TREC TREC Contract Forms

Question 1

Which entity promulgates the standard real estate contract forms used in Texas?

Accepted Answer

Texas Real Estate Commission (TREC)

Answer

Texas Association of Realtors

Answer

Texas Department of Housing

Answer

National Association of Realtors

Question 2

What is the name of the TREC form used for the purchase of a residential property with an existing structure?

Accepted Answer

TREC Form 1-4

Answer

TREC Form 9-13

Answer

TREC Form 20-15

Answer

TREC Form 30-12

Question 3

Under TREC rules, when is a licensee permitted to use a form NOT promulgated by TREC?

Accepted Answer

When an attorney-drafted form is provided for a specific transaction

Answer

When the client requests it

Answer

Whenever the licensee prefers

Answer

For commercial transactions only

Question 4

In a TREC contract, the 'Third Party Financing Addendum' is used when:

Accepted Answer

The buyer obtains a conventional, FHA, or VA loan

Answer

The buyer pays cash

Answer

The seller carries the note

Answer

A lease option is involved

Question 5

What does the 'Option Period' in a Texas TREC contract allow the buyer to do?

Accepted Answer

Terminate the contract for any reason within an agreed timeframe

Answer

Lock in the purchase price for 30 days

Answer

Extend the closing date automatically

Answer

Negotiate a lower earnest money deposit

Question 6

How must earnest money be handled after a TREC contract is executed?

Accepted Answer

Deposited with the title company or escrow agent within the time stated in the contract

Answer

Held by the listing agent personally

Answer

Given directly to the seller

Answer

Held in the buyer's bank account