TEXAS PROMULGATED CONTRACTS FINAL
PAPER 2026 EXAM
◉ The party to whom an offer is submitted is known as the _________.
a. license holder
b. offeree
c. buyer
d. broker. Answer: B
◉ Which of the following correctly defines a counteroffer?
a. a rejection of the original offer coupled with a new offer
b. the party to whom the offer is made
c. the moment when an offer is presumed to have been delivered to
the principle when it is delivered by the agent.
d. the right to purchase leased property by matching or bettering
any offer before the property will be sold to someone else.. Answer:
A
◉ Assumption. Answer: The agreement by the buyer to pay the
sellers existing mortgage as part of a contract for sale.
,◉ Parties. Answer: Buyer and Seller
◉ Government Loans. Answer: Mortgages insured or guaranteed by
the US government, often FHA or VA loans.
◉ Non-realty Items. Answer: Personal property included in a sale
◉ Legal Description. Answer: The specifics of a location and size of a
property
◉ Accessories. Answer: Not necessarily permanently installed or
built-in, are commonly conveyed to the buyer in the sale.
◉ Exclusions. Answer: Items to be excluded in the sale.
◉ Conventional Loan. Answer: Any loan that is not a government
loan
◉ Conventional Financing. Answer: Includes the possibility of either
first mortgage financing, second mortgage financing or both.
, ◉ Fixed-Rate Mortgage. Answer: The rate does not change over the
term of the loan
◉ Third party financing is divided into two broad categories:
__________ loans and _________ loans.. Answer: government,
conventional
◉ If an item is to be excluded, give it a __________ and a _________..
Answer: name, location
◉ _________ must have a full understanding of the many promulgated
forms and how best to use them to facilitate the wishes of the client..
Answer: License holders
◉ PARAGRAPH 1. PARTIES: The document will include the parties -
__________ and __________.. Answer: buyer, seller
◉ The term for USDA loans is __________, with a 0% down payment,
and is only made available in rural areas.. Answer: 30 years
◉ The TREC Promulgate form, __________, VA or Conventional Loan
(TREC No. 12-2) is used to make a contract contingent on the lender
releasing the seller upon the assumption of the buyer.. Answer:
Release of Liability on Assumption of FHA
PAPER 2026 EXAM
◉ The party to whom an offer is submitted is known as the _________.
a. license holder
b. offeree
c. buyer
d. broker. Answer: B
◉ Which of the following correctly defines a counteroffer?
a. a rejection of the original offer coupled with a new offer
b. the party to whom the offer is made
c. the moment when an offer is presumed to have been delivered to
the principle when it is delivered by the agent.
d. the right to purchase leased property by matching or bettering
any offer before the property will be sold to someone else.. Answer:
A
◉ Assumption. Answer: The agreement by the buyer to pay the
sellers existing mortgage as part of a contract for sale.
,◉ Parties. Answer: Buyer and Seller
◉ Government Loans. Answer: Mortgages insured or guaranteed by
the US government, often FHA or VA loans.
◉ Non-realty Items. Answer: Personal property included in a sale
◉ Legal Description. Answer: The specifics of a location and size of a
property
◉ Accessories. Answer: Not necessarily permanently installed or
built-in, are commonly conveyed to the buyer in the sale.
◉ Exclusions. Answer: Items to be excluded in the sale.
◉ Conventional Loan. Answer: Any loan that is not a government
loan
◉ Conventional Financing. Answer: Includes the possibility of either
first mortgage financing, second mortgage financing or both.
, ◉ Fixed-Rate Mortgage. Answer: The rate does not change over the
term of the loan
◉ Third party financing is divided into two broad categories:
__________ loans and _________ loans.. Answer: government,
conventional
◉ If an item is to be excluded, give it a __________ and a _________..
Answer: name, location
◉ _________ must have a full understanding of the many promulgated
forms and how best to use them to facilitate the wishes of the client..
Answer: License holders
◉ PARAGRAPH 1. PARTIES: The document will include the parties -
__________ and __________.. Answer: buyer, seller
◉ The term for USDA loans is __________, with a 0% down payment,
and is only made available in rural areas.. Answer: 30 years
◉ The TREC Promulgate form, __________, VA or Conventional Loan
(TREC No. 12-2) is used to make a contract contingent on the lender
releasing the seller upon the assumption of the buyer.. Answer:
Release of Liability on Assumption of FHA
