Download Texas Promulgated Contracts-CHAMPIONS
Exam 2022-2023
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The elements of a valid contract are, competent parties,consideration, legal subject matter, in writing, and. (a) Default (b) Mutual consent (c) Property condition (d) Recording B A(n)is binding on the parties, with one or more of the parties having contract is defined as a contract that contractual duties that have not yet been performed. (a) Executory (b) Executed (c) Bilateral (d) VoidA
In the business of real estate,something given in exchange for a promise. is defined as (a) Consideration (b) Mutual assent (c) A bribe (d) Legal subject matter A The TREC-promulgated contract forms: (a) Are for optional use by real estate licensees (b) Are drafted by the Broker-Lawyer Committee
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(c) Are promulgated by the legislature (d) Are used in both commercial and residential transactionsB
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(c) The buyer is obtaining VA financing (d) The buyer is obtaining any kind of financingB
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In the Third Party Financing Addendum for Credit Approval: (a) The buyer has no incentive to obtain financial approval (b) The buyer has a definite time to notify seller of the inability toobtain financing approval (c) The buyer's earnest money will not be returned if the buyerdoes not obtain financing (d) The option period is explainedC
The Third Party Financing Addendum for Credit Approval cannotbe used for: (a) VA guaranteed loans (b) FHA insured loans (c) Seller Financing (d) Texas Veterans LoansB
According to the Seller Financing Addendum, the interest rate is: (a) Set at 6% (b) Negotiated between the parties (c) Set by TREC (d) Determined at closingA
agrees to pay the seller's existing mortgage.^ occurs when a buyer assumes and (a) Loan assumption
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A
Land, improvements and accessories are collectively referred toas: (a) The estate (b) The property (c) The listing (d) The homesteadB
According to the TREC contract, accessories include: (a) Refrigerators (b) Stoves (c) Washing machines (d) Gas dryersA
Exclusions to the sale must be removed (a) Prior to delivery of possession (b) At the convenience of the seller (c) When the offer becomes a binding contract (d) Two days prior to closingA
The loan amount in Paragraph 3.B. of the sales contract includes: (a) The amount of the mortgage insurance (b) The loan plus origination fees
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(c) Only the amount borrowed by the buyer (d) The loan amount minus the earnest moneyC
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(c) Seller's Disclosure (d) Inspection reportA
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A Seller's Disclosure Notice is not required (a) When the property being sold is a previously unoccupied newhome (b) When the property is sold to an investor (c) When the property has an out of state owner (d) When the property is sold "as i" A If a buyer is concerned about the presence of endangeredspecies, toxic substances or wetlands on a property, the agent should (a) Add the Environmental Assessment Addendum to the contract (b) Avoid the property at all costs (c) Add in Paragraph 11, Special Provisions, that the contract issubject to an environmental review (d) Explain to the buyer that environmental issues are rarely a problemA
How long does a buyer have to object to defects, exceptions andencumbrances to title disclosed in the survey and title commitment? (a) Within 3 days of the effective date of the contract (b) Up to 5 days prior to closing (c) Within 7 days of becoming concerned (d) The negotiated number of days stated in the contractD
Being within the extraterritorial jurisdiction of a municipality is an
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(c) Be unmarketable (d) Never be annexed by any municipalityB
The Lead-Based Paint Disclosure is: (a) Required for all properties (b) A federal requirement for residential property built prior to 1978 (c) A TREC requirement (d) The responsibility of the buyer's agentB
If a buyer makes an offer without having received the Seller'sDisclosure Notice, how many days does the seller have to provide the notice? (a) Not less than 3 days prior to closing (b) Not more than 5 days after the effective date of the contract (c) Within 7 days of loan approval (d) The number of days negotiated in the contract D If a license holder is receiving compensation from a residentialservice company, the compensation is: (a) Reported to TREC (b) Disclosed to the parties using the appropriate TREC form (c) Never disclosed to anyone (d) Reported to the attorney general for actionB
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For a valid option to exist (a) The option fee must be paid directly to the seller or listingbroker
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B
If not using a temporary lease, the buyer is entitled to possessionof the property:
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(a) 24 hours before closing (b) When the seller has moved out (c) On closing day (d) Upon closing and fundingD
The Buyer and Seller Temporary Residential Lease forms aregood for any period up to: (a) 14 days (b) 30 days (c) 60 days (d) 90 days D If a seller wants to continue to occupy the property for two daysafter the closing and the buyer agrees: (a) This can be written into the special provisions paragraph ofthe contract (b) The buyer and seller should negotiate a periodic tenancyagreement (c) The Seller's Temporary Residential Lease form should beused (d) The TAR Residential Lease form should be used C When one party defaults under a contract, the other party isknown as the: (a) Breaching party (b) Injured party
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B
The State of Texas encourages the parties to resolve all conflictsand disputes through alternative dispute resolution procedures such as: (a) Arbitration (b) Going to court (c) Mediation (d) Termination of the contractC
IRS statutes require a buyer to: (a) Purchase property only from U.S. citizens (b) Withhold 20% of the price from a foreign seller of U.S.property (c) Withhold 10% of the sale proceeds in excess of $300,000when a foreign person has no social security card or green card (d) None of the aboveC
All written notices between the parties are effective when: (a) Mailed (b) Hand-delivered (c) Faxed or emailed (d) Any of the aboveD
When should a licensee advise a party to a contract to consult anattorney?
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(a) At first contact with the client (b) Before signing the contract if the client does not understandthe effect of signing the sales contract or the terms or conditions in the agreement
