PROMULGATED CONTRACTS UPDATED EXAMS SCRIPT
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔An agent needed to add some information to a TREC promulgated contract form.
She found a promulgated _________________ on the TREC website and will add that
to the contract. - ✔✔addendum
✔✔Offer: - ✔✔A promise made by one party requesting something in exchange for that
promise with the intention that the offeror will be bound to the terms if the offer is
accepted
✔✔Counteroffer: - ✔✔A contract proposal submitted in response to a previous offer,
modifying the terms of the original offer; considered a rejection of the original offer
✔✔Subagency: - ✔✔When an agent works with the buyer but is not representing the
buyer
✔✔The buyer and the seller have agreed on everything in the offer except the closing
date. Is the seller free to consider other offers? - ✔✔Yes, the seller should withdraw
their last counter offer to the first buyer before countering another.
✔✔The process of counter-offering can continue until: - ✔✔Both parties come to a
mutually acceptable agreement
✔✔The seller is obligated to accept an offer _____________. - ✔✔under no
circumstances
✔✔Listing agents and buyer's agents are legally obligated to follow ALL instructions
from their clients. - ✔✔FALSE
(Explanation: Listing agents and buyer's agents are legally obligated to follow all
instructions from their clients if those instructions are lawful and ethical.)
✔✔Effective date: - ✔✔The final date of acceptance, when the contract becomes
binding between the parties
✔✔The effective date of the contract is the date that: - ✔✔A written contract has been
accepted, signed and communicated to the other party.
✔✔Which of the following is required for a contract to become binding and effective? -
✔✔acceptance of the contract must be communicated to the other party
✔✔If a buyer is in the process of countering an offer, the seller cannot sell the property
to anyone else. - ✔✔FALSE
,(Explanation: While buyers are countering, license holders should let them know that
the property is still available and the seller is free to sell it to someone else.)
✔✔Broker Adam found there was no promulgated listing contract. He had his Texas
licensed attorney draw up one that he liked. Is he violating the license act? - ✔✔No,
there was no standard form and he has a Texas attorney prepare it.
✔✔Which of the following is NOT an exception to the rule requiring that promulgated
forms be used by the license holder? - ✔✔when the contract form has been prepared
by the buyer's agent and is approved by the buyer
✔✔A broker listed a property for a bank that the bank had foreclosed on. The bank had
their own contract form prepared by their attorney, and they wanted the broker to use it.
Can the broker use the bank's form without violating the license act? - ✔✔Yes, sellers
can require a form written by their attorney.
✔✔What is something that TREC does NOT provide? - ✔✔ALL CHOICES ARE
CORRECT (listing agreements, property management agreements, property
representation agreements)
✔✔What is TRUE about real estate offers in the state of Texas? - ✔✔All offers must be
in writing
✔✔Agents must submit all offers to the seller _____. - ✔✔until closing
✔✔A license holder should NOT _________. - ✔✔give legal advice
✔✔When filling out the One to Four Family Residential Contract, you'll need to include: -
✔✔All choices (any repairs that the buyer wants included, whether the property was
built before 19878, a legal description of the property)
✔✔The Broker-Lawyer committee drafted a new promulgated form and TREC approved
it for mandatory use beginning October 1st. An agent continued to use the old form after
October 1st. The agent is guilty of _____. - ✔✔a violation of the License Act
✔✔Since Texas is a community property state, the title company might want to know a
couple's or person's _____. - ✔✔marital status
✔✔Which of the examples below is the BEST example of identifying a single
purchaser? - ✔✔Nancy Everett, a single person
✔✔If the seller does NOT intend to leave the chandelier in the dining room, where
should they list that information? - ✔✔In Paragraph 2D, Exclusions
, ✔✔The buyer wants to make sure they will get the table and chairs that are currently in
the home. Does anything need to be added to the contract? - ✔✔
✔✔The buyer wants to make sure they will get the table and chairs that are currently in
the home. Does anything need to be added to the contract? - ✔✔Yes, the items should
be added to the Non-Realty Items Addendum
✔✔Randy is buying a home for $300,000. He obtained two loans (one for $200,000 and
another for $40,000). How much will Randy need to have in the cash portion of the
sales contract? - ✔✔$60,000
✔✔The objections section of the sales contract is where the ______ lists their
dealbreakers. - ✔✔buyer
✔✔An agent should record any notes they have on the transaction in Paragraph 11. -
✔✔FALSE
(Explanation: Paragraph 11 is sacred ground that can change the legality of a contract.
An agent should not write anything in this paragraph unless they are absolutely positive
it belongs. And still, consulting a lawyer is a good idea before adding anything.)
✔✔If a buyer has given the seller earnest money: - ✔✔the buyer's credit will be applied
at the closing of the sale.
✔✔Loan-to-Value Ration (LTV): - ✔✔A ratio that represents how much of the sales
price is covered by the mortgage loan
✔✔Recourse Loan: - ✔✔A loan in which the lender is allowed to seize the collateral
property, and could also go after the borrower's other assets if the sale of the property
doesn't cover the whole amount owed to the lender
✔✔A buyer was to deliver several items to the seller within five days of the execution of
the contract, including the option fee and earnest money deposit. Six days went by and
the seller had not received any of the items from the buyer. The seller _____. - ✔✔may
terminate the contract and the earnest money belongs to the seller
✔✔How does an agent obtain written consent from a buyer so that the agent can review
loan documents or the closing statement? - ✔✔It is included in the Third Party
Financing Addendum
✔✔A seller is concerned about continuing to have liability for their mortgage after they
sell the property and a buyer assumes the loan. The seller should attempt to get this
document from their lender: - ✔✔Release of Liability
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔An agent needed to add some information to a TREC promulgated contract form.
