Contracts and Promulgated Forms Practice Question
Question
A broker reviews a transaction file with a new salesperson in a Texas real estate transaction involving TREC forms. Which response best applies the rule? (Item 182)
Answer choices
- A. The requirement matters only if the buyer uses lender financing.
- B. Recognize when license holders must use promulgated forms rather than drafting legal instruments.
- C. The salesperson may handle the matter independently without broker involvement when compensation is expected.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Recognize when license holders must use promulgated forms rather than drafting legal instruments.
Explanation
The correct answer is B because TREC forms requires candidates to recognize when license holders must use promulgated forms rather than drafting legal instruments. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Texas exam practice.
Question details
- Difficulty: medium
- Domain: Contracts and Promulgated Forms
- Objective: TREC forms