AceableAgent Promulgated Contracts Practice Test

These questions are part of the practice quiz. Start practicing

• Which of the following statements is true about void contracts?
• In real estate transactions, what does the term “closing costs” typically refer to?
• Who can provide a mutual termination form for both parties regarding earnest money?
• What does the phrase "as is" indicate in a property contract?
• What is an "option contract" in real estate?
• In which paragraph is it noted that the seller is covering some of the buyer's closing costs?
• What term describes a contract that has no legal effect?
• How many days does a buyer have to terminate a contract after receiving HOA information?
• What does "foreclosure" mean in the context of real estate contracts?
• What is referenced in paragraph 6A8 of the contract?
• What is meant by "legal capacity" in the context of contracts?
• What may happen if a party does not assert their rights under a contract?
• What is a "lease agreement"?
• The seller of unimproved property provides a disclosure in which type of contract?
• What does "option money" in a sales contract generally refer to?
• What does the phrase "time is of the essence" imply in a contract?
• What is the name of the document prepared by a condo association outlining fees and rules?
• Why is it important for agents to use current promulgated forms?
• What does the notification about restrictive covenants entail for the buyer?
• Which type of contract should be chosen for raw land not yet developed?
• Define "power of attorney" in real estate transactions.
• What is a "counteroffer"?
• What does "due diligence" entail in real estate transactions?
• Using an outdated TREC form by a licensed agent is a violation of which act?
• What is a "wraparound mortgage"?
• How can buyers avoid paying extra prepaid interest to the mortgage company?
• Which term refers to the legal ability of a party to enforce a contract?
• What does an upfront mortgage insurance premium (UFMIP) pertain to?
• What must agents disclose to their clients regarding commission?
• Which of the following is an implication of senior housing exemptions?
• Which addendum is used when a transaction is contingent upon approval from the seller's lender?
• Which doctrine refers to the loss of a right due to inaction over time?
• A Seller's Disclosure Notice is a requirement of what?
• What is a leasehold estate in real estate?
• Who does escrow primarily protect in a real estate transaction?
• What is required for properties built before 1978 according to federal regulations?
• What is meant by "specific performance" as a legal remedy?
• What happens when an offer is countered?
• What is a key characteristic of the LTV ratio in mortgage lending?
• Which paragraph indicates that all restrictive covenants must be provided to the buyer?
• What does "consideration" refer to in a contract?
• A leasehold estate grants the right to occupy the property for what condition?
• If an agent is uncertain about property restrictions, how can they protect the buyer?
• Which of the following is an essential component of a legally binding contract?
• What is the primary purpose of the non-realty items addendum?
• According to the 1-4 Family Residential Agreement, who primarily negotiates payment for the owner's title policy?
• What encapsulates "fiduciary duty" in real estate transactions?
• Define "time of performance" in contractual agreements.
• What is the primary purpose of a real estate contract?
• What does the "Statute of Frauds" require for real estate contracts?
• If the price of a property changes due to a new survey, what action can the affected party take within the given percentage?
• What kind of zoning change would require the buyer to be concerned about rollback taxes?
• What is the legal significance of a property selling "as is"?
• Do mineral estates include materials like gravel and limestone?
• When is rent for a Buyer's Temporary Residential Lease Agreement due?
• How many days is a buyer allowed to deliver earnest money after an offer is accepted?
• When is a written contract considered to have an effective date?
• Describe the process of "contract termination."
• If a buyer is exercising the unrestricted right to terminate the contract under Paragraph 23, which contract are they using?
• What addendum is required when a seller wants to buy another home before closing on their current one?
• Which disclosure must be provided by sellers when selling property?
• What is the maximum time frame for a buyer to receive their earnest money refund?
• Which contract specifically includes provisions for Exception Documents and Surface Leases?
• What defines a "listing agreement"?
• What is the name of the law requiring that certain contracts be in writing?
• If a buyer is unable to get financing, what must be included in their contract to terminate without penalty?
• What type of contract could be suitable for commercially zoned land in urban or smaller rural areas?
• What does "agency" refer to in real estate?
• What is a "quitclaim deed"?
• What kind of deed offers the least protection for a buyer concerning potential title claims?
• What is a possible consequence of not obtaining title insurance?
• What is the purpose of the TREC One to Four Family Residential Contract?
• What is a common characteristic of restrictive covenants in property deeds?
• In which scenario is a quitclaim deed most commonly used?
• In a property transaction, whose responsibility is it to provide copies of lease agreements after closing?
• If a buyer fails to deposit earnest money on time, what is the buyer in?
• Can a Homeowners Association (HOA) impose a lien on a property and proceed with foreclosure?
