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PROMULGATED CONTRACTS Exam Bundle
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PROMULGATED CONTRACTS PRACTICE EXAM 2023
Agent Ralph has a buyer client that wants the seller to leave them the refrigerator, built-in microwave, and vent hood. Ralph notes this expectation in the... [Show More] Special Provisions section. What is wrong with this scenario? - Answer- It should be written in a Non-Realty Addendum, not in the Special Provisions section. If legal action is required regarding a TREC sales contract, what will the non-prevailing party be responsible for? - Answer- the prevailing party's reasonable attorney fees and court costs What is one exception to HUD's occupancy guidelines of two people per bedroom? - Answer- infants in a room with parents A buyer and seller have been in negotiations. They have everything in writing, have agreed to all terms, the contract is signed and changes initialed. Today, the written acceptance of the final agreement has been communicated to the other party. What is today called? - Answer- the effective date Who is tasked with drafting and editing Texas's promulgated contracts? - Answer- the Broker-Lawyer Committee A seller is planning to convey a refrigerator through the Non-Realty Items Addendum. They financed the applianced purchase, and still have a few payments left. Is this allowed? Why or why not? - Answer- No, items conveyed through the Non-Realty Items Addendum must be owned fully by the seller. In which of these scenarios would it be correct to use the Residential Condominium Contract (Resale)? - Answer- A client is buying a property where the land is not owned individually and the common areas are shared equally among the community's owners. Per Paragraph 7D, what is it called when a buyer accepts the property, "with any and all defects and without warranty"? - Answer- accepting it in "as is" condition A seller is renting back a property from a buyer using the Seller's Temporary Residential Lease. The seller damages the property while they are staying there. Who is responsible for the cost of the repairs? - Answer- the seller/tenant The seller of an unimproved property would provide a disclosure about the property in what location? - Answer- in paragraph 7E of TREC Unimproved Property Contract Agent Ted advises his client that the title to the property he is buying is clear — no need to do a further title search. Why is this inappropriate? - Answer- it may constitute unauthorized practice of law under TRELA. Mary has a rental property with a two year lease on it. She collected a $500 security deposit at the beginning of the lease. Now she is selling the property. What will happen to the security deposit? - Answer- Mary will transfer the security deposit to the buyer at closing. What does the date in the Third Party Financing Addendum provide a deadline to buyers for? - Answer- informing a seller they didn't get their financing approved A contract has an effective date of July 21st, with a seven day option period. What is the latest that contract can be terminated without penalty? - Answer- July 28 at 5 PM When all parties have agreed to all terms of an offer, have signed the offer, and have initialed any changes that took place during negotiations, what happens to the offer? - Answer- it becomes a contract What is the purpose of the Short Sale Addendum? - Answer- to protect a seller who is selling their home for less than they owe their lender A potential buyer's current home is under contract. He has found a home he would like to make an offer on, but does not want to take a chance on being obligated to buy if his current home does not close. What form can help this buyer? - Answer- Addendum for Sale of Other Property by Buyer Emily and Josh signed a real estate contract with each other. The contract is now fully executed. What does that mean that Josh and Emily have done? - Answer- fulfilled the material terms of the contract What is the purpose of TREC form OP-C Notice to Prospective Buyer? - Answer- provides a notice to buyers using their own contract to obtain an Abstract of Title An agent's buyer client wants to keep the curtains in the home they are buying, and the seller has agreed. What does the agent need to include with the contract to ensure this happens? - Answer- A Non-Realty Items Addendum Which is the purpose of the Information About Brokerage Services form? - Answer- to inform clients how a license holder can represent a party in a real estate transaction [Show Less]
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Promulgated Contract Forms QUIZ with correct ANSWERS
QUIZ 1: All oral negotiations are______ - Answer- (A) voluntary The ______ assumes primarily liability for performance under the contract - Answer- (A... [Show More] ) assignee Mutual consent is completed by the process of ______ - Answer- (B) offer and acceptance Which of the following is the buyers primary obligation toward the performance of a real estate contract? - Answer- (C) be ready to pay the agreed-upon price Which of the following contracts is NOT assignable? - Answer- (C) contracts for personal services SCENARIO 1: Which of the following courses of action are not available to the seller? - Answer- (D) if guy can not obtain financing and still wants to purchase the property, the seller has to accept the 80% down payment If guy quickly secured financing and learns he can buy a $180,000 property without the inheritance, which of the following is TRUE about renegotiating the sales contract? - Answer- (C) the seller is under no obligation to renegotiate the sales price and may still seek remedy against guy if he doesn't complete the sale WhT could happen if— a couple of days after the contract was executed— the title company had pointed out that Guy is 17 1/2 years of age? - Answer- (C) guy could chose to void the contract QUIZ 2: Sales agent Nate receives for offers on seller Tim's property in the order in which they were received. After presenting the offers to Tim, Nate sees that a fifth offer was faxed over. What should Nate do? - Answer- (D) present the fifth offer to Tim When a seller agrees to pay for a home warranty as a condition of a sale, the seller has made a(n)_____ - Answer- (C) concession Notification is also referred to as_____ - Answer- (B) communication Imputed Notice: - Answer- (B) under this concept, an offer is presumed to have been delivered to the principal when it is delivered to the agent QUIZ 3: Which of the following is NOT considered an accessory? - Answer- (B) mailbox Exclusions to the cell must be entered in paragraph_______ Of the 1 to 4 family residential contract - Answer- (D) 2D Which of the following is one of the benefits of a loan assumption? - Answer- (D) all of these are benefits of loan assumption Which of the following is NOT included in paragraph 2 property? - Answer- (D) personal property Which one of the following statements is FALSE? - Answer- (A) there is no TREC promulgated form for the sale of personal property QUIZ 4: Who pays for a survey? - Answer- (A) either buyer or seller According to paragraph 6.D. Of the 1 to 4 family contract, if a buyers objections are not cured within______, The contract will terminate unless the buyer waves the objections. - Answer- (C) 15 days A(n) is a change made to a standard insurance policy. - Answer- (B) endorsement The Notice to Prospective Buyer: - Answer- (b) Complies with the TRELA requirement that license holders advise buyers to have an abstract examined or to obtain title insurance. ______ is often 1% of the purchase price of the property - Answer- (A) earnest money QUIZ 5: For a valid option to exist, all of the blanks in paragraph________must be filled in. - Answer- (B) 23 Paragraph ; of the buyers temporary lease states that rental is paid for per____ - Answer- (C) day Settlement and other expenses can be found in paragraph______ of the 1 to 4 family contract. - Answer- (A) 12 QUIZ 6: The___________must be prepared by the condominium owners association no more than three months prior to the date the completed certificate is delivered to the buyer - Answer- (A) condominium resale certificate The new home contract (completed [Show Less]
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Texas Promulgated Contracts-CHAMPIONS STUDY Exam 2023
