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 addenda. Which response best applies the rule? (Item 240)
Answer choices
- A. The broker may mix client funds with business funds if the amount is small and later reconciled.
- B. The issue can be ignored if both parties want the transaction to close quickly.
- C. The rule applies only to commercial property and never to residential property.
- D. Identify when addenda modify base contract obligations.
Correct Answer
D. Identify when addenda modify base contract obligations.
Explanation
The correct answer is D because addenda requires candidates to identify when addenda modify base contract obligations. 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: hard
- Domain: Contracts and Promulgated Forms
- Objective: addenda