Texas Promulgated Contracts-CHAMPIONS
STUDY
1. B: The elements of a valid contract are, competent parties,
consideration, legal subject matter, in writing, and .
(a) Default
(b)Mutual consent
(c) Property condition
(d)Recording
2. A: A(n) contract is defined as 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. A: In the business of real estate, is defined as something
given in exchange for a promise.
(a) Consideration
(b)Mutual assent
(c) A bribe
(d)Legal subject matter
4. B: The TREC-promulgated contract forms:
(a) Are for optional use by real estate licensees
(b)Are drafted by the Broker-Lawyer Committee
(c) Are promulgated by the legislature
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, Texas Promulgated Contracts-CHAMPIONS
STUDY
(d)Are used in both commercial and residential transactions
5. D: In a lease with a "right of first refusal" provision:
(a)The price is set when the lease agreement is negotiated
(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. D: TREC has promulgated forms for:
(a) lease purchase transactions
(b)cooperatives
(c) right of first refusal
(d)residential transactions
7. D: An offer can be communicated by .
(a) Phone
(b)Hand delivery
(c) E-mail
(d)All of the above
8. D: The Third Party Financing Addendum For Credit Approval 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
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, Texas Promulgated Contracts-CHAMPIONS
STUDY
(d)The buyer is obtaining any kind of financing
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, Texas Promulgated Contracts-CHAMPIONS
STUDY
9. B: In the Third Party Financing Addendum for Credit 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.C: The Third Party Financing Addendum for Credit Approval cannot be
used for:
(a)VA guaranteed loans
(b)FHA insured loans
(c) Seller Financing
(d)Texas Veterans Loans
11.B: 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.A: occurs when a buyer assumes and agrees to
pay the seller's existing mortgage.
(a) Loan assumption
(b)Seller liability
(c) Seller lien
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STUDY
1. B: The elements of a valid contract are, competent parties,
consideration, legal subject matter, in writing, and .
(a) Default
(b)Mutual consent
(c) Property condition
(d)Recording
2. A: A(n) contract is defined as 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. A: In the business of real estate, is defined as something
given in exchange for a promise.
(a) Consideration
(b)Mutual assent
(c) A bribe
(d)Legal subject matter
4. B: The TREC-promulgated contract forms:
(a) Are for optional use by real estate licensees
(b)Are drafted by the Broker-Lawyer Committee
(c) Are promulgated by the legislature
1/
, Texas Promulgated Contracts-CHAMPIONS
STUDY
(d)Are used in both commercial and residential transactions
5. D: In a lease with a "right of first refusal" provision:
(a)The price is set when the lease agreement is negotiated
(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. D: TREC has promulgated forms for:
(a) lease purchase transactions
(b)cooperatives
(c) right of first refusal
(d)residential transactions
7. D: An offer can be communicated by .
(a) Phone
(b)Hand delivery
(c) E-mail
(d)All of the above
8. D: The Third Party Financing Addendum For Credit Approval 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
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, Texas Promulgated Contracts-CHAMPIONS
STUDY
(d)The buyer is obtaining any kind of financing
3/
, Texas Promulgated Contracts-CHAMPIONS
STUDY
9. B: In the Third Party Financing Addendum for Credit 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.C: The Third Party Financing Addendum for Credit Approval cannot be
used for:
(a)VA guaranteed loans
(b)FHA insured loans
(c) Seller Financing
(d)Texas Veterans Loans
11.B: 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.A: occurs when a buyer assumes and agrees to
pay the seller's existing mortgage.
(a) Loan assumption
(b)Seller liability
(c) Seller lien
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