Texas Promulgated Contracts CHAMPIONS STUDY Questions and answers.

STUVIA 2024/2025
Texas Promulgated Contracts-CHAMPIONS
STUDY
A - ✔✔___________________ occurs when a buyer assumes and agrees to pay the seller's existing
mortgage.

(a) Loan assumption

(b) Seller liability

(c) Seller lien

(d) Credit approval

A - ✔✔____________________ is defined as something given in exchange for a promise.

(a) Consideration

(b) Legal subject matter
%


(c) Mutual assent

(d) Competent parties

A - ✔✔A building or community must not discriminate based on familial status, unless it qualifies as
housing for older persons.

(a) True

(b) False

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



stuvia

, STUVIA 2024/2025
(d) When the property is sold "as is"

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 is"

A - ✔✔A(n) property is one where a particular event has affected the desirability of said property.

(a) Stigmatized

(b) Undesirable

(c) Unsellable
%

(d) Foreclosed

A - ✔✔All of the TREC promulgated contracts provide that the Buyer is purchasing the property
"as-is".

(a) True

(b) False

A - ✔✔Damage or destruction of a property under contract prior to closing:

(a) Can result in termination of the contract

(b) Will result in a lawsuit against the seller

(c) Will result in a lawsuit against the broker

(d) Is never a legal cause for delay of closing

A - ✔✔Exclusions to the sale must be removed


stuvia

, STUVIA 2024/2025

(a) Prior to delivery of possession

(b) At the convenience of the seller

(c) When the offer becomes a binding contract

(d) Two days prior to closing

A - ✔✔Exclusions to the sale must be removed:

(a) prior to delivery of possession

(b) at the convenience of Seller

(c) when the offer becomes a binding contract

(d) two days prior to closing

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 - ✔✔If the buyer is allowed to select certain items in the new home that is under construction, the
builder (seller) may reject a selection if it adversely affects the market value of the home.

(a) True

(b) False

A - ✔✔The __________________ ensures compliance with TRELA, which requires that license
holders advise buyers to have an abstract of title examined or to obtain title insurance.



stuvia