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TX Promulgated Contract Forms Quiz Questions (80 questions)

Total questions: 80

Worksheet time: 3600secs

Name
Class
Date
1.

The date a contract starts is known as the...?

a)

Effective date

b)

Legal date

c)

Commencement date

d)

Signature date

2.

A valid and enforceable contract must include which of the following elements...

a)

Consideration

b)

Mutual agreement

c)

Competent parties

d)

All of the above

3.

Additional pages of material that are added to and become part of a contract are referred to as a/an...?

a)

RFP

b)

Addendum

c)

Amendment

d)

Bulletin

4.

A typical real estate sales contract between a buyer and seller is considered a/an...?

a)

Unenforceable contract

b)

Forbearance contract

c)

Performance contract

d)

Void contract

5.

An executory contract is...?

a)

Void

b)

Completed

c)

In-progress

d)

Unenforceable

6.

A change in a legal document made by adding, altering, or omitting a certain part or term is referred to as a/an...?

a)

RFP

b)

Bulletin

c)

Amendment

d)

Addendum

7.

A contract that has been fully performed is known as a/an...?

a)

Executory contract

b)

Expired contract

c)

Executed contract

d)

Unenforceable contract

8.

John is about to enter into a contract with Amy, to purchase Amy's house. The real estate sales contract between John and Amy...?

a)

May be oral

b)

May lack consideration

c)

Must be in-writing

d)

May be in-writing or oral

9.

Anything given or promised by a party to induce another to enter into a contract is referred to as...?

a)

Performance

b)

Novation

c)

Acknowledgement

d)

Consideration

10.

A lease with a term of less than one year...?

a)

Must be in writing

b)

May be oral or in-writing

c)

Must be notarized

d)

Must be oral

11.

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...?

a)

Curtis presents an initial offer to the seller

b)

The seller accepts an offer

c)

The seller accepts an offer and the parties enter into a binding contract

d)

Any of the above

12.

TREC has promulgated which of the following types of forms...?

a)

Consumer Disclosures

b)

Addenda

c)

Real estate sales contracts

d)

All of the above

13.

A binding contract between a buyer and seller must include which of the following...?

a)

There must be a mutual agreement between the parties

b)

Must be in-writing

c)

Signed by all parties

d)

All of the above

14.

Once an offer is accepted by a seller and the sales contract is signed, the contract becomes...?

a)

Void

b)

Binding

c)

Unenforceable

d)

Executed

15.

Which of the following originally drafts the promulgated contract forms...?

a)

Texas Association of Realtors

b)

TREC

c)

The Broker/Lawyer Committee

d)

TRELA

16.

Which of the following actions by an agent may be considered as unauthorized practice of law...?

a)

Providing marketing advice

b)

Providing advertising services for the sale of property

c)

Providing opinions as to the condition of title

d)

All of the above

17.

A real estate agent is NOT in violation of the unauthorized practice of law if they do which of the following...?

a)

Add new sections to a promulgated contract form

b)

Sign on behalf of the principal

c)

Delete sections of a promulgated contract form

d)

Fill-out a promulgated contract form the way it was intended

18.

A seller can respond to an offer in which of the following ways...?

a)

Make a counter- offer

b)

Accept the offer

c)

Reject the offer

d)

Any of the above

19.

David is a real estate agent who was recently hired to sell Andrew's home. As a courtesy, David offers to help Andrew draft a sales contract. David may be in violation of which of the following...?

a)

Unauthorized practice of law

b)

ADA

c)

RESPA

d)

All of the above

20.

Once a seller receives an offer, the seller can do which of the following...?

a)

Reject the offer

b)

Make a counter-offer

c)

Accept the offer

d)

Any of the above

21.

A temporary lease is used when which of the following occurs...?

a)

The buyer uses a reverse mortgage to purchase the property

b)

The seller provides seller financing to the buyer

c)

The buyer moves into the property after closing

d)

The buyer moves into the property prior to closing

22.

