Contracts and Promulgated Forms Practice Question

Question

An agent notices a possible issue before a contract is signed in a Texas real estate transaction involving option period. Which answer best reduces transaction risk? (Item 101)

Answer choices

1. A. Understand buyer termination rights tied to option fee and timing concepts.
2. B. A verbal understanding always replaces any written requirement in a real estate transaction.
3. C. The licensee should avoid documenting the issue to reduce the chance of later questions.
4. D. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.

Correct Answer

A. Understand buyer termination rights tied to option fee and timing concepts.

Explanation

The correct answer is A because option period requires candidates to understand buyer termination rights tied to option fee and timing concepts. 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: easy
• Domain: Contracts and Promulgated Forms
• Objective: option period

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