Promulgated contracts practice exam
Study online at https://quizlet.com/_6fw6q0
1. Which of these forms is least likely to be involved in the sale of unimproved
property?: 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?: the effective date
3. How many lawyers are on the Broker-Lawyer Committee?: six
4. According to the NAR Code of Ethics, unless the agent has written instruc-
tions stating otherwise, they must present all offers until:: the closing
5. Buyer Javier sends a formal offer to Seller Joy: $250,000 and the appliances
stay. Joy counters: $250,000, no appliances. She then reconsiders and accepts
the first offer. Is Javier obligated to buy the home? Why or why not?: No,
because the first offer was dead when Joy countered.
6. Which of these is NOT true about a Seller's Temporary Residential Lease?-
: the buyer/landlord has no recourse if the seller/tenant overstays
7. In which of these scenarios would it be correct to use the Residential
Condominium Contract (Resale)?: 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?: they contain "time is of the essence" language
9. When seller financing is being used, the seller becomes:: 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?: Addendum for Sale of Other Property by Buyer
11. Which of these is NOT necessary for a contract to be binding and effec-
tive?: 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?: sexuality
13. Why are there multiple promulgated contracts for use in Texas?: 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?: It must be disclosed forever.
1/7
, Promulgated contracts practice exam
Study online at https://quizlet.com/_6fw6q0
15. A contract that is fully performed is referred to as:: executed
16. Which is the purpose of the Information About Brokerage Services form?-
: to inform clients how a license holder can represent a party in a real estate
transaction
17. In loan fraud, the lender is usually the .: victim
18. What is the statute of limitations to claim fraud or misrepresentation
against a license holder?: The statute of limitations to claim fraud or misrepre-
sentation against a license holder is 4 years from discovery.
19. Per Paragraph 7D, what is it called when a buyer accepts the property, "with
any and all defects and without warranty"?: accepting it in "as is" condition
20. What should an agent do if asked to violate anti-discrimination laws by a
client?: educate the seller about anti-discrimination laws and say they cannot honor
the request
21. Emily and Josh signed a real estate contract with each other. The contract
is now fully executed. What does that mean that Josh and Emily have done?-
: fulfilled the material terms of the contract
22. Paragraph 7D(2) of the contract indicates:: repairs that must be completed by
the seller before closing
23. If legal action is required regarding a TREC sales contract, what will the
non-prevailing party be responsible for?: the prevailing party's reasonable attor-
ney fees and court costs
24. What does paragraph 7A of the One to Four Family Residential Contract
grant every buyer the right to do?: have the property inspected
25. As outlined in the TREC promulgated sales contracts, what obligations
does the seller have regarding the property condition at the time of sale?: -
Seller's obligations are a matter of negotiation with the buyer.
26. Agent Ralph has a buyer client that wants the seller to leave them the
refrigerator, built-in microwave, and vent hood. Ralph notes this expectation
in the Special Provisions section. What is wrong with this scenario?: It should
be written in a Non-Realty Items Addendum, not in the Special Provisions section.
27. Which of these is a possible result of when zoning is changed and a
property no longer qualifies for a previous exemption?: Rollback taxes can
be assessed when zoning is changing and the property no longer qualifies for a
previous exemption.
28. In Paragraph 9 of the One to Four Family (Resale) contract, what must
happen "on or before" the specified date?: closing
29. Laura is in contract for a home. Her contract contains a Sale of Other
Property by Buyer Addendum. The seller has just accepted a back-up contract
for the property that doesn't have this contingency. What happens to Laura
2/7
Study online at https://quizlet.com/_6fw6q0
1. Which of these forms is least likely to be involved in the sale of unimproved
property?: 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?: the effective date
3. How many lawyers are on the Broker-Lawyer Committee?: six
4. According to the NAR Code of Ethics, unless the agent has written instruc-
tions stating otherwise, they must present all offers until:: the closing
5. Buyer Javier sends a formal offer to Seller Joy: $250,000 and the appliances
stay. Joy counters: $250,000, no appliances. She then reconsiders and accepts
the first offer. Is Javier obligated to buy the home? Why or why not?: No,
because the first offer was dead when Joy countered.
6. Which of these is NOT true about a Seller's Temporary Residential Lease?-
: the buyer/landlord has no recourse if the seller/tenant overstays
7. In which of these scenarios would it be correct to use the Residential
Condominium Contract (Resale)?: 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?: they contain "time is of the essence" language
9. When seller financing is being used, the seller becomes:: 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?: Addendum for Sale of Other Property by Buyer
11. Which of these is NOT necessary for a contract to be binding and effec-
tive?: 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?: sexuality
13. Why are there multiple promulgated contracts for use in Texas?: 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?: It must be disclosed forever.
1/7
, Promulgated contracts practice exam
Study online at https://quizlet.com/_6fw6q0
15. A contract that is fully performed is referred to as:: executed
16. Which is the purpose of the Information About Brokerage Services form?-
: to inform clients how a license holder can represent a party in a real estate
transaction
17. In loan fraud, the lender is usually the .: victim
18. What is the statute of limitations to claim fraud or misrepresentation
against a license holder?: The statute of limitations to claim fraud or misrepre-
sentation against a license holder is 4 years from discovery.
19. Per Paragraph 7D, what is it called when a buyer accepts the property, "with
any and all defects and without warranty"?: accepting it in "as is" condition
20. What should an agent do if asked to violate anti-discrimination laws by a
client?: educate the seller about anti-discrimination laws and say they cannot honor
the request
21. Emily and Josh signed a real estate contract with each other. The contract
is now fully executed. What does that mean that Josh and Emily have done?-
: fulfilled the material terms of the contract
22. Paragraph 7D(2) of the contract indicates:: repairs that must be completed by
the seller before closing
23. If legal action is required regarding a TREC sales contract, what will the
non-prevailing party be responsible for?: the prevailing party's reasonable attor-
ney fees and court costs
24. What does paragraph 7A of the One to Four Family Residential Contract
grant every buyer the right to do?: have the property inspected
25. As outlined in the TREC promulgated sales contracts, what obligations
does the seller have regarding the property condition at the time of sale?: -
Seller's obligations are a matter of negotiation with the buyer.
26. Agent Ralph has a buyer client that wants the seller to leave them the
refrigerator, built-in microwave, and vent hood. Ralph notes this expectation
in the Special Provisions section. What is wrong with this scenario?: It should
be written in a Non-Realty Items Addendum, not in the Special Provisions section.
27. Which of these is a possible result of when zoning is changed and a
property no longer qualifies for a previous exemption?: Rollback taxes can
be assessed when zoning is changing and the property no longer qualifies for a
previous exemption.
28. In Paragraph 9 of the One to Four Family (Resale) contract, what must
happen "on or before" the specified date?: closing
29. Laura is in contract for a home. Her contract contains a Sale of Other
Property by Buyer Addendum. The seller has just accepted a back-up contract
for the property that doesn't have this contingency. What happens to Laura
2/7
