TRELA changed from REDLA - correct answer Texas legislature passed the Real Estate Dealer's License Act (REDLA), which required real estate agents to
... [Show More] obtain licenses. KEY CONCEPT This act was administered by the Secretary of State until 1949 when the Texas Real Estate Commission (TREC) assumed the administrative responsibilities associated with it. In 1949, the REDLA was changed into the Texas Real Estate License Act (TRELA)
Contract law is based on the principle expressed in the Latin phrase, pacta sunt servanda, - correct answer agreements are to be kept"
What are the four basic elements of a contract? - correct answer Agreement, competency, consideration, and legal objective
What group administers the Texas Real Estate License Act? - correct answer TREC
Acceptance - correct answer "must be absolute and must be entered into freely and voluntarily. The contract cannot contain:
Misrepresentation - correct answer an error
Fraud - correct answer - intentional misrepresentation
Duress - correct answer - use of force
Menace - - correct answer threat of violence
Undue Influence - - correct answer use of power
two types of consideration, - correct answer valuable consideration and good consideration. Valuable consideration is something of value. It is usually cash, but it could be anything of monetary value. Good consideration is "love and affection."
What is misrepresentation? - correct answer An error
What is a court's primary objective when interpreting a contract? - correct answer To ascertain and give effect to the intent of the parties
What is duress? - correct answer Use of force
What is it called when all terms in a contract are agreed to by all the parties of the contract? - correct answer Mutual agreement
What is it called when someone listens to both sides of the situation and makes a decision? - correct answer Arbitration
A valid contract - correct answer is legally binding and enforceable
A contract is valid when all of these five conditions are met: - correct answer "The written agreement is legal, the parties to the contract have a legal right to enter the contract The written agreement is legal, the parties to the contract have a legal right to enter the contract
Every item is completely agreed to
The buyer and seller are sane and of legal age
There is nothing in the document that is illegal or against public policy, the contract is for legal purposes
All of the applicable addenda to a contract are included in the document
void contract - correct answer is invalid and completely without legal force or binding effect. When all of the items for a valid contract are not met, the contract is void.
Void translates - correct answer as "absence of", meaning the contract never existed.
A common cause of a void contract - correct answer is the inclusion of contract terms that are illegal or become illegal due to changes in law.
a contract can become voidable - correct answer by mistake or error in the contract? However, failure to read the contract doesn't make a contract voidable.
between the causes that can make a contract void, and the causes that can make a contract voidable. - correct answer The fundamental difference between these two types of contracts is that a void contract is not legally valid or enforceable at any point. A voidable contract can be legal and enforceable depending on how the contract is used.
A legally binding agreement that is clear and definite is an - correct answer xpress contract
Any contract that is not clear, but where agreement is indicated through the actions of the parties, is an - correct answer implied contract.
In a unilateral contract - correct answer one side has all the rights and no obligations. The other side has all the obligations and no rights. Option contracts and feasibility studies are examples of unilateral contracts.
Reasonable time - correct answer s defined as that amount of time which is fairly necessary, conveniently, to do what the contract requires to be done, as soon as circumstances permit. It is the period determined from trade practice, custom, or from circumstances.
What legal status does a void contract have? - correct answer A contract that never existed
What is the definition of an executory contract? - correct answer Contract for deed, lease option, or purchase option longer than 180 days
An amendment - correct answer is a modification to an existing document
An addendum - correct answer is adding to an existing contract.
If the addendum is not on the list, - correct answer then it should be written into the line that says "Other" and that box should be checked.
Any amendments must be in writing and - correct answer signed by both parties to comply with the Statute of Frauds.
One item that cannot be changed by using an amendment is the - correct answer brokerage fee, also called a commission.
If a contract is modified before it is signed, - correct answer such changes are not "amendments
If the parties wish to handwrite a change on a contract that has been printed out for signature, - correct answer you can use a pen to do so and have both parties initial it.
The most common amendment to the One to Four Family Residential Contract (Resale), - correct answer is the Amendment to Contract
Form 39-8 - correct answer Amendment to Contract
A different addendum should be used by the buyer to cancel the contract. It is called the - correct answer Notice of Buyer's Termination of Contract.
