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Unit 1 - Texas Contract Law Exam Questions and Answers
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Unit 1 - Texas Contract Law Exam Questions and Answers
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Unit 1 - Texas Contract Law ExamQuestions and Answers
A seller wants to close using a contract for deed. Which of the following is MOST
correct?
A)
The listing agent would be in violation for attempting this type of transaction because
contract for deeds are not legal by federal statute.
B)
The listing agent, with her broker's permission, could use a TREC-promulgated
purchase agreement to handle this type of transaction.
C)
The listing agent must use the TREC-promulgated Contract for Deed Contract.
D)
This type of contract must be drafted by an attorney. - Answer -This type of contract
must be drafted by an attorney.
What is the possible result for an owner not providing a seller's disclosure notice when
required by the Texas Property Code (TPC), according to the standard purchase
agreement promulgated by the Texas Real Estate Commission (TREC)?
A)
The seller would commit fraud.
B)
The TREC does not address TPC regulations.
C)
The seller would commit misrepresentation.
D)
The seller would be in violation of failing to disclose, and the buyer could terminate the
contract. - Answer -The seller would be in violation of failing to disclose, and the buyer
could terminate the contract.
Which of the following is a TREC-promulgated contract?
A)
Residential Condominium Contract
B)
Lake Property Contract
C)
, Fine Homes and Estates Contract
D)
Agricultural Property Contract - Answer -Residential Condominium Contract
Which of the following real estate-related entities has rule-making authority in the state
of Texas?
A)
Attorneys
B)
All of these
C)
The commission
D)
The Real Estate License Act - Answer -The commission
For which of the following actions may the Texas Real Estate Commission NOT
suspend a license holder?
A)
All of these are violations and are subject to suspension.
B)
The license holder explains to the principals the meaning of the factual statements or
business details contained in the contracts.
C)
The license holder drafts an instrument (other than a form promulgated by TREC) that
transfers an interest in real property.
D)
The license holder used a TREC-promulgated purchase agreement that was specifically
designed to work for a different type of transaction. - Answer -The license holder
explains to the principals the meaning of the factual statements or business details
contained in the contracts.
A new home builder wants to use her own contract. What are the agent's legal options?
A)
The agent can't use this contract because TREC has promulgated a contact for use for
this type of transaction.
B)
The agent can use the contract but must modify it to meet TREC standards.
C)
The agent can use the contract because it is an exception.
D)
The agent must withdraw from representing this client. - Answer -The agent can use the
contract because it is an exception.
A seller of residential property in Texas must give to the buyer of the property notice of
the property's condition. Which of the following is TRUE?
A)
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