Contracts accounts for 9 scored questions on the Texas State Law exam. These 15 free practice questions cover TREC contracts and addenda, the Statute of Frauds and seller disclosures. Work through form selection, payment deadlines and termination rights, then check each answer against its official source. Take the quiz without signing up, or study the explanations one question at a time.
15 questions on texas contracts & forms, scored, each with a full explanation after you answer. Every question is also written out below if you would rather study at your own pace.
15 questions
~11 min
Texas State Law practice only
No signup is required. Use the app later if you want fresh questions, saved diagnostics, and progress across every exam area.
Study mode · Texas rules
Work through the questions at your own pace.
Choose an answer mentally, then open its explanation. Each question has a source and a point to watch. These are original practice questions, not Pearson VUE exam items or a prediction of your result.
1
Match the contract to the property
A Texas sales agent is negotiating the resale of an existing duplex for a buyer. It is not a condominium or a farm and ranch transaction, and no Rule 537.11 exception applies. Which base contract should the agent use?
A.TREC Residential Condominium Contract (Resale).
B.TREC One to Four Family Residential Contract (Resale), Form 20-19.
C.TREC New Home Contract (Completed Construction), for a builder's sale.
D.TREC Unimproved Property Contract, with an attachment describing the duplex.
Check answer and explanation
Correct answer: B. TREC One to Four Family Residential Contract (Resale), Form 20-19.
Rule 537.11 requires the appropriate mandatory form unless an exception applies. Form 20-19 covers the resale of a single-family home, duplex, triplex or fourplex. TREC lists this version as effective July 1, 2026. Select any needed addenda separately.
Watch for this: Two dwelling units do not make the property a condominium. Use the ownership and transaction facts, not just the number of doors.
Rule: TREC Rules 537.11(a), 537.28; TREC Form 20-19
A buyer plans to build one single-family residence on an unimproved residential lot. No farm or ranch use or Rule 537.11 exception is involved. Which TREC base form fits?
A.The residential resale form, because the buyer intends to live there.
B.The Farm and Ranch Contract, because there is no house on the lot.
C.The completed new-home form, because a house will eventually be built.
D.The Unimproved Property Contract, Form 9-18.
Check answer and explanation
Correct answer: D. The Unimproved Property Contract, Form 9-18.
Rule 537.20 adopts Form 9-18 for unimproved property intended for one to four family residences. The proposed use matters. A vacant tract is not automatically a farm and ranch transaction, and a planned house is not an existing improvement.
Watch for this: Match the property being sold now and its intended use. Do not choose a house contract merely because construction is planned.
A buyer asks a sales agent who is not an attorney to create a new cancellation right. No applicable approved addendum addresses it. What should the agent do?
A.Advise the buyer to consult an attorney rather than draft the clause.
B.Write it in Special Provisions after the buyer confirms approval by email.
C.Recommend wording from a prior transaction after changing the names.
D.Explain the clause's legal effect and let the buyer select the final wording.
Check answer and explanation
Correct answer: A. Advise the buyer to consult an attorney rather than draft the clause.
Rule 537.11(b)(5) prohibits drafting or recommending language that defines or affects legal rights, obligations or remedies, including contingency clauses. Subsection (e) calls for advising the principal to consult an attorney about unusual matters. A client's approval does not authorize the agent to invent legal language.
Watch for this: Special Provisions is not a license to practice law. Distinguish recording a factual detail from creating a legal right.
Before either party signs a proposed contract, the seller specifically instructs the agent in writing to strike an identified sentence. The agent does not choose the wording or give legal advice. How must the deletion be shown under Rule 537.11(d)(2)?
A.Only in an email to the seller, leaving the proposed contract unchanged.
B.In a clean copy that conceals the removed sentence from the other party.
C.Conspicuously, for example by striking through the identified sentence.
D.Only in the agent's private notes until the parties reach the closing table.
