Texas Promulgated Contracts Exam Questions with Correct Answers Latest Update
2025/2026
addenda - Answers additions to a completed contract that specify supplementary information to
the contract
amendment - Answers change or modification to an already agreed-upon contract
bilateral contract - Answers a contract wherein both parties are obligated to perform in an
exchange of promises
buyer rebate - Answers anything during a transaction that causes money to go back to the buyer,
either at or after closing, without the knowledge of the lender
casualty loss - Answers a sudden, unexpected event like a fire, flood, storm, earthquake that
causes damage to a property
consideration - Answers something of value exchanged by the parties as evidence of agreement
to the terms of a contract
contract - Answers a legally enforceable and binding agreement between parties wherein a
promise to do or not do something is given in exchange for valuable consideration
counteroffer - Answers a contract proposal submitted in response to a previous offer, modifying
the terms of the original offer; considered a rejection of the original offer
disability - Answers a physical or mental impairment that substantially limits one or more major
life activities, the record of such impairment, or being regarded as having such an impairment
earnest money - Answers funds paid to confirm or commit to a contract
effective date - Answers the date a contract becomes binding between the parties
endorsement - Answers additional coverage that can be added onto an insurance policy
escrow - Answers a process in which funds and/or financial documents are held by a
disinterested third party on behalf of the other two parties in the real estate transaction until
specific conditions are satisfied
executed contract - Answers a contract in which all terms have been fulfilled by all parties
executory contract - Answers a contract that has not yet been fully performed (both sides have
not yet completed their obligations)
Fair Housing Act of 1968 - Answers a federal law that prohibits discrimination in housing based
upon race, color, religion, or national origin and was amended to include sex, disability, and
familial status
2025/2026
addenda - Answers additions to a completed contract that specify supplementary information to
the contract
amendment - Answers change or modification to an already agreed-upon contract
bilateral contract - Answers a contract wherein both parties are obligated to perform in an
exchange of promises
buyer rebate - Answers anything during a transaction that causes money to go back to the buyer,
either at or after closing, without the knowledge of the lender
casualty loss - Answers a sudden, unexpected event like a fire, flood, storm, earthquake that
causes damage to a property
consideration - Answers something of value exchanged by the parties as evidence of agreement
to the terms of a contract
contract - Answers a legally enforceable and binding agreement between parties wherein a
promise to do or not do something is given in exchange for valuable consideration
counteroffer - Answers a contract proposal submitted in response to a previous offer, modifying
the terms of the original offer; considered a rejection of the original offer
disability - Answers a physical or mental impairment that substantially limits one or more major
life activities, the record of such impairment, or being regarded as having such an impairment
earnest money - Answers funds paid to confirm or commit to a contract
effective date - Answers the date a contract becomes binding between the parties
endorsement - Answers additional coverage that can be added onto an insurance policy
escrow - Answers a process in which funds and/or financial documents are held by a
disinterested third party on behalf of the other two parties in the real estate transaction until
specific conditions are satisfied
executed contract - Answers a contract in which all terms have been fulfilled by all parties
executory contract - Answers a contract that has not yet been fully performed (both sides have
not yet completed their obligations)
Fair Housing Act of 1968 - Answers a federal law that prohibits discrimination in housing based
upon race, color, religion, or national origin and was amended to include sex, disability, and
familial status