The elements of a valid contract are, competent parties, consideration, legal subject matter, in writing, and ___________. (a) Default (b) Mutual c... [Show More] onsent (c) Property condition (d) Recording - Answer- B A(n) __________________ contract is defined as a contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed. (a) Executory (b) Executed (c) Bilateral (d) Void - Answer- A In the business of real estate, ___________ is defined as something given in exchange for a promise. (a) Consideration (b) Mutual assent (c) A bribe (d) Legal subject matter - Answer- A The TREC-promulgated contract forms: (a) Are for optional use by real estate licensees (b) Are drafted by the Broker-Lawyer Committee (c) Are promulgated by the legislature (d) Are used in both commercial and residential transactions - Answer- B In a lease with a "right of first refusal" provision: (a) The price is set when the lease agreement is negotiated (b) The tenant has promised to buy the property (c) The TREC promulgated form must be used (d) The tenant has the right to match or better any offer the landlord receives to prevent the property from being sold to someone else - Answer- D TREC has promulgated forms for: (a) lease purchase transactions (b) cooperatives (c) right of first refusal (d) residential transactions - Answer- D An offer can be communicated by ___________________. (a) Phone (b) Hand delivery (c) E-mail (d) All of the above - Answer- D The Third Party Financing Addendum For Credit Approval is used when: (a) The buyer is obtaining FHA financing (b) Paragraph 4.A(2)(a) is checked in the contract (c) The buyer is obtaining VA financing (d) The buyer is obtaining any kind of financing - Answer- D In the Third Party Financing Addendum for Credit Approval: (a) The buyer has no incentive to obtain financial approval (b) The buyer has a definite time to notify seller of the inability to obtain financing approval (c) The buyer's earnest money will not be returned if the buyer does not obtain financing (d) The option period is explained - Answer- B The Third Party Financing Addendum for Credit Approval cannot be used for: (a) VA guaranteed loans (b) FHA insured loans (c) Seller Financing (d) Texas Veterans Loans - Answer- C According to the Seller Financing Addendum, the interest rate is: (a) Set at 6% (b) Negotiated between the parties (c) Set by TREC (d) Determined at closing - Answer- B ___________________ occurs when a buyer assumes and agrees to pay the seller's existing mortgage. (a) Loan assumption (b) Seller liability (c) Seller lien (d) Credit approval - Answer- A Land, improvements and accessories are collectively referred to as: (a) The estate (b) The property (c) The listing (d) The homestead - Answer- B According to the TREC contract, accessories include: (a) Refrigerators (b) Stoves (c) Washing machines (d) Gas dryers - Answer- B Exclusions to the sale must be removed (a) Prior to delivery of possession (b) At the convenience of the seller (c) When the offer becomes a binding contract (d) Two days prior to closing - Answer- A The loan amount in Paragraph 3.B. of the sales contract includes: (a) The amount of the mortgage insurance (b) The loan plus origination fees (c) Only the amount borrowed by the buyer (d) The loan amount minus the earnest money - Answer- C The sales price in 3.C. is always: (a) The loan amount plus the cash portion (b) 3.A. + 3.B. (c) The amount borrowed plus the down payment (d) All of the above - Answer- D The earnest money is: (a) Always 5% of the purchase price (b) Set by TREC (c) Negotiated between the parties (d) Paid at closing - Answer- C The T-47 Residential Real Property Affidavit is not completed until ________________, in most cases. (a) Funding (b) Inspection (c) Closing (d) The listing is taken - Answer- C The __________________ ensures compliance with TRELA, which requires that license holders advise buyers to have an abstract of title examined or to obtain title insurance. (a) Title commitment (b) Notice to Prospective Buyer (c) Seller's Disclosure (d) Inspection report - Answer- A [Show Less]
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Champions Promulgated Contract Forms 2023 Practice Quiz-solved
The five essential elements that must exist for a real estate sales contract to be considered valid and enforceable are: legal purpose, competent parties, ... [Show More] mutual assent, consideration and ____________. (a) Signature of witnesses (b) In writing (c) Acknowledgment by a notary (d) Recording in county clerk's office - Answer- (b) In writing If a contract has been entered into with a person who has been judged to be incompetent, that contract is considered ____________ because that person never had the capacity to enter into it. (a) Executed (b) Valid (c) Voidable (d) Void - Answer- (d) Void Tammy is interested in Jolene's property, but wants to research the zoning laws before purchasing. She has and agreement in which she paid a fee of $10,000 to keep the property available for a preset price for 30 days, during which time Jolene cannot sell the property to another. Tammy, however, can change her mind if she likes. What kind of agreement is this? (a) Bilateral (b) Oral (c) Option (d) Void - Answer- (c) Option All oral negotiations are _________. (a) Voluntary (b) Involuntary (c) Executory (d) Binding - Answer- (a) Voluntary The _________ assumes primary liability for performance under the contract. (a) Assignee (b) Assignor (c) Broker-Lawyer Committee (d) Title company - Answer- (a) Assignee Mutual consent is completed by the process of __________. (a) Consideration (b) Offer and acceptance (c) Default (d) Fraud - Answer- (b) Offer and acceptance Which of the following is the buyer's primary obligation toward the performance of a real estate contract? (a) Convey satisfactory title (b) Negotiate a lower price (c) Be ready to pay the agreed-upon price (d) All of these are the buyer's obligations toward the performance of a real estate contract - Answer- (c) Be ready to pay the agreed-upon price Which of the following contracts is NOT assignable? (a) Most purchase contracts (b) Leases (c) Contracts for personal services (d) All of these are assignable - Answer- (c) Contracts for personal services What is the statute of limitations in Texas to file suit in court for damages for breach of a written agreement? (a) 2 years (b) 90 days (c) 4 years (d) There is no statute of limitations in Texas - Answer- (c) 4 years Bertha, a law school dropout is a licensed real estate agent who wants to make sure that she is providing her buyers with the best representation possible, so she drafts an iron-clad purchase contract for them. Bertha's sponsoring broker is horrified because Bertha is guilty of ___________. (a) Mortgage Fraud (b) Conspiracy (c) Unauthorized Practice of Law [Show Less]
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Promulgated Contracts Practice Test-solved
In which of these scenarios could an HOA foreclose on a property that belongs to the HOA? - Answer- The association can enforce their lien on the property ... [Show More] and foreclose. What is TRUE of a unilateral contract? - Answer- A unilateral contract is a promise exchanged for performance . Which of these is NOT something TREC has the power to do? - Answer- TREC only regulates real estate license holders, not builders. What is the statute of limitations to claim fraud or misrepresentation against a license holder? - Answer- The statute of limitations to claim fraud or misrepresentation against a license holder is 4 years from discovery. George Jr. inherited the family compound after George Sr. died. The will was contested, and some family is still disgruntled. George is now selling the property. How can a buyer best protect themselves from any claims on the title? - Answer- A quitclaim deed will ensure no family later tries to make a claim on the property. When would it be appropriate to use the New Home Contract (Incomplete Construction)? - Answer- You would use the New Home Contract (Incomplete Construction) for a new home that is in the process of being built . Agents are required to give all buyers a written copy of the title notice. Aside from Paragraph 6E(1) of the One to Four Family Residential contract, where else can this notice be found? - Answer- Agent s may give TRELA's notice in Paragraph 6E(l) to every buyer in the TREC promulgated contract form , in the TAR Buyer's Representation Agreement , and the Notice to Prospective Buyer. Seller Xavier's home is in a special statutory tax district. According to the Texas Water Code, what does Xavier have to do before going into contract with a buyer? - Answer- Prior to the final execution of the contract, Xavier must inform the buyer