Check answer and explanation
Correct answer: C. Conspicuously, for example by striking through the identified sentence.
The rule permits a conspicuous addition or deletion at a principal's specific written instruction. It does not authorize the agent to originate legal wording or advise on its effect. This question concerns an unsigned proposal, not permission to alter an executed agreement without the other party.
Watch for this: Both the specific written instruction and the visible change matter. 'Only fill in blanks' misses this narrow provision.
An unmodified Form 20-19 contract becomes effective on Thursday. No relevant day is a defined Legal Holiday. By when must the buyer deliver the initial earnest money and option fee to the escrow agent?
A.Sunday at 5 p.m., three calendar days after the effective date.
B.By the end of Monday, because the third day falls on Sunday.
C.Tuesday at 5 p.m., after three working days have elapsed.
D.By the end of Friday, because a weekend interrupts the delivery period.
Check answer and explanation
Correct answer: B. By the end of Monday, because the third day falls on Sunday.
Paragraph 5A starts with three days after the effective date: Friday, Saturday and Sunday. Under 5A(2), a last day falling on Saturday, Sunday or a defined Legal Holiday extends to the end of the next day that is none of those. Here, that is Monday. Both initial payments go to the escrow agent.
Watch for this: This is a delivery deadline, not the option-termination deadline. Do not replace calendar days with working days or import the separate 5 p.m. cutoff.
Rule: TREC Rule 537.28; TREC Form 20-19, Paragraph 5A and 5A(2)
Under Form 20-19, the buyer has a valid option: an option-fee amount is stated and paid on time. The negotiated option period ends on Sunday. The buyer properly gives the seller termination notice at 4:30 p.m. Sunday, local time where the property is located. What does Paragraph 5B provide?
A.The earnest money is refunded; the option fee is not refunded.
B.Both payments are refunded because notice arrived before the deadline.
C.The earnest money is forfeited because termination occurred on a weekend.
D.Termination waits for the seller to sign an amendment accepting the notice.
Check answer and explanation
Correct answer: A. The earnest money is refunded; the option fee is not refunded.
Notice was given before the 5 p.m. local deadline on the last option day. Paragraph 5B provides for refund of earnest money, not the option fee. The weekend extension in 5A(2) concerns delivery of the payments; it does not extend this Sunday option-termination deadline. The refund right is not a promise of an immediate escrow payout.
Watch for this: Identify the right being exercised and its clock. Do not assume every contract deadline rolls forward to Monday.
Both parties execute a back-up contract using Addendum 11-9 while the first contract remains in place. Which statement correctly describes the back-up buyer's initial duties?
A.No binding contract or initial payment duty exists until the first sale fails.
B.The contract is binding, but all earnest money waits for the first termination.
C.Only the option fee is due now; initial earnest money waits until closing.
D.The contract is binding, and initial payments follow its Paragraph 5.
Check answer and explanation
Correct answer: D. The contract is binding, and initial payments follow its Paragraph 5.
Paragraph A makes the back-up contract binding upon execution and requires the initial earnest money and any option fee under its Paragraph 5. Paragraph G suspends other performance while the first-contract contingency remains, except as the addendum provides. Under H, the Amended Effective Date is when the seller delivers notice of the first contract's termination to the back-up buyer.
Watch for this: Do not treat a back-up contract as an unpaid reservation. Read the addendum's initial-payment and any additional-payment terms separately.
Rule: TREC Rule 537.22; TREC Form 11-9, Paragraphs A, G-H
A buyer agrees to pay cash for a Texas house. No financing is involved. Which statement describes the ordinary Statute of Frauds requirement for this real estate sale?
A.A writing is required only when a lender will record a lien on the house.
B.A writing is required only if the buyer plans to use the house commercially.
C.The agreement or memorandum must meet Section 26.01's writing and signature requirements.
D.An oral agreement satisfies the statute if the buyer can prove sufficient cash funds.
Check answer and explanation
Correct answer: C. The agreement or memorandum must meet Section 26.01's writing and signature requirements.
