PROMULGATED CONTRACTS CORE UPDATED EXAM
MANUAL QUESTIONS AND ANSWERS GUARANTEE A+
✔✔An oral contract for the lease of a property for one year or less has a statute of
limitation of:
A. Three years
B. Two years
C. One year
D. Four years - ✔✔Two years
✔✔Which of these IS NOT a potential reason for terminating a contract?
A. Substantial Performance
B. Specific performance
C. Impossibility
D. Rescission - ✔✔Specific performance
✔✔What are the two major forms of modifying a contract discussed above?
A. Neither of these.
B. Both of these.
C. Amendments
D. Addenda - ✔✔Both of these
✔✔TRELA stands for:
A. The Real Estate Law Act
B. The Real Estate License Act
C. Texas Real Estate Licensing Act
D. The Real Estate Law Agency - ✔✔The real estate license act
✔✔The Real Estate License Act was created to:
A. All of these.
B. Protect the public interests from dishonest or incompetent brokers or salespersons.
C. Protect licensed brokers and salespersons from unfair or improper competition.
D. Maintain high standards in the real estate profession. - ✔✔All of these
✔✔The unauthorized practice of law would include all of these actions by a licensee,
except:
A. Inserting minor handwritten notes on the contract initialed by all parties.
B. Development of a new contract form tailored to each client.
C. Advising clients to waive their legal rights to pursue damages in court.
D. Advising clients that there are no potential tax repercussions to an investment
property purchase. - ✔✔Inserting minor handwritten notes on the contract initialed by all
parties
,✔✔The Broker-Lawyer Committee:
A. Does neither of these.
B. Promulgates TREC's Texas contract forms.
C. Does both of these.
D. Develops forms for TREC to adopt and promulgate at their discretion. - ✔✔Develops
forms for TREC to adopt and promulgate at their discretion
✔✔The current One to Four Family Residential Contract (Resale) is form number:
A. 20-13
B. 20-14
C. 20-15
D. 20-16 - ✔✔20 - 16
✔✔What is/are the seller's options when receiving an offer?
A. Counter.
B. All of these.
C. Accept.
D. Reject. - ✔✔All of these
✔✔The offer becomes a sales contract when:
A. All of these.
B. Signed by the buyer/ offeror.
C. Presented to the seller who verbally approves.
D. It is accepted, signed by the seller, and acceptance communicated to the buyer or
buyer's agent. - ✔✔It is accepted, signed by the seller, and acceptance communicated
to the buyer or buyer's agent.
✔✔The Broker-Lawyer Committee was established by
A. Texas Real Estate Commission
B. Texas Bar Association
C. The Real Estate License Act
D. Texas Association of REALTORS® - ✔✔The real estate license act
✔✔Identification of the buyer and seller must include:
A. History of name changes.
B. Use of any nicknames.
C. Full name and marital status of all parties.
D. Only enough to identify the individuals. - ✔✔Full name and marital status of all
parties.
✔✔For items for which a promulgated addendum is provided the proper way to include
the item is:
A. All of these.
, B. By inserting language in §11.
C. Through the use of the addendum or inserting language in §11.
D. Through use of the addendum. - ✔✔Through the use of the addendum
✔✔Which form of financing does the "Third Party Financing Addendum NOT cover?
A. VA Guaranteed Loans
B. Conventional loan financing
C. Seller financing
D. Texas Veterans Loans - ✔✔Seller financing
✔✔The Promissory Note section of the Seller's Financing Addendum includes:
A. 5% penalty on installment payments paid more than 10 days past their due date.
B. Prepayment without penalty.
C. All of these.
D. 1.5% per month or highest lawful rate, whichever is lower, for mature unpaid
amounts. - ✔✔All of these
✔✔VA will not restore Seller's VA entitlement except under which of these conditions?
A. Buyer is otherwise qualified.
B. Buyer has sufficient unused VA entitlement remaining.
C. Buyer is a veteran.
D. All of these - ✔✔All of these
✔✔Texas' promulgated One to Four Family Residential Contract (Resale) §23:
A. Provides a list of addenda available.
B. Provides a space to add legal information.
C. Requires the buyer to submit a fee at the time of the offer for an option period in
which they can cancel the deal without risking their escrow deposit.
D. Allows the buyer a grace period in which they can cancel the deal without risking
their escrow deposit. - ✔✔Allows the buyer a grace period in which they can cancel the
deal without risking their escrow deposit.
✔✔How much earnest money does Texas state law require to validate a real estate
sale contract?
A. A minimum of 3% of the sale price.
B. No earnest money is required.
C. A minimum of 1% of the offer price.
D. A minimum of $1000. - ✔✔No earnest money is required
✔✔For how many days is a Paragraph 23 option valid?