via a notice that they sign of the extra t axes they'll be required to pay. Buyer Javier sends a formal offer to Seller Joy: $250,000 and the appliances stay. Joy counters: $250,000, no appliances. She then reconsiders and accepts the first offer. Is Javier obligated to buy the home? Why or why not? - Answer- Once an offer is countered, it is considered rejected and is terminated. Which of these is appropriate to put in the Special Provisions section of the One to Four Family Residential Contract? - Answer- The Special Provisions section of the One to Four Family Residential Contract provides space for the addition of contract terms that are not already included in the sales contract, or for which a TREC promulgated form does not already exist. The names of sellers that wouldn't fit in Paragraph 1 A seller is planning to convey a refrigerator through the Non-Realty Items Addendum. They financed the applianced purchase, and still have a few payments left. Is this allowed? Why or why not? - Answer- The seller CANNOT convey items that are not fully paid off. The buyer should not be taking on any payments for the non-realty items. No, items conveyed though the Non-Realty Items Addendum must be owned fully by the seller How can an agent change a contract after it has been signed by both parties? - Answer- An amendment to contract is used to change an already-signed contract. Which of these is an example of something that could go in Paragraph 12 of the One to Four Family Residential Contract? - Answer- In paragraph 12B, Settlement and Other Expenses , each party's closing expenses are noted . The seller plans to pay some of the buyer's closing costs According to the Environmental Assessment, Threatened or Endangered Species, & Wetlands Addendum, what happens if the buyer can provide the seller with a report proving that the use of the property is negatively affected by one of the noted factors (before the agreed-upon deadline)? - Answer- The buyer can terminate the contact and get their earnest money back. In loan fraud, the lender is usually the ________. - Answer- The victim of loan fraud is usually the lender. Why does the Notice of Buyer's Termination of Contract only have to be signed by the buyer? - Answer- The Notice of Buyer's Termination of Contract needs to be signed by the buyer only because the buyer's termination rights are in the contract. The seller does not need to approve. TRELA empowers TREC to require license holders to use certain contract forms. Which of these would NOT meet TREC's requirements? - Answer- Brokers cannot create contracts, only lawyers , sell rs, and the Broker-Lawyer Committee (the people who create TREC's promulgated contracts). What is one way that a homebuyer can locate any physical faults that may affect the safety or value of a home before purchasing it? - Answer- A home inspection attempt to locate any physical faults that may affect the safety or value of a home What part of the One to Four Family Residential Contract advises the buyer to get an abstract of title reviewed by a lawyer? - Answer- Title Notice under Paragraph 6El of the One to Four Family Residential Contract advises the buyer to get an abstract of title reviewed by a lawyer A buyer and seller have been in negotiations. They have everything in writing, have agreed to all terms, the contract is signed and changes initialed. Today, the written acceptance of the final agreement has been communicated to the other party. What is today called? - Answer- The effective date is the date when everything is in writing , the parties have totally accepted all of the terms, the contract is signed and all changes are initialed, and the written acceptance of the final agreement has been communicated , by some method, to the other party or their agent. Buyer Raz goes into contract on a house in Texas. At the last minute, he is unable to obtain financing. What would he need to have in his contract to terminate it without penalty? - Answer- A buyer can decide to terminate by way of language in the Third Party Financing Addendum if financing is not approved within the proper time frame. Mary has a rental property with a two year lease on it. She collected a $500 security deposit at the beginning of the lease. Now she is selling the property. What will happen to the security deposit? - Answer- Mary will transfer the security deposit to the buyer at closing. Which of the following laws protect people based on race only? - Answer- Civil Rights Act of 1866 An agent's buyer client wants to keep the curtains in the home they are buying, and the seller has agreed. What does the agent need to include with the contract to ensure this happens? - Answer- A Non-Realty Items Addendum covers anything that is not part of the actual property. When should a license holder use form T-47, Residential Real Property Affidavit? - Answer- A Residential Real Property Affidavit (form T-47) is for when a seller wants to use an existing survey, to assure they haven't changed the boundaries since the survey was done. A landlord may have to make adjustments for a tenant with a disability to be able to live in a dwelling. Those adjustments do not include: - Answer- Permitting a tenant to use illegal drugs is not an accommodation a landlord would need to make A seller is renting back a property from a buyer using the Seller's Temporary Residential Lease. The seller damages the property while they are staying there. Who is responsible for the cost of the repairs? - Answer- The seller/tenant is responsible for repairs during the time they're renting back the property Which of the following bodies appoints the public member on the Broker-Lawyer Committee? - Answer- The governor appoints the public member of the Broker-Lawyer Committee What information does the Disclosure of Relationship with Residential Service Company form convey? - Answer- The Disclosure of Relationship with Residential Service Company form states that it is a violation of RESPA for a license holder to receive a referral fee for simply passing on a name to a service provider. Because many things in the contract depend on these two items, it is important that the agent finalizing the acceptance of the contract fill in which of the following dates for their broker: - Answer- Effective and executed date According to Paragraph 9B, what happens when someone buys a property that currently under a lease? - Answer- The seller shall transfer over the security deposit to the buyer if the property is subject to a residential lease , and the buyer must honor the lease. How can an agent help protect the earnest money of a buyer who is financing their purchase? - Answer- If a buyer is getting financing in order to purchase property , submitting a Third Party Financing Addendum protects their earnest money. What is the purpose of the "Listing Broker's fee" section at the bottom of Page 9 of the One to Four Family Residential contract? - Answer- That section should reflect a previously agreed-upon commission. A murder/suicide took place in a property. The crime was widely publicized. What is the disclosure requirement for this crime? - Answer- It must be disclosed forever. In which type of property does the buyer purchase rights to the unit and an undivided interest in the common areas? - Answer- When a buyer purchases a condominium, they are purchasing rights to the unit and an undivided interest in the common areas. When seller financing is being used, the seller becomes: - Answer- Seller financing means that the seller becomes the lender. Per Paragraph 7D, what is it called when a buyer accepts the property, "with any and all defects and without warranty"? - Answer- Paragraph 7D says, " Buyer accepts the Property in as is condition ." "As is" means with any and all defects and without warranty . This puts buyers on notice that when they close on the property, they are buying the property in its current condition, defects and all , with no warranties. A potential buyer's current home is under contract. He has found a home he would like to make an offer on, but does not want to take a chance on being obligated to buy if his current home does not close. What form can help this buyer? - Answer- Addendum for Sale of Other Property by Buyer Which of the following would constitute unauthorized practice of law and/or be a violation of TRELA? - Answer- Adding or striking things from pre-printed contract forms without instruction from the principals to the transaction is considered unauthorized practice of law and is a violation of the Texas Real Estate License Act. How many lawyers are on the Broker-Lawyer Committee? - Answer- The Broker-Lawyer Committee has six lawyers , six brokers, and one public member. A contract that is fully performed is referred to as: - Answer- Within the context of a contract , the word "executed" means fully performed. When all parties have agreed to all terms of an offer, have signed the offer, and have initialed any changes that took place during negotiations, what happens to the offer? - Answer- An offer becomes a contract when all parties have agreed to all terms of the offer, have signed the offer, and have initialed any changes that took place during negotiations. What is the name of the law that requires certain contracts (for example, sales contracts) to be written down and signed? - [Show Less]
