Promulgated Contract Forms (Quizzes) Questions & Answers

Promulgated Contract Forms (Quizzes)
Which statement regarding earnest money is INCORRECT?



A.) There is no standard amount prescribed, but is often 1% of the sale price.




B.) In Texas, earnest money is set at 6% of the sale price.



C.) Earnest money is not a legal requirement of a contract.




D.) Earnest money is a deposit paid up front by the Buyer to show seriousness in intent.
Correct Ans-B.) In Texas, earnest money is set at 6% of the sale price.




_______________ are implemented when property operating under an exemption has its usage
changed.



A.) Rollback taxes

B.) Agricultural use valuations

C.) Exemptions

D.) Taxing authorities Correct Ans-A.) Rollback taxes




Which of the following statements regarding the Addendum for Back-Up Contract is FALSE?

, A.) An amendment to the first contract automatically constitutes a termination of the first
contract



B.) The previous contract is known as the "First Contract"




C.) The intent of a back-up contract is that it is to be contingent on the failure of an existing
contract to close.




D.) All of these statements are false Correct Ans-A.) An amendment to the first contract
automatically constitutes a termination of the first contract



According to the Addendum for Back-Up Contract, an amendment to the first contract:




A.) Waives all contingencies



B.) Gives the seller the right to keep the earnest money



C.) Constitutes a termination of contract




D.) Does not constitute a termination of the first contract Correct Ans-D.) Does not
constitute a termination of the first contract