Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What can a contract be voided due to in real estate?

1. Disinterest of the buyer

2. Failure to provide disclosures

3. A minor showing interest

4. Property location

The correct answer is: Failure to provide disclosures

A contract can be voided due to the failure to provide necessary disclosures because real estate transactions are heavily regulated to protect all parties involved. In Texas, sellers are required to disclose specific information about the property to potential buyers, including any known defects or issues that could affect the property's value or livability. If these disclosures are not made, it can be deemed that the buyer was not given a fair opportunity to make an informed decision, thereby impacting the validity of the contract. When required disclosures are omitted, the contract may be considered voidable at the discretion of the buyer, as they may have relied on incomplete information when agreeing to the terms. The other options do not typically lead to voiding a contract. For instance, disinterest from the buyer or location of the property do not invalidate a contract; they may influence a buyer’s willingness to proceed, but not the enforceability of the contract itself. Additionally, contracts signed by minors can be voided, but this does not apply to contracts that are valid but signed by a minor who merely expresses interest.