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TEXAS PROMULGATED CONTRACTS-CHAMPIONS
final exam QUESTIONS AND ANSWERS 2024 (A+)
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 - =B
-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 - =A
-In the business of real estate, ___________ is defined
as something given in exchange for a promise.
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(a) Consideration
(b) Mutual assent
(c) A bribe
(d) Legal subject matter - =A
-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
(d) Are used in both commercial and residential
transactions - =B
-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 - =D
-TREC has promulgated forms for:
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(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions - =D
-An offer can be communicated by
___________________.
(a) Phone
(b) Hand delivery
(c) E-mail
(d) All of the above - =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
(d) The buyer is obtaining any kind of financing - =D
-In the Third-Party Financing Addendum for Credit
Approval:
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(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 - =B
-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 - =C
-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 - =B
TEXAS PROMULGATED CONTRACTS-CHAMPIONS
final exam QUESTIONS AND ANSWERS 2024 (A+)
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 - =B
-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 - =A
-In the business of real estate, ___________ is defined
as something given in exchange for a promise.
,2
(a) Consideration
(b) Mutual assent
(c) A bribe
(d) Legal subject matter - =A
-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
(d) Are used in both commercial and residential
transactions - =B
-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 - =D
-TREC has promulgated forms for:
,3
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions - =D
-An offer can be communicated by
___________________.
(a) Phone
(b) Hand delivery
(c) E-mail
(d) All of the above - =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
(d) The buyer is obtaining any kind of financing - =D
-In the Third-Party Financing Addendum for Credit
Approval:
, 4
(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 - =B
-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 - =C
-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 - =B