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Promulgated Contracts Exam with complete solutions
According to the Environmental Assessment, Threatened or Endangered Species, & Wetlands Addendum, what happens if the buyer can provide the seller with a r... [Show More] eport proving that the use of the property is negatively affected by one of the noted factors (before the agreed-upon deadline)? - Answer- The buyer can terminate the contract and get their EARNEST money back Which of these is an example of a time when it is acceptable not to use a TREC promulgated form? - Answer- The US government requires a different form be used A seller is selling a property that is under a lease. When does the seller have to deliver a copy of the lease and any move-in condition form to the buyer? - Answer- within seven days after the effective date In a TREC promulgated contract, what is the Third Party Financing Addendum concerned with? - Answer- Financing contingencies Which of these is NOT a place where commission split agreements between cooperating brokers can be determined? - Answer- the sales contract The Seller's Disclosure Notice is a requirement of - Answer- The Texas property code A stand-alone refrigerator would be considered ______ . - Answer- A stand-alone refrigerator is considered personal property and will not transfer in a sale unless otherwise noted on the contract. If the refrigerator is built-in it is considered real property and will transfer in the sale. Which of these does NOT create housing occupancy standards? - Answer- the Federal Housing Administration According to the Addendum for Back-Up Contract, if a first contract is terminated and the seller notifies the back-up buyer of the termination, what happens? - Answer- that date becomes the effective date of the back-up contract What information does the Disclosure of Relationship with Residential Service Company form convey? - Answer- that it is a violation of RESPA for a license holder to receive a referral fee for passing on a name to a service provider Which of these is appropriate to put in the Special Provisions section of the One to Four Family Residential Contract? - Answer- The names of sellers that wouldn't fit in Paragraph 1 Which of these materials would be considered part of a property's mineral estate? - Answer- Oil Paragraph D of the Short Sale Addendum contains a date by which the seller must get approval from their lender for the sale. What happens if the lender does not give approval by the date? - Answer- The contract will terminate and the earnest money will be refunded to the buyer There are three different types of financing choices in Paragraph Three of TREC's One to Four Family Residential Contract. They are: - Answer- Third party, assumption, and seller financing What does Paragraph A of the Addendum for Back-Up Contract specify a back-up contract holder do when they execute the contract? - Answer- Deposit the earnest and option money agreed to in the contact How can an agent help protect the earnest money of a buyer who is financing their purchase? - Answer- by submitting a third party financing addendum If an agent makes a change to Paragraph 6A8 in a TREC promulgated contract, which of these is most likely to be the result? - Answer- The title policy will be amended to read "shortage in area" rather than the standard exception Which of these is an example of something that could go in Paragraph 12 of the One to Four Family Residential Contract? - Answer- The seller plans to pay some of the buyers closing costs Reggie made Betty an offer on her house. She countered, but Reggie has not yet accepted. Then along comes Archie with a better offer. Before accepting Archie's offer, what must Betty do? - Answer- Withdraw her counter to Reggie Within how many days after the title company receiving a copy of the contract will the buyer receive the title policy documents? - Answer- 20 days When should a license holder use form T-47, Residential Real Property Affidavit? - Answer- when a seller wants to use an existing survey Which of these is NOT a protected class of people, according to Fair Lending Laws? - Answer- Sexuality What does the Residential Condominium Contract require in the legal description of the property? - Answer- A unit number What part of the Third Party Financing Addendum for Credit Approval specifically pertains to people getting VA loans? - Answer- Paragraph D When both parties mutually agree to terminate a contract, who provides the appropriate form? - Answer- the title company What is the purpose of the Short Sale Addendum? - Answer- to protect a seller who is selling their home for less than they owe their lender Agent Kara signed a buyer's representation agreement with her client that set her commission at 3%. The listing broker of the home her client chose offered 3.5% to the buyer's broker. What percentage of the sale price of the home will Kara's commission be? - Answer- 3.5% What are brokers required to do regarding Consumer Protection Notice TREC No. CN 1-2? - Answer- Post it in each office Where in the One to Four Family Residential Contract does it spell out what remedy the buyer has if the property is damaged after going into contract but before closing? - Answer- Paragraph 14 How can a license holder ensure that any relevant addenda or notices are officially included in a contract? - Answer- By checking the appropriate boxes in paragraph 22 In TREC promulgated contracts, what does paragraph 6E(8) say about private transfer fees? - Answer- that if they exist, the seller must notify the buyer A Residential Real Property Affidavit Promulgated by the Texas Department of Insurance (T-47 Affidavit) must be furnished to the buyer _______________________. - Answer- when the seller provides the existing survey If a seller wants to reserve part of their mineral rights after selling, where on the Reservation of Oil, Gas and Other Minerals Addendum would they note what percentage they're keeping? - Answer- Paragraph b2 George Jr. inherited the family compound after George Sr. died. The will was contested, and some family is still disgruntled. George is now selling the property. How can a buyer best protect themself from any claims on the title? - Answer- ask the family to sign a quitclaim deed The words "time is of the essence" are in: - Answer- Paragraph 23 of the one to four family contract Which type of TREC promulgated contract form(s) gives disclosure about the type of insulation in the property? - Answer- both new home contracts Agents are required to give all buyers a written copy of the title notice. Aside from Paragraph 6E(1) of the One to Four Family Residential contract, where else can this notice be found? - Answer- the notice to prospective buyer Which of these is a possible result of when zoning is changed and a property no longer qualifies for a previous exemption? - Answer- the property's owner owes charged rollback taxes How long after receiving an Addendum for Property Subject to Mandatory Membership in an Owner's Association does a buyer have to terminate the contract? - Answer- 3 days What is the only time it is acceptable for a license holder not to present all offers to a seller client? - Answer- if the listing agreement specifies it is not necessary What should an agent do if asked to violate anti-discrimination laws by a client? - Answer- educate the seller about anti discrimination laws and say they cannot honor the request A contract has an effective date of July 21st, with a seven day option period. What is the latest that contract can be terminated without penalty? - Answer- July 28th at 5pm Paragraph C2 on the Lead Based Paint Disclosure states that: - Answer- the buyer has 10 days to have the property inspected for lead paint What is the statute of limitations to claim fraud or misrepresentation against a license holder? - Answer- 4 years from discovery Why does the Notice of Buyer's Termination of Contract only have to be signed by the buyer? - Answer- the buyers termination rights are outlined in the contract According to Paragraph 10B, Possessions, what is a seller prohibited from doing after the effective date? - Answer- execute a lease without buyers permission Mary has a rental property with a two year lease on it. She collected a $500 security deposit at the beginning of the lease. Now she is se [Show Less]