Section 26.01(b)(4) covers a contract for the sale of real estate, whether cash or financed. Subsection (a) requires a writing signed by the person against whom enforcement is sought or a lawfully authorized signer. This tests the statutory rule, not whether a court might recognize an exception in a disputed case.
Watch for this: The issue is enforceability under the statute, not a blanket claim that every oral agreement is void.
Rule: Texas Business and Commerce Code 26.01(a), (b)(4)
Consider four leases made today, each starting today with no separate promise to extend it. Which fixed term falls within Section 26.01(b)(5), the provision for leases longer than one year?
A.A six-month term, because all residential tenancies require a writing.
B.A two-year term, because it exceeds one year.
C.A one-year term, because exactly one year satisfies 'longer than one year.'
D.A nine-month term, because crossing December 31 requires a writing.
Check answer and explanation
Correct answer: B. A two-year term, because it exceeds one year.
A two-year lease exceeds the one-year threshold in subsection (b)(5). Exactly one year does not. The immediate start matters: subsection (b)(6) separately covers agreements not performable within one year from the date they are made. Other writing requirements can also apply.
Watch for this: Do not turn 'longer than one year' into 'one year or longer,' or assume a future start date never matters.
Rule: Texas Business and Commerce Code 26.01(a), (b)(5)-(6)
A buyer seeks to enforce a real estate sale agreement against the seller. Looking only at Section 26.01(a)(2)'s signature requirement, whose signature must the writing carry?
A.The seller's, or that of a person lawfully authorized to sign for the seller.
B.The buyer's alone, because the buyer is the person asking for enforcement.
C.The escrow agent's, because that person will hold the transaction funds.
D.The listing agent's in any capacity, because a listing always grants signing authority.
Check answer and explanation
Correct answer: A. The seller's, or that of a person lawfully authorized to sign for the seller.
The seller is the person to be charged: the person against whom enforcement is sought. The seller or a lawfully authorized signer must satisfy this signature requirement. That is one requirement, not a guarantee of contract formation or enforceability. Mutual assent and other applicable requirements still matter.
Watch for this: A signature test is not the whole contract-validity test. Do not assume a real estate license or listing automatically authorizes signing for a principal.
Rule: Texas Business and Commerce Code 26.01(a)(2)
Buyer and seller have an executed Form 20-19 contract. They want to change its stated closing date by agreement, with no automatic extension provision involved. What is the appropriate way to document that change?
A.Give a buyer termination notice, with the preferred new closing date added.
B.Attach an inspection report naming the date without obtaining the parties' agreement.
C.Rely on a recorded phone call between the two agents as the completed amendment.
D.Use the written Amendment to Contract, Form 39-11, signed by the parties.
Check answer and explanation
Correct answer: D. Use the written Amendment to Contract, Form 39-11, signed by the parties.
Paragraph 22 requires the parties' written agreement to change the contract. TREC's current Amendment to Contract is Form 39-11, effective July 1, 2026, and includes a closing-date change. A notice exercising an existing right is not the same as an agreed amendment.
Watch for this: Read whether the question calls for changing an obligation or exercising a right already granted. The form's function matters more than its label.
Rule: TREC Rules 537.28, 537.46; TREC Form 20-19, Paragraph 22; TREC Form 39-11
Before considering transfer exemptions, which property falls within the residential scope of Texas Property Code 5.008(a)?
A.An existing duplex containing two separate dwelling units.
B.A residential fourplex containing four separate dwelling units.
C.An existing single-family home containing one dwelling unit.
D.A twenty-unit apartment building sold to an individual investor.
Check answer and explanation
Correct answer: C. An existing single-family home containing one dwelling unit.
Section 5.008(a) covers Texas residential real property with not more than one dwelling unit. Subsection (e) then lists exempt transfers. A one-unit house fits the starting scope; the two-, four- and twenty-unit properties described do not.
