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WorksheetsTX Promulgated Contract Forms Quiz Questions (80 questions)
Total questions: 80
Worksheet time: 3600secs
The date a contract starts is known as the...?
Effective date
Legal date
Commencement date
Signature date
A valid and enforceable contract must include which of the following elements...
Consideration
Mutual agreement
Competent parties
All of the above
Additional pages of material that are added to and become part of a contract are referred to as a/an...?
RFP
Addendum
Amendment
Bulletin
A typical real estate sales contract between a buyer and seller is considered a/an...?
Unenforceable contract
Forbearance contract
Performance contract
Void contract
An executory contract is...?
Void
Completed
In-progress
Unenforceable
A change in a legal document made by adding, altering, or omitting a certain part or term is referred to as a/an...?
RFP
Bulletin
Amendment
Addendum
A contract that has been fully performed is known as a/an...?
Executory contract
Expired contract
Executed contract
Unenforceable contract
John is about to enter into a contract with Amy, to purchase Amy's house. The real estate sales contract between John and Amy...?
May be oral
May lack consideration
Must be in-writing
May be in-writing or oral
Anything given or promised by a party to induce another to enter into a contract is referred to as...?
Performance
Novation
Acknowledgement
Consideration
A lease with a term of less than one year...?
Must be in writing
May be oral or in-writing
Must be notarized
Must be oral
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...?
Curtis presents an initial offer to the seller
The seller accepts an offer
The seller accepts an offer and the parties enter into a binding contract
Any of the above
TREC has promulgated which of the following types of forms...?
Consumer Disclosures
Addenda
Real estate sales contracts
All of the above
A binding contract between a buyer and seller must include which of the following...?
There must be a mutual agreement between the parties
Must be in-writing
Signed by all parties
All of the above
Once an offer is accepted by a seller and the sales contract is signed, the contract becomes...?
Void
Binding
Unenforceable
Executed
Which of the following originally drafts the promulgated contract forms...?
Texas Association of Realtors
TREC
The Broker/Lawyer Committee
TRELA
Which of the following actions by an agent may be considered as unauthorized practice of law...?
Providing marketing advice
Providing advertising services for the sale of property
Providing opinions as to the condition of title
All of the above
A real estate agent is NOT in violation of the unauthorized practice of law if they do which of the following...?
Add new sections to a promulgated contract form
Sign on behalf of the principal
Delete sections of a promulgated contract form
Fill-out a promulgated contract form the way it was intended
A seller can respond to an offer in which of the following ways...?
Make a counter- offer
Accept the offer
Reject the offer
Any of the above
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...?
Unauthorized practice of law
ADA
RESPA
All of the above
Once a seller receives an offer, the seller can do which of the following...?
Reject the offer
Make a counter-offer
Accept the offer
Any of the above
A temporary lease is used when which of the following occurs...?
The buyer uses a reverse mortgage to purchase the property
The seller provides seller financing to the buyer
The buyer moves into the property after closing
The buyer moves into the property prior to closing
When a buyer takes title to a property, the name listed on the deed will match which of the following...?
The buyer's name as listed on the property's mortgage
The buyer's name as listed in the purchase contract
The buyer's name as listed on their State ID
None of the above
Houses built prior to 1978 need to include which of the following addenda....?
Lead-based paint addendum
Seller financing addendum
Flood hazard addendum
All of the above
A reverse mortgage is paid back using which of the following...?
The equity in the house
Seller financing
The borrower's savings
A new loan sometime in the future
The Non-Realty Items Addendum includes which of the following...?
Real property that will stay with the property after closing
Improvements that will stay with the property after closing
Items of personal property that will stay with the property after closing
Fixtures that will stay with the property after closing
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
The seller's birth certificate
The seller's license
Any of the above
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...?
Austin Holdings, a Texas Company
Austin Holdings
Austin Holdings, LLC
Austin Holdings, a limited corporation
Personal property items are considered...?
