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Promulgated Contract Forms Final Exam, Exams of Real Estate Management

Texas State Technical College-West TexasReal Estate Management

The Promulgated Contract Forms Final Exam is typically part of a real estate licensing course, specifically focusing on the Texas Real Estate Commission (TREC) promulgated contract forms. It assesses the student's understanding of these mandatory contract forms used in real estate transactions in Texas. The course aims to provide licensees with the knowledge and skills to navigate these forms accurately and ethically.

Typology: Exams

2024/2025

Available from 06/26/2025

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Promulgated Contract Forms Final Exam
| 2025 Questions & Answers |
Correct | 100% Verified
When earnest money is deposited with an escrow agent, the escrow agent: - ✔✔A) Is not responsible for
the performance of any signatory B) Has the right to secure written release of all signatories C) Is not
liable for interest on the money
How does the Texas Real Estate License Act define the first face-to-face meeting with required agency
disclosure? - ✔✔When a substantive dialogue about a specific real property occurs
If a property was built before 1978, what specific addendum is required? - ✔✔Disclosure of Lead-Base
Paint Addendum
The Buyer's Agency Agreement allows an agent to show the same properties to competing clients -
✔✔true
The Third Party Financing Condition Addendum is not used with - ✔✔Seller financing
The Texas Real Estate Commission (TREC) promulgates an addendum to be used in a short sale. This
Short Sale Addendum is to be signed by: - ✔✔Buyer and seller
In Paragraph #14 of the Residential Contract (casualty loss), If a seller cannot complete the repairs within
the time limit, the buyer has the option of: - ✔✔Terminating the contract
In Paragraph 3B of the sales contract, the "sum of all financing" - ✔✔Excludes any loan funding fee or
mortgage insurance premium
The TREC promulgated 1-4 Family Residential Contract (resale) states that if the cost of lender required
repairs and treatment exceed % of the sales price, buyer may terminate the contract and the
earnest money will be refunded to the buyer. - ✔✔5%
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Promulgated Contract Forms Final Exam

| 202 5 Questions & Answers |

Correct | 100 % Verified

When earnest money is deposited with an escrow agent, the escrow agent: - ✔✔A) Is not responsible for the performance of any signatory B) Has the right to secure written release of all signatories C) Is not liable for interest on the money How does the Texas Real Estate License Act define the first face-to-face meeting with required agency disclosure? - ✔✔When a substantive dialogue about a specific real property occurs If a property was built before 1978 , what specific addendum is required? - ✔✔Disclosure of Lead-Base Paint Addendum The Buyer's Agency Agreement allows an agent to show the same properties to competing clients - ✔✔true The Third Party Financing Condition Addendum is not used with - ✔✔Seller financing The Texas Real Estate Commission (TREC) promulgates an addendum to be used in a short sale. This Short Sale Addendum is to be signed by: - ✔✔Buyer and seller In Paragraph # 14 of the Residential Contract (casualty loss), If a seller cannot complete the repairs within the time limit, the buyer has the option of: - ✔✔Terminating the contract In Paragraph 3 B of the sales contract, the "sum of all financing" - ✔✔Excludes any loan funding fee or mortgage insurance premium The TREC promulgated 1 - 4 Family Residential Contract (resale) states that if the cost of lender required repairs and treatment exceed % of the sales price, buyer may terminate the contract and the earnest money will be refunded to the buyer. - ✔✔5%

The financing paragraph will be used to indicate: - ✔✔A) Third party financing B) Assumption C) Seller financing If a Seller is to remain in the property after closing: - ✔✔D) A Seller's Temporary Lease Form promulgated by TREC should be completed and signed by buyer and seller and attached to the contract.

Your buyers have signed a contract to buy a new home. The contract is subject to the sale of their present home. This is called a: - ✔✔Contingency In the event of buyer's default, the seller may: - ✔✔A) Terminate the contract B) Receive the earnest money as liquidated damages C) Enforce specific performance If there is an existing survey on the property, what does the seller take to the title company and the lender? - ✔✔The existing survey and a notarized affidavit stating if there have been any changes in the survey since the time the existing survey was completed - Failure on the part of the broker/sales associate to advise the purchaser in writing to have an abstract of title examined by an attorney or obtain a title insurance policy: - ✔✔May be cause to have the agent's license suspended or revoked, and precludes receiving any commissions or agreed fees associated with the sale. Who is designated as responsible for promptly sending a copy of the contract to any attorneys that are named in the contract? - ✔✔The broker Intermediary requires: - ✔✔A) Disclosure of who represents whom in a transaction B) Written agreement by both seller and buyer C) involvement of only one company What must a Buyer's Representation Agreement have? - ✔✔A termination date Once a contract is finalized and receipted it: - ✔✔Can be amended multiple times if all parties agree

If a property has a "Sale of Other Property" contingency contract on it, Seller: - ✔✔Can ask the original buyer to remove the contingency if the Seller has accepted another offer as a back - up On the Seller's default, what should happen to the earnest money? - ✔✔It should be returned to the Buyer The Seller contracts to furnish the buyer an existing survey, but neglects to furnish an "affidavit' with the time specified. The lender requests a new survey be furnished. Who pays for the new survey? - ✔✔The seller Time is of the essence means that certain items in the contract must be performed: - ✔✔As specified in the contract The Information About Brokerage Services (IBS) states the broker may represent the: - ✔✔A) Owner B) Buyer C) Both owner and buyer as intermediary Fraud is: - ✔✔A) A crime B) A civil law violation According to the Real Estate License Act of Texas, which one of the following actions is a fair and impartial act for an Intermediary? - ✔✔Appointing associated licensees to work with the parties Steering is illegal and is described as channeling a minority to or away from an area to change the character of the neighborhood. - ✔✔true The sales price is determined in paragraph 3 by adding the down payment ( 3 A) and the loan amount ( 3 B). - ✔✔true When a "fixture" in a property does not remain for the buyer, how do we inform the buyer of that fact and make sure the item does not convey with the property? - ✔✔List the item on the "Residential Contract"

The Condominium Resale Certificate called for in paragraph 2 of the TREC Residential Condominium Contract (Resale) must have been prepared no more than before the date it is delivered to the buyer. - ✔✔ 3 months The Seller as well as the Buyer has the unrestricted right to terminate the contract under the option period: - ✔✔false If a Buyer wants the Seller to pay some or all of their closing costs, it should be added to the contract in:

  • ✔✔Paragraph # 12 - Seller participation in the Buyer's costs A suit for specific performance is: - ✔✔To force the seller not to default on the contract If the contract includes an option period for the buyer and the buyer does not tender the option fee to the Seller within the time limit (currently with 3 days from effective date of the contract) the Buyer no longer has an unrestricted right to terminate under the option: - ✔✔false Paragraph 23 "termination option" of the TREC 1 - 4 Family Residential Contract: - ✔✔Requires a fee for a specified period of time The TREC promulgated Seller Financing Addendum states that if the buyer does not furnish the required qualifying documentation with the time limit allowed, Seller may terminate the contract and keep the earnest money: - ✔✔true If a Buyer chooses not to be represented by an agent, the Buyer must be made aware that any information they share can be communicated to the Seller: - ✔✔true Any changes to the original contract once it is finalized and receipted must be done: - ✔✔On an amendment What is the status of a contract if the seller does not make the buyer aware of a property being located with a municipal utility district? - ✔✔voidable