351 PROMULGATED CONTRACT FORMS
UPDATED ACTUAL Exam Questions and
CORRECT Answers
If there is no time limit specified in an offer, then the time limit will expire: - CORRECT
ANSWER - Within a reasonable time
The clause in a contract stating that "time is of the essence" would indicate: - CORRECT
ANSWER - Strict performance of certain acts within the time stated in the contract.
A bilateral contract is: - CORRECT ANSWER - A promise in exchange for a promise
Essential elements of a contract include: - CORRECT ANSWER - Competent parties,
Offer and acceptance, Consideration
A unilateral contract only binds one party to perform.(T/F) - CORRECT ANSWER - False
A real estate broker or salesperson, while acting as an agent for another, is a(n) _____________.
- CORRECT ANSWER - fiduciary
The Joint Broker-Lawyer Committee consists of _______________ members. - CORRECT
ANSWER - 13
The Texas Real Estate Commission is a nine-member commission appointed by _____________.
- CORRECT ANSWER - the governer
The three Canons of Professional Ethics are ____________, ___________, and
______________. - CORRECT ANSWER - fidelity / integrity / competency
, The One-to-Four Family Residential Contract spells out the
______________________________________ of each party to successfully complete a
transaction. - CORRECT ANSWER - financial obligations, duties
Texas real estate license holders are _______________ to use forms promulgated by TREC when
negotiating contacts for the sale of real property. - CORRECT ANSWER - required
There are two places to find the seller's name to fill in the contract. The name can be found in the
____________________ or in the ______________________. - CORRECT ANSWER -
MLS printout / tax records
If the agent is a _________________________, he/she must disclose that fact. - CORRECT
ANSWER - party to the contract
For proper naming of the parties in the contract, you should ask the buyer (if you are
representing them) their ___________________________. - CORRECT ANSWER - full
and legal name
It is absolutely essential to have a __________________________ to make the contract binding
and legally enforceable. - CORRECT ANSWER - correct legal description
Paragraph 3 A represents the ______________________ in the transaction. - CORRECT
ANSWER - down payment
When personal property is included in the sale, you will want to use the ____________________
addendum. - CORRECT ANSWER - non-realty items
The standard FHA loan used with most residential transactions is the FHA _________ program. -
CORRECT ANSWER - 203b
With an FHA or VA loan, the buyer is not obligated to purchase the property if the house does
not ____________. - CORRECT ANSWER - appraise
UPDATED ACTUAL Exam Questions and
CORRECT Answers
If there is no time limit specified in an offer, then the time limit will expire: - CORRECT
ANSWER - Within a reasonable time
The clause in a contract stating that "time is of the essence" would indicate: - CORRECT
ANSWER - Strict performance of certain acts within the time stated in the contract.
A bilateral contract is: - CORRECT ANSWER - A promise in exchange for a promise
Essential elements of a contract include: - CORRECT ANSWER - Competent parties,
Offer and acceptance, Consideration
A unilateral contract only binds one party to perform.(T/F) - CORRECT ANSWER - False
A real estate broker or salesperson, while acting as an agent for another, is a(n) _____________.
- CORRECT ANSWER - fiduciary
The Joint Broker-Lawyer Committee consists of _______________ members. - CORRECT
ANSWER - 13
The Texas Real Estate Commission is a nine-member commission appointed by _____________.
- CORRECT ANSWER - the governer
The three Canons of Professional Ethics are ____________, ___________, and
______________. - CORRECT ANSWER - fidelity / integrity / competency
, The One-to-Four Family Residential Contract spells out the
______________________________________ of each party to successfully complete a
transaction. - CORRECT ANSWER - financial obligations, duties
Texas real estate license holders are _______________ to use forms promulgated by TREC when
negotiating contacts for the sale of real property. - CORRECT ANSWER - required
There are two places to find the seller's name to fill in the contract. The name can be found in the
____________________ or in the ______________________. - CORRECT ANSWER -
MLS printout / tax records
If the agent is a _________________________, he/she must disclose that fact. - CORRECT
ANSWER - party to the contract
For proper naming of the parties in the contract, you should ask the buyer (if you are
representing them) their ___________________________. - CORRECT ANSWER - full
and legal name
It is absolutely essential to have a __________________________ to make the contract binding
and legally enforceable. - CORRECT ANSWER - correct legal description
Paragraph 3 A represents the ______________________ in the transaction. - CORRECT
ANSWER - down payment
When personal property is included in the sale, you will want to use the ____________________
addendum. - CORRECT ANSWER - non-realty items
The standard FHA loan used with most residential transactions is the FHA _________ program. -
CORRECT ANSWER - 203b
With an FHA or VA loan, the buyer is not obligated to purchase the property if the house does
not ____________. - CORRECT ANSWER - appraise
