When earnest money is deposited with an escrow agent, the escrow agent: - correct answer A) Is not responsible for the performance of any signatory B) Has
... [Show More] the right to secure written release of all signatories C) Is not liable for interest on the money
How does the Texas Real Estate License Act define the first face-to-face meeting with required agency disclosure? - correct answer When a substantive dialogue about a specific real property occurs
If a property was built before 1978, what specific addendum is required? - correct answer Disclosure of Lead-Base Paint Addendum
The Buyer's Agency Agreement allows an agent to show the same properties to competing clients - correct answer true
The Third Party Financing Condition Addendum is not used with - correct answer Seller financing
The Texas Real Estate Commission (TREC) promulgates an addendum to be used in a short sale. This Short Sale Addendum is to be signed by: - correct answer Buyer and seller
In Paragraph #14 of the Residential Contract (casualty loss), If a seller cannot complete the repairs within the time limit, the buyer has the option of: - correct answer Terminating the contract
In Paragraph 3B of the sales contract, the "sum of all financing" - correct answer Excludes any loan funding fee or mortgage insurance premium
The TREC promulgated 1-4 Family Residential Contract (resale) states that if the cost of lender required repairs and treatment exceed _______% of the sales price, buyer may terminate the contract and the earnest money will be refunded to the buyer. - correct answer 5%
The financing paragraph will be used to indicate: - correct answer A) Third party financing B) Assumption C) Seller financing
If a Seller is to remain in the property after closing: - correct answer D) A Seller's Temporary Lease Form promulgated by TREC should be completed and signed by buyer and seller and attached to the contract. -
Your buyers have signed a contract to buy a new home. The contract is subject to the sale of their present home. This is called a: - correct answer Contingency
In the event of buyer's default, the seller may: - correct answer A) Terminate the contract B) Receive the earnest money as liquidated damages C) Enforce specific performance
If there is an existing survey on the property, what does the seller take to the title company and the lender? - correct answer The existing survey and a notarized affidavit stating if there have been any changes in the survey since the time the existing survey was completed -
Failure on the part of the broker/sales associate to advise the purchaser in writing to have an abstract of title examined by an attorney or obtain a title insurance policy: - correct answer May be cause to have the agent's license suspended or revoked, and precludes receiving any commissions or agreed fees associated with the sale.
Who is designated as responsible for promptly sending a copy of the contract to any attorneys that are named in the contract? - correct answer The broker
Intermediary requires: - correct answer A) Disclosure of who represents whom in a transaction B) Written agreement by both seller and buyer C) involvement of only one company
What must a Buyer's Representation Agreement have? - correct answer A termination date
Once a contract is finalized and receipted it: - correct answer Can be amended multiple times if all parties agree
If a buyer and/or seller agree to mediate, they are giving up their right to pursue relief through the courts. - correct answer false
A contract is described as an agreement between two or more parties to do or not do something: - correct answer true
A voluntary dispute resolution is called litigation: - correct answer true
Brokers fees are included in the 1-4 Family Residential Contract (resale) between the Buyer and the Seller. - correct answer false
The Residential Condominium Contract allows a limit to the amount a Buyer will pay for Association transfer fees: - correct answer true
An addendum has been provided by TREC for voluntary use to provide for transfer of personal property (Non-Realty Items): - correct answer true
A Buyer/Tenant Representation Agreement is only available through the Texas Real Estate Commission (TREC): - correct answer true
Per Paragraph #16 of the Residential Contract (Mediation), If a buyer and/or seller agrees to mediate, they are giving up their right to pursue relief through the courts: - correct answer false
Federal Fair Housing Laws forbids discriminatory practices by parties including: - correct answer A) Owners of properties B) Lenders C) Real estate brokers
Use of the TREC promulgated One to Four Family Residential Contract (resale) is allowed on the sale of a residential condominium. - correct answer false
In a real estate transaction, a street address is considered sufficient to described the property being conveyed: - correct answer false
If a property has a "Sale of Other Property" contingency contract on it, Seller: - correct answer Can ask the original buyer to remove the contingency if the Seller has accepted another offer as a back -up
On the Seller's default, what should happen to the earnest money? - correct answer It should be returned to the Buyer
The Seller contracts to furnish the buyer an existing survey, but neglects to furnish an "affidavit' with the time specified. The lender requests a new survey be furnished. Who pays for the new survey? - correct answer The seller
Time is of the essence means that certain items in the contract must be performed: - correct answer As specified in the contract
The Information About Brokerage Services (IBS) states the broker may represent the: - correct answer A) Owner B) Buyer C) Both owner and buyer as intermediary
Fraud is: - correct answer A) A crime B) A civil law violation
According to the Real Estate License Act of Texas, which one of the following actions is a fair and impartial act for an Intermediary? - correct answer Appointing associated licensees to work with the parties
Steering is illegal and is described as channeling a minority to or away from an area to change the character of the neighborhood. - correct answer true
The sales price is determined in paragraph 3 by adding the down payment (3A) and the loan amount (3B). - correct answer true
When a "fixture" in a property does not remain for the buyer, how do we inform the buyer of that fact and make sure the item does not convey with the property? - correct answer List the item on the "Residential Contract"
The Condominium Resale Certificate called for in paragraph 2 of the TREC Residential Condominium Contract (Resale) must have been prepared no more than _________ before the date it is delivered to the buyer. - correct answer 3 months
The Seller as well as the Buyer has the unrestricted right to terminate the contract under the option period: - correct answer false
If a Buyer wants the Seller to pay some or all of their closing costs, it should be added to the contract in: - correct answer Paragraph #12 - Seller participation in the Buyer's costs
A suit for specific performance is: - correct answer To force the seller not to default on the contract
If the contract includes an option period for the buyer and the buyer does not tender the option fee to the Seller within the time limit (currently with 3 days from effective date of the contract) the Buyer no longer has an unrestricted right to terminate under the option: - correct [Show Less]