Texas Real Estate Exam (State Portion):
Contracts
Special Conditions Addenda and Forms - sale of other property by buyer addendum
(contingency), Back Up Contract Addendum: when property already under contract in case of fall
through, Seller Financing Addendum: seller finances buyer, environmental assessment addendum, condo
resale certificate: seller must provide before closing, coastal area property addendum, property located
seaward addendum: notifies of potential flooding, property subject to membership in owner's assoc.
addendum: must be used if mandatory HOA, subdivision info, notice of termination of contract:
terminate during option period, amendment to contract: change anything or request change after
inspection, loan assumption addendum: buyer assumes seller mortgage, 3rd party financing addendum:
explains to seller how buyer will finance to include type of loan, interest rate, period of time to payoff
Temporary Residential Lease Forms - sellers lease (after closing)/buyers lease (after closing): short
term use where rent is prorated and paid up front where failure to surrender at termination is tenancy at
sufferage
TREC promulgated contracts - Must have title delivered by GENERAL warranty deed
MUST be used by all licensees with exceptions of lawyer, gov., owner
types: 1-4 family residential contract (resale), unimproved property contract, new home contract
(incomplete)/ (complete), farm and ranch contract, residential condo contract (resale)
Effective Date of Contract - broker/agent completes, signed and initialed by all parties, acceptance
communicated to agents
Multiple Offers - discuss with seller to determine if:
a. tell no other agent
b. tell other agents
seller NOT required to: accept any offer, respond to any offer, respond to any offer when received
seller MAY: accept one and ignore others, reject all, reject one and counter
Statute of Frauds - requires certain contracts be in writing for enforcement
Contracts
Special Conditions Addenda and Forms - sale of other property by buyer addendum
(contingency), Back Up Contract Addendum: when property already under contract in case of fall
through, Seller Financing Addendum: seller finances buyer, environmental assessment addendum, condo
resale certificate: seller must provide before closing, coastal area property addendum, property located
seaward addendum: notifies of potential flooding, property subject to membership in owner's assoc.
addendum: must be used if mandatory HOA, subdivision info, notice of termination of contract:
terminate during option period, amendment to contract: change anything or request change after
inspection, loan assumption addendum: buyer assumes seller mortgage, 3rd party financing addendum:
explains to seller how buyer will finance to include type of loan, interest rate, period of time to payoff
Temporary Residential Lease Forms - sellers lease (after closing)/buyers lease (after closing): short
term use where rent is prorated and paid up front where failure to surrender at termination is tenancy at
sufferage
TREC promulgated contracts - Must have title delivered by GENERAL warranty deed
MUST be used by all licensees with exceptions of lawyer, gov., owner
types: 1-4 family residential contract (resale), unimproved property contract, new home contract
(incomplete)/ (complete), farm and ranch contract, residential condo contract (resale)
Effective Date of Contract - broker/agent completes, signed and initialed by all parties, acceptance
communicated to agents
Multiple Offers - discuss with seller to determine if:
a. tell no other agent
b. tell other agents
seller NOT required to: accept any offer, respond to any offer, respond to any offer when received
seller MAY: accept one and ignore others, reject all, reject one and counter
Statute of Frauds - requires certain contracts be in writing for enforcement
