TEXAS PROMULGATED CONTRACT FORMS & ADDENDA
FINAL EXAM QUESTIONS WITH COMPLETE SOLUTIONS
GUARANTEED PASS BRAND NEW 2025
Which of the following is an example of a Bilateral contract? -
CORRECT ANSWER - >A Promise in exchange for a promise -
Purchase Contract.
Unilateral Contracts - Listing Agreement, Buyer's Rep, Option
Contract
Who is responsible for filling in the effective date, who, when &
what? - CORRECT ANSWER - >Broker. Between the buyer and
the seller, The date on which the communication was made.
The date of initialing and signing of the parties. The last party to
initial/Sign fills in the day. Broker. Last party to accept must
communicate back to other party & fill in the date
What is a legal proceeding brought by a party to a contract
against another party to compel action called for in the
agreement? - CORRECT ANSWER - >Breach of a contract, one-
party defaults, sues for specific performance, seek other relief -
arbitration, mediation, injunction to sue for compensatory
Damages.
If a seller fails to provide the buyer with the seller's disclosure
of property condition as required by Section 5.008 of the Texas
,Property Code, what is the status of the purchase contract? -
CORRECT ANSWER - >Voidable at the option of the buyer.
Voidable by buyer any time prior to closing and the earnest
money will be refunded to the buyer.
Which term identifies the substitution of a new contract for an
existing contract? - CORRECT ANSWER - >Novation
When using a Power of Attorney to transfer title to real
property? - CORRECT ANSWER - >Attorney-in-fact - Legal
description and the subject of the authority
Who must convey to the principal all known information that
would affect the principal's decision to accept or reject offers? -
CORRECT ANSWER - >Licensee - the listing agent/selling agent
When a legally enforceable promise is exchanged for a legally
enforceable promise? - CORRECT ANSWER - >It is a Bilateral
Contract.
If the seller has already sent a counteroffer to a prospective
buyer and then receives another offer that is even better, the
seller: - CORRECT ANSWER - >Withdraw the counteroffer first
then consider new offer
Which law requires the contract for real property to be in
writing and signed to be enforceable? - CORRECT ANSWER -
>Statute of Frauds
, To have a valid real property contract, something of value must
be exchanged. This is called: - CORRECT ANSWER -
>Consideration
When may a potential purchase's offer to buy real estate be
withdrawn? - CORRECT ANSWER - >at any time before it's
accepted
Which of the following is NOT addressed by a TREC-
promulgated contract? - CORRECT ANSWER - >Lease with an
option to purchase. Lease purchase - new Condo contract
When is a financing addendum not required? - CORRECT
ANSWER - >When the buyer pays in cash. When third financing
addendum is waived
Items that are preprinted in paragraphs 1 and 2 of the contract
include all the following except? - CORRECT ANSWER -
>Exclusions
When will the third party financing addendum credit approval
not be used? - CORRECT ANSWER - >1. all cash
2. When Third Part Financing contingency is waived
Which addenda will the Purchaser use when purchasing a
property for cash? - CORRECT ANSWER - >None- no addendum
will be used.
FINAL EXAM QUESTIONS WITH COMPLETE SOLUTIONS
GUARANTEED PASS BRAND NEW 2025
Which of the following is an example of a Bilateral contract? -
CORRECT ANSWER - >A Promise in exchange for a promise -
Purchase Contract.
Unilateral Contracts - Listing Agreement, Buyer's Rep, Option
Contract
Who is responsible for filling in the effective date, who, when &
what? - CORRECT ANSWER - >Broker. Between the buyer and
the seller, The date on which the communication was made.
The date of initialing and signing of the parties. The last party to
initial/Sign fills in the day. Broker. Last party to accept must
communicate back to other party & fill in the date
What is a legal proceeding brought by a party to a contract
against another party to compel action called for in the
agreement? - CORRECT ANSWER - >Breach of a contract, one-
party defaults, sues for specific performance, seek other relief -
arbitration, mediation, injunction to sue for compensatory
Damages.
If a seller fails to provide the buyer with the seller's disclosure
of property condition as required by Section 5.008 of the Texas
,Property Code, what is the status of the purchase contract? -
CORRECT ANSWER - >Voidable at the option of the buyer.
Voidable by buyer any time prior to closing and the earnest
money will be refunded to the buyer.
Which term identifies the substitution of a new contract for an
existing contract? - CORRECT ANSWER - >Novation
When using a Power of Attorney to transfer title to real
property? - CORRECT ANSWER - >Attorney-in-fact - Legal
description and the subject of the authority
Who must convey to the principal all known information that
would affect the principal's decision to accept or reject offers? -
CORRECT ANSWER - >Licensee - the listing agent/selling agent
When a legally enforceable promise is exchanged for a legally
enforceable promise? - CORRECT ANSWER - >It is a Bilateral
Contract.
If the seller has already sent a counteroffer to a prospective
buyer and then receives another offer that is even better, the
seller: - CORRECT ANSWER - >Withdraw the counteroffer first
then consider new offer
Which law requires the contract for real property to be in
writing and signed to be enforceable? - CORRECT ANSWER -
>Statute of Frauds
, To have a valid real property contract, something of value must
be exchanged. This is called: - CORRECT ANSWER -
>Consideration
When may a potential purchase's offer to buy real estate be
withdrawn? - CORRECT ANSWER - >at any time before it's
accepted
Which of the following is NOT addressed by a TREC-
promulgated contract? - CORRECT ANSWER - >Lease with an
option to purchase. Lease purchase - new Condo contract
When is a financing addendum not required? - CORRECT
ANSWER - >When the buyer pays in cash. When third financing
addendum is waived
Items that are preprinted in paragraphs 1 and 2 of the contract
include all the following except? - CORRECT ANSWER -
>Exclusions
When will the third party financing addendum credit approval
not be used? - CORRECT ANSWER - >1. all cash
2. When Third Part Financing contingency is waived
Which addenda will the Purchaser use when purchasing a
property for cash? - CORRECT ANSWER - >None- no addendum
will be used.