She found a promulgated _________________ on the TREC website and will add that
to the contract. - ✔✔addendum
✔✔Offer: - ✔✔A promise made by one party requesting something in exchange for that
promise with the intention that the offeror will be bound to the terms if the offer is
accepted
✔✔Counteroffer: - ✔✔A contract proposal submitted in response to a previous offer,
modifying the terms of the original offer; considered a rejection of the original offer
✔✔Subagency: - ✔✔When an agent works with the buyer but is not representing the
buyer
✔✔The buyer and the seller have agreed on everything in the offer except the closing
date. Is the seller free to consider other offers? - ✔✔Yes, the seller should withdraw
their last counter offer to the first buyer before countering another.
✔✔The process of counter-offering can continue until: - ✔✔Both parties come to a
mutually acceptable agreement
✔✔The seller is obligated to accept an offer _____________. - ✔✔under no
circumstances
✔✔Listing agents and buyer's agents are legally obligated to follow ALL instructions
from their clients. - ✔✔FALSE
(Explanation: Listing agents and buyer's agents are legally obligated to follow all
instructions from their clients if those instructions are lawful and ethical.)
✔✔Effective date: - ✔✔The final date of acceptance, when the contract becomes
binding between the parties
✔✔The effective date of the contract is the date that: - ✔✔A written contract has been
accepted, signed and communicated to the other party.
✔✔Which of the following is required for a contract to become binding and effective? -
✔✔acceptance of the contract must be communicated to the other party
✔✔If a buyer is in the process of countering an offer, the seller cannot sell the property
to anyone else. - ✔✔FALSE
,(Explanation: While buyers are countering, license holders should let them know that
the property is still available and the seller is free to sell it to someone else.)
✔✔Broker Adam found there was no promulgated listing contract. He had his Texas
licensed attorney draw up one that he liked. Is he violating the license act? - ✔✔No,
there was no standard form and he has a Texas attorney prepare it.
✔✔Which of the following is NOT an exception to the rule requiring that promulgated
forms be used by the license holder? - ✔✔when the contract form has been prepared
by the buyer's agent and is approved by the buyer
✔✔A broker listed a property for a bank that the bank had foreclosed on. The bank had
their own contract form prepared by their attorney, and they wanted the broker to use it.
Can the broker use the bank's form without violating the license act? - ✔✔Yes, sellers
can require a form written by their attorney.
✔✔What is something that TREC does NOT provide? - ✔✔ALL CHOICES ARE
CORRECT (listing agreements, property management agreements, property
representation agreements)
✔✔What is TRUE about real estate offers in the state of Texas? - ✔✔All offers must be
in writing
✔✔Agents must submit all offers to the seller _____. - ✔✔until closing
✔✔A license holder should NOT _________. - ✔✔give legal advice
✔✔When filling out the One to Four Family Residential Contract, you'll need to include: -
✔✔All choices (any repairs that the buyer wants included, whether the property was
built before 19878, a legal description of the property)
✔✔The Broker-Lawyer committee drafted a new promulgated form and TREC approved
it for mandatory use beginning October 1st. An agent continued to use the old form after
October 1st. The agent is guilty of _____. - ✔✔a violation of the License Act
✔✔Since Texas is a community property state, the title company might want to know a
couple's or person's _____. - ✔✔marital status
✔✔Which of the examples below is the BEST example of identifying a single
purchaser? - ✔✔Nancy Everett, a single person
✔✔If the seller does NOT intend to leave the chandelier in the dining room, where
should they list that information? - ✔✔In Paragraph 2D, Exclusions
, ✔✔The buyer wants to make sure they will get the table and chairs that are currently in
the home. Does anything need to be added to the contract? - ✔✔
✔✔The buyer wants to make sure they will get the table and chairs that are currently in
the home. Does anything need to be added to the contract? - ✔✔Yes, the items should
be added to the Non-Realty Items Addendum
✔✔Randy is buying a home for $300,000. He obtained two loans (one for $200,000 and
another for $40,000). How much will Randy need to have in the cash portion of the
sales contract? - ✔✔$60,000
✔✔The objections section of the sales contract is where the ______ lists their
dealbreakers. - ✔✔buyer
✔✔An agent should record any notes they have on the transaction in Paragraph 11. -
✔✔FALSE
(Explanation: Paragraph 11 is sacred ground that can change the legality of a contract.
An agent should not write anything in this paragraph unless they are absolutely positive
it belongs. And still, consulting a lawyer is a good idea before adding anything.)
✔✔If a buyer has given the seller earnest money: - ✔✔the buyer's credit will be applied
at the closing of the sale.
✔✔Loan-to-Value Ration (LTV): - ✔✔A ratio that represents how much of the sales
price is covered by the mortgage loan
✔✔Recourse Loan: - ✔✔A loan in which the lender is allowed to seize the collateral
property, and could also go after the borrower's other assets if the sale of the property
doesn't cover the whole amount owed to the lender
✔✔A buyer was to deliver several items to the seller within five days of the execution of
the contract, including the option fee and earnest money deposit. Six days went by and
the seller had not received any of the items from the buyer. The seller _____. - ✔✔may
terminate the contract and the earnest money belongs to the seller
✔✔How does an agent obtain written consent from a buyer so that the agent can review
loan documents or the closing statement? - ✔✔It is included in the Third Party
Financing Addendum
✔✔A seller is concerned about continuing to have liability for their mortgage after they
sell the property and a buyer assumes the loan. The seller should attempt to get this
document from their lender: - ✔✔Release of Liability
