Promulgated Contract Forms
If a buyer is providing a down payment of $50,000, and is obtaining a loan from a bank in the amount of $175,000, what is the purchase price of the property...?
$225,000
Which of the following is an example of a termination of a contract by operation of law...?
A buyer has entered into a contract to purchase a commercial property but the city has now rezoned the property as residential
ABC Corporation is purchasing a residential property in Houston. How should the corporation's name appear on the purchase contract...?
ABC Corporation, a Texas Corporation
When filling out a pre-printed form, a real estate agent cannot do which of the following...?
Add sections to the form, Strike-out sections of the form, Sign on behalf of the principal
Additional pages of material that are added to and become part of a contract are referred to as a/an...?
Addendum
Which of the following may be used as an alternative to novation...?
Amend the existing contract
If a buyer is obtaining a conventional mortgage, they must include which of the following information on the TREC Third Party Financing Addendum...?
Amount of the loan. Interest rate of the loan. Term of the loan
A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a/an...?
Assignment
A ..........is submitted by a prospective buyer who wants the right of first refusal is the event the current buyer backs out of the contract during the options period?
Back-up offer
A contract in which each party promises to do something is referred to as a...?
Bilateral contract
A real estate agent should advise their client that any contract they sign is...?
Binding
A violation of any of the terms or conditions of a contract without legal reason leads to a/an...?
Breach of contract
If the seller does not specify improvements and accessories to be excluded from the sale of the property, which of the following will claim ownership of these items...?
Buyer
A down payment made by a purchaser of real estate as evidence of good faith is referred to as...?
Earnest money
Paragraph 5 of the One to Four Family Residential Contract - Resale primarily deals with...?
Earnest money
Which of the following acts as liquidated damages if the buyer defaults on the purchase contract...?
Earnest money
A contract that has been fully performed is known as a/an...?
Executed contract
An assignment can occur when a contract is...?
Executory
A real estate salesperson is allowed to provide legal advice to clients if it is in the best interest of the client...? T/F
False
An earnest money deposit is required in all residential transactions...? T/F
False
Real estate brokers are allowed to give legal advice while real estate salespersons are not...? T/F
False
An executory contract is...?
In-progress
The loan amount in a reverse mortgage ........over time?
Increases
Any changes to a contract must be...?
Initialed by all parties
The Non-Realty Items Addendum includes which of the following...?
Items of personal property that will stay with the property after closing
John Doe is an unmarried individual who is buying his first house. How should John's name be listed on the purchase contract...?
John Doe, An Unmarried Person
Houses built prior to 1978 need to include which of the following addenda....?
Lead-based paint addendum
Which of the following real estate contracts does not have to be in-writing...?
Lease under one year
A binding contract between a buyer and seller must include which of the following...?
Must be in-writing, Signed by all parties, There must be a mutual agreement between the parties
If one of the parties to a contract does not voluntarily agree to the contract, this element of a valid contract is violated...?
Mutual agreement
Personal property items are considered...?
Non-realty items
The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties is known as...?
Novation
The execution of a contract by which the contracting parties are automatically discharged of their obligations under it is known as...?
Performance
According to TREC, a real estate licensee may not do which of the following...?
Practice law, Give legal advice, Discourage a client from hiring a lawyer
Which of the following is an example of a termination of a contract...?
Substantial performance, Partial performance & Impossibility of performance
Which of the following appoints 6 of the members to the Broker/Lawyer Committee...?
Texas State Bar
Where can an agent search to find the legal description of a property...?
The appraisal district's website
What does an agent first need from the seller when preparing a contract...?
The name of the seller(s) as listed on the deed
John is a real estate agent who is preparing a contract for his client, the seller. Where should John look to find the name of the seller...?
The seller's deed
When preparing a contract, where should the agent look to find the name of the seller(s)...?
The seller's title policy
If a buyer is looking to purchase a property with the help of a Texas Veterans loan, which of the following must in included with the purchase contract...?
Third Party Financing Addendum
A real estate agent cannot pay for a lawyer to act on behalf of his/her client...? T/F
True
Reverse mortgage financing is primarily used for owner-occupied residences...? T/F
True
Money, or other things of value, that a real estate agent receives on behalf of the principal or any other person involved in a transaction is known as...?
Trust funds
A real estate agent who gives legal advice to a client is in violation of the...?
Unauthorized practice of law
An options contract is an example of a/an...?
Unilateral contract
A contract that is missing one or more of the elements of a valid contract is considered...?
Void
To have no force or effect is referred to as a .......... contract?