Watch for this: Form 20-19's one-to-four-family scope is not the same as Section 5.008's condition-notice scope.
A required Section 5.008 condition notice arrives three days after a Form 20-19 contract becomes effective. Paragraph 7B(2) applies, and closing is more than seven days away. When may the buyer terminate under this late-notice right?
A.For any reason within seven days after receiving the notice.
B.Only within three days after receiving the notice, like initial earnest money.
C.Only before the contract's effective date, because the buyer has already signed.
D.For seven days after the notice was mailed, regardless of when it was received.
Check answer and explanation
Correct answer: A. For any reason within seven days after receiving the notice.
Section 5.008(f) requires delivery on or before the contract's effective date and gives a seven-day termination right after receipt when the required notice was missing. Paragraph 7B(2) specifies seven days after receipt or before closing, whichever occurs first, with earnest money refunded. Here, closing is later than that seven-day window.
Watch for this: This right is separate from the negotiated option period. Start with receipt, not mailing or the original effective date.
Rule: Texas Property Code 5.008(f); TREC Form 20-19, Paragraph 7B(2)
Which transfer is expressly exempt from the Section 5.008 condition-notice requirement?
A.A resale for cash by an owner who has occupied the home.
B.A transfer by a trustee in bankruptcy.
C.A resale by an individual investor solely because the investor never lived there.
D.A resale above the neighborhood's average price solely because of that price.
Check answer and explanation
Correct answer: B. A transfer by a trustee in bankruptcy.
Section 5.008(e)(2) lists a transfer by a trustee in bankruptcy. Cash payment, price and non-occupancy alone are not listed exemptions. An exemption from this condition notice does not mean every separate contractual or statutory disclosure requirement disappears.
Watch for this: Identify the transfer category. 'I never lived there' is not a universal notice exemption.
Rule: Texas Property Code 5.008(e)(2); TREC Form 20-19, Paragraph 7I
A Form 20-19 resale requires the Section 5.008 condition notice and the Paragraph 7I water disclosure. No applicable exemption applies. Which statement correctly separates Forms 55-1 and 61-0?
A.Both forms are optional, so the seller may omit both required disclosures.
B.Form 61-0 replaces the condition notice whenever the property has a water well.
C.Form 55-1 is a voluntary way to meet the condition duty; use 61-0 for the required water disclosure.
D.Form 55-1 is mandatory in every property sale, while 61-0 is only an optional inspection report.
Check answer and explanation
Correct answer: C. Form 55-1 is a voluntary way to meet the condition duty; use 61-0 for the required water disclosure.
Rule 537.62 approves Form 55-1 for voluntary use to fulfill Section 5.008; the statute also permits a substantially similar notice containing at least its required items. Rule 537.68 adopts Form 61-0 for mandatory use. Paragraph 7I governs the water disclosure in this contract and has its own exemption test. One form does not replace the other.
Watch for this: Voluntary use of a particular condition-notice form does not make the underlying duty optional. Nor is water disclosure a blanket requirement for every Texas property sale.
Form 20-19 covers one-to-four-family resale. Unimproved property intended for one-to-four-family residences points to Form 9-18. Check the applicable form-use exceptions.
Paragraph 5A extends the last payment-delivery day when it falls on a weekend or defined Legal Holiday. Paragraph 5B's option notice has a separate 5 p.m. local deadline, with no automatic weekend extension.
The contract is binding upon execution. Initial earnest money and any option fee follow Paragraph 5, even while the first-contract contingency remains.
The writing needs that person's signature or a lawfully authorized signature. Meeting this requirement alone does not guarantee formation or enforceability.
An agreed change to the closing date calls for a written amendment. A termination notice exercises an existing right; it does not negotiate a new closing date.
The Section 5.008 condition notice and Paragraph 7I water disclosure have different purposes and exemptions. A voluntary condition-notice form does not make a required disclosure optional.
