PROMULGATED CONTRACTS UPDATED TEST PAPER
LATEST QUESTIONS AND ANSWERS GUARANTEE A+
✔✔In Texas, there are some contracts that a real estate agent should not prepare.
Instead, the agent should tell their client to seek legal counsel for contract preparation.
These contracts are: - ✔✔option to buy that includes a residential lease
lease with option to buy
lease purchase contract
contract for deed
✔✔The difference between an executory contract and an executed contract is that the
executed contract is:
pending
closed
dead
in default - ✔✔closed
✔✔According to Texas state law, a contract for deed and a lease with an option to buy
are considered:
bilateral contracts
unenforceable contracts
executory contracts
executed contracts - ✔✔executory contracts
✔✔An option-to-buy contract is a(n):
unilateral contract
unenforceable contract
one-sided contract
bilateral contract - ✔✔unilateral contract
✔✔Which of the following are bilateral contracts?
Ron signs an option-to-purchase contract with Phil.
Fran leases an apartment unit to Sylvia.
Juan signs a buyer's representation agreement with Melvin.
Broker Jessi offers a $1,000 bonus for closing three houses this month.
Greg signs a listing agreement with Aliki. - ✔✔Fran leases an apartment unit to Sylvia.
✔✔By whom should the language "time of the essence" be added?
the buyer
the license holder
the seller
an attorney - ✔✔an attorney
, ✔✔Where does "time is of the essence" appear in the TREC promulgated sales
contract?
the legal description section
the closing and possession section
the purchase price section
the earnest money and option section - ✔✔the earnest money and option section
✔✔When filling out the nine checkable box options on the Amendment to Contract form,
more than one box can be checked.
FALSE
TRUE - ✔✔true
✔✔In which situation would an amendment go into effect?
No party terminates the contract.
The parties sign the amendment.
No party refuses to accept the amendment within 3 days.
One of the parties give verbal agreement. - ✔✔The parties sign the amendment.
✔✔Obligations often times must be completed within a certain number of days of:
the closing date
the effective date
the possession date
none of these - ✔✔the effective date
✔✔If one of the parties defaults and the non-defaulting party accepts the earnest money
as damages, they may also:
Do nothing more, as the contract is terminated.
Sue for both specific and other damages.
Sue for specific damages.
Sue for other damages. - ✔✔Do nothing more, as the contract is terminated.
✔✔To transfer contract obligations without necessarily relieving the original party from
obligations, you need a(n):
contract transfer
trade
novation
assignment - ✔✔assignment
*An assignment transfers contract obligations to another party, but does not necessarily
release the original parties' obligations.
✔✔Paragraph 5 gives the buyer the unrestricted right to terminate the contract if:
the seller does not fill out a disclosure notice
the buyer cannot get approved for financing
the buyer finds a major issue during the inspection
LATEST QUESTIONS AND ANSWERS GUARANTEE A+
✔✔In Texas, there are some contracts that a real estate agent should not prepare.
Instead, the agent should tell their client to seek legal counsel for contract preparation.
These contracts are: - ✔✔option to buy that includes a residential lease
lease with option to buy
lease purchase contract
contract for deed
✔✔The difference between an executory contract and an executed contract is that the
executed contract is:
pending
closed
dead
in default - ✔✔closed
✔✔According to Texas state law, a contract for deed and a lease with an option to buy
are considered:
bilateral contracts
unenforceable contracts
executory contracts
executed contracts - ✔✔executory contracts
✔✔An option-to-buy contract is a(n):
unilateral contract
unenforceable contract
one-sided contract
bilateral contract - ✔✔unilateral contract
✔✔Which of the following are bilateral contracts?
Ron signs an option-to-purchase contract with Phil.
Fran leases an apartment unit to Sylvia.
Juan signs a buyer's representation agreement with Melvin.
Broker Jessi offers a $1,000 bonus for closing three houses this month.
Greg signs a listing agreement with Aliki. - ✔✔Fran leases an apartment unit to Sylvia.
✔✔By whom should the language "time of the essence" be added?
the buyer
the license holder
the seller
an attorney - ✔✔an attorney
, ✔✔Where does "time is of the essence" appear in the TREC promulgated sales
contract?
the legal description section
the closing and possession section
the purchase price section
the earnest money and option section - ✔✔the earnest money and option section
✔✔When filling out the nine checkable box options on the Amendment to Contract form,
more than one box can be checked.
FALSE
TRUE - ✔✔true
✔✔In which situation would an amendment go into effect?
No party terminates the contract.
The parties sign the amendment.
No party refuses to accept the amendment within 3 days.
One of the parties give verbal agreement. - ✔✔The parties sign the amendment.
✔✔Obligations often times must be completed within a certain number of days of:
the closing date
the effective date
the possession date
none of these - ✔✔the effective date
✔✔If one of the parties defaults and the non-defaulting party accepts the earnest money
as damages, they may also:
Do nothing more, as the contract is terminated.
Sue for both specific and other damages.
Sue for specific damages.
Sue for other damages. - ✔✔Do nothing more, as the contract is terminated.
✔✔To transfer contract obligations without necessarily relieving the original party from
obligations, you need a(n):
contract transfer
trade
novation
assignment - ✔✔assignment
*An assignment transfers contract obligations to another party, but does not necessarily
release the original parties' obligations.
✔✔Paragraph 5 gives the buyer the unrestricted right to terminate the contract if:
the seller does not fill out a disclosure notice
the buyer cannot get approved for financing
the buyer finds a major issue during the inspection