When a buyer takes title to a property, the name listed on the deed will match which of the following...?

a)

The buyer's name as listed on the property's mortgage

b)

The buyer's name as listed in the purchase contract

c)

The buyer's name as listed on their State ID

d)

None of the above

23.

Houses built prior to 1978 need to include which of the following addenda....?

a)

Lead-based paint addendum

b)

Seller financing addendum

c)

Flood hazard addendum

d)

All of the above

24.

A reverse mortgage is paid back using which of the following...?

a)

The equity in the house

b)

Seller financing

c)

The borrower's savings

d)

A new loan sometime in the future

25.

The Non-Realty Items Addendum includes which of the following...?

a)

Real property that will stay with the property after closing

b)

Improvements that will stay with the property after closing

c)

Items of personal property that will stay with the property after closing

d)

Fixtures that will stay with the property after closing

26.

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...?

a)

The seller's deed

b)

The seller's birth certificate

c)

The seller's license

d)

Any of the above

27.

Austin Holdings is a limited liability company, which is purchasing a residential property for the company. How should Austin Holdings' name appear on the purchase contract...?

a)

Austin Holdings, a Texas Company

b)

Austin Holdings

c)

Austin Holdings, LLC

d)

Austin Holdings, a limited corporation

28.

Personal property items are considered...?

a)

Non-realty items

b)

Real property

c)

Realty items

d)

Fixtures

29.

Paragraph 5 of the One to Four Family Residential Contract - Resale primarily deals with...?

a)

Earnest money

b)

Legal description of the property

c)

Improvements and accessories

d)

Sales Price

30.

The One to Four Family Residential Contract - Resale is used for which of the following properties...?

a)

Duplex properties

b)

Tri-plex properties

c)

Single family homes

d)

All of the above

31.

James is in the process of purchasing his first house for $420,000. What is the minimum required earnest money James must put down at the signing of the purchase contract...?

a)

$4,200

b)

$21,000

c)

$42,000

d)

Earnest money is not required in a residential transaction

32.

Which party is required to pay for lender required repairs and treatments...?

a)

Neither party is required to pay

b)

The buyer only

c)

Both the buyer and the seller

d)

The seller only

33.

Which of the following is a standard exception for a title policy...?

a)

Utility easements

b)

Marital rights

c)

Mortgage liens

d)

All of the above

34.

Which of the following is an example of a restrictive covenant...?

a)

Easements

b)

Property inspections

c)

Plot plans

d)

All of the above

35.

After signing a purchase contract, the seller typically receives money from the buyer for which of the following...?

a)

Closing funds

b)

Proration of taxes

c)

Earnest money

d)

Termination option

36.

What happens to the contract if the seller cannot cure the buyer's objections, and the buyer refuses to waive their objections...?

a)

The contract is terminated and the buyer receives their earnest money back

b)

The contract is extended until the seller cures the objections

c)

The contract is terminated and the buyer forfeits their earnest money

d)

None of the above

37.

Which of the following shows a serious intent by the buyer to purchase a specific property...?

a)

The buyer submits an offer to purchase a property

b)

The buyer puts down earnest money at the signing of a purchase contract

c)

The buyer obtains a pre-qualification letter from a lender

d)

None of the above

38.

The title policy is a contract between the title company and the...?

a)

Buyer

b)

Escrow agent

c)

Both the buyer and seller

d)

Seller

39.

The buyer typically provides money for which of the following after signing a purchase contract...?

a)

Options money

b)

Broker commissions

c)

Contract origination fees

d)

All of the above

40.

If the buyer receives the Seller's Disclosure Notice after signing the contract, the buyer may terminate the contract within .......days of receiving the Seller's Disclosure Notice?

a)

3

b)

7

c)

14

d)

21

41.

What happens if the seller defaults on the contract and the buyer elects to rescind his/her earnest money...?

a)

The buyer can sue for specific performance

b)

The buyer is forced to perform the contract

c)

Both parties are released from the contract

d)

The seller can sue for specific performance

42.