Void
A contract in which one of the parties is a minor is considered a...?
Voidable contract
When does an offer become a valid contract...?
When all essential elements of a contract are met
A person who gives an option is known as the...?
optionor
Which of the following is included in the legal description of a property...?
section, lot and block number
Real estate professionals must use ........... of any promulgated forms?
the most current version
How many members of the public are appointed to the Broker/Lawyer Committee by the State Governor...?
1
The names of the parties are included in paragraph .......of the promulgated sales contract?
1
Veterans are allowed to have how many VA loans at any given time...?
1
The Broker/Lawyer Committee is comprised of ......... members?
13
The Texas Real Estate Commission was created in what year...?
1949
Improvements and accessories that the seller would like to retain should be listed in paragraph .........of the One to Four Family Residential Contract - Resale?
2D
Reverse mortgage financing is typically reserved for borrowers over the age of...? 21
62
A buyer needs to obtain a loan to purchase a $320,000 house. If the lender is willing to loan at an 80% LTV, how much of a down payment must the buyer put down...?
64,000 Dollars
Which of the following addenda must a veteran complete when purchasing a new home with a VA loan when they already have an outstanding VA loan...?
Addendum For Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement
A valid contract must be .......... and enforceable?
Binding
Once an offer is accepted by a seller and the sales contract is signed, the contract becomes...?
Binding
A party to a contract that is forced to sign a contract under duress violates this element of a valid contract...?
Competent parties
A valid and enforceable contract must include which of the following elements...?
Competent parties, Consideration, Mutual agreement
The One to Four Family Residential Contract - Resale is NOT used for which of the following properties...?
Condominiums
Which of the following are considered improvements to a property...?
Fence, shed, garage
A real estate agent is NOT in violation of the unauthorized practice of law if they do which of the following...?
Fill-out a promulgated contract form the way it was intended
According to TREC, an offer received by an agent must be presented to the principal...?
Immediately
Which of the following is an example of a bilateral contract...?
Listing contract, Sales contract & Independent contractor agreement
In order to be considered a competent party, an individual must be of the age of the...?
Majority
A promulgated form means the use of the form is...?
Mandatory
A lease with a term of less than one year...?
May be oral or in-writing
Which of the following is an example of consideration...?
Money, cash, personal services
A contract in which there is fraud by either commission or omission is voidable by the...?
Non-fraudulent party
Which of the following refers to a right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right...?
Option
A person who receives an option is known as the...?
Optionee
Which of the following is an example of a forbearance contract...?
Options contract
TREC has promulgated which of the following types of forms...?
Real estate sales contracts, Addenda, Consumer Disclosures
A home warranty is also known as a...?
Residential Service Contract
The Texas Real Estate Commission is responsible for regulating which of the following...?
Residential service companies, Real estate inspectors, Real estate brokers
Which of the following would not fall under the unauthorized practice of law...?
Revealing material facts about the property
According to TRELA, a salesperson's license may be suspended or ............. for the unauthorized practice of law?
Revoked
The "excluded fixtures and accessories" section of the contract is completed by which of the following parties...?
Seller
Which part of a sales contract most leaves an agent liable for the unauthorized practice of law...?
Special provisions
A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...?
Statute of Frauds
A law establishing the time period within which certain lawsuits may be brought is known as the...?
Statute of limitations
Who approves the contract forms drafted by the Broker/Lawyer Committee...?
TREC
If a buyer is purchasing a property involving the assumption of an existing loan, which of the following documents must be included with the purchase contract...?
TREC Loan Assumption Addendum
If a buyer is purchasing a property with the help of seller financing, what must be included with the purchase contract...?
TREC Seller Financing Addendum
If the buyer will occupy the property prior to closing, what needs to be included with the sales contract...?
Temporary lease
If a prospective buyer decides to rescind their offer before the seller responds, the prospective buyer should submit which of the following...?
Termination
Which of the following is responsible for issuing real estate licenses in Texas...?
Texas Real Estate Commission
The Texas Real Estate Commission was created to administer which of the following...?
Texas Real Estate License Act
Which of the following describes how a contract becomes a promulgated form...?
Texas Real Estate License Act
Curtis is a real estate agent who represents a seller in a transaction. Curtis must present all offers to the seller until which of the following occurs...?
The seller accepts an offer and the parties enter into a binding contract
When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it, it is referred to as a...?
Unilateral contract
If a property is not located within a city, what should be included in the legal description of the property on the purchase contract...?
Unincorporated
That which is capable of being adjusted void, but is not unless action is taken to make it so, is referred to as a/an ............ contract?
Voidable
