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]