Non-realty items
Real property
Realty items
Fixtures
Paragraph 5 of the One to Four Family Residential Contract - Resale primarily deals with...?
Earnest money
Legal description of the property
Improvements and accessories
Sales Price
The One to Four Family Residential Contract - Resale is used for which of the following properties...?
Duplex properties
Tri-plex properties
Single family homes
All of the above
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...?
$4,200
$21,000
$42,000
Earnest money is not required in a residential transaction
Which party is required to pay for lender required repairs and treatments...?
Neither party is required to pay
The buyer only
Both the buyer and the seller
The seller only
Which of the following is a standard exception for a title policy...?
Utility easements
Marital rights
Mortgage liens
All of the above
Which of the following is an example of a restrictive covenant...?
Easements
Property inspections
Plot plans
All of the above
After signing a purchase contract, the seller typically receives money from the buyer for which of the following...?
Closing funds
Proration of taxes
Earnest money
Termination option
What happens to the contract if the seller cannot cure the buyer's objections, and the buyer refuses to waive their objections...?
The contract is terminated and the buyer receives their earnest money back
The contract is extended until the seller cures the objections
The contract is terminated and the buyer forfeits their earnest money
None of the above
Which of the following shows a serious intent by the buyer to purchase a specific property...?
The buyer submits an offer to purchase a property
The buyer puts down earnest money at the signing of a purchase contract
The buyer obtains a pre-qualification letter from a lender
None of the above
The title policy is a contract between the title company and the...?
Buyer
Escrow agent
Both the buyer and seller
Seller
The buyer typically provides money for which of the following after signing a purchase contract...?
Options money
Broker commissions
Contract origination fees
All of the above
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?
3
7
14
21
What happens if the seller defaults on the contract and the buyer elects to rescind his/her earnest money...?
The buyer can sue for specific performance
The buyer is forced to perform the contract
Both parties are released from the contract
The seller can sue for specific performance
If either party fails to close the sale by the closing date, who may exercise their right to remedies...?
Both the defaulting party or the non-defaulting party
The defaulting party only
Either the defaulting party or the non-defaulting party
The non-defaulting party only
The use of a temporary lease may lead to which of the following occurring...?
A temporary gap in insurance coverage
The seller's loss of title
The buyer losing their earnest money
The buyer losing their options money
The division of certain settlement costs between a buyer and seller is known as...?
Distribution
Dividend
Proration
Accounting
Who is responsible for ensuring that property insurance is in place after closing and funding...?
The buyer
The seller
The escrow agent
The seller's agent
Which of the following should be attempted before disputing parties go to mediation...?
Arbitration
Litigation
Negotiation
All of the above
A temporary lease cannot exceed how many days...?
7
30
60
90
Which of the following is often the most expensive means of resolving a dispute...?
Negotiation
Arbitration
Mediation
Litigation
The buyer is responsible for paying which of the following expenses...?
Loan application fees
Credit reports
Appraisal fees
All of the above
A change to the closing date will require which of the following...?
A bulletin to the contract
An amendment to the contract
A rescission of the contract
An addendum to the contract
A condominium's owners association is responsible for delivering which of the following documents...?
The Pre-Approval Certificate
The Resale Certificate
The Letter of Intent
The Commitment Letter
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...?
Unimproved Property Contract
Residential Condominium Contract - Resale
One to Four Family Residential Contract - Resale
New Home Contract - Incomplete Construction
Unless specified otherwise, chandeliers are considered...?
Personal property
Chattel
Improvements
Accessories
The Residential Condominium Contract - Resale differs from the One to Four Family Residential Contract - Resale in which of the following paragraphs...?
Paragraph 1
Paragraph 2
Paragraph 3
Paragraph 4
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...?
Go to arbitration to reduce the sales price
Sue the seller for specific performance
James cannot do anything as he is bound by the contract
Terminate the contract
Unless specified otherwise in the New Home Contract - Incomplete Construction, the ............date should not extend beyond the closing date?
