AceableAgent Promulgated Contracts Practice Test

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