PROMULGATED CONTRACTS PRACTICE EXAM
QUESTIONS
The lender holding the note on a property must approve a short sale or the contract will
be
a) terminated.
b) amended to the amount owed.
c) transferred to another lender.
d) counteroffered. - Answers-terminated.
If a payment is made 10 or more days after the due date, what late fees are charged
under the Seller Financing Addendum TREC 26-6?
a) 1% of the sales price
b) 2% of the payment amount
c) 5% of the payment amount
d) A $100 flat fee - Answers-5% of the payment amount
The _______________ means that a judge's interpretation of a disputed contract clause
is influenced by the document as a whole.
a) Four Corners Doctrine
b) Four Squared Rule
c) Civil Due Process Doctrine
d) Fourth Promulgation Rule - Answers-Four Corners Doctrine
When should a buyer be notified that his contract has been accepted by the seller?
a) After the 3 day waiting period.
b) Within five business days of acceptance.
c) Within five business days of the listing expiring.
d) Immediately as waiting even an hour could cause a buyer to move on. - Answers-
Immediately as waiting even an hour could cause a buyer to move on.
How does a licensee indicate she is representing a buyer on the TREC OP-K
Information about Brokerage Services form?
a) By checking the applicable box
b) By writing the seller's name in the blank provided
c) By having the buyer sign it
d) No indication is required as the form is used for informational purposes - Answers-No
indication is required as the form is used for informational purposes
What may an HOA for a high-end development require for membership?
a) A background check
b) Three year's tax returns
c) Two year's HOA in advance
d) A $1,000 one-time membership fee - Answers-A $1,000 one-time membership fee
, When signing TREC 44-1 Addendum for Reservation of Oil, Gas and Other Minerals the
parties are advised to
a) ask the seller's licensee for advice before signing.
b) ask the EPA for guidance after signing.
c) sign the form quickly.
d) consult an attorney before signing if there are any concerns. - Answers-consult an
attorney before signing if there are any concerns.
Common areas in condominium complexes are owned by
a) the condominium association.
b) the homeowners association.
c) all the tenants as tenants-in-common.
d) the condominium developer. - Answers-all the tenants as tenants-in-common.
Seller Sherri Martinez received an offer on her home contingent on the buyers, the
Ackermans, selling their home. While waiting for the Ackermans, Sherri receives a back-
up offer without a contingency. What can Sherri do?
a) Sherri can ask the Ackermans to waive their contingency within an agreed upon
timeframe or terminate the contract.
b) Sherri can accept both contracts and see who is able to close first.
c) Sherri cannot accept any offers until the deadline to sell has passed on the
Ackerman's contract.
d) Sherri can terminate the Ackerman's contract with no notice or explanation. -
Answers-Sherri can ask the Ackermans to waive their contingency within an agreed
upon timeframe or terminate the contract.
Who is responsible for ensuring any needed utilities are turned on for a home
inspection?
a) The seller
b) The buyer
c) The broker
d) The home inspection company - Answers-The seller
When all terms of a contract are agreed to by all parties, there is
a) mutual assent.
b) mutual consent.
c) mutual duress.
d) mutual influence. - Answers-mutual assent.
A licensee could be exempt from using a TREC promulgated form when
a) the licensee is able to use a form approved by NAR.
b) the broker has solicited an attorney to draft a form.
c) the licensee is functioning solely as a principal, not as an agent.
d) the licensee has received permission from the Texas Secretary of State. - Answers-
the licensee is functioning solely as a principal, not as an agent.
QUESTIONS
The lender holding the note on a property must approve a short sale or the contract will
be
a) terminated.
b) amended to the amount owed.
c) transferred to another lender.
d) counteroffered. - Answers-terminated.
If a payment is made 10 or more days after the due date, what late fees are charged
under the Seller Financing Addendum TREC 26-6?
a) 1% of the sales price
b) 2% of the payment amount
c) 5% of the payment amount
d) A $100 flat fee - Answers-5% of the payment amount
The _______________ means that a judge's interpretation of a disputed contract clause
is influenced by the document as a whole.
a) Four Corners Doctrine
b) Four Squared Rule
c) Civil Due Process Doctrine
d) Fourth Promulgation Rule - Answers-Four Corners Doctrine
When should a buyer be notified that his contract has been accepted by the seller?
a) After the 3 day waiting period.
b) Within five business days of acceptance.
c) Within five business days of the listing expiring.
d) Immediately as waiting even an hour could cause a buyer to move on. - Answers-
Immediately as waiting even an hour could cause a buyer to move on.
How does a licensee indicate she is representing a buyer on the TREC OP-K
Information about Brokerage Services form?
a) By checking the applicable box
b) By writing the seller's name in the blank provided
c) By having the buyer sign it
d) No indication is required as the form is used for informational purposes - Answers-No
indication is required as the form is used for informational purposes
What may an HOA for a high-end development require for membership?
a) A background check
b) Three year's tax returns
c) Two year's HOA in advance
d) A $1,000 one-time membership fee - Answers-A $1,000 one-time membership fee
, When signing TREC 44-1 Addendum for Reservation of Oil, Gas and Other Minerals the
parties are advised to
a) ask the seller's licensee for advice before signing.
b) ask the EPA for guidance after signing.
c) sign the form quickly.
d) consult an attorney before signing if there are any concerns. - Answers-consult an
attorney before signing if there are any concerns.
Common areas in condominium complexes are owned by
a) the condominium association.
b) the homeowners association.
c) all the tenants as tenants-in-common.
d) the condominium developer. - Answers-all the tenants as tenants-in-common.
Seller Sherri Martinez received an offer on her home contingent on the buyers, the
Ackermans, selling their home. While waiting for the Ackermans, Sherri receives a back-
up offer without a contingency. What can Sherri do?
a) Sherri can ask the Ackermans to waive their contingency within an agreed upon
timeframe or terminate the contract.
b) Sherri can accept both contracts and see who is able to close first.
c) Sherri cannot accept any offers until the deadline to sell has passed on the
Ackerman's contract.
d) Sherri can terminate the Ackerman's contract with no notice or explanation. -
Answers-Sherri can ask the Ackermans to waive their contingency within an agreed
upon timeframe or terminate the contract.
Who is responsible for ensuring any needed utilities are turned on for a home
inspection?
a) The seller
b) The buyer
c) The broker
d) The home inspection company - Answers-The seller
When all terms of a contract are agreed to by all parties, there is
a) mutual assent.
b) mutual consent.
c) mutual duress.
d) mutual influence. - Answers-mutual assent.
A licensee could be exempt from using a TREC promulgated form when
a) the licensee is able to use a form approved by NAR.
b) the broker has solicited an attorney to draft a form.
c) the licensee is functioning solely as a principal, not as an agent.
d) the licensee has received permission from the Texas Secretary of State. - Answers-
the licensee is functioning solely as a principal, not as an agent.
