TEXAS PROMULGATED CONTRACTS EXAMINATION
MANUAL 2025/2026 QUESTIONS WITH ANSWERS
GRADED A+
✔✔The T-47 Residential Real Property Affidavit is not completed until
________________, in most cases.
(a) Funding
(b) Inspection
(c) Closing
(d) The listing is taken - ✔✔B
✔✔The __________________ ensures compliance with TRELA, which requires that
license holders advise buyers to have an abstract of title examined or to obtain title
insurance.
(a) Title commitment
(b) Notice to Prospective Buyer
(c) Seller's Disclosure
(d) Inspection report - ✔✔A
✔✔A Seller's Disclosure Notice is not required
(a) When the property being sold is a previously unoccupied new home
(b) When the property is sold to an investor
(c) When the property has an out of state owner
(d) When the property is sold "as i" - ✔✔A
✔✔If a buyer is concerned about the presence of endangered species, toxic substances
or wetlands on a property, the agent should
(a) Add the Environmental Assessment Addendum to the contract
(b) Avoid the property at all costs
,(c) Add in Paragraph 11, Special Provisions, that the contract is subject to an
environmental review
(d) Explain to the buyer that environmental issues are rarely a problem - ✔✔A
✔✔How long does a buyer have to object to defects, exceptions and encumbrances to
title disclosed in the survey and title commitment?
(a) Within 3 days of the effective date of the contract
(b) Up to 5 days prior to closing
(c) Within 7 days of becoming concerned
(d) The negotiated number of days stated in the contract - ✔✔D
✔✔Being within the extraterritorial jurisdiction of a municipality is an indication the
property will:
(a) Be condemned in the near future
(b) Possibly be annexed in the future
(c) Be unmarketable
(d) Never be annexed by any municipality - ✔✔B
✔✔The Lead-Based Paint Disclosure is:
(a) Required for all properties
(b) A federal requirement for residential property built prior to 1978
(c) A TREC requirement
(d) The responsibility of the buyer's agent - ✔✔B
✔✔If a buyer makes an offer without having received the Seller's Disclosure Notice,
how many days does the seller have to provide the notice?
(a) Not less than 3 days prior to closing
(b) Not more than 5 days after the effective date of the contract
(c) Within 7 days of loan approval
, (d) The number of days negotiated in the contract - ✔✔D
✔✔If a license holder is receiving compensation from a residential service company, the
compensation is:
(a) Reported to TREC
(b) Disclosed to the parties using the appropriate TREC form
(c) Never disclosed to anyone
(d) Reported to the attorney general for action - ✔✔B
✔✔For a valid option to exist
(a) The option fee must be paid directly to the seller or listing broker
(b) All of the blanks in paragraph 23 must be filled in
(c) The fee must be paid within three days of the effective date of the contract
(d) All of the above - ✔✔D
✔✔The special provisions paragraph of the contract allows licensees to insert:
(a) Factual business details
(b) Statements not addressed in the contract
(c) Information for which there is no TREC promulgated addendum, lease or mandatory
form
(d) All of the above - ✔✔D
✔✔Usual expenses of the seller as stated in the contract include:
(a) Appraisal fees
(b) VA loan funding fee
(c) Release of existing lien
(d) Copies of easements and restrictions - ✔✔C
MANUAL 2025/2026 QUESTIONS WITH ANSWERS
GRADED A+
✔✔The T-47 Residential Real Property Affidavit is not completed until
________________, in most cases.
(a) Funding
(b) Inspection
(c) Closing
(d) The listing is taken - ✔✔B
✔✔The __________________ ensures compliance with TRELA, which requires that
license holders advise buyers to have an abstract of title examined or to obtain title
insurance.
(a) Title commitment
(b) Notice to Prospective Buyer
(c) Seller's Disclosure
(d) Inspection report - ✔✔A
✔✔A Seller's Disclosure Notice is not required
(a) When the property being sold is a previously unoccupied new home
(b) When the property is sold to an investor
(c) When the property has an out of state owner
(d) When the property is sold "as i" - ✔✔A
✔✔If a buyer is concerned about the presence of endangered species, toxic substances
or wetlands on a property, the agent should
(a) Add the Environmental Assessment Addendum to the contract
(b) Avoid the property at all costs
,(c) Add in Paragraph 11, Special Provisions, that the contract is subject to an
environmental review
(d) Explain to the buyer that environmental issues are rarely a problem - ✔✔A
✔✔How long does a buyer have to object to defects, exceptions and encumbrances to
title disclosed in the survey and title commitment?
(a) Within 3 days of the effective date of the contract
(b) Up to 5 days prior to closing
(c) Within 7 days of becoming concerned
(d) The negotiated number of days stated in the contract - ✔✔D
✔✔Being within the extraterritorial jurisdiction of a municipality is an indication the
property will:
(a) Be condemned in the near future
(b) Possibly be annexed in the future
(c) Be unmarketable
(d) Never be annexed by any municipality - ✔✔B
✔✔The Lead-Based Paint Disclosure is:
(a) Required for all properties
(b) A federal requirement for residential property built prior to 1978
(c) A TREC requirement
(d) The responsibility of the buyer's agent - ✔✔B
✔✔If a buyer makes an offer without having received the Seller's Disclosure Notice,
how many days does the seller have to provide the notice?
(a) Not less than 3 days prior to closing
(b) Not more than 5 days after the effective date of the contract
(c) Within 7 days of loan approval
, (d) The number of days negotiated in the contract - ✔✔D
✔✔If a license holder is receiving compensation from a residential service company, the
compensation is:
(a) Reported to TREC
(b) Disclosed to the parties using the appropriate TREC form
(c) Never disclosed to anyone
(d) Reported to the attorney general for action - ✔✔B
✔✔For a valid option to exist
(a) The option fee must be paid directly to the seller or listing broker
(b) All of the blanks in paragraph 23 must be filled in
(c) The fee must be paid within three days of the effective date of the contract
(d) All of the above - ✔✔D
✔✔The special provisions paragraph of the contract allows licensees to insert:
(a) Factual business details
(b) Statements not addressed in the contract
(c) Information for which there is no TREC promulgated addendum, lease or mandatory
form
(d) All of the above - ✔✔D
✔✔Usual expenses of the seller as stated in the contract include:
(a) Appraisal fees
(b) VA loan funding fee
(c) Release of existing lien
(d) Copies of easements and restrictions - ✔✔C
