PRINCIPLES OF REAL ESTATE I SCENARIO #3

5. Mr. and Mrs. Sema thought 1115 South 61st Street was the legal description of their property, but Jim explained A. It was an informal reference B. It was metes and bounds C. It was a rectangular survey D. It was an acre

A. It was an informal reference street addresses is informal reference, it is never a legal description.

7. Immediately after the pre-qualification process with the lender, John and Melanie were given a: A. Pre-Qualifiaction Letter B. The Deed to the house C. Earnest Money D. All of the above

A. Pre-Qualifiaction Letter A mortgage Pre-Qualification letter is an estimate that tells you the amount the seller may afford ro borrow on a loan.

1. The house was built in 1975. What needed to be disclosed by the seller? A. That the house could contain lead-based paint. B. That 70 years ago the land was farmland C. That the sellers have bad credit D. All of the above

A. That the house could contain lead-based paint. If a property was built before 1978, the seller must disclose lead-based paint.

3. Jim asked the Semas to sign a Buyer's Representation Agreement, and they did. They became Jim's clients, and Jim could give them A. No advice B. Advice and opinions C. Legal advice D. They are customers, not clients

B. Advice and opinions An agent can give advice and opinion to a client but not a customer.

9. Jim is working with John and Melanie as a: A. Universal agent B. Special agent C. General agent D. Non-agent

B. Special agent Examples of Special agency are the listing agreement and the buyer's representation agreement. General agency is the independent contractor agreement and the property management agreement.

2. Jim explained that the land description that uses distance and direction to define the shape and boundaries of the property is A. Rectangular survey system B. Lot and block C. Metes and Bounds D. Street address

C. Metes and Bounds Rectangular survey systems, lot and blocks, metes and bounds are all forms of legal descriptions used in Texas. The street address is an informal reference.

4. The type of listing that Jim used in listing John and Melanie's home for sale was: A. Exclusive Agency Listing Agreement B. Open Listing Agreement C. The Exclusive Right-to-sell Listing Agreement D. Net Listing Agreement

C. The Exclusive Right-to-sell Listing Agreement The Exclusive Right-to-sell listing agreement gives the broker the most protection. it means that no matter who sells the property, the listing broker will get paid.

6. The contract between the Semas and the buyers must be: A. Initiated by all parties B. Signed by all parties C. Neither of the Above D. Both A & B

D. Both A & B ALL contracts between buyers and sellers must be initialed on each page and signed by all parties. The forms may be signed by the principles to the contract in pen or by using DocuSign

8. The seller of the property that John and Melanie are thinking about buying have given them a Seller's Disclosure Notice. According to the notice, the house is in great shape and the seller tells John and Melanie the property does not need to be inspected. What should John and Melanie do? A. Listen to the seller and not have the property inspected B. Tell their agent Jim, they are not going to have the property inspected because they have become friends with the seller C. Look for another agent because Jim advised them to have the property inspected D. Have the property inspected

D. Have the property inspected At the bottom of page 5 of the TAR Sellers Disclosure Notice the Buyer is "encouraged to have an inspector of their choice inspect the property.