TREC Promulgated Contract Practice Test

These questions are part of the practice quiz. Start practicing

• What consequence might a buyer face if they have a backup offer and make another offer?
• What usually happens after a formal purchase agreement is made?
• What must Martha provide to transition from an inactive to an active salesperson?
• What happens if a lease has not been executed before a seller moves out?
• All of the following are TREC earnest money requirements with the exception of:
• What function does escrow serve in a real estate transaction?
• What does a general warranty deed guarantee for the buyer?
• What is necessary for a contract to be considered binding?
• What is typically required for a buyer to successfully negotiate contingencies in a contract?
• The earnest money presented by the buyer is important because it is part of the sales contract procedure. What is earnest money?
• If a firm's broker dies, what is the status of the affiliated salespersons?
• The earnest money presented by the buyer is important because it is part of what procedure?
• What should a salesperson do to ensure they are using current forms?
• When is a licensed sales agent allowed to utilize a custom contract?
• Under Texas law, protection of familial status would NOT apply to which of the following?
• If a buyer cannot secure a loan and wishes to exit an existing contract, what should they do?
• What is referred to as the term for the buyer signing for a second loan?
• Schedule A of the title insurance policy would not contain what?
• What must happen once a real estate contract is formed?
• Which type of loan is specifically designed to assist veterans in purchasing homes?
• What must a property manager maintain according to regulations?
• How should client funds be treated in a broker's trust account?
• By when must earnest money be deposited to comply with standard real estate practice?
• When dealing with mineral rights during a property sale, how should a broker advise their client?
• What does the term "closing" refer to in a real estate transaction?
• What function does the Department of Public Safety serve for the Texas Real Estate Commission?
• What happens if the contract requirements are not met by either party?
• Where would a seller list items they wish to keep, such as a refrigerator and custom stained glass window, on TREC Form 20-14?
• For a short sale to occur, what must the lender do?
• What is the primary action the buyer and seller should take regarding insurance during a rental period?
• What is typically required for closing a sale?
• What requirement must a trust account fulfill according to regulations?
• What occurs after both the buyer and seller sign a purchase agreement and earnest money is given?
• What does the lender's lienholder consent form signify?
• How should a licensee handle changes made after a counteroffer is accepted?
• Under TCHR regulations, which of the following scenarios would NOT be allowed for maximum occupancy in a one-bedroom apartment?
• Under which condition can a buyer back out of a contract after obtaining a signed HOA development agreement?
• When do the requirements of the Texas property code regarding security devices not apply?
• In Texas real estate transactions, what type of deed is typically expected to transfer ownership?
• What term describes the specialized activity for addressing lead contamination in a home?
• Which type of housing project can legally discriminate regarding Familial Status?
• A licensed Home Inspector is hired by the buyer to inspect the subject home. The home inspector is to:
• What does the operating budget of a condominium typically outline?
• What is one of the problems associated with buying large parcels of land?
• What legal term denotes that all terms of a contract have been fulfilled by both parties?
• What is the term for the time period during which a party may file a civil lawsuit for injury?
• When a buyer returns a seller's offer with changes and then requests agreement to the original offer, what is the status of that initial offer?
• What legal notice is associated with a homeowner being sued for non-payment?
• Who is typically responsible for paying taxes due on improved property under the New Home Contract?
• Why are lenders willing to issue FHA loans at a lower interest rate compared to conventional loans?
• Who is responsible for maintaining the grounds under the TREC Temporary Lease?
• Wendy, the potential buyer, has an option fee attached to her offer. During the option period, she has all of the following options with the exception of:
• When working with the seller, you should explain that the Seller's Disclosure Form is:
• What begins the requirement to make a contract valid when a buyer agrees to purchase a property?
• What can Mary require to clarify the fence line issue when buying a farm?
• Who decides the Statute of Limitations time period within a state?
• Which scenario requires the use of TREC promulgated forms?
• Which type of money is considered to be "trust money" in real estate transactions?
• What promulgated form would you use for a home under construction that a client wants to make an offer on?
• Who would likely not be knowledgeable of endorsements regarding a title insurance policy?
• What does Texas law require when a licensee receives multiple offers for a property?
• Which document would typically detail the responsibilities of a landlord and tenant?
• Which of the following would not be considered a common expense assessment?
• Which of the following is NOT a requirement for a valid real estate contract?
• Which legal action can be taken if a party does not perform according to the contract?
• Who is offering the loan when Tom and Maggie sign a promissory note to Star Homes?
• If a vacancy occurs on the Broker-Lawyer Committee, who appoints a new member?
• What type of contract formalizes the obligations of the parties regarding property transfer in Texas?
