedings such as lawsuits. Real estate license holders may NOT practice law unless they also hold a license to practice law. - Answer-It's one thing to tell a client what a form means and present them with their options. License holders must stay on guard If the client wants advice, the license holder should refer them to an attorney. The client must choose and pay for their own attorney. - Answer-Real estate license holders can never furnish an attorney for their client. What's A Contract? - Answer-is a voluntary agreement or promise between legally competent parties, supported by legal consideration, to perform (or refrain from performing) some legal act. Five Elements of a Valid Contract - Answer-Competent Parties