CHAMPIONS PROMULGATED CONTRACT FORMS EXAM
2025/2026 WITH 100% ACCURATE ANSWERS
1. What are the reasons for termination of a contract in real estate?
unilateral decision; legal dispute; market conditions; breach of
contract
mutual agreement; partial performance; substantial performance;
impossibility; operation of law; breach of contract
expiration of time; mutual agreement; substantial performance;
impossibility
failure to pay; lack of communication; market fluctuations; mutual
agreement
2. If a buyer accepts a purchase agreement but later wants to change the
closing date, what does this imply about their acceptance?
The acceptance is no longer valid as it involves a change to the
contract.
The acceptance is valid, but the buyer must pay a fee for the change.
The acceptance can be modified without affecting the original
agreement.
The acceptance remains valid as long as the seller agrees to the
change.
3. Which of the following are legal exceptions to Texas Title Insurance
policies?
Standby fees, taxes, and assessments
,Deed restrictions
, Shifts in title caused by shifting river courses
all of these
4. Describe the significance of rollback taxes in relation to agricultural
exemptions in real estate.
Rollback taxes are insignificant as they do not affect property value.
Rollback taxes are a form of tax credit for agricultural land.
Rollback taxes are significant because they are assessed when a
property loses its agricultural exemption, reflecting the change in
tax liability.
Rollback taxes are assessed only on commercial properties.
5. In a real estate transaction, if a seller wants to exclude a specific chandelier
from the sale, what information should they provide in the contract?
The seller's reason for excluding the chandelier.
The name and location of the chandelier.
The condition of the chandelier.
The price of the chandelier.
6. A purchaser who needs a certificate of reasonable value is MOST LIKELY
obtaining:
a VA loan
a loan with PMI insurance
an FHA insured loan
a certified loan
, 7. Why is it important for an offer to be presented through multiple methods in
real estate transactions?
It simplifies the documentation process.
It is a legal requirement in all states.
It guarantees acceptance of the offer.
It allows the buyer to negotiate better terms.
Presenting an offer through multiple methods ensures that it is
received promptly and reduces the risk of miscommunication.
8. What is imputed notice?
Notice is not effective unless it is delivered in writing to a party.
An agent must tell a principal before notice is effective.
Knowledge of notice to agent is not attributed to principal.
Notification to the agent is considered notification to the principal.
9. What is the purpose of a short sale addendum in real estate transactions?
To outline the responsibilities of the buyer in a real estate
transaction.
To address situations where the seller cannot sell the property for
at least the amount owed.
To provide a standard contract for all real estate transactions.
To specify the legal definitions of contracts.
10. Where should the consumer information form be displayed according to
real estate regulations?
2025/2026 WITH 100% ACCURATE ANSWERS
1. What are the reasons for termination of a contract in real estate?
unilateral decision; legal dispute; market conditions; breach of
contract
mutual agreement; partial performance; substantial performance;
impossibility; operation of law; breach of contract
expiration of time; mutual agreement; substantial performance;
impossibility
failure to pay; lack of communication; market fluctuations; mutual
agreement
2. If a buyer accepts a purchase agreement but later wants to change the
closing date, what does this imply about their acceptance?
The acceptance is no longer valid as it involves a change to the
contract.
The acceptance is valid, but the buyer must pay a fee for the change.
The acceptance can be modified without affecting the original
agreement.
The acceptance remains valid as long as the seller agrees to the
change.
3. Which of the following are legal exceptions to Texas Title Insurance
policies?
Standby fees, taxes, and assessments
,Deed restrictions
, Shifts in title caused by shifting river courses
all of these
4. Describe the significance of rollback taxes in relation to agricultural
exemptions in real estate.
Rollback taxes are insignificant as they do not affect property value.
Rollback taxes are a form of tax credit for agricultural land.
Rollback taxes are significant because they are assessed when a
property loses its agricultural exemption, reflecting the change in
tax liability.
Rollback taxes are assessed only on commercial properties.
5. In a real estate transaction, if a seller wants to exclude a specific chandelier
from the sale, what information should they provide in the contract?
The seller's reason for excluding the chandelier.
The name and location of the chandelier.
The condition of the chandelier.
The price of the chandelier.
6. A purchaser who needs a certificate of reasonable value is MOST LIKELY
obtaining:
a VA loan
a loan with PMI insurance
an FHA insured loan
a certified loan
, 7. Why is it important for an offer to be presented through multiple methods in
real estate transactions?
It simplifies the documentation process.
It is a legal requirement in all states.
It guarantees acceptance of the offer.
It allows the buyer to negotiate better terms.
Presenting an offer through multiple methods ensures that it is
received promptly and reduces the risk of miscommunication.
8. What is imputed notice?
Notice is not effective unless it is delivered in writing to a party.
An agent must tell a principal before notice is effective.
Knowledge of notice to agent is not attributed to principal.
Notification to the agent is considered notification to the principal.
9. What is the purpose of a short sale addendum in real estate transactions?
To outline the responsibilities of the buyer in a real estate
transaction.
To address situations where the seller cannot sell the property for
at least the amount owed.
To provide a standard contract for all real estate transactions.
To specify the legal definitions of contracts.
10. Where should the consumer information form be displayed according to
real estate regulations?
