Exam (elaborations)
PROMULGATED CONTRACTS QUESTIONS AND ANSWERS
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PROMULGATED CONTRACTS QUESTIONS AND ANSWERS
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PROMULGATED CONTRACTS QUESTIONS ANDANSWERS
Name four of the elements of a valid contract? - Answers-Competent Parties,
Consideration, Mutual Agreement & Lawful Objective. Also, In Writing & Signed by
Parties, & Legal Description.
Give an example of a void contract. Of a voidable contract? Unenforceable? - Answers-
a. a contract for an illegal purpose. b. a contract with a minor. c. an oral contract for
commissions.
The power of attorney granting authority to transfer title to real property must do what? -
Answers-Must recite the legal description of the subject of the authority.
Texas courts have ruled that a promise exchanged for a promise is adequate
consideration for creating a binding agreement, and therefore, a? - Answers-Contract.
Many people incorrectly believe that depositing what is necessary to create a valid
contract? - Answers-Earnest Money.
The Statute of Frauds requires that all agreements affecting title to real estate in Texas
must be what in order to be enforceable in a court of law? - Answers-In writing and
signed by the parties.
When determining between bilateral and unilateral contracts, purchase contracts are
examples of which type of contracts? And an option to terminate? - Answers-Bilateral.
Unilateral.
Which TREC promulgated addenda include the clause "time is of the essence?" -
Answers-The Addendum For Sale of Other Property by Buyer, The Back-Up Contract,
Third Party Financing Addendum, and the Short Sale Addendum.
Which TREC addendum is used to change or modify the existing content of a contract,
such as extending a closing date or negotiating repairs? - Answers-The Amendment
Form.
In Texas, the statute of limitations for filing a lawsuit for an oral contract, such as a
month-to-month lease, is how many years? - Answers-Two
In Texas, the statute of limitations for filing a lawsuit for a written contract, such as to
recover damages or enforce specific performance, is how many years? - Answers-Four
What are the 4 exceptions where license holders are not required to use the TREC
promulgated contract forms? - Answers-1) When he/she is acting solely as a principal,
2) when a government agency requires it, 3) when the contract form has been prepared
, by the principal or his attorney, and 4) when no standard contract from has been
promulgated by TREC.
Name three activities in which a license holder may be charged with unauthorized
practice of law. - Answers-1) Giving legal opinions regarding legal matters or of the
validity of title, 2) writing in business details into the contract which TREC has already
addressed either in the contract or in an approved form, and 3) personally changing any
wording in a promulgated form.
If a seller or buyer asks their agent to use the client's own contract but wants the agent
to complete it by filling in the blanks, would this qualify as an exception to using the
TREC promulgated form? - Answers-No. The contract must be prepared and completed
by the principal.
In Texas, who is allowed to give opinions concerning the status or validity of title to real
estate? - Answers-An attorney.
Only the TREC has been given rule making authority to promulgate all real estate
contract forms and addenda, but who develops, authors, and revises these forms and
recommends to TREC for their approval? - Answers-The Texas Broker-Lawyer
Committee.
Name the 6 TREC promulgated contract forms. - Answers-1) The 1-4 Family
Residential, 2) The Unimproved Land, 3) The New Home Incomplete, 4) The New
Home Complete. 5) The Farm and Ranch, and the 6) Residential Condominium
Contracts.
What type of seller financing transaction is NOT addressed by a TREC-promulgated
form? - Answers-The contract for deed.
TREC promulgates only two resale certificates - one for Properties Subject to
Mandatory Membership in an HOA, and another one for which other type of property? -
Answers-Condominiums.
A potential buyer may withdraw his offer, in writing, any time prior to what? - Answers-
Buyer notification of Seller acceptance
How and when must a seller instruct the seller's agent not to present verbal or back-up
offers? - Answers-In writing and preferably at the time of listing
With reference to multiple offers, TREC rules require that a listing agent submit which
offers? - Answers-All offers until the seller accepts one.
What must a seller do if they have countered an offer from a buyer, but then receives a
better offer while the counter is still in transit? - Answers-Withdraw the counter before
answering the new offer.
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