Promulgated Contracts Exam | 140
Questions with 100% Correct Answers |
Updated 2023 | Guaranteed A+
If a seller is still accepting counteroffers, what is true about their property? - ✔✔it is not yet officially in
contract
The cancellation of offers and counter offers must take place before the other party accepts the offer.
License holders need to make buyers aware that while they are countering, the property is still available
and the seller is free to sell it to someone else.
Which of the following is TRUE regarding a contract to transfer real estate which contains no earnest
money? - ✔✔It is valid
What does paragraph 7A of the One to Four Family Residential Contract grant every buyer the right
to do? - ✔✔have the property inspected
Which of these is an example of an illegal buyer rebate? - ✔✔an agent gives their buyer client half
of their commission without disclosing it on the settlement statement
Buyer Jeremy gave Seller Anthony $800 in earnest money and an additional $200 in option money.
During the option period, Jeremy decided to terminate the contract. Anthony gave him back $800. Is this
correct? Why or why not? - ✔✔Yes, because option money is never refundable.
,Option money is not refundable. Jeremy should only have gotten his $800 in earnest money back.
Paragraph D of the Short Sale Addendum contains a date by which the seller must get approval from
their lender for the sale. What happens if the lender does not give approval by the date? - ✔✔The
contract will terminate and the earnest money will be refunded to the buyer.
How can an agent change a contract after it has been signed by both parties? - ✔✔adding
an amendment to contract
Which of these is NOT true about the residential service contract? - ✔✔the seller can prevent the
buyer from purchasing it
It is the buyer's responsibility to review and choose the coverage of the residential service contract.
Which TREC promulgated contract are all the other contracts based on? - ✔✔One to Four
Family Residential Contract
By what time is the seller required to furnish a new survey? - ✔✔The seller must furnish the buyer
a new survey no later than 3 days prior to closing
How can a license holder ensure that any relevant addenda or notices are officially included in
a contract? - ✔✔by checking the appropriate boxes in Paragraph 22
According to the promulgated contracts, rollback taxes assessed because the buyer changed the
usage after closing will be settled how? - ✔✔The buyer will be obligated to pay the rollback taxes.
, What is the statute of limitations to claim fraud or misrepresentation against a license holder? - ✔✔four
years from discovery
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
According to TREC rules, which of these must be delivered to the seller within three days of a contract's
effective date? - ✔✔earnest money
Paragraph C2 on the Lead Based Paint Disclosure states that: - ✔✔the buyer has 10 days to have
the property inspected for lead-based paint
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
Which of these is an example of a unilateral contract? - ✔✔Mike signs a listing agreement with
Broker Amy, agreeing to pay a 6% commission if she sells his house.
Which of the following bodies appoints the public member on the Broker-Lawyer Committee? - ✔✔the
governor
What is an express contract? - ✔✔a contract that has a very specific offer and acceptance
Questions with 100% Correct Answers |
Updated 2023 | Guaranteed A+
If a seller is still accepting counteroffers, what is true about their property? - ✔✔it is not yet officially in
contract
The cancellation of offers and counter offers must take place before the other party accepts the offer.
License holders need to make buyers aware that while they are countering, the property is still available
and the seller is free to sell it to someone else.
Which of the following is TRUE regarding a contract to transfer real estate which contains no earnest
money? - ✔✔It is valid
What does paragraph 7A of the One to Four Family Residential Contract grant every buyer the right
to do? - ✔✔have the property inspected
Which of these is an example of an illegal buyer rebate? - ✔✔an agent gives their buyer client half
of their commission without disclosing it on the settlement statement
Buyer Jeremy gave Seller Anthony $800 in earnest money and an additional $200 in option money.
During the option period, Jeremy decided to terminate the contract. Anthony gave him back $800. Is this
correct? Why or why not? - ✔✔Yes, because option money is never refundable.
,Option money is not refundable. Jeremy should only have gotten his $800 in earnest money back.
Paragraph D of the Short Sale Addendum contains a date by which the seller must get approval from
their lender for the sale. What happens if the lender does not give approval by the date? - ✔✔The
contract will terminate and the earnest money will be refunded to the buyer.
How can an agent change a contract after it has been signed by both parties? - ✔✔adding
an amendment to contract
Which of these is NOT true about the residential service contract? - ✔✔the seller can prevent the
buyer from purchasing it
It is the buyer's responsibility to review and choose the coverage of the residential service contract.
Which TREC promulgated contract are all the other contracts based on? - ✔✔One to Four
Family Residential Contract
By what time is the seller required to furnish a new survey? - ✔✔The seller must furnish the buyer
a new survey no later than 3 days prior to closing
How can a license holder ensure that any relevant addenda or notices are officially included in
a contract? - ✔✔by checking the appropriate boxes in Paragraph 22
According to the promulgated contracts, rollback taxes assessed because the buyer changed the
usage after closing will be settled how? - ✔✔The buyer will be obligated to pay the rollback taxes.
, What is the statute of limitations to claim fraud or misrepresentation against a license holder? - ✔✔four
years from discovery
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
According to TREC rules, which of these must be delivered to the seller within three days of a contract's
effective date? - ✔✔earnest money
Paragraph C2 on the Lead Based Paint Disclosure states that: - ✔✔the buyer has 10 days to have
the property inspected for lead-based paint
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
Which of these is an example of a unilateral contract? - ✔✔Mike signs a listing agreement with
Broker Amy, agreeing to pay a 6% commission if she sells his house.
Which of the following bodies appoints the public member on the Broker-Lawyer Committee? - ✔✔the
governor
What is an express contract? - ✔✔a contract that has a very specific offer and acceptance