• Which entity must use the State of Texas promulgated forms?
• What term describes a house purchase that is dependent on the buyer obtaining a loan from a lender?
• What does the date of a sale determine in a real estate transaction?
• If Marian is concerned about a fence line encroaching on a neighbor's property, what should she order?
• Which of the following would not be classified as owner trust money to be placed in the trust account?
• What happens if a broker fails to properly handle client funds?
• How much additional experience does Jerry need to qualify for a broker's license if he has 5 years as a licensed salesperson?
• Property on the Gulf Coast or the Rio Grande River must contend with:
• Buyer contingencies are typically designed to primarily benefit which party?
• What is required of the seller at closing?
• Why is it important for buyers and sellers to understand contingency clauses in real estate contracts?
• Who has the authority to make a final ruling between conflicting parties?
• Where would you expect to find changes when comparing the Family Residential Contract 20-14 with contracts for new construction?
• What is the primary purpose of the TREC short sale addendum?
• Which of the following is a liability for brokerage firms regarding record keeping?
• What is the common name for the Texas Real Estate Commission?
• Which statement is true regarding the information in the Condominium Resale Certificate?
• What are the requirements regarding the use of promulgated forms in Texas?
• Who collaborates with the Texas Real Estate Commission to draft the real estate promulgated forms?
• Which document serves as a contingency for obtaining a loan in a real estate transaction?
• What do both the buyer and seller need to negotiate in order to have a smooth escrow process?
• What is the TREC addendum form required for a buyer to obtain early possession?
• What happens when a third counteroffer is accepted?
• What type of risk may a broker encounter if they do not advise clients accurately on mineral rights?
• Aaron, the buyer, tells the seller he is selling the property "as is". What should the buyer insist on before agreeing to the sale?
• Who puts together the added endorsements to the title insurance coverage?
• What should be specified when making an offer to buy property?
• What is a necessary characteristic for a promise to be considered false under Texas law?
• What must happen to earnest money once it is received by the broker?
• A local MLS system restricting For Sale By Owner (FSBO) listings is an example of what?
• Under Texas law, which scenario is characterized as a false promise?
• What type of contracts does the TREC promulgated form primarily cater to?
• What position does a buyer have in Section A of TREC Form 11-7 Addendum for a Backup Contract?
• What happens to salespersons when their designated broker pulls her license?
• Under what circumstances is the Resale TREC Form 20-14 used?
• Which characteristic is true about a broker's trust account?
• What is the term for the act of hiding information in a contract?
• What occurs if the seller does not address required deficiencies before closing?
• Boundary claims against a homeowner would be protected against by their:
• Select the correct statement regarding rollback taxes and Section 13 of the New Home Contract.
• What does "Lis Pendens" indicate in a legal context?
• For a contract of sale to be valid, what must one party do?
• In Texas, what is it called when there are changes made to a purchase and sale contract?
• What situation describes a short sale?
• What is one of the required pieces of information on TREC Form 20-14 when selling residential structures?
• Which exception allows to deviate from using TREC promulgated forms in real estate transactions?
• What type of contract is formed when one party is coerced into signing through drugged influence?
• What does TREC provide?
• When a new buyer joins a condominium association, what must they know in advance?
• For what purpose are TREC real estate forms used in transactions?
• What is crucial for all addendums to a sales contract?
• In what situation can an apartment refuse to allow pets?
• What is the purpose of Form 24-14?
• How are surveys typically negotiated in real estate transactions?
• When can a buyer present Addendum 38-4 Notice of Buyer's Termination of Contract to a seller?
• What happens to a buyer's original offer if it is $40,000 less than the seller's listed price and the seller responds with a counteroffer?
• What must Agent Randall include when listing farm equipment with TREC Form OP-M?
• In other states, who may have control over environmental areas?
• What is defined as the date the deed will be recorded with the county?
• When is it usually discovered that a seller cannot provide a general warranty deed?
• What other information should be included in the earnest money section?
• Which of the following types of accounts can trust accounts be?
• What essential information should Zella include in the TREC addendum for the rototiller?
• How are closing costs typically split between the buyer and seller at closing?
• What does TREC Form 40-9 inform buyers and sellers about?
• Why is having an arbitrator helpful during disputes?
• If a buyer fails to meet the terms of the contract, what is the buyer considered?
• What does it mean to amend a contract?
• Tess, the broker for the seller, learns her client knows there are undisclosed defects on the property. What are the legal ramifications?
• What is the main focus of a survey contingency in a real estate deal?
• What is a requirement of a TREC regulated trust account?
• How may a buyer obtain the right to evaluate the property they are interested in?
