PROMULGATED CONTRACTS EXAM EXAM
1. Which of these forms is least likely to be involved in the sale of unimproved
property? ANS >>> The Unimproved Property Contract would not be involved in the
sale of a condo.
2. A buyer and seller have been in negotiations. They have everything in
writing, have agreed to all terms, the contract is signed and changes initialed.
Today, the written acceptance of the final agreement has been communicated
to the other party. What is today called? ANS >>> the effective date
3. How many lawyers are on the Broker-Lawyer Committee? ANS >>> six
4. According to the NAR Code of Ethics, unless the agent has written instruc-
tions stating otherwise, they must present all offers until ANS >>> the closing
5. Buyer Javier sends a formal offer to Seller Joy ANS >>> $250,000 and the
appliances stay. Joy counters ANS >>> $250,000, no appliances. She then
reconsiders and accepts the first offer. Is Javier obligated to buy the home?
Why or why not? ANS >>> No, because the first offer was dead when Joy
countered.
6. Which of these is NOT true about a Seller's Temporary Residential Lease?-
ANS >>> the buyer/landlord has no recourse if the seller/tenant overstays
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, 7. In which of these scenarios would it be correct to use the Residential
Condominium Contract (Resale)? ANS >>> A client is buying a property where
the land is not owned individually and the common areas are shared equally
among the community's owners.
8. What is special about the earnest money section (paragraph five) and the
option money section (paragraph 23) in the TREC promulgated sales con-
tract? ANS >>> they contain "time is of the essence" language
9. When seller financing is being used, the seller becomes ANS >>> ANS >>> the
lender
10. A potential buyer's current home is under contract. He has found a home
he would like to make an offer on, but does not want to take a chance on being
obligated to buy if his current home does not close. What form can help this
buyer? ANS >>> Addendum for Sale of Other Property by Buyer
11. Which of these is NOT necessary for a contract to be binding and effec-
tive? ANS >>> For an offer to become a contract, it must be in writing, it has to be
signed by all parties with changes initialed, acceptance must be completed, and
acceptance of the contract must be communicated to the other party. There is not
a faxing or delivery requirement.
12. Which of these is NOT a protected class of people, according to Fair
Lending Laws? ANS >>> sexuality
13. Why are there multiple promulgated contracts for use in Texas? ANS >>>
because different types of properties have different specific contract needs
14. A murder/suicide took place in a property. The crime was widely publicized.
What is the disclosure requirement for this crime? ANS >>> It must be disclosed
forever.
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1. Which of these forms is least likely to be involved in the sale of unimproved
property? ANS >>> The Unimproved Property Contract would not be involved in the
sale of a condo.
2. A buyer and seller have been in negotiations. They have everything in
writing, have agreed to all terms, the contract is signed and changes initialed.
Today, the written acceptance of the final agreement has been communicated
to the other party. What is today called? ANS >>> the effective date
3. How many lawyers are on the Broker-Lawyer Committee? ANS >>> six
4. According to the NAR Code of Ethics, unless the agent has written instruc-
tions stating otherwise, they must present all offers until ANS >>> the closing
5. Buyer Javier sends a formal offer to Seller Joy ANS >>> $250,000 and the
appliances stay. Joy counters ANS >>> $250,000, no appliances. She then
reconsiders and accepts the first offer. Is Javier obligated to buy the home?
Why or why not? ANS >>> No, because the first offer was dead when Joy
countered.
6. Which of these is NOT true about a Seller's Temporary Residential Lease?-
ANS >>> the buyer/landlord has no recourse if the seller/tenant overstays
https://www.stuvia.com/user/CULTIVATED 1/
13
, 7. In which of these scenarios would it be correct to use the Residential
Condominium Contract (Resale)? ANS >>> A client is buying a property where
the land is not owned individually and the common areas are shared equally
among the community's owners.
8. What is special about the earnest money section (paragraph five) and the
option money section (paragraph 23) in the TREC promulgated sales con-
tract? ANS >>> they contain "time is of the essence" language
9. When seller financing is being used, the seller becomes ANS >>> ANS >>> the
lender
10. A potential buyer's current home is under contract. He has found a home
he would like to make an offer on, but does not want to take a chance on being
obligated to buy if his current home does not close. What form can help this
buyer? ANS >>> Addendum for Sale of Other Property by Buyer
11. Which of these is NOT necessary for a contract to be binding and effec-
tive? ANS >>> For an offer to become a contract, it must be in writing, it has to be
signed by all parties with changes initialed, acceptance must be completed, and
acceptance of the contract must be communicated to the other party. There is not
a faxing or delivery requirement.
12. Which of these is NOT a protected class of people, according to Fair
Lending Laws? ANS >>> sexuality
13. Why are there multiple promulgated contracts for use in Texas? ANS >>>
because different types of properties have different specific contract needs
14. A murder/suicide took place in a property. The crime was widely publicized.
What is the disclosure requirement for this crime? ANS >>> It must be disclosed
forever.
https://www.stuvia.com/user/CULTIVATED 2/
13