Use the current form and the facts in the question. This summary does not cover every addendum or exception, and a practice score is not a pass prediction.
Know the scope
How this set fits the Texas State Law outline.
The official topic has 9 scored items. The counts below describe our 15-question sample, not a promise of which questions you will see. Pearson does not publish per-subtopic item counts or a cognitive mix for this State topic.
Texas Contracts & Forms: official groups and our sample counts
Texas subtopic
Our questions
Promulgated Contracts, Forms, and Addenda
7
Statute of Frauds
4
Seller Disclosure Requirements
4
A sample is not complete coverage of every possible question. See Pearson VUE's Texas Sales Agent outline, section V. Sources beside each answer explain the underlying principle. Texas-specific rules and examples link to their own authority.
Before choosing an answer, identify what changed: the property type, the deadline, the person signing or the required notice. Two rules can mention the same number of days and still start on different dates.
These are original practice questions with hypothetical transactions, not Pearson VUE questions or actual cases. They cover all three Sales Agent outline groups, but not every form, rule or exception. Your score is a study checkpoint, not a calibrated prediction of passing.
Pearson assigns nine scored items to this State topic without publishing a per-subtopic count or cognitive mix. Our seven form questions, four writing questions and four disclosure questions are study coverage, not official exam quotas.
Choose what to study next.
Start with the lesson behind a missed question, then try another problem without notes.
The Sales Agent outline assigns 9 scored State Law items to three groups: Promulgated Contracts, Forms, and Addenda; Statute of Frauds; and Seller Disclosure Requirements. Pearson does not publish a separate quota for each group. These 15 questions sample all three, not every possible test question.
Are these current TREC forms or older versions?
The questions use Form 20-19 for residential resale, 9-18 for unimproved residential property, 11-9 for a back-up contract and 39-11 for an amendment. Those versions took effect July 1, 2026. The facts cutoff is September 5, 2026; sources were checked September 7. Check the linked TREC page before using a form in an actual transaction.
Does an option deadline move to Monday if it ends on Sunday?
Not automatically under unmodified Form 20-19. Paragraph 5A(2)'s weekend and defined Legal Holiday extension applies to payment delivery. Paragraph 5B's option-termination notice is due by 5 p.m. local time where the property is located on the last option day. A valid option and proper notice are still required.
Can a license holder change printed TREC contract language?
Rule 537.11(d)(2) permits a conspicuous addition or deletion at a principal's specific written instruction. It does not let an agent invent legal wording or advise on its effect. Changing an unsigned proposal is also different from amending an executed contract, which requires the parties' written agreement.
Is a seller who never lived in the home exempt from disclosure?
Non-occupancy alone is not a Section 5.008 exemption. Check the property scope and the listed transfer exemptions. The notice reflects the seller's knowledge and belief when completed and signed; the statute provides for identifying unknown information. The condition notice and water-rights disclosure have separate requirements.
Is the water disclosure required just because a home uses city water?
City water alone does not resolve Paragraph 7I of Form 20-19. Its exemption requires all five stated conditions, including the seller's lack of awareness of specified wells, surface-water features, surface-water authorizations and severed, sold or leased groundwater rights, plus the specified water-supply condition. Read the full checklist in the linked form.
Can I keep studying in the web or mobile app?
Yes. Use Open the web app to continue in your browser, or choose the mobile app for iPhone, iPad or Android. This free website quiz result does not transfer to the app. Selected activities are free; full access is paid. You can explore the app before deciding whether to upgrade.
Sources and review notes
Reviewed September 7, 2026 for rules effective through September 5, 2026. The questions distinguish the Sales Agent syllabus from the Texas rules and forms used to explain it. TREC's rule display is provided as a courtesy and links to the Secretary of State's official Texas Administrative Code. All scenarios are original and hypothetical. These explanations are for exam study, not legal advice for a transaction. This page is exam preparation, not advice for a transaction.
Use the source beside an answer to check the specific rule.
