CHAMPIONS PROMULGATED CONTRACT FORMS TEST QUESTIONS AND ANSWERS 2025
0 view 0 purchase
Course
CHAMPIONS PROMULGATED CONTRACT FORMS
Institution
CHAMPIONS PROMULGATED CONTRACT FORMS
CHAMPIONS PROMULGATED CONTRACT FORMS
TEST QUESTIONS AND ANSWERS 2025
Unimproved Property Contract - ANSWER -Used for the sale of properties with no
existing structure. This contract has no improvements, or accessories. No seller
disclosure.
Farm and Ranch Contract - ANSWER -A TREC promulgat...
CHAMPIONS PROMULGATED CONTRACT FORMS
TEST QUESTIONS AND ANSWERS 2025
Unimproved Property Contract - ANSWER -Used for the sale of properties with no
existing structure. This contract has no improvements, or accessories. No seller
disclosure.
Farm and Ranch Contract - ANSWER -A TREC promulgated contract for use where
the land being sold is greater than 10 acres and includes land, improvements,
accessories and crops. Contains provisions for surface leases related to a property
The parties to the contract specifically as noted in paragraph 18.A - ANSWER -The
escrow agent is not a party to this contract and does not have liability for the
performance or non-performance of any part of this contract, or liable for any interest or
loss on any earnest money cause by the failure of any financial institution.
The purpose and use of Paragraph 6- - ANSWER -The owner's Title policy being paid
for by buyer or seller. The Title company has 20 days from when they receive the
contract to furnish a commitment to buyer for Title Insurance. Objections, who will
furnish the survey, the intended use of the property (residential use) and any
membership in property associations.
Stigmatized properties - ANSWER -Any property where there has been a murder,
alleged haunting, or in the vicinity of the residence of a known sexual offender
The unlawful practice of law - ANSWER -License holders should not alter the pre-
printed text of a promulgated form. Specific examples - agents add provisions to
contracts other than business details: Example: Inserting terms into a contract when a
TREC promulgated form is available. Adding terms into a contract that are not
addressed by a TREC promulgated form.
Items to be retained by the seller as specified in the contract - ANSWER -any items
retained should be written in Paragraph 2D. EXCLUSIONS.
PARAGRAPH 5 features - ANSWER -Earnest Money and Option periods. The option
period is the time allowed for inspections that Buyer may want. The buyer is required to
deposit the earnest money with the escrow agent within 3 calendar days after the
effective date of the contract.
Requirements for buyer approval according to the TREC Third Party Financing
Addendum - ANSWER -allows the buyer to terminate the transaction if the property
doesn't meet the lender's underwriting requirements.
, Closing Costs or settlement expenses - ANSWER -if any of these listed expenses
exceed what the party agreed to pay, the contract will terminate, UNLESS the other
party agrees to pay the excess
Proration - ANSWER -Dividing property taxes, hazard insurance and other expenses or
income between the buyer and seller, as of date of settlement.
Required use of TREC forms and exceptions to required use - ANSWER -when the
licensee is acting as a principal and not as an agent.
One of the exceptions for when a licensee must use a TREC-promulgated contract form
is in transactions in which the licensee is functioning solely as a principal, not as an
agent.
Valid Contract - ANSWER -An agreement that meets the requirements of law.
Void Contract - ANSWER -An agreement that is invalid from the beginning and does
not affect the parties
Executory Contract - ANSWER -A contract that has been signed by the parties, but not
yet carried out. (It's the sales contract before closing or contract for deed)
Fully Executed - ANSWER -A contract is fully executed when all parties have
performed.
Use of third-party financing addendum - ANSWER -Allows the buyer to terminate the
transaction if the property doesn't meet the lender's underwriting requirements. It is
divided into two broad categories: government loans and conventional loans.
Requirements of a valid contract- - ANSWER -Consideration, Offer and Acceptance,
Legal Purpose, In writing, Competent parties
When does an offer become a contract? - ANSWER -When it is accepted and the
acceptance is communicated.
PARAGRAPH 8.A - ANSWER -is closure of agency coupled with an interest and family
relationships - TX law requires a RE broker or sales agent who is a party to a
transaction or acting on behalf of a spouse, parent, child, business entity in which the
broker or sales agent owns more than 10%, or if acting as a trustee to a trust, or
beneficiary, to notify the other party in writing before entering into a contract of sale.
Paragraph 23- use and timing - ANSWER -Option period with a negotiable length of
time. The buyer can walk away for any reason within this time.
Lead Paint - disclosures, dates, timing, buyer's rights, seller's responsibilities -
ANSWER -If the property was built prior to 1978, the required Lead-Based Paint
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TheExamMaestro. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.89. You're not tied to anything after your purchase.