• What is the purpose of a "merger clause" in contracts?
• What does "intent to create legal relations" mean in contract law?
• What signifies a "breach of fiduciary duty"?
• What is the legal status of a contract for the sale of illegal drugs?
• Is the Seller's Disclosure Notice promulgated by TREC?
• What role does title insurance serve in real estate transactions?
• Which of the following is NOT an example of an exception to the title policy?
• If a buyer wants to change the zoning of a previously farmed property to residential, who is liable for rollback taxes?
• What is the threshold percentage change in sales price that allows termination of a contract if a new survey is completed on a farm or ranch?
• Which paragraph on the Lead Based Paint Disclosure states that the buyer has 10 days to have the property inspected?
• What factor is not considered by HUD when reviewing fair housing complaints?
• What does the Third Party Financing Addendum primarily outline?
• What is a stand-alone refrigerator classified as in real estate terms?
• How many days does the seller have to furnish a new survey to the buyer prior to closing?
• What is the implication of a "without recourse" clause in a contract?
• What is the statute of limitations from the discovery date of fraud or misrepresentation of a license holder?
• What is the distinction between a "mortgage" and a "deed of trust"?
• Which element does NOT belong to the essential elements of a valid contract?
• Why is a buyer responsible for rollback taxes when changing zoning from farming to residential?
• Explain the term "hold harmless" in contracts.
• What does it signify if property taxes are paid in arrears?
• Define "mutual assent" in contract law.
• What is a "real estate option" agreement?
• What does "assignment of contract" mean?
• Is "receipt of public income" classified as a protected class under Fair Lending Laws?
• Who is responsible for completing the subdivision information in a real estate contract?
• What is the main purpose of a condominium resale certificate?
• What happens if a buyer does not fulfill the earnest money deposit requirement?
• Which paragraph states that a seller cannot execute any lease without the buyer's permission after the execution date?
• What is typically included in a title policy exception related to taxes?
• What does "joint tenancy" imply in property contracts?
• What type of guidelines does HUD create regarding occupancy standards?
• Under what condition does a seller have a right to terminate a lease prior to closing?
• In what scenario might a homeowner consider the services of an HOA?
• How does TILA promote consumer protection in lending?
• Does the contract allow sellers to continue showing properties for backup offers during the contract termination period?
• What requirement must be met for a contract to be considered valid?
• What is required for a seller to execute a lease after an execution date?
• What are "addenda" in real estate contracts?
• What does the term "earnest money" mean?
• Which type of insurance is crucial for FHA loans?
• In TREC's promulgated contracts, which sections include "time is of the essence" language?
• What is a "non-compete clause" in a real estate contract?
• Which paragraph advises a buyer to seek legal review of the abstract of title?
• Why is "property description" critical in a contract?
• Are a landlord's rules against smoking on a property considered legal?
• What are the essential elements required for a valid contract?
• What is a "real estate contingencies clause"?
• How long must a murder/suicide be disclosed when selling a property?
• In the event of a disagreement about earnest money, which entity should be contacted for resolution?
• True or False: A buyer retains the right to terminate a contract from the original effective date even after receiving a new offer.
• Can a seller include items that are not fully paid off into a Non-Realty Items Addendum?
• Which aspect is NOT typically managed by a homeowners association (HOA)?
• What term refers to amendments that alter the standard coverage in a title policy?
• Which contract is typically used for transactions involving single-family homes?
• What is the primary distinction between void and voidable contracts?
• Who signs the Notice of Buyer's Termination Contract?
• What is the purpose of a Residential Real Property Affidavit?
• What is a provision in a deed that limits the use of property?
• If a seller is selling a property that is under lease, what is the timeframe to provide the signed lease to the buyer?
• What action should a buyer's agent take if both parties can't agree on who receives the earnest money after a real estate transaction fails?
• If the agent's commission is set higher in the seller agreement than in the buyer representation agreement, which would be used?
• Who does the Short Sale Addendum protect?
• What document must a broker keep for three years following a sale?
• What type of contract is characterized by a specific offer and acceptance?
• Which term describes a contract that can be voided by one party due to specific conditions?
• What is the purpose of a contingency addendum in a residential contract?
• What is a required component in the legal description of a Residential Condominium Contract?
• A loan that allows the lender to seize the collateral property as well as pursue other assets of the borrower if the sale does not cover the owed amount is known as what?
• What is "liquidated damages" in a contract?
• What does "default" mean in the context of contracts?
• How long does a buyer have to terminate a contract after receiving an Addendum for Property Subject to Mandatory Membership in an Owner's Association?
• Which addendum allows a seller to negotiate with a second buyer if the first buyer's transaction falls through?
• In real estate contracts, what does "earnest money" signify?