Third Party Financing Addendum. Paragraph 8 - correct answer In this addendum, the buyer agrees in paragraph 2A to some number of days in which they would let the seller know if financing could not be obtained.By using paragraph (8) of the Amendment, the buyer is asking for a longer period of time before closing.
How can an agent determine the terms of the buyer's loan when completing the Third Party Financing Addendum? - correct answer The lender will provide this information after negotiations with the buyer
Alicia is set to close on her new home in three days, but today she received a phone call from her agent stating that the lender needs to push closing back seven days. What, if any, action needs to be done? - correct answer submit an "Amendment to Contract" with the new closing date to the seller's agent
In completing a sales contract, the sale price should equal what? - correct answer down payment and the loan amount are added together
Performance - correct answer is the fulfillment of one's obligations required by contract.
Specific performance - correct answer compels a party to execute the agreement according to its terms where monetary damages would be inadequate compensation for the breach of an agreement. This is the case with the sale of land. Specific performance of a contract may be demanded in a lawsuit
Four Corners Doctrine. - correct answer his means that the interpretation of any disputed clause will be influenced by the document as a whole. No phrase will be lifted out of the document to determine the meaning but will be looked at in the total context of the document as a whole. This helps any person outside of the agreement evaluate what the two parties to the contract were agreeing to.
parol evidence, a common-law rule. - correct answer prevents a party to a written contract from presenting oral evidence that contradicts, or adds to, the written terms of the contract that appears to be whole. The rationale is that since the contracting parties have reduced their agreement to a written contract, past oral agreements or terms should not be considered when interpreting that writing. For example, in verbal discussions, the seller may have stated they would paint the house prior to closing. If this information did not appear in the contract itself, the buyer could not later, during testimony, use this verbal statement to alter what the contract said.
In Texas, both written and oral contracts have a statute of limitations - correct answer of four (4) years.
What does the Four Corners Doctrine direct a judge to look at? - correct answer Document as a whole
How long is the Statute of Limitations for a written contract in Texas? - correct answer 4 yrs
What are some examples of discharging a contract? - correct answer Contract could not be accomplished legally, fraud, or some action of the law
Which of these forms is a Texas Real Estate Commission (TREC) promulgated form? - correct answer New Home Contract (Completed Construction)
TREC does not govern either the seller, the party of the first part, nor the buyer, the party of the second part. - correct answer TREC only gets involved when one person is acting in a third party position.
Broker-Lawyer Committee. - correct answer he purpose of this committee is to draft and revise contracts and forms for use by agents.
There are 13 members on the Broker-Lawyer Committee. It is made up of: - correct answer Six lawyers appointed by the president of the state bar of Texas
Six real estate brokers appointed by the Texas Real Estate Commission
One public member who is appointed by the governor
exas Real Estate License Act (TRELA). - correct answer his is the main law that governs the real estate industry in Texas. TRELA dictates what you can and cannot do as an agent.
What is the main law that governs the real estate industry? - correct answer is authorized to regulate and monitor TRELA.
f a principal directs you to use a different form, you may do so because it is an - correct answer exception under the TRELA.
A licensee may not: - correct answer practice law,
(2) offer, give or attempt to give legal advice, directly or indirectly;
(3) give advice or opinions as to the legal effect of any contracts or other such instruments which may affect the title to real estate;
(4) give opinions concerning the status or validity of title to real estate; or
(5) attempt to prevent or in any manner whatsoever discourage any principal to a real estate transaction from employing a lawyer.
Licensee Disclosures - correct answer c) Nothing in this section shall be deemed to limit the licensee's fiduciary obligation to disclose to the licensee's principals all pertinent facts which are within the knowledge of the licensee, including such facts which might affect the status of or title to real estate.
To be an acceptable listing contract, TREC requires that the listing form contains what items? - correct answer A provision informing the parties to the contract that commissions are negotiable
Which of the following is an exception to an agent using a TREC promulgated form? - correct answer The form is prepared and required by the property owner
In what year was the TRELA written? - correct answer 1939 [Show Less]