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Promulgated Contracts Exam 2023
a contract for life necessity - Answer- Which of these is an exemption to the "legal capacity" requirement to form a contract? voidable - Answer- A cont... [Show More] ract for non-life necessities with a person lacking legal capacity is executory contract - Answer- a contract for deed is a classic example of a unilateral - Answer- an option is a form of which kind of conrtact by the end of the second day following formation of the contract - Answer- According to TREC a "reasonable time" within which to deposit the escrow check is addendum - Answer- an attachment added to the end of a contract and incorporated in the contract terms is called an A transfer of rights or duties under a contract from a current party to a contract to another party - Answer- an assignment of rights is two years - Answer- an oral contract for the lease of a property for one year or less has a statute of limitation of specific performance - Answer- which of these is not a potential reason for terminating a contract? an option fee - Answer- When a buyer makes a "backup offer" on a pending property, they must submit which of these? 4 years - Answer- In Texas, the statute of limitations on filing a lawsuit on a written contract is which of the following their stages of fufillment - Answer- Executed and Executory contracts are differentiated by The date of ratification, the parties involved, reference to the original contract - Answer- An amendment to a contract must always be include which of the following? title insurance, buyer credit, credit terms - Answer- The "Seller Financing Addendum" covers all of these (3): that time is of the essence - Answer- If the timing of an agreement being executed is crucial to the agreement, the contract should state: Use the Addendum for Sale of Other Property by Buyer form - Answer- What is the best method to note that the sale is contingent on the successful sale of buyers current home? The client loses the option fee, but is refunded her earnest deposit - Answer- What happens to the client's fee and escrow deposit if her contingency sale is completed, but she terminates this purchase within the option period for other reasons? once it has been communicated to the first signing party that the second party has accepted and signed - Answer- When is the contract considered "executed" Develops forms for TREC to adopt and promulgate at their discretion - Answer- The Broker-Lawyer Committee 20-16 - Answer- The current One to Four Family Residential Contract (Resale) is form number it is accepted, signed by the seller, and acceptance communicated to the buyer or buyers agent - Answer- The offer becomes a sales contract when present it to the owner as quickly as possible - Answer- When a licensee receives an oral offer on a property, they should do which of the following? 1955 - Answer- TRELA the primary real estate law in Texas today, was established in which of the following years? If they are prepared by the owner, or by an attorney and required by the property owner - Answer- TREC allows the use of forms that are not promulgated under which of these circumstances? (1) The escrow company provides the parties with accounting for where the money goes, e.g., title fees, prorated taxes, rents, or other divisible obligations, as well as proceeds to the seller (2) Use of the escrow process avoids a number of problems, such as multiple parties writing checks for fees, title policies, and property taxes - Answer- How do I benefit from the escrow process? (1)Rules for changing or removing covenants, rules about pets and other animals, regulations on in-home businesses and renting (2)fees for road maintenance or amenities, rules on landscaping suck as that limit tree height or cutting, (3) Setbacks (how far homes must be from streets, alleys, and lot lines); easements - Answer- What kind of information will I get on a title commitment? survey - Answer- A sketch or a map of a property showing its boundaries and other physical features like easements and property setbacks Full name and marital status of all parties - Answer- Identification of the buyer and seller must include Through the use of the addendum - Answer- For items for which a promulgated addendum is provided the proper way to include the item is Seller financing - Answer- Which form of financing does the "Third Party financing addendum" not cover? 1.5% per month or highest lawful rate, whichever is lower, for mature unpaid amounts 5% penalty on installment payments paid more than 10 days past their due date Prepayment without penalty (all of these) - Answer- The Promissory Note section of the Seller's Financing Addendum includes Buyer has sufficient unused VA entitlement remaining Buyer is a veteran Buyer is otherwise qualified (all of these) - Answer- VA will not restore Seller's VA entitlement except under which of these conditions? factual statements and business details applicable to the sale - Answer- The use of paragraph 11 (Special Provisions) of the One to Four Family Residential Contract is restricted to Are handled in a separate agreements - Answer- The TREC 1-4 states that Brokers Fees are which of the following? They are not liable for interest on earnest money They are not a party to the contract They are not liable for any losses of escrow money attributable to the failure of a financial institution unless the financial institution is acting as escrow agent (they have all of these protections) - Answer- Which of the following statements regarding the escrow officer in a One to Four Family Residential sale is accurate? Whoever is specified - Answer- According to the One to Four Family Residential Contract, who pays for the title policy? Their marital status, if applicable - Answer- When filling out the One to Four Family Residential Contract, the names of the parties should be accompanied by which of the following? The contract will terminate - Answer- If a contracted buyer and seller cannot agree to a resolution a repair costs which of the following occurs? No earnest money is required - Answer- How much earnest money does Texas state law require to validate a real estate sale contract The length of the option period is set by the contracting parties - Answer- How many days is a Paragraph 23 option valid? - Answer- A title endorsement is a Seller, at Sellers expense, shall furnish a new survey to Buyer Buyer shall obtain a new survey at Buyers expense Seller furnishes to Buyer and Title Company Sellers existing survey of the Property and a Residential Real Property Affidavit promulgated by the Texas Department of Insurance (T-47 affidavit) (all of these) - Answer- TREC 1-4 Paragraph 6C lists what options for providing the survery to buyer within a number of days after the effective date of this contract set by the parties agreement? Names and boundaries of local school districts - Answer- Which of these in not a subject of the Paragraph 6E Title Notices to identify specific repairs evident to buyer that buyer requires as a condition to purchase - Answer- Property Conditions (D)(2) of the TREC 1-4 contract should be used Psychological stigmas e.g. a violent death on the property - Answer- Which of these is NOT included in the Sellers Disclosure? Wetlands Environmental hazards [Show Less]
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Texas Promulgated Contract Forms & Addenda Final Exams 2023