A. The length of the option period is set by the contracting parties.
B. 15 days
C. 10 days
MANUAL QUESTIONS AND ANSWERS GUARANTEE A+
✔✔An oral contract for the lease of a property for one year or less has a statute of
limitation of:
A. Three years
B. Two years
C. One year
D. Four years - ✔✔Two years
✔✔Which of these IS NOT a potential reason for terminating a contract?
A. Substantial Performance
B. Specific performance
C. Impossibility
D. Rescission - ✔✔Specific performance
✔✔What are the two major forms of modifying a contract discussed above?
A. Neither of these.
B. Both of these.
C. Amendments
D. Addenda - ✔✔Both of these
✔✔TRELA stands for:
A. The Real Estate Law Act
B. The Real Estate License Act
C. Texas Real Estate Licensing Act
D. The Real Estate Law Agency - ✔✔The real estate license act
✔✔The Real Estate License Act was created to:
A. All of these.
B. Protect the public interests from dishonest or incompetent brokers or salespersons.
C. Protect licensed brokers and salespersons from unfair or improper competition.
D. Maintain high standards in the real estate profession. - ✔✔All of these
✔✔The unauthorized practice of law would include all of these actions by a licensee,
except:
A. Inserting minor handwritten notes on the contract initialed by all parties.
B. Development of a new contract form tailored to each client.
C. Advising clients to waive their legal rights to pursue damages in court.
D. Advising clients that there are no potential tax repercussions to an investment
property purchase. - ✔✔Inserting minor handwritten notes on the contract initialed by all
parties
,✔✔The Broker-Lawyer Committee:
A. Does neither of these.
B. Promulgates TREC's Texas contract forms.
C. Does both of these.
D. Develops forms for TREC to adopt and promulgate at their discretion. - ✔✔Develops
forms for TREC to adopt and promulgate at their discretion
✔✔The current One to Four Family Residential Contract (Resale) is form number:
A. 20-13
B. 20-14
C. 20-15
D. 20-16 - ✔✔20 - 16
✔✔What is/are the seller's options when receiving an offer?
A. Counter.
B. All of these.
C. Accept.
D. Reject. - ✔✔All of these
✔✔The offer becomes a sales contract when:
A. All of these.
B. Signed by the buyer/ offeror.
C. Presented to the seller who verbally approves.
D. It is accepted, signed by the seller, and acceptance communicated to the buyer or
buyer's agent. - ✔✔It is accepted, signed by the seller, and acceptance communicated
to the buyer or buyer's agent.
✔✔The Broker-Lawyer Committee was established by
A. Texas Real Estate Commission
B. Texas Bar Association
C. The Real Estate License Act
D. Texas Association of REALTORS® - ✔✔The real estate license act
✔✔Identification of the buyer and seller must include:
A. History of name changes.
B. Use of any nicknames.
C. Full name and marital status of all parties.
D. Only enough to identify the individuals. - ✔✔Full name and marital status of all
parties.
✔✔For items for which a promulgated addendum is provided the proper way to include
the item is:
A. All of these.
, B. By inserting language in §11.
C. Through the use of the addendum or inserting language in §11.
D. Through use of the addendum. - ✔✔Through the use of the addendum
✔✔Which form of financing does the "Third Party Financing Addendum NOT cover?
A. VA Guaranteed Loans
B. Conventional loan financing
C. Seller financing
D. Texas Veterans Loans - ✔✔Seller financing
✔✔The Promissory Note section of the Seller's Financing Addendum includes:
A. 5% penalty on installment payments paid more than 10 days past their due date.
B. Prepayment without penalty.
C. All of these.
D. 1.5% per month or highest lawful rate, whichever is lower, for mature unpaid
amounts. - ✔✔All of these
✔✔VA will not restore Seller's VA entitlement except under which of these conditions?
A. Buyer is otherwise qualified.
B. Buyer has sufficient unused VA entitlement remaining.
C. Buyer is a veteran.
D. All of these - ✔✔All of these
✔✔Texas' promulgated One to Four Family Residential Contract (Resale) §23:
A. Provides a list of addenda available.
B. Provides a space to add legal information.
C. Requires the buyer to submit a fee at the time of the offer for an option period in
which they can cancel the deal without risking their escrow deposit.
D. Allows the buyer a grace period in which they can cancel the deal without risking
their escrow deposit. - ✔✔Allows the buyer a grace period in which they can cancel the
deal without risking their escrow deposit.
✔✔How much earnest money does Texas state law require to validate a real estate
sale contract?
A. A minimum of 3% of the sale price.
B. No earnest money is required.
C. A minimum of 1% of the offer price.
D. A minimum of $1000. - ✔✔No earnest money is required
✔✔For how many days is a Paragraph 23 option valid?
A. The length of the option period is set by the contracting parties.
B. 15 days
C. 10 days
