Promuglated Forms Course Missed Questions

Which of the following is one of the requirements for a sales contract to be considered an executed contract?

The contract must be accepted by both parties, and that acceptance must be communicated to both parties or to their agents.

What's the purpose of the Non-Realty Items Addendum in Texas?

To identify personal items of the seller's that are to remain with the property

A buyer signed a contract form offering a purchase price of $309,000, and gave his agent a $5,000 earnest money deposit. The owner is out of town and her agent can't reach her. At this point, what does the buyer have?

An offer

Georgie Banker is the widow of the late Gordon Banker. How should Georgie be listed as a party in a TREC sales contract regarding a property that Georgie owns?

Georgie Banker, an unmarried person

When a property owner agrees to provide a loan to the purchaser, which Texas addendum should be attached to the contract?

Seller Financing Addendum

What type of contract do you have once the seller has accepted the buyer's offer in writing and the buyer has been notified of the acceptance?

Enforceable

Jan is selling her home, but she wants to keep the new refrigerator and the above ground pool. In order to do this, where should they be listed on the One to Four Family Residential Contract (Resale)?

Exclusions

In Texas, contracts for deed, lease-purchase agreements, and lease-option agreements are referred to as ______ contracts.

Executory

Under the TREC rules relating to contract forms, what must a licensee do?

Inform the parties to a real estate transaction that the contract they are about to sign is legally binding on them.

What typically happens to any earnest money when a sales transaction successfully closes?

It's applied to the down payment and closing costs owed by the buyer.

Karen, the seller, has sent a counter-offer to Fred, a potential buyer. Before Fred accepts the counter-offer on the Texas property, Karen receives another offer from James that is even better. She wants to accept James's offer. What should Karen do?

Karen must withdraw the counter-offer to Fred before responding to James's offer

The Unimproved Property Contract doesn't include improvements, accessories, or exclusions in the property section. Why is that?

These items don't apply to unimproved land.

Why is it important to identify the marital status of