Contracts and Promulgated Forms Practice Question

Question

A buyer asks a licensee for an exam-focused explanation in a Texas real estate transaction involving one to four family contract. What should the licensee understand? (Item 291)

Answer choices

1. A. The party who complains first automatically receives the legal remedy requested.
2. B. Escrow automatically assumes all brokerage disclosure and agency duties.
3. C. Identify common provisions in the Texas residential resale contract.
4. D. The client’s preference eliminates the need to disclose known material facts.

Correct Answer

C. Identify common provisions in the Texas residential resale contract.

Explanation

The correct answer is C because one to four family contract requires candidates to identify common provisions in the Texas residential resale contract. 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: one to four family contract

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