Download Texas Real Estate Contract Forms & Addenda: Exam Questions and Answers and more Exams Business Administration in PDF only on Docsity!
Texas Promulgated Contract Forms & Addenda Final
Exams | 85 Questions with 100% Correct Answers |
Updated 202 5 | Guaranteed A+
Which of the following is an example of a Bilateral contract? - ✔✔A Promise in exchange for a promise - Purchase Contract. Unilateral Contracts - Listing Agreement, Buyer's Rep, Option Contract Who is responsible for filling in the effective date, who, when & what? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔Novation When using a Power of Attorney to transfer title to real property? - ✔✔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? - ✔✔Licensee - the listing agent/selling agent When a legally enforceable promise is exchanged for a legally enforceable promise? - ✔✔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: - ✔✔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? - ✔✔Statute of Frauds To have a valid real property contract, something of value must be exchanged. This is called: - ✔✔Consideration When may a potential purchase's offer to buy real estate be withdrawn? - ✔✔at any time before it's accepted Which of the following is NOT addressed by a TREC-promulgated contract? - ✔✔Lease with an option to purchase. Lease purchase - new Condo contract When is a financing addendum not required? - ✔✔When the buyer pays in cash. When third financing addendum is waived
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? - ✔✔The Buyer Which form is used for the owner to tell the buyer about known problems with the property? - ✔✔Sellers disclosure of property condition. The notice about obtaining an abstract or title policy is a required notice from? - ✔✔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.? - ✔✔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? - ✔✔Selling Agent Which of the following is not true about paragraph 11 special provisions? - ✔✔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? - ✔✔It adds to the contract but does not change the contract.
Which is acceptable language for special provisions of 22 - TREC contract form? - ✔✔Only factual or business details. Can a party accept earnest money as liquidated damages and also sue the third party for specific performance? - ✔✔No - one or the other. Regarding closing and the buyer's possession of the property? - ✔✔Seller shall deliver possession of property in it's present or require condition, or wear and tear excepted;
- 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? - ✔✔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)? - ✔✔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? - ✔✔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? - ✔✔The R Value or rating
Minerals,
- Lead-based Addendum,
- Non-Reality Items Addendum,
- Short Sale Addendum,
- Loan Assumption Addendum,
- 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? - ✔✔ 2
- Condominium Resale Certificate,
- 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? - ✔✔Information About Brokerage Services. Which addendum warns buyers that Texas may have the right to take their property? - ✔✔1. Addendum for Property located Seaward of the Gulf Inter coastal Waterway,
- Addendum for Coastal Area Property.
Which form must be displayed in the residential brokers office? - ✔✔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? - ✔✔Listing Broker & Selling Broker Four statutory agency position; - ✔✔1. Seller's agent,
- Subagent,
- Buyers agent,
- 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 - ✔✔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? - ✔✔August
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 - ✔✔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? - ✔✔ownership of the airspace within the unit itself, plus share ownership of common facility such as halls, elevators, and the land as undivided interest. The seller of unimproved property provides the property condition disclosure; - ✔✔NONE- Paragraph 7-E - Property Condition; access, inspection, and utilities; seller shall permit buyer to buyer's agent access to the property at reasonable times. The buyer may have the property inspected by inspectors selected by the buyer and licensed by TREC or other permitted by law to make inspections. Seller at seller's expense shall immediately cause existing utilities to be turned on and shall keep utilities on during time this contract is in effect. If the property is subject to mandatory membership in an HOA, subdivision information means? - ✔✔(i). A current copy of restrictions applies into the subdivision and bylaws and rules of Association, (ii). A resale certificate, all of which are described by section 207.003 of the Texas property code. (iii) Restrictions The disclosure of relationship with a residential service company requires disclosure of all? - ✔✔Kick- backs or Compensations by Broker
The purchase of a residential service contract is optional - neither a broker or salesperson nor a seller may condition the sale of the property on the buyers purchase at a residential service contract. If the buyer fails to give the notice required by the third-party financing statement for credit approval? - ✔✔If buyer does not give the notice with in the time required, this contract will no longer be subject to credit approval. Time is of the essence for this paragraph and strict compliance with time for performance is required. The option fee is paid to? - ✔✔The Seller - for the unrestricted rights to terminate the contract within the specified date. An amendment to a contract is? - ✔✔A Change to the Contract or a new contract. Notices: - ✔✔Warning to buyer. What two things is a buyer actually purchasing when they buy a Condo? - ✔✔The Unit and common areas. net and common area. In Loan assumption, If the buyer doesn't deliver the credit information to the seller, how long does the seller have to terminate? - ✔✔7 calendar days. In Third-party financing, what does the buyer do if the lender says, I cannot loan you the money at this time? - ✔✔The buyer must send a notice to the seller stating they don't qualify. Who must fill in the executed date? - ✔✔The broker or the agent who represents the broker.