Which of the following is an example of a Bilateral contract? - Answer- A Promise in exchange for a promise - Purchase Contract. Unilateral Contracts - Li... [Show More] sting Agreement, Buyer's Rep, Option Contract Who is responsible for filling in the effective date, who, when & what? - Answer- Broker. Between the buyer and the seller, The date on which the communication was made. The date of initialing and signing of the parties. The last party to initial/Sign fills in the day. Broker. Last party to accept must communicate back to other party & fill in the date What is a legal proceeding brought by a party to a contract against another party to compel action called for in the agreement? - Answer- Breach of a contract, one-party defaults, sues for specific performance, seek other relief - arbitration, mediation, injunction to sue for compensatory Damages. If a seller fails to provide the buyer with the seller's disclosure of property condition as required by Section 5.008 of the Texas Property Code, what is the status of the purchase contract? - Answer- Voidable at the option of the buyer. Voidable by buyer any time prior to closing and the earnest money will be refunded to the buyer. Which term identifies the substitution of a new contract for an existing contract? - Answer- Novation When using a Power of Attorney to transfer title to real property? - Answer- Attorney-in-fact - Legal description and the subject of the authority Who must convey to the principal all known information that would affect the principal's decision to accept or reject offers? - Answer- Licensee - the listing agent/selling agent When a legally enforceable promise is exchanged for a legally enforceable promise? - Answer- It is a Bilateral Contract. If the seller has already sent a counteroffer to a prospective buyer and then receives another offer that is even better, the seller: - Answer- Withdraw the counteroffer first then consider new offer Which law requires the contract for real property to be in writing and signed to be enforceable? - Answer- Statute of Frauds To have a valid real property contract, something of value must be exchanged. This is called: - Answer- Consideration When may a potential purchase's offer to buy real estate be withdrawn? - Answer- at any time before it's accepted Which of the following is NOT addressed by a TREC-promulgated contract? - Answer- Lease with an option to purchase. Lease purchase - new Condo contract When is a financing addendum not required? - Answer- When the buyer pays in cash. When third financing addendum is waived Items that are preprinted in paragraphs 1 and 2 of the contract include all the following except? - Answer- Exclusions When will the third party financing addendum credit approval not be used? - Answer- 1. all cash 2. When Third Part Financing contingency is waived Which addenda will the Purchaser use when purchasing a property for cash? - Answer- None- no addendum will be used. Which addendum is commonly used in a transaction involving a 90 percent fixed rate loan with PMI? - Answer- Third party financing addendum. What form is used if the buyer wants the seller to leave the refrigerator with the home after closing? - Answer- Non-- Reality items addendum In Third party financing addendum for credit approval, what should the Cap On interest rates? - Answer- MARKET RATE----- Should be on what the buyer and lender have agreed on and it should not exceed that amount. Federal law dictates that an addendum addressing the possible presence of lead-based paint and lead based paint hazard be attached to the purchase agreement when the house is being so that was built before? - Answer- Prior to 1978. Earnest money is to be deposited? - Answer- By the close of the escrow agent's second business day following the signing of the agreement. By the end of the 2nd business day after the effective date. days of the effective date of the contract. If the seller furnishes the existing survey to the buyer, but it is not acceptable to the buyers lender, the cost of the new survey may be at whose expense? - Answer- The Buyer Which form is used for the owner to tell the buyer about known problems with the property? - Answer- Sellers disclosure of property condition. The notice about obtaining an abstract or title policy is a required notice from? - Answer- Buyer's broker When I licensees using a builder's contract or a form prepared by an attorney that is not promulgated by TREC, what is the wisest way to notify the buyer about title insurance or abstract.? - Answer- OP-C Notice to prospective buyer - Suggest that he get an abstract or a title insurance prior to closing - TAR - Buyer's Rep Buyer's Agent is known as the? - Answer- Selling Agent Which of the following is not true about paragraph 11 special provisions? - Answer- Paragraph 11 special provisions calls for: Insert only factual statements and business details to the sale. TREC prohibits licensee from adding factual statements for business detail where to contract addendum lease or other form has been promulgated by TREC for mandatory use. Which of the following is true about TREC addenda? - Answer- It adds to the contract but does not change the contract. Which is acceptable language for special provisions of 22-TREC contract form? - Answer- Only factual or business details. Can a party accept earnest money as liquidated damages and also sue the third party for specific performance? - Answer- No - one or the other. Regarding closing and the buyer's possession of the property? - Answer- Seller shall deliver possession of property in it's present or require condition, or wear and tear excepted; 1. Upon closing or funding; Or date agreed upon 2. according to a temporary lease form promulgated by TREC or other written lease required by the parties. If clients want an agent to write a statement that defines a legal remedy? - Answer- The agent should decline and referring the client to a lawyer. Which of the following made the address by agent in paragraph 11 (special provisions)? - Answer- Insert only factual statements and business detail applicable to the sale. TREC rules prohibit licensees for adding factual statements or business details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use. If the broker's information is blank on the final page of the contract the contract is? - Answer- Still Valid - He will not get paid a commission. Which of the following characteristics of insulation installed in a new home must be builders reveal? - Answer- The R Value or rating Which contract does not address rollback taxes? - Answer- 1 to 4 family residential contract resell Condo Resale Rollback taxes are discussed in: - Answer- New home contract completed, New home contract incomplete Farm and ranch contracts Which contract would be used for a 50-acre track with a small cottage outside the city? - Answer- Farm and ranch contract Which of the following should not be listed as an addendum to a promulgated TREC contract form? - Answer- Amendment-none listed below.... 1. Addendum for Sell Other Property by Buyer, 2. Addendum for Back - up Contract, 3. Addendum for Release of Liability on Assumed Loan and/or Restoration of Sellers VA Entitlement, 4. Addendum for Coastal Area Property, 5. ADDENDUM for Property located Seaboard of the Intercoastal Waterway, 6. Addendum for Property Subject to Mandatory Membership in an Owners Association, 7. Addendum for Reservation of Oil, Gas, and Other . Minerals, 8. Lead-based Addendum, 9. Non-Reality Items Addendum, 10. Short Sale Addendum, 11. Loan Assumption Addendum, 12. Third Party Financing Addendum for Credit Approval. ----- Anything other than above listed should NOT be included. How many resale certificates are currently promulgated by TREC? - Answer- 2 1. Condominium Resale Certificate, 2. Subdivision Information including Resale Certificate for Property Subject to Membership in a Property Owners Association. Which form informs the customer or client how agents represent consumers of real estate services? - Answer- Information About Brokerage Services. Which addendum warns buyers that Texas may have the right to take their property? - Answer- 1. Addendum for Property located Seaward of the Gulf Inter coastal Waterway, 2. Addendum for Coastal Area Property. Which form must be displayed in the residential brokers office? - Answer- TREC - Notice to Consumer Equal Housing Opportunity Poster --should be posted at the broker's office In accordance to the Fair Housing Amendment Act of 1988 requires it to be posted. Brokerage Fee splits are agreement between the? - Answer- Listing Broker & Selling Broker Four statutory agency position; - Answer- 1. Seller's agent, 2. Subagent, 3. Buyers agent, [Show Less]
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AYPO Real Estate Promulgated contracts actual exam questions with correct answers