• What will not be present in a new home that has never been occupied?
• What should Sean check before deciding to purchase a lot in a new subdivision?
• What type of contract can brokers bind their clients to?
• When the seller is the temporary tenant, when must the landlord refund the lease deposit?
• What is one advantage of mediation over a full lawsuit in Texas?
• What does it mean if a seller wants to retain the Ingress and Egress Mineral Rights of their property?
• Which of the following is NOT included in Addendum 10-6?
• Which statement best describes the role of brokers in real estate transactions?
• What essential information is included in the Condominium Resale Certificate?
• When is the TREC Form OP-M Non-Realty Items required?
• What is typically required to finalize a second mortgage?
• What must be assured to Texas coastal property buyers as per the listing contract?
• In Texas, how long must a landlord typically allow before returning deposits after a tenant moves out?
• What must a listing contract include regarding Texas coastal property?
• What details does TREC Form 32-4 regarding Condominium Resale Certificates provide?
• What is it called when parties agree to certain terms before finalizing a contract?
• What type of property is the Texas Veterans Home Loan specifically used for purchasing?
• What phrase best describes a purchase agreement that is signed but not yet closed?
• What does TREC allow regarding commission rates for brokerage services?
• When does the buyer typically pay deposits for required Association reserves?
• What written form must the seller use to disclose the legal status of the property?
• What type of contingency should be included if a buyer wants to ensure they can build on a property?
• Which of the following options describes the outcome if a seller fails to inform a buyer about HOA membership?
• Who ultimately determines the Closing Date in a property transaction?
• What form must be used when a home has a market value below the debt amount?
• Termination options benefit the seller in all the following ways with the exception of:
• What does the contingency clause in TREC Form 40-9 allow the buyer to do if the loan does not work out?
• Which alternative experience may assist an applicant in becoming a broker in Texas?
• Which of the following is a common violation related to the record-keeping of brokerage firms?
• Under RESPA laws, what is illegal if received from the title company?
• What constitutes a purchase contract?
• What is one potential outcome if a seller retains mineral rights after selling their property?
• Who appoints the public member of the Real Estate Brokers Committee (REBLC)?
• What should a licensee provide when working with a buyer or seller?
• In representing a seller, brokers, as special agents, cannot do which of the following?
• Who is responsible for ensuring the terms of a contract are met after it has been signed?
• Which of the following would not be a specific exception/exclusion in a title insurance policy?
• How may a buyer obtain the right to evaluate the property they are interested in?
• An applicant for a salesperson license in Texas must complete which of the following educational courses?
• When a buyer pays an option fee to the seller to inspect the property, the buyer cannot:
• When earnest money is held in a broker's trust account, how long does the broker have to pay the funds to the rightful party upon legal demand?
• In Texas, if an offer is drawn up by the buyer and their agent without an expiration date, how long could the offer remain valid?
• If John buys a home from a 17-year-old heir, what is the status of John's contract?
• Which of the following is an example of monopolistic activity?
• What payment may lenders require at closing?
• When does the title change from the seller to the buyer?
• What is the primary purpose of the TREC Form 40-9 Third Party Financing Addendum?
• If a seller needs to remain in a property beyond the closing date, what can they do?
• How must all notices be communicated according to the contract requirements?
• What is the condition under which personal property is sold in a sales contract?
• What authority does TREC provide to brokers regarding earned commissions?
• After a transaction is completed, which personal information about a client does NOT need to be destroyed?
• When paying an option fee to the seller for property inspection, what cannot the buyer do?
• Which term refers to the legal document that outlines the agreement between buyer and seller?
• Jane Chen’s focus on showing homes in the Asian section of town exemplifies which practice?
• What does TREC Form OP-M Non-Realty Items include regarding the seller?
• What is the name of the Resale Residential Contract Form required by TREC for single homes up to a 4-plex?
• What action does the TREC Form OP-M specifically facilitate?
• When all parties to a contract have fulfilled their requirements, what is this process called?
• What information must a seller provide to a buyer if the subject house has Homeowner Association Membership requirements?
• A written report signed by a person promising the information they provided is true is called a(an):
• Starting a professional networking website is regulated by which entity?
• If Jane wants to include a hot tub in her purchase, how should she document it?
• Which statement about Texas Real Estate Commission promulgated contract forms is TRUE?
• In The Resale Residential Contract Form 20-14, what details should be present in the earnest money section?
• What do rollback taxes generally refer to?
• Which item would not be covered in the TREC promulgated form for buyers leasing a property before closing?
• What happens if the buyer provides written notice to the seller under the contingency clause in TREC Form 40-9?