Approval
Substantial completion
Commencement
Move-in
The sale of a property within a subdivision, which includes a small house on it will use which of the following contracts...?
Residential Condominium Contract - Resale
Unimproved Property Contract
One to Four Family Residential Contract - Resale
Farm and Ranch Contract
Which of the following promulgated contracts should be used for the purchase of vacant land...?
One to Four Family Residential Contract - Resale
Residential Condominium Contract - Resale
Farm and Ranch Contract
Unimproved Property Contract
Which of the following documents should a buyer read prior to signing the Residential Condominium Contract - Resale...?
The declaration of the condominium
The rules of the condominium association
The condominium bylaws
All of the above
A property being purchased using the New Home Contract - Incomplete Construction, must be built according to the...?
Construction documents
Schematic drawings
Best judgement of the contractor
Oral instructions of the buyer
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...?
The seller
The buyer
Both the buyer and seller equally
The landlord
Which of the following forms describes a broker's minimum required duties by law...?
One to Four Family Residential Contract - Resale
Information About Brokerage Services Form
Consumer Information Form
Broker Listing Services Form
If a buyer is purchasing a property adjacent to coastal waters, what form must be included with the purchase contract...?
Addendum For Reservation of Oil, Gas, and Other Minerals
Short Sale Addendum
The Addendum For "Back-Up" Contract
Addendum For Coastal Area Property
If both parties sign the Notice of Buyer's Termination of Contract, what still remains to be done...?
Seller needs to release the buyer's option money
Seller needs to release the buyer's earnest money
The contract needs to be recorded
Buyer needs to release the earnest money
The boundary of a property adjoining coastal waters is subject to change and can only be determined accurately by a...?
Licensed state land surveyor
Licensed property inspector
Licensed civil engineer
Licensed architect
Which of the following forms are NOT promulgated...?
One to Four Family Residential Contract - Resale
Seller's Temporary Residential Lease
Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies
Short Sale Addendum
Which of the following items should be included in the Non-Realty Items Addendum...?
Items of personal property to be included with the sale of the property
Improvements to be included with the sale of the property
Appurtenances to be included with the sale of the property
Real property items to be included with the sale of the property
In order to avoid disputes, which of the following should be in writing and clearly established...?
How the broker's commission is calculated
Who pays the broker's commission
Who pays the broker's commission
All of the above
According to the Short Sale Addendum, the sales price minus the seller's full closing costs equals the...?
Broker's commission
The seller's equity
Seller's net proceeds
Outstanding loan balance
In order for a broker to represent both parties in a transaction, the broker must obtain the written agreement from...?
The seller only
The buyer only
Both parties
The broker does not have to obtain the consent of either party
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...?
Testing
Steering
Blockbusting
Redlining
Which of the following deals with consumer protection...?
BRE
DTPA
HUD
ADA
Which of the following actions violates the federal fair housing laws...?
Blockbusting
Testing
Off-market selling
All of the above
Which of the following is NOT listed in detail on a TREC promulgated form...?
The closing date
Broker's fees
The effective date of contract
The sales price
Which of the following acts is considered fraud...?
Bulk REO investing
Value investing
Flipping
Investing in foreclosed properties
An agent can refuse to rent property to a prospective tenant on what basis...?
The national origin of the prospective tenant
The color of the prospective tenant
The financial capability of the prospective tenant
All of the above
What should an agent do as a means of risk management practice against real estate fraud...?
Avoid disclosing anything to the lender
Always remain loyal to the client, despite their actions
Document your communication with the parties involved in the transaction
Refuse to review the HUD settlement statement
Which of the following are considered protected classes under the federal fair housing laws...?
Religion
National origin
Disability
All of the above
Who signs the Seller's Disclosure of Property Condition form...?
Neither the seller or buyer
The buyer only
Both The Seller And Buyer
The seller only
Which of the following should an agent flag as possible fraud...?
An Unknown Title Company Is Being Used In The Transaction
The buyer is paying all cash
The buyer making a low offer on a property
The seller is offering seller financing