"Psychological stigmas," which involve violent or catastrophic events on a property, fall under which category of disclosure? a. Required disclosures b... [Show More] . Prohibited disclosures c. Permitted disclosures d. None of these - Answer- c. Permitted disclosures If there is a field in a promulgated form for which you have no information to include, your safest option is which of the following? a. Run a line through it b. Place "N/A" (not applicable) so it is clear that the buyer/buyer's agent is aware that the section exists and was not just overlooked c. Any of these d. Just leave it blank - Answer- b. Place "N/A" (not applicable) so it is clear that the buyer/buyer's agent is aware that the section exists and was not just overlooked Which of these is an exemption to the "legal capacity" requirement to form a contract? a. A contract for a life necessity b. The other party had no knowledge of the party's lack of legal capacity c. Both of these are correct d. Neither of these are correct - Answer- a. A contract for a life necessity An amendment must always include reference to all of these, except: a. The title report b. The original contract c. Parties d. Date of ratification - Answer- a. The title report What category of disclosure do "psychological stigmas" fall into in Texas? a. Prohibited b. Required c. Permitted d. None of these - Answer- c. Permitted Promulgated contracts for TRELA generally are developed by which of the following? a. TREC b. National Association of Realtors c. Texas Bar Association d. The Broker-Lawyer Committee - Answer- d. The Broker-Lawyer Committee If the seller has misled or misrepresented something, the signature at closing: a. Terminates any obligation to the buyer b. Neither of these c. Either of these d. Does not release them from those promises - Answer- d. Does not release them from those promises Restrictive covenants are regulations which can include which of the following? a. Dictating minimum residence size b. Nuber of homes per lot c. Types of construction allowed and not allowed d. All of these - Answer- d. All of these Before leasing the property back to a seller or leasing it ahead of closing to a buyer, both parties need to pay attention to the effect that leasing will have on which of the following? a. Their insurance coverage b. The Seller's disclosure c. The title commitment d. The title policy - Answer- a. Their insurance coverage HUD's primary concern is to ensure that any occupancy standards are not so strict as: a. To discriminate against single residents b. To undo protections of families with children c. To create a safety hazard d. None of these - Answer- b. To undo protections of families with children Which of these is a part of the Seller Financing Agreement a. Promissory Note b. Deed of Trust c. Buyer's Credit Approval d. All of these - Answer- d. All of these Which of these DOES NOT mean that a contract might not or will not likely stand up in court? a. Valid b. Voidable c. Unenforceable d. Void - Answer- a. Valid TRELA states unequivocally that it is illegal for a licensee to draw, i.e. create or develop which of the following on their own? a. A deed of trust b. A deed c. All of these d. A will - Answer- c. All of these Which of the New Home Contracts includes the Page 8 construction defect language? a. Neither of them b. Both of them c. New Home Contract (incomplete) d. New Home Contract (completed) - Answer- b. Both of them Which Paragraph of the TREC 1-4 contract already includes a "time is of the essence" clause? a. 23 b. 18 c. 6 d. 5 - Answer- d. 5 How many multiple back-up offers can be in line at one time? a. No more than two b. Texas law only allows for one back-up offer at a time c. There is no limit to the number of backup offers d. No more than three - Answer- b. Texas law only allows for one back-up offer at a time Which of these forms is for general consumer client information, and not directly related to a sale? a. Consumer Information Form b. Both of these c. Information About Brokerage Services d. Neither of these - Answer- b. Both of these A person is not engaged in a real estate brokerage, regardless of whether the person is licensed under this chapter, based solely on engaging in which of the following activities? a. Any of these. b. Entering into an obligation to pay another person that is secured by an interest in real property c. Sponsoring, promoting, or managing, or otherwise participating as a principal, partner, or financial manager of, an investment in real estate d. Constructing, remodeling, or repairing a home or other building - Answer- a. Any of these. To receive a daily rate of $40 in a buyer's or seller's lease, the monthly rate would have to be set at which of these monthly rates? a. $900 b. $1,400 c. $1,200 d. $1,000 - Answer- c. $1,200 According to TREC a "reasonable time" within which to deposit the escrow check is: a. By end of the day following signing b. Within 72 hours c. By the end of the second business following formation of the contract d. By the end of the day of signing - Answer- c. By the end of the second business following formation of the contract A "release clause" in a mortgage agreement would allow which of the following additional lender approval? a. To obligate the lessee/owner to an irrevocable option to buy b. To replace an existing contract with a new contract c. To section off a portion of the property, the equivalent value of which has been paid off, and sell off that portion if desired d. To transfer rights or duties under a contract from a current party to a contract to another party - Answer- c. To section off a portion of the property, the equivalent value of which has been paid off, and sell off that portion if desired The DTPA only applies to real estate transactions in situations involving: a. An express misrepresentation of a material fact that cannot be characterized as advice, judgement, or opinion b. An unconscionable action or course of action that cannot be characterized as advice, judgement, or opinion. c. A failure to disclose information known by the licensee at the time of the transaction if the non-disclosure was intended to induce the consumer into a transaction they would not have entered if they were aware of the undisclosed information d. Any of these - Answer- d. Any of these [Show Less]
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TREC Promulgated Contract Forms #351 Final Exam 2023
In the State of Texas who is allowed to use a customized real estate contract? The real estate brokerage company The salesperson The broker Lawyers lic... [Show More] ensed to practice in Texas - Answer- Lawyers licensed to practice in Texas Marcy is 17 and married. Her spouse is stationed in the Middle East. She purchased a home shortly before Stan, her husband returns to the United States. Select a problem that exists with this situation. Offer and acceptance issue Competency issue Consideration issue This is a valid binding contract - Answer- Competency issue A contract is considered executed? When both parties agree to the negotiated contract and both parties sign the final sales contract When a buyer comes forth with an offer When a seller counters an offer with several changes When the parties involved verbally agree to mutual terms - Answer- When both parties agree to the negotiated contract and both parties sign the final sales contract A void contract is: One that is not in effect Not binding Not valid All of these - Answer- All of these Which of these would NOT be a requirement of a lender for a standard mortgage loan? A FICO score of at least 625 A 30% down payment An appraisal to determine the value of the home Verification of employment - Answer- A 30% down payment TOE refers to: Today or eventually Time of event Trust options evaluated Time is of the essence - Answer- Time is of the essence Inserting the phrase "this offer is subject to cancellation by the buyer at any time prior to acceptance" will show the seller all of the following except: Quick action is necessary The seller should make a decision The seller should accept or make a counter The buyer is not really interested - Answer- his shows that the buyer is not only interested but they want a quick response from the seller. What would be an example of a good faith effort that the court would take into account and not penalize a party for failing to complete? The party deliberately failed to meet the requirements One party stopped answering their phone in efforts to stall proceedings The party in question went on an extended vacation A party suffered a serious heart attack and was in a coma for