PROMULGATED CONTRACTS PRACTICE EXAM
| 60 Questions with 100% Correct Answers | Updated
2023 | Guaranteed A+
Agent Alicia is helping her client buy a newly built home. She does not use the New Home Contract
(Completed Construction). What is the most likely reason why? - ✔✔The builder required that she
use their contract.
If the seller is providing an existing survey during a real estate transaction, what must the license holder
give to the buyer? - ✔✔the T-47 Residential Real Property Affidavit
According to Paragraph 6B: Commitments in the promulgated One to Four Family Residential Contract,
what must be provided to the buyer along with the title policy documents? - ✔✔any restrictive
covenants
Which of these is NOT a protected class of people, according to Fair Lending Laws? - ✔✔sexuality
To be valid and enforceable, a contract must be in writing, represent a complete agreement, have
acceptance communicated, and: - ✔✔be signed by all parties
Which MUST be disclosed to potential buyers? - ✔✔prior flood damage that was repaired by the owner
, According to TREC rules, which of these must be delivered to the seller within three days of a contract's
effective date? - ✔✔earnest money
A contract that is fully performed is referred to as: - ✔✔executed
Buyer Ashley is shopping for empty lots on which to build a home. She found a lot for sale that looks
promising, but she's concerned its located on a wetland. What should her agent do? - ✔✔Use the
Unimproved Property contract and attach the Environmental Assessment, Threatened or Endangered
Species and Wetlands Addendum.
Within how many days after the title company receiving a copy of the contract will the buyer receive the
title policy documents? - ✔✔20 days
How can an agent help protect the earnest money of a buyer who is financing their purchase? -
✔✔by submitting a Third Party Financing Addendum
Which of these is NOT something TREC has the power to do? - ✔✔licensing developers and builders
Agent Aaron was drawing up a contract, and opted to use his brokerage's (lawyer-created) Seller's
Disclosure Notice instead of TREC's. Is this allowed? Why or why not? - ✔✔Yes, because the
Seller's Disclosure Notice is not promulgated by TREC.
What is special about the earnest money section (paragraph five) and the option money section
(paragraph 23) in the TREC promulgated sales contract? - ✔✔they contain "time is of the
essence" language
| 60 Questions with 100% Correct Answers | Updated
2023 | Guaranteed A+
Agent Alicia is helping her client buy a newly built home. She does not use the New Home Contract
(Completed Construction). What is the most likely reason why? - ✔✔The builder required that she
use their contract.
If the seller is providing an existing survey during a real estate transaction, what must the license holder
give to the buyer? - ✔✔the T-47 Residential Real Property Affidavit
According to Paragraph 6B: Commitments in the promulgated One to Four Family Residential Contract,
what must be provided to the buyer along with the title policy documents? - ✔✔any restrictive
covenants
Which of these is NOT a protected class of people, according to Fair Lending Laws? - ✔✔sexuality
To be valid and enforceable, a contract must be in writing, represent a complete agreement, have
acceptance communicated, and: - ✔✔be signed by all parties
Which MUST be disclosed to potential buyers? - ✔✔prior flood damage that was repaired by the owner
, According to TREC rules, which of these must be delivered to the seller within three days of a contract's
effective date? - ✔✔earnest money
A contract that is fully performed is referred to as: - ✔✔executed
Buyer Ashley is shopping for empty lots on which to build a home. She found a lot for sale that looks
promising, but she's concerned its located on a wetland. What should her agent do? - ✔✔Use the
Unimproved Property contract and attach the Environmental Assessment, Threatened or Endangered
Species and Wetlands Addendum.
Within how many days after the title company receiving a copy of the contract will the buyer receive the
title policy documents? - ✔✔20 days
How can an agent help protect the earnest money of a buyer who is financing their purchase? -
✔✔by submitting a Third Party Financing Addendum
Which of these is NOT something TREC has the power to do? - ✔✔licensing developers and builders
Agent Aaron was drawing up a contract, and opted to use his brokerage's (lawyer-created) Seller's
Disclosure Notice instead of TREC's. Is this allowed? Why or why not? - ✔✔Yes, because the
Seller's Disclosure Notice is not promulgated by TREC.
What is special about the earnest money section (paragraph five) and the option money section
(paragraph 23) in the TREC promulgated sales contract? - ✔✔they contain "time is of the
essence" language
