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Promulgated Contract Forms final exam With High Expert Verified Solutions
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Any changes to the original contract once it is finalized and receipted must be done:
A) At the title company on the original contract B) On an amendment C) On the 3rd Party Financing Addendum D) On a real estate change form - Correct Answer ✔️ ✔️ B) On an amendment A TREC promulgated (declaration)Farm and Ranch contract can include:
A) Buildings
B) Crops C) Equipment D) All of the above - Correct Answer ✔️ ✔️ D) All of the above What must a Buyer's Representation Agreement have?
A) Fair Housing disclosure B) An attachment from a mortgage company regarding buyer's qualifications for a loan C) A termination date D) none of the above - Correct Answer ✔️ ✔️ C) A termination date Who is designated as responsible for promptly sending a copy of the contract to any attorneys that are named in the contract?
When electing to use the option paragraph of the contract, the buyer may, within the time specified in the paragraph, do any of the following EXCEPT:
A) Complete the repairs himself before the end of the option period B) Terminate the contract C) Do nothing and proceed to closing D) Amend the contract waiving the right to terminate - Correct Answer ✔️ ✔️ A) Complete the repairs himself before the end of the option period A Buyer/Tenant Representation Agreement is only available through the Texas Real Estate Commission (TREC)
A) True
B) False - Correct Answer ✔️ ✔ ️ B) False
The financing paragraph will be used to indicate:
A) Third party financing B) Assumption C) Seller financing D) Any of the above - Correct Answer ✔️ ✔️ D) Any of the above Time is of the essence means that certain items in the contract must be performed:
A) As specified in the contract B) As verbally agreed between buyer and seller
Steering is illegal and is described as channeling a minority to or away from an area to change the character of the neighborhood.
A) True B) False - Correct Answer ✔️ ✔ ️ A) True
Federal Fair Housing Laws forbids discriminatory practices by parties including:
A) Owners of properties B) Lenders C) Real estate brokers D) All of the above - Correct Answer ✔️ ✔️ D) All of the above Intermediary requires:
A) Disclosure of who represents whom in a transaction B) Written agreement by both seller and buyer C) involvement of only one company D) All of the above - Correct Answer ✔️ ✔️ D) All of the above Use of the TREC promulgated (declaration)One to Four Family Residential Contract (resale) is allowed on the sale of a residential condominium.
A) True B) False - Correct Answer ✔️ ✔ ️ B) False
If there is an existing survey on the property, what does the seller take to the title company and the lender?
B) Has the right to secure written release of all signatories C) Is not liable for interest on the money D) All of the above - Correct Answer ✔️ ✔️ D) All of the above There are no TREC promulgated(declaration) contracts for new construction. All builders use their own contracts.
A) True B) False - Correct Answer ✔️ ✔ ️ B) False
In the event of buyer's default, the seller may:
A) Terminate the contract B) Receive the earnest money as liquidated damages C) Enforce specific performance
D) Any one of the above - Correct Answer ✔️ ✔️ D) Any one of the above 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:
A) Listing agent B) Buyers' agent C) Lien holder D) Buyer and seller - Correct Answer ✔️ ✔️ D) Buyer and seller If a Seller is to remain in the property after closing:
In Texas, dual agency has been replaced with Intermediary
A) True B) False - Correct Answer ✔️ ✔ ️ A) True
A suit for specific performance is:
A) To force the buyer not to default on the contract B) To force the seller not to default on the contract C) To force either the buyer or the seller to perform on the terms of the contract D) Is a lawsuit against the inspection company - Correct Answer ✔️ ✔️ C) To force either the buyer or the seller to perform on the terms of the contract
How does the Texas Real Estate License Act define the first face-to- face meeting with required agency disclosure?
A) When a licensee first meets a prospect B) When a prospect is ready to sign an agreement C) Only when a specific property is being shown D) When a substantive dialogue about a specific real property occurs
A) True B) False - Correct Answer ✔️ ✔ ️ B) False
C) The title company named in the contract D) The party stipulated in the contract - Correct Answer ✔️ ✔️ D) The party stipulated in the contract The Information About Brokerage Services (IBS) states the broker may represent the:
A) Owner B) Buyer C) Both owner and buyer as intermediary D) All of the above - Correct Answer ✔️ ✔️ Wrong C) Both owner and buyer as intermediary What is the status of a contract if the seller does not make the buyer aware of a property being located with a municipal utility district?
A) Voidable by the buyer B) Void C) Voidable by the seller D) Voidable by the buyer or the seller - Correct Answer ✔️ ✔ ️ A) Voidable by the buyer A contract is described as an agreement between two or more parties to do or not do something.
A) True B) False - Correct Answer ✔️ ✔ ️ A) True The Buyer's Agency Agreement allows an agent to show the same properties to competing clients
A) True
C) Never share the information with another client D) share the information, but only to another agent - Correct Answer ✔️ ✔️ B) Share that information if the Client authorizes the agent to share it If a buyer and/or seller agree to mediate, they are giving up their right to pursue relief through the courts.
A) True B) False - Correct Answer ✔️ ✔ ️ B) False
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.
D) 20% - Correct Answer ✔️ ✔️ C) 5%
In Paragraph 3B of the sales contract, the "sum of all financing"
A) Includes the earnest money deposited at the time the contract is executed B) Includes the closing costs C) Excludes any loan funding fee or mortgage insurance premium D) All of the above - Correct Answer ✔️ ✔️ C) Excludes any loan funding fee or mortgage insurance premium If a property has a "Sale of Other Property" contingency contract on it, Seller:
