PROMULGATED CONTRACTS PRACTICE TEST
Which of these is something TREC is empowered to do by TRELA? Correct Ans-require
license holders to use contract forms for certain transactions
If a buyer is using VA financing, what will be part of the contract? Correct Ans-Third Party
Financing Addendum for Credit Approval
George Jr. inherited the family compound after George Sr. died. The will was contested, and
some family is still disgruntled. George is now selling the property. How can a buyer best protect
themself from any claims on the title? Correct Ans-ask the family to sign a quitclaim deed
How long after receiving an Addendum for Property Subject to Mandatory Membership in an
Owner's Association does a buyer have to terminate the contract? Correct Ans-3 days
In the Farm and Ranch Contract, where does a legal description and list of improvements
staying with the property go? Correct Ans-Paragraph 2
A potential buyer's current home is under contract. He has found a home he would like to make
an offer on, but does not want to take a chance on being obligated to buy if his current home
does not close. term-158What form can help this buyer? Correct Ans-Addendum for Sale of
Other Property by Buyer
,The seller of an unimproved property would provide a disclosure about the property in what
location? Correct Ans-in paragraph 7E of TREC Unimproved Property Contract
If nothing is added in Paragraph 7D, the agreement says that the buyer is accepting the
property: Correct Ans-in its present condition
Seller Vera agrees to allow another veteran to assume their mortgage loan. To make sure Vera
can get their VA entitlement restored, what must be attached to the contract? Correct Ans-
Addendum for Release of Liability on an Assumed Loan and/or Restoration of Seller's VA
Addendum
An agent's buyer client wants to keep the curtains in the home they are buying, and the seller
has agreed. What does the agent need to include with the contract to ensure this happens?
Correct Ans-a Non-Realty Items Addendum
When is it acceptable for a seller not to give a buyer a seller's disclosure notice? Correct Ans-
when the buyer has indicated in the contract it isn't necessary
Within how many days after the title company receiving a copy of the contract will the buyer
receive the title policy documents? Correct Ans-20 days
What is one thing that differentiates TREC from the Broker-Lawyer Committee? Correct Ans-
TREC members are only appointed by the governor, Broker-Lawyer Committee members can be
appointed by different people.
, According to the NAR Code of Ethics, unless the agent has written instructions stating
otherwise, they must present all offers until: Correct Ans-
Seller Ben wants to make sure that their agent offers a cooperating broker a commission. Ben
believes this will drive better traffic to the listing. How can Ben BEST make sure this is a part of
the transaction? Correct Ans-make sure it appears in the listing agreement that Ben signs
with the broker
When all parties have agreed to all terms of an offer, have signed the offer, and have initialed
any changes that took place during negotiations, what happens to the offer? Correct Ans-It
becomes a contract.
If legal action is required regarding a TREC sales contract, what will the non-prevailing party be
responsible for? Correct Ans-the prevailing part's reasonable attorney fees and court costs
When would it be appropriate to use the New Home Contract (Incomplete Construction)?
Correct Ans-for a client buying a new home that is being built
Which type of TREC promulgated contract form(s) gives disclosure about the type of insulation
in the property? Correct Ans-Both New Home Contracts
Which TREC promulgated form allows for the sales price to be adjusted because of the survey?
Correct Ans-The Farm and Ranch Contact
Which of these is something TREC is empowered to do by TRELA? Correct Ans-require
license holders to use contract forms for certain transactions
If a buyer is using VA financing, what will be part of the contract? Correct Ans-Third Party
Financing Addendum for Credit Approval
George Jr. inherited the family compound after George Sr. died. The will was contested, and
some family is still disgruntled. George is now selling the property. How can a buyer best protect
themself from any claims on the title? Correct Ans-ask the family to sign a quitclaim deed
How long after receiving an Addendum for Property Subject to Mandatory Membership in an
Owner's Association does a buyer have to terminate the contract? Correct Ans-3 days
In the Farm and Ranch Contract, where does a legal description and list of improvements
staying with the property go? Correct Ans-Paragraph 2
A potential buyer's current home is under contract. He has found a home he would like to make
an offer on, but does not want to take a chance on being obligated to buy if his current home
does not close. term-158What form can help this buyer? Correct Ans-Addendum for Sale of
Other Property by Buyer
,The seller of an unimproved property would provide a disclosure about the property in what
location? Correct Ans-in paragraph 7E of TREC Unimproved Property Contract
If nothing is added in Paragraph 7D, the agreement says that the buyer is accepting the
property: Correct Ans-in its present condition
Seller Vera agrees to allow another veteran to assume their mortgage loan. To make sure Vera
can get their VA entitlement restored, what must be attached to the contract? Correct Ans-
Addendum for Release of Liability on an Assumed Loan and/or Restoration of Seller's VA
Addendum
An agent's buyer client wants to keep the curtains in the home they are buying, and the seller
has agreed. What does the agent need to include with the contract to ensure this happens?
Correct Ans-a Non-Realty Items Addendum
When is it acceptable for a seller not to give a buyer a seller's disclosure notice? Correct Ans-
when the buyer has indicated in the contract it isn't necessary
Within how many days after the title company receiving a copy of the contract will the buyer
receive the title policy documents? Correct Ans-20 days
What is one thing that differentiates TREC from the Broker-Lawyer Committee? Correct Ans-
TREC members are only appointed by the governor, Broker-Lawyer Committee members can be
appointed by different people.
, According to the NAR Code of Ethics, unless the agent has written instructions stating
otherwise, they must present all offers until: Correct Ans-
Seller Ben wants to make sure that their agent offers a cooperating broker a commission. Ben
believes this will drive better traffic to the listing. How can Ben BEST make sure this is a part of
the transaction? Correct Ans-make sure it appears in the listing agreement that Ben signs
with the broker
When all parties have agreed to all terms of an offer, have signed the offer, and have initialed
any changes that took place during negotiations, what happens to the offer? Correct Ans-It
becomes a contract.
If legal action is required regarding a TREC sales contract, what will the non-prevailing party be
responsible for? Correct Ans-the prevailing part's reasonable attorney fees and court costs
When would it be appropriate to use the New Home Contract (Incomplete Construction)?
Correct Ans-for a client buying a new home that is being built
Which type of TREC promulgated contract form(s) gives disclosure about the type of insulation
in the property? Correct Ans-Both New Home Contracts
Which TREC promulgated form allows for the sales price to be adjusted because of the survey?
Correct Ans-The Farm and Ranch Contact