two weeks - Answer- A party suffered a serious heart attack and was in a coma for two weeks Earl is including a labeled photograph showing all the machinery that he is including in the sale of his farm property. This would be considered a: Sales document Contract Testimony Exhibit - Answer- Exhibit Any amendment to the contract must be ratified by: The buyer The seller The real estate salesperson The buyer and the seller - Answer- The buyer and the seller When there are problems with the title of a property, this condition is called: Possession Performance Clouds on title Waste - Answer- Clouds on title The State's Statute of Limitations time period is decided by: A judge hearing the case The State The jury The Federal government - Answer- The State If a buyer failed to meet the terms of the contract the buyer becomes a: Tendered buyer Default buyer Default seller Tendered seller - Answer- Default buyer Revocation means: To renounce To annul To rescind All of these - Answer- All of these Patrick is a tenant whose lease just ran out. He is served by the landlord a notice that he must move within three days. What are Patrick's rights? The landlord does not have to renew Patrick's lease The landlord does not need cause for a non-renewal of a lease The landlord may evict when unauthorized roommates are also residing in the unit All of these - Answer- All of these A Texas business entity may only act as a broker if: The business has been in operation for at least 10 years They pay a $10 fee They are from another state The business holds a license - Answer- The business holds a license Where are the applicant's fingerprints sent to? Texas Department of Justice Texas Department of Public Safety Texas Department of Labor and Industries Texas Department of Internal Affairs - Answer- Texas Department of Public Safety The commission may issue a temporary moral character determination. This is called: Provisional determination Prohibition ruling Protective determination Protected determination and ruling - Answer- Provisional determination When might the commission waive the education requirement for an applicant? If the applicant has been licensed in Texas prior as a broker or salesperson within 6 months preceding the date the application is filed If the applicant has been licensed in the past 3 months If the applicant is a college graduate If the applicant has already passed the state exam - Answer- If the applicant has been licensed in Texas prior as a broker or salesperson within 6 months preceding the date the application is filed May a person not living in Texas hold a license to practice real estate in Texas? As long as they pay the $10 fee Yes, if they have been a resident of a municipality whose boundary is on the Texas border and all other requirements are met No, a person must be a resident of Texas for the required period of time No, any person wishing to practice real estate in Texas must also reside in Texas - Answer- Yes, if they have been a resident of a municipality whose boundary is on the Texas border and all other requirements are met All of the following would be considered practicing law with the exception of: Telling a client they must seek legal counsel Giving advice to a client who is appearing before a judge Preparing a legal document Advising a client on what the legal document they are looking at is all about and what they need to do - Answer- Telling a client they must seek legal counsel What is the length of the term for a public member on the Broker-Lawyer Committee? Two years Four years Five years Six years - Answer- Six years Paul is using a TREC form for a contract that is dated February 2003. Priscilla who works in the same office has a TREC form dated May 2014. Which form is correct? Paul's form because it was the original TREC contract form Paul's form because it allows him to fill in the blanks Priscilla's form because this form is the latest updated TREC form and the most current Paul's because he paid TREC for the right to use this older form - Answer- Priscilla's form because this form is the latest updated TREC form and the most current TREC provides: Residential leases Forms for commercial property in all states Property management contracts TREC real estate forms - Answer- TREC only provides forms for a real estate transaction that are intended to be used by trained licensed real estate brokers or salespersons When receiving an offer, Julie is allowed to: Stall an offer Tell a buyer she won't present it because the offer is too low Provide no advice for low offers Provide advice to her client regarding a ridiculous offer - Answer- Provide advice to her client regarding a ridiculous offer Once a real estate contract is formed: One party must perform Both parties must perform One party may back out Either party may back out - Answer- Both parties must perform When only one party of a performing couple accepts an offer: It remains an offer It becomes a contract It is a listing It is a counteroffer - Answer- It remains an offer Who must sign and date the sales agreement? The buyers and the sellers The sellers and their attorney The buyers and their attorney The licensee that is involved with the sale - Answer- The buyers and the sellers Zella is writing up the TREC addendum for the rototiller that will be included in the sale of the house and property. What information should she include on the addendum? The price the seller is asking Where the rototiller is currently being stored A detailed description of the rototiller All of these - Answer- All of these Gabe is not pre-approved for a loan. His realtor should suggest what be included with the offer for the house since Gabe is not pre-approved? A notation that Gabe may not be approved The TREC Form 40-6 Third Party Financing Addendum for credit approval A petition to speed up the transaction Additional earnest money - Answer- Financing Addendum for credit approval The Texas VA Loan Program has what kind of rating from the Better Business Bureau? C B A A+ - Answer- A+ All of the following statements are incorrect with the exception of: The VA allows the veteran/buyer to take out a second mortgage The VA is allowed to obtain any form of financing to make up the property's sale price from the appraisal's price The veteran is allowed to pay cash for the difference between the appraised value and the asking price - Answer- The VA is allowed to obtain any form of financing to make up the property's sale price from the appraisal's price All may be reasons the owner would become the lender with the exception of: The buyer is a relative of the owner The tenant wants rent to apply to the purchase of the subject property The buyer has bad credit The buyer would hold title to the property - Answer- The buyer would hold title to the property When a seller holds a lien on the property, the right of foreclosure is specified in: First Right of Refusal Power of Attorney A Deed of Trust A Living Will - Answer- A Deed of Trust One of the benefits for those who serve in the military is: Obtaining a low guaranteed home loan through Department of Veteran Affairs Free housing Purchasing multiple homes All of these - Answer- Obtaining a low guaranteed home loan through Department of Veteran All of the following are TREC earnest money requirements with the exception of: The earnest money is held by the third party The earnest money is held by the seller The earnest money is held by the broker in the firm's trust account The earnest money may be held by an escrow company - Answer- The earnest money is held by the seller Wendy, the potential buyer has an option fee attached to her offer. During the option period she has all of the following options with the exception of: She may terminate her offer without reason She may get an option refund within 10 days of paying the option fee She has the right to have the property inspected She may have the property re-inspected - Answer- She may get an option refund within 10 days of paying the option fee The standard Schedule B exclusions are: Deed restriction Stand by fees Taxes and assessments All of these - Answer- All of these Schedule D of the title commitment would show: Liens on the property Who owns the title policy Claims on the property The legal description of the property - Answer- Who owns the title policy When a client needs additional coverage with their standard title policy they would need to: Have a specific endorsement added to their st [Show Less]
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