Contract Forms CH 7
If you understand all the fact you can
Advise the client they have the right to receive a title policy or abstract of title.
The residential condominium contract resale:
Allows a limit to the amount a buyer will pay for association transfer fees
By law, the seller must disclose anything they know about the property. To do this they must use:
Any form they choose
Tim is of the essence means that certain items in the contract must be performed:
As specified in the contract
In the sales contract, under broker information, the "other broker firm" is given a choice of who they represent. The choices are:
Buyer only as buyer's agent and seller as listing broker's subagent
Use of the TREC promulgated One to Four Family REsidential Contract:
Covers single family, duplex, triplex and fourplex transactions.
What does the Non-Realty Items Addendum include?
Description of the not Realty items asks for serial numbers, price paid by purchaser.
Brokers Fees Are?
Determined by writing in the listing agreement
ADDENDUM FOR SALE OF OTHER PROPERTY BY BUYER PARAGRAPH B.
During the contingency period, if Seller receives and accepts an offer from another buyer, Buyer has two choices: 1. Waive the contingency. A waiver makes the contract no longer subject to receiving the proceeds of the sale of the other property. Enter the number of days that Buyer has to waive the contingency. 2. Decline to waive the contingency. If the contingency is not waived, terminate within the days stated in paragraph B, and earnest money will be refunded upon termination.
In paragraph 3B of the sales contract, "the sum of all financing"
Excludes any loan funding free of mortgage insurance premium
For a broker to act as intermediary in a transaction requires written consent from only one of the parties.
False. Need consent from both duhhhh
ADDENDUM FOR SALE OF OTHER PROPERTY BY BUYER
For use when the buyer has another property to sell before closing on the one contracted. This form creates a "contingency contract," meaning that the agreed contract is contingent upon the buyer receiving proceeds from the sale of a home on or before a certain date. The date in the addendum should not be later than the Closing Date specified in Paragraph 9 of the contract.
TREC is a nine member commission. Six are brokers and three are not licensed by the commission. The three unlicensed member must:
Have no financial interest in RE, except as consumers
If buyer wants the seller to pay some or all the closing costs, it should be added to the contract in
Paragraph #12 - seller participation in buyer's costs
ADDENDUM FOR RESERVATION OF OIL, GAS, AND OTHER MINERALS
Records were not maintained on the transfer of mineral rights the same way they were maintained on the transfer of property. Unless there has been research on the history of who owns the mineral rights, the information may be unknown to the seller. Since a title policy does not guarantee mineral rights, it is possible the seller bought the property after the mineral rights had already been sold, and the seller was never aware that he or she did not acquire the mineral estate. If the parties have concern about the mineral estate, it is important they seek advice from an oil and gas attorney.
What addendum creates a contingency?
Sale of Other Property by Buyer
A buyer/tenant representation agreement is:
Sometimes available through local realtor boards
ADDENDUM FOR SALE OF OTHER PROPERTY BY BUYER PARAGRAPH D
States that if buyer waives the contingency and then does not close within the time stated in the contract, Seller may claim all earnest monies on deposit and exercise remedies in Paragraph 15 of the contract which are specific performance, monetary damages, liquidated damages.
Which one of the following, with written consent, may act as an intermediary?
The broker representing the seller and buyer
An agent must provide the Information About Brokerage Services (IABS) notice at the time of the first substantive dialogue with the party to the transaction for all of the following EXCEPT:
When leasing a residential property for a term of six months
Must an agent represent someone in the transaction? If the buyer is not represented is the agent automatically representing the seller?
YEAYA. An agent must represent someone in the transaction. If the buyer is NOT represented by the agent they are working with, then, by default, that agent automatically represents the Seller.
Does TREC require the Non-Realty Items Addendum?
Yes
Can an agent work with a buyer without representing them?
Yes but they are not a client and do not get advice just facts.
If Buyer has not received the Seller's Disclosure Notice as provided for in the 1-4 Family Residential Earnest Money Contract can the buyer terminate the contract up to the date of closing?
Yes. In that instance, Buyer can terminate up to date of closing.
The Non-Realty Items Addendum for transfer of personal property can include all the following EXCEPT:
a. An agreed dollar amount between buyer and seller for the conveyance b. A place to list the personal property to be conveyed c. A representation by Seller that the items are owned free and clear of encumbrances D. A warranty and guarantee from the seller that the items are in working condition <--- ANSWER
If a buyer needs to receive the funds from the sale of another property, they will need to do all of these except:
a. Attach a "sale of other property" addendum creating a contingency contract. B. Attach a Non-Realty Items addendum <----- ANSWER c. Offer additional earnest money d. Place a closing date on the addendum that does not exceed the closing date in the contract
Within ____ days after the title company receives a copy of the contract, seller shall furnish to buyer a commitment for title insurance.
20
What is a Resale Certificate?
A Resale Certificate is one of three sets of documents a Buyer should request and review in detail prior to closing. The other two are the Covenants, Conditions and Restrictions (CC&Rs) and the By-laws. Texas law dictates what must be included in the Resale Certificate. Review it carefully as it provides very important information about the property that the Buyer needs to know and be aware of prior to closing
The property may not be approved by the lender's underwriter for many reasons including:
A. Something that has arisen in the title search B. Mistakes on the survey C. Condominium not on the lender's approved list (FHA, VA) D. All of the above
The Non-Realty Items Addendum is used for personal property that is being conveyed. It is not a mandatory form required by TREC.
A. True
When can a Back-Up Contract be terminated?
ADDENDUM FOR "BACK-UP" CONTRACT (TREC 11-7) 3 DAYS This addendum would be used when a buyer wishes to submit an offer on a property that has a previous contract in place. It would be signed by all parties and is subject to the first contract terminating within the time frame stated in the Back-Up Addendum. If the first contract terminates, then the effective date of the back-up contract will be amended to the date the Buyer receives notice of that termination. If the Buyer wants an unrestricted right to terminate during an option period, the option check must be submitted along with the Back-Up Contract and given to the Seller within 3 days from when the Seller agrees to and signs the Back-Up Contract.
What addendum creates a contingency?
ADDENDUM FOR SALE OF OTHER PROPERTY BY BUYER The agreed contract is contingent upon the buyer receiving proceeds from the sale of a home on or before a certain date. The date in the addendum should not be later than the Closing Date specified in Paragraph 9 of the contract.
When a fixture in a property does not remain for the buyer, how do we inform the buyer of that fact and make sure the item does not convey with the property?
List the item on the residential contract.
If a buyer elects 8-B (No Intermediary Status), in the Residential Buyer/Tenant Representation Agreement, the client will:
Not sure out of these three B. Show buyer only the broker's listings C. Be a customer of the broker D. Be appointed to another company as subagent
Who may act as an intermediary?
Only once company! Intermediary always involves one company. In other words, there is always only one intermediary in a transaction. The broker from one company represents both the buyer and the seller.
ADDENDUM FOR PROPERTY SUBJECT TO MANDATORY MEMBERSHIP IN A PROPERTY OWNERS ASSOCIATION
The term "Subdivision Information" includes: (1) Current copy of restrictions (2) Bylaws (3) Rules of the Association (4) Resale Certificate
A back-up contract to an existing contract can be terminated at any time under the termination option paragraph:
a. Termination possible only if option money has been submitted to the seller at the time the back-up contract is signed and agreed by all parties. b. It has not moved to primary position, at which time the number of days in paragraph 23 (option paragraph) dictates the "time is of the essence" period. c. The back-up addendum form is attached to the contract. D. All of the above <---- ANSWER
Once a contract is finalized and receipted it:
can be amended multiple times if all parties agree