If either party fails to close the sale by the closing date, who may exercise their right to remedies...?

a)

Both the defaulting party or the non-defaulting party

b)

The defaulting party only

c)

Either the defaulting party or the non-defaulting party

d)

The non-defaulting party only

43.

The use of a temporary lease may lead to which of the following occurring...?

a)

A temporary gap in insurance coverage

b)

The seller's loss of title

c)

The buyer losing their earnest money

d)

The buyer losing their options money

44.

The division of certain settlement costs between a buyer and seller is known as...?

a)

Distribution

b)

Dividend

c)

Proration

d)

Accounting

45.

Who is responsible for ensuring that property insurance is in place after closing and funding...?

a)

The buyer

b)

The seller

c)

The escrow agent

d)

The seller's agent

46.

Which of the following should be attempted before disputing parties go to mediation...?

a)

Arbitration

b)

Litigation

c)

Negotiation

d)

All of the above

47.

A temporary lease cannot exceed how many days...?

a)

7

b)

30

c)

60

d)

90

48.

Which of the following is often the most expensive means of resolving a dispute...?

a)

Negotiation

b)

Arbitration

c)

Mediation

d)

Litigation

49.

The buyer is responsible for paying which of the following expenses...?

a)

Loan application fees

b)

Credit reports

c)

Appraisal fees

d)

All of the above

50.

A change to the closing date will require which of the following...?

a)

A bulletin to the contract

b)

An amendment to the contract

c)

A rescission of the contract

d)

An addendum to the contract

51.

A condominium's owners association is responsible for delivering which of the following documents...?

a)

The Pre-Approval Certificate

b)

The Resale Certificate

c)

The Letter of Intent

d)

The Commitment Letter

52.

A local real estate developer is in the process of building a subdivision with 135 houses. A buyer who purchases one of these houses prior to the substantial completion date should use which of the following contracts...?

a)

Unimproved Property Contract

b)

Residential Condominium Contract - Resale

c)

One to Four Family Residential Contract - Resale

d)

New Home Contract - Incomplete Construction

53.

Unless specified otherwise, chandeliers are considered...?

a)

Personal property

b)

Chattel

c)

Improvements

d)

Accessories

54.

The Residential Condominium Contract - Resale differs from the One to Four Family Residential Contract - Resale in which of the following paragraphs...?

a)

Paragraph 1

b)

Paragraph 2

c)

Paragraph 3

d)

Paragraph 4

55.

James is purchasing a farm outside of Dallas. If the sales price needs to be adjusted by more than 10% after reviewing the survey, James may do which of the following...?

a)

Go to arbitration to reduce the sales price

b)

Sue the seller for specific performance

c)

James cannot do anything as he is bound by the contract

d)

Terminate the contract

56.

Unless specified otherwise in the New Home Contract - Incomplete Construction, the ............date should not extend beyond the closing date?

a)

Approval

b)

Substantial completion

c)

Commencement

d)

Move-in

57.

The sale of a property within a subdivision, which includes a small house on it will use which of the following contracts...?

a)

Residential Condominium Contract - Resale

b)

Unimproved Property Contract

c)

One to Four Family Residential Contract - Resale

d)

Farm and Ranch Contract

58.

Which of the following promulgated contracts should be used for the purchase of vacant land...?

a)

One to Four Family Residential Contract - Resale

b)

Residential Condominium Contract - Resale

c)

Farm and Ranch Contract

d)

Unimproved Property Contract

59.

Which of the following documents should a buyer read prior to signing the Residential Condominium Contract - Resale...?

a)

The declaration of the condominium

b)

The rules of the condominium association

c)

The condominium bylaws

d)

All of the above

60.

A property being purchased using the New Home Contract - Incomplete Construction, must be built according to the...?

a)

Construction documents

b)

Schematic drawings

c)

Best judgement of the contractor

d)

Oral instructions of the buyer

61.

Unless otherwise stated in the Seller's Temporary Residential Lease, who shall bear the cost of all expenses for the repairs and maintenance of the property during the term of the lease...?

a)

The seller

b)

The buyer

c)

Both the buyer and seller equally

d)

The landlord

62.

