Texas Promulgated Contracts Test Questions
and Answers
option period Correct Ans-the window of time during which a buyer can opt out of a
contract without penalty; a right that is purchased by the buyer
performance Correct Ans-the fulfillment of an obligation, duty, or contract
predatory lending Correct Ans-imposing unfair and abusive loan terms on borrowers
promulgated contracts Correct Ans-contracts prepared and authorized by the Texas Real
Estate Commission that must be used by real estate license holders; there are a few exceptions
to this rule
quitclaim deed Correct Ans-a type of deed that conveys any interest, title, or right to a parcel
of land the grantor has at the time the deed is executed
Residential Real Property Affidavit (form T-47) Correct Ans-a way for the seller to assure the
buyer that they haven't changed the boundaries of the property
residential service contract Correct Ans-policy that insures household items such as the air
conditioner, heater, and large kitchen appliances
, restrictive covenant Correct Ans-a type of provision in a deed limiting the use of the
property and prohibiting certain uses
rollback taxes Correct Ans-taxes that can be assessed if the zoning of the property changes
when it is sold
statute of limitations Correct Ans-a legal concept that establishes time limits for bringing
certain kinds of legal actions
subagency Correct Ans-a form of agency that arises when an agent enlists the use of other
agents to accomplish a client's goal
survey Correct Ans-the process and physical product of finding and measuring the
boundaries of a piece of real estate, including the location of improvements, encroachments,
and easements
title policy Correct Ans-a policy that protects homeowners (and likewise, lenders) from
certain financial losses due to title issues, such as defects, encumbrances, and liens
unenforceable contract Correct Ans-a contract lacking the essential elements necessary to
be legally binding and obligate performance of a valid contract
and Answers
option period Correct Ans-the window of time during which a buyer can opt out of a
contract without penalty; a right that is purchased by the buyer
performance Correct Ans-the fulfillment of an obligation, duty, or contract
predatory lending Correct Ans-imposing unfair and abusive loan terms on borrowers
promulgated contracts Correct Ans-contracts prepared and authorized by the Texas Real
Estate Commission that must be used by real estate license holders; there are a few exceptions
to this rule
quitclaim deed Correct Ans-a type of deed that conveys any interest, title, or right to a parcel
of land the grantor has at the time the deed is executed
Residential Real Property Affidavit (form T-47) Correct Ans-a way for the seller to assure the
buyer that they haven't changed the boundaries of the property
residential service contract Correct Ans-policy that insures household items such as the air
conditioner, heater, and large kitchen appliances
, restrictive covenant Correct Ans-a type of provision in a deed limiting the use of the
property and prohibiting certain uses
rollback taxes Correct Ans-taxes that can be assessed if the zoning of the property changes
when it is sold
statute of limitations Correct Ans-a legal concept that establishes time limits for bringing
certain kinds of legal actions
subagency Correct Ans-a form of agency that arises when an agent enlists the use of other
agents to accomplish a client's goal
survey Correct Ans-the process and physical product of finding and measuring the
boundaries of a piece of real estate, including the location of improvements, encroachments,
and easements
title policy Correct Ans-a policy that protects homeowners (and likewise, lenders) from
certain financial losses due to title issues, such as defects, encumbrances, and liens
unenforceable contract Correct Ans-a contract lacking the essential elements necessary to
be legally binding and obligate performance of a valid contract