• To whom should option money be delivered in a real estate transaction?
• What rule prevents a party from introducing oral or written statements made before or at the time of signing a contract that contradict the written terms?
• Who is responsible for signing the Notice of Termination Contract?
• In contract law, what does "specific performance" refer to?
• Which term refers to a contract that appears valid but can be disaffirmed under certain conditions?
• Which document must be in writing according to the Statute of Frauds?
• In a sales contract, what does the term "earnest money" typically refer to?
• Does the Notice of Buyer's Termination Contract address earnest money requirements?
• To sell a townhouse, which contract is typically utilized by an agent?
• What is the relationship between earnest money and the purchase price?
• In matters concerning mineral rights, who should be consulted?
• What role does the 'Parole Evidence Rule' serve in contract law?
• Who should create the documents for a buyer who wants to present an offer "lease option to buy"?
• In which paragraph is the option period typically addressed in a residential contract?
• What form is used by a seller who wants to utilize an existing survey while ensuring the boundaries have not changed?
• What action can a buyer take within 3 days of receiving subdivision or HOA information?
• What is the purpose of contingency clauses in contracts?
• Do any changes to a contract need to be initialed by the parties involved?
• When does the right to terminate begin in a Short Sale addendum?
• Where is a copy of the title notice found?
• What is an "exclusive right to sell" listing?
• When must an agent deposit an earnest money check with an escrow agent?
• When is the earnest money required to be delivered to the title company in a Short Sale?
• What is a "seller's disclosure notice"?
• What is an "unconscionable contract"?
• When can buyers typically waive their right to an inspection?
• Which addendum is used to include additional personal property that the client wishes to remain with the property?
• What is the maximum number of days a buyer has to withdraw from an offer before a negotiation is finalized, according to standard practice?
• Which paragraph specifies repairs that must be completed by the seller before closing?
• How is "marketable title" defined?
• Which of the following is true about UFMIP?
• Which paragraph grants the buyer the right to an inspection?
• What is the primary use of Paragraph 2 in a standard contract?
• Which contract should not be utilized for properties that involve ranching or farming with existing mineral estates?
• Which contract is appropriate for the purchase of a newly constructed home?
• Are the members of the Broker-Lawyer Committee or members of TREC appointed by a governor?
• If nothing is added to paragraph 7D, the buyer is accepting the property in what condition?
• What does "breach of contract" mean?
• What type of item is considered personal property that will not transfer in a real estate transaction?
• If a property is occupied solely by individuals over 62 years of age, they are exempt from which regulation?
• Who creates the standards for occupancy?
• How many days does a seller have to cure a valid objection listed by the buyer?
• Which paragraph in the 1-4 Family Residential Agreement specifies the "on or before" closing date?
• What aspect is typically covered under a financing contingency?
• What distinguishes TREC's promulgated forms from approved forms?
• How many promulgated forms does the Texas Real Estate Commission (TREC) have?
• What does a buyer have to do if the seller's property is in a special statutory tax district?
• What does the LTV ratio represent in a real estate transaction?
• In the Reservation of Oil, Gas, and Other Minerals Addendum, where should a seller's percentage be indicated if they wish to retain part?
• Which of the following is a required disclosure regarding a murder/suicide incident in a property sale?
• What characterizes "capacity" in a contract?
• If a seller wants to retain a chandelier, where should this information be specified in the 1-4 Family Residential Contract?
• True or False: If there is an active lease on the property, the seller is required to provide a copy of the lease to the buyer within 7 days after the effective date.
• What is an important factor that distinguishes non-recourse loans from recourse loans?
• What is an example of an agent giving their buyer client half of their commission without disclosing it on the settlement statement?
• What is the difference between a leasehold estate and freehold estate?
• Which of the following best defines a homeowners association (HOA)?
• In real estate transactions, what can escrow provide for both parties involved?
• What is included in Paragraph 2 of a standard real estate contract?
• What does the term "subordination" refer to in lease agreements?
• Which of the following is a valid reason for a seller to cure an objection?
• In which type of contract would you find stipulations regarding surface leases?
• What is the primary purpose of the Truth in Lending Act (TILA)?
• In a Short Sale, when must the option money be delivered to the seller or seller's agent?
• Explain "disclosure" requirements in real estate transactions.
• Which paragraph details that a buyer accepts property "as is" and with all defects?
• In real estate transactions, what does "escrow" refer to?
• Which of the following contracts would typically be deemed void?
• Additions to a title policy are called what?
• What rule prevents a party from introducing evidence that contradicts the written terms of a contract?
• Who benefits from title insurance during a real estate transaction?
• True or False: A countered offer is considered rejected and no longer valid.