Which of the following forms describes a broker's minimum required duties by law...?

a)

One to Four Family Residential Contract - Resale

b)

Information About Brokerage Services Form

c)

Consumer Information Form

d)

Broker Listing Services Form

63.

If a buyer is purchasing a property adjacent to coastal waters, what form must be included with the purchase contract...?

a)

Addendum For Reservation of Oil, Gas, and Other Minerals

b)

Short Sale Addendum

c)

The Addendum For "Back-Up" Contract

d)

Addendum For Coastal Area Property

64.

If both parties sign the Notice of Buyer's Termination of Contract, what still remains to be done...?

a)

Seller needs to release the buyer's option money

b)

Seller needs to release the buyer's earnest money

c)

The contract needs to be recorded

d)

Buyer needs to release the earnest money

65.

The boundary of a property adjoining coastal waters is subject to change and can only be determined accurately by a...?

a)

Licensed state land surveyor

b)

Licensed property inspector

c)

Licensed civil engineer

d)

Licensed architect

66.

Which of the following forms are NOT promulgated...?

a)

One to Four Family Residential Contract - Resale

b)

Seller's Temporary Residential Lease

c)

Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies

d)

Short Sale Addendum

67.

Which of the following items should be included in the Non-Realty Items Addendum...?

a)

Items of personal property to be included with the sale of the property

b)

Improvements to be included with the sale of the property

c)

Appurtenances to be included with the sale of the property

d)

Real property items to be included with the sale of the property

68.

In order to avoid disputes, which of the following should be in writing and clearly established...?

a)

How the broker's commission is calculated

b)

Who pays the broker's commission

c)

Who pays the broker's commission

d)

All of the above

69.

According to the Short Sale Addendum, the sales price minus the seller's full closing costs equals the...?

a)

Broker's commission

b)

The seller's equity

c)

Seller's net proceeds

d)

Outstanding loan balance

70.

In order for a broker to represent both parties in a transaction, the broker must obtain the written agreement from...?

a)

The seller only

b)

The buyer only

c)

Both parties

d)

The broker does not have to obtain the consent of either party

71.

David is a mortgage broker in Houston. A client comes to David to obtain financing on a new house; however, David denies the client, citing he won't lend on properties in the neighborhood the client is looking to live. David is guilty of which of the following actions...?

a)

Testing

b)

Steering

c)

Blockbusting

d)

Redlining

72.

Which of the following deals with consumer protection...?

a)

BRE

b)

DTPA

c)

HUD

d)

ADA

73.

Which of the following actions violates the federal fair housing laws...?

a)

Blockbusting

b)

Testing

c)

Off-market selling

d)

All of the above

74.

Which of the following is NOT listed in detail on a TREC promulgated form...?

a)

The closing date

b)

Broker's fees

c)

The effective date of contract

d)

The sales price

75.

Which of the following acts is considered fraud...?

a)

Bulk REO investing

b)

Value investing

c)

Flipping

d)

Investing in foreclosed properties

76.

An agent can refuse to rent property to a prospective tenant on what basis...?

a)

The national origin of the prospective tenant

b)

The color of the prospective tenant

c)

The financial capability of the prospective tenant

d)

All of the above

77.

What should an agent do as a means of risk management practice against real estate fraud...?

a)

Avoid disclosing anything to the lender

b)

Always remain loyal to the client, despite their actions

c)

Document your communication with the parties involved in the transaction

d)

Refuse to review the HUD settlement statement

78.

Which of the following are considered protected classes under the federal fair housing laws...?

a)

Religion

b)

National origin

c)

Disability

d)

All of the above

79.

Who signs the Seller's Disclosure of Property Condition form...?

a)

Neither the seller or buyer

b)

The buyer only

c)

Both The Seller And Buyer

d)

The seller only

80.

Which of the following should an agent flag as possible fraud...?

a)

An Unknown Title Company Is Being Used In The Transaction

b)

The buyer is paying all cash

c)

The buyer making a low offer on a property

d)

The seller is offering seller financing