Which of the following is an example of a Bilateral contract? - correct answer A Promise in exchange for a promise - Purchase Contract.
Unilateral
... [Show More] Contracts - Listing Agreement, Buyer's Rep, Option Contract
Who is responsible for filling in the effective date, who, when & what? - correct 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? - correct 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? - correct 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? - correct answer Novation
When using a Power of Attorney to transfer title to real property? - correct 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? - correct answer Licensee - the listing agent/selling agent
When a legally enforceable promise is exchanged for a legally enforceable promise? - correct 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: - correct 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? - correct answer Statute of Frauds
To have a valid real property contract, something of value must be exchanged. This is called: - correct answer Consideration
When may a potential purchase's offer to buy real estate be withdrawn? - correct answer at any time before it's accepted
Which of the following is NOT addressed by a TREC-promulgated contract? - correct answer Lease with an option to purchase. Lease purchase - new Condo contract
When is a financing addendum not required? - correct 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? - correct answer Exclusions
When will the third party financing addendum credit approval not be used? - correct answer 1. all cash
2. When Third Part Financing contingency is waived
Which addenda will the Purchaser use when purchasing a property for cash? - correct answer None- no addendum will be used.
Which addendum is commonly used in a transaction involving a 90 percent fixed rate loan with PMI? - correct answer Third party financing addendum.
What form is used if the buyer wants the seller to leave the refrigerator with the home after closing? - correct answer Non-- Reality items addendum
In Third party financing addendum for credit approval, what should the Cap On interest rates? - correct 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? - correct answer Prior to 1978.
Earnest money is to be deposited? - correct 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? - correct answer The Buyer
Which form is used for the owner to tell the buyer about known problems with the property? - correct answer Sellers disclosure of property condition.
The notice about obtaining an abstract or title policy is a required notice from? - correct 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.? - correct 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? - correct answer Selling Agent
Which of the following is not true about paragraph 11 special provisions? - correct 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? - correct answer It adds to the contract but does not change the contract.
Which is acceptable language for special provisions of 22-TREC contract form? - correct answer Only factual or business details.
Can a party accept earnest money as liquidated damages and also sue the third party for specific performance? - correct answer No - one or the other.
Regarding closing and the buyer's possession of the property? - correct 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? - correct 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)? - correct 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? - correct 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? - correct answer The R Value or rating
Which contract does not address rollback taxes? - correct answer 1 to 4 family residential contract resell
Condo Resale
Rollback taxes are discussed in: - correct 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? - correct answer Farm and ranch contract
Which of the following should not be listed as an addendum to a promulgated TREC contract form? - correct 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? - correct 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? - correct answer Information About Brokerage Services.
Which addendum warns buyers that Texas may have the right to take their property? - correct 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? - correct 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? - correct answer Listing Broker & Selling Broker
Four statutory agency position; - correct answer 1. Seller's agent,
2. Subagent,
3. Buyers agent,
4. Intermediary.
In the TREC option Par. 23, which statement is true?
a) The option fee is refunded if the option is not exercised
b) The property must be purchased within the option
period
c) Third party financing cannot be obtained until the
option period has expired
d) The optionee may withdraw from the contract during
that period - correct answer d
A Back up contract with a 12-day option period was executed on August 9. On August 15, the seller notified the buyer that the first contract was terminated when does the buyers option end? - correct answer August 27.
Addendum for Coastal Area Property and the Addendum for Property located Seaward of the Gulf Intracoastal Waterway contains the notices required by the? - correct answer Texas Natural Resource Code Sections -33.135 and 61.025 respectfully.
Who is required to execute the notice of termination of a contract? - correct answer The buyer.
If the option money is not delivered to the proper party within the proper Time frame what is the status of the contract? - correct answer Valid but no option period. If buyer fails to pay the option fee to seller within the time prescribed this paragraph will not be part of this contract and the buyer shall not have the unrestricted right to terminate this contract.
The TREC contract forms that discuss rollback taxes say that if the rollback taxes are assessed because If seller change the use of the property prior to closing. - correct answer The seller will be obligated to pay the Rollback Taxes. If the seller changes the use of the property prior to closing or denial of the special use valuation on the property claim by seller results in assessments appeared prior to closing, the assessment will be the obligation of the seller. FARM & RANCH
Property approval, according to paragraph 4 of the one - four family contract includes; - correct answer Third Party Financing
Seller's Financing
Loan Assumption Financing
If the property does not satisfy the lenders underwriting requirements for the loan including, but not limited to appraisal, insurability, and the lender required repairs,
buyer may terminate this contract by giving notice to the seller prior to closing and the earnest money will be refunded to the buyer.
If the seller is doing all the financing in a sale, the mortgagees Title policy will protect - correct answer The seller That he has a first lien position or second lien position on the property.
When a buyer purchases a condominium they are buying the? - correct answer ownership of the airspace within the unit itself, plus share [Show Less]