Texas Promulgated Contracts-Champions Exam|Complete Study Guide With Detailed Questions And 100% Updated Answers|Newest 2025

The elements of a valid contract are, competent parties, consideration, legal subject matter, in writing, and ___________. (a) Default (b) Mutual consent (c) Property condition (d) Recording - CORRECT ANSWERS️️B A(n) __________________ contract is defined as a contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed. (a) Executory (b) Executed (c) Bilateral (d) Void - CORRECT ANSWERS️️A In the business of real estate, ___________ is defined as something given in exchange for a promise. (a) Consideration (b) Mutual assent (c) A bribe (d) Legal subject matter - CORRECT ANSWERS️️A The TREC-promulgated contract forms: (a) Are for optional use by real estate licensees (b) Are drafted by the Broker-Lawyer Committee (c) Are promulgated by the legislature (d) Are used in both commercial and residential transactions - CORRECT ANSWERS️️B In a lease with a "right of first refusal" provision: (a) The price is set when the lease agreement is negotiated (b) The tenant has promised to buy the property (c) The TREC promulgated form must be used (d) The tenant has the right to match or better any offer the landlord receives to prevent the property from being sold to someone else - CORRECT ANSWERS️️D TREC has promulgated forms for: (a) lease purchase transactions (b) cooperatives (c) right of first refusal (d) residential transactions - CORRECT ANSWERS️️D An offer can be communicated by ___________________. (a) Phone (b) Hand delivery (c) E-mail (d) All of the above - CORRECT ANSWERS️️D The Third Party Financing Addendum For Credit Approval is used when: (a) The buyer is obtaining FHA financing (b) Paragraph 4.A(2)(a) is checked in the contract (c) The buyer is obtaining VA financing (d) The buyer is obtaining any kind of financing - CORRECT ANSWERS️️D In the Third Party Financing Addendum for Credit Approval: (a) The buyer has no incentive to obtain financial approval (b) The buyer has a definite time to notify seller of the inability to obtain financing approval (c) The buyer's earnest money will not be returned if the buyer does not obtain financing (d) The option period is explained - CORRECT ANSWERS️️B The Third Party Financing Addendum for Credit Approval cannot be used for: (a) VA guaranteed loans (b) FHA insured loans (c) Seller Financing (d) Texas Veterans Loans - CORRECT ANSWERS️️C According to the Seller Financing Addendum, the interest rate is: (a) Set at 6% (b) Negotiated between the parties (c) Set by TREC (d) Determined at closing - CORRECT ANSWERS️️B