PROMULGATED CONTRACTS EXAM
QUESTIONS AND ANSWERS WELL
1. According to the Environmental Assessment, Threatened or Endangered
Species, & Wetlands Addendum, what happens if the buyer can provide the
seller with a report proving that the use of the property is negatively affected
by one of the noted factors (before the agreed-upon deadline)? ANS >>> The
buyer can terminate the contract and get their EARNEST money back
2. Which of these is an example of a time when it is acceptable not to use a
TREC promulgated form? ANS >>> The US government requires a different form
be used
3. A seller is selling a property that is under a lease. When does the seller
have to deliver a copy of the lease and any move-in condition form to the
buyer? ANS >>> within seven days after the effective date
4. In a TREC promulgated contract, what is the Third Party Financing Adden-
dum concerned with? ANS >>> Financing contingencies
5. Which of these is NOT a place where commission split agreements between
cooperating brokers can be determined? ANS >>> the sales contract
6. The Seller's Disclosure Notice is a requirement of ANS >>> The Texas propert
code
https://www.stuvia.com/user/CULTIVATED 1/
11
, 7. A stand-alone refrigerator would be considered . ANS >>> A
stand-alone refrigerator is considered personal property and will not transfer in
a sale unless otherwise noted on the contract. If the refrigerator is built-in it is
considered real property and will transfer in the sale.
8. Which of these does NOT create housing occupancy standards? ANS >>> the
Federal Housing Administration
9. According to the Addendum for Back-Up Contract, if a first contract is
terminated and the seller notifies the back-up buyer of the termination, what
happens? ANS >>> that date becomes the effective date of the back-up contract
10. What information does the Disclosure of Relationship with Residential
Service Company form convey? ANS >>> that it is a violation of RESPA for a
license holder to receive a referral fee for passing on a name to a service provider
11. Which of these is appropriate to put in the Special Provisions section of
the One to Four Family Residential Contract? ANS >>> The names of sellers that
wouldn't fit in Paragraph 1
12. Which of these materials would be considered part of a property's mineral
estate? ANS >>> Oil
13. 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? ANS >>> The contract will terminate
and the earnest money will be refunded to the buyer
14. There are three different types of financing choices in Paragraph Three
of TREC's One to Four Family Residential Contract. They are ANS >>> ANS
>>> Third party, assumption, and seller financing
https://www.stuvia.com/user/CULTIVATED 2/
11
QUESTIONS AND ANSWERS WELL
1. According to the Environmental Assessment, Threatened or Endangered
Species, & Wetlands Addendum, what happens if the buyer can provide the
seller with a report proving that the use of the property is negatively affected
by one of the noted factors (before the agreed-upon deadline)? ANS >>> The
buyer can terminate the contract and get their EARNEST money back
2. Which of these is an example of a time when it is acceptable not to use a
TREC promulgated form? ANS >>> The US government requires a different form
be used
3. A seller is selling a property that is under a lease. When does the seller
have to deliver a copy of the lease and any move-in condition form to the
buyer? ANS >>> within seven days after the effective date
4. In a TREC promulgated contract, what is the Third Party Financing Adden-
dum concerned with? ANS >>> Financing contingencies
5. Which of these is NOT a place where commission split agreements between
cooperating brokers can be determined? ANS >>> the sales contract
6. The Seller's Disclosure Notice is a requirement of ANS >>> The Texas propert
code
https://www.stuvia.com/user/CULTIVATED 1/
11
, 7. A stand-alone refrigerator would be considered . ANS >>> A
stand-alone refrigerator is considered personal property and will not transfer in
a sale unless otherwise noted on the contract. If the refrigerator is built-in it is
considered real property and will transfer in the sale.
8. Which of these does NOT create housing occupancy standards? ANS >>> the
Federal Housing Administration
9. According to the Addendum for Back-Up Contract, if a first contract is
terminated and the seller notifies the back-up buyer of the termination, what
happens? ANS >>> that date becomes the effective date of the back-up contract
10. What information does the Disclosure of Relationship with Residential
Service Company form convey? ANS >>> that it is a violation of RESPA for a
license holder to receive a referral fee for passing on a name to a service provider
11. Which of these is appropriate to put in the Special Provisions section of
the One to Four Family Residential Contract? ANS >>> The names of sellers that
wouldn't fit in Paragraph 1
12. Which of these materials would be considered part of a property's mineral
estate? ANS >>> Oil
13. 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? ANS >>> The contract will terminate
and the earnest money will be refunded to the buyer
14. There are three different types of financing choices in Paragraph Three
of TREC's One to Four Family Residential Contract. They are ANS >>> ANS
>>> Third party, assumption, and seller financing
https://www.stuvia.com/user/CULTIVATED 2/
11