Sell of other property - What is a kick out and when is it due? - ✔✔If the seller gets another contract then he kicks that buyer out because the contract is better and not contingent upon sale of home. The backup contract Has to remove the contingency and come out of the money or he gets kicked out as a backup usually within three days seller will give him three days to remove In Sellers financing addendum, the seller is protected by what kind of title policy? - ✔✔Mortgagees title policy. Example - there are two Title policies. Sellers policy - they pay - and the buyers policy pays to protect the mortgage lender from buyers default. Buyer pays a small portion of both policies. In how many addendum's and in what place in the contract that states -- "time is of the essence"? - ✔✔1. In One to Four Family - Paragraph 23 under option section,
- Short sale addendum,
- Sale of other property addendum,
- Back up addendum,
- Third party financing addendum. In General information notice, Where can I buyer find information about waterways? - ✔✔Texas Natural Resource Code. In Short sale, how long of a timeframe should you put in the form for a buyer to wait for bank approval?
- ✔✔It is negotiable.-- Example; agents can recommend 60 days. Ask the buyer, how long do you want to wait for this? Agent cannot tell the buyer what to do or decide.
In HOA - Name two 2 resell certificates? - ✔✔Condominium resale certificate Subdivision information including resale certificate for property subject to membership in a property owners Association. In Sellers financing addendum, Seller has how many days to check the buyer's credit? - ✔✔ 7 - days. In New home, What is the name of the Insulation measurement? - ✔✔R - factor or R-value. In Farm and ranch, Can the sales rights be automatically changed? - ✔✔No. Example; parties can agree beforehand that they are automatically going to be change, so it doesn't have to be renegotiated, but it's not automatically. In Home Warranty what must an agent disclose and to whom? - ✔✔Most people disclose that they are receiving a kick back, must disclose and agents client - example; if these buyer and sellers listing agreement see disclosure affiliated business relationship, - See - disclosure affiliated business relation - paragraph number eight on buyers and paragraph number 12 on sellers agreement. What forms are approved or promulgated by the Texas real estate commission? - ✔✔1. Unimproved Property Contract - Promulgated by TREC,
- Addendum for Sale of the Property by Buyer - promulgated,
- Addendum for Back up Contract - promulgated.
- Addendum for Release of Liability on Assumed Loan and\or Restoration of Seller's VA Entitlement. -
- Subdivision information, including resale certificate for property subject to mandatory membership in a property owners Association -. Promulgated
- Notice of buyer's termination of contract Promulgated,
- Amendment to contract -. Promulgated,
- Third party financing addendum for credit approval -. Promulgated,
- Loan assumption addendum -. Promulgated,
- Addendum for reservation of oil - Gas other minerals -. Promulgated,
- Short sale addendum -. Promulgated
- Notice to prospective buyer -. Approved.
- Sellers disclosure of property condition -. Approved.
- Texas real estate consumer notice concerning hazards or deficiencies -. Approved,
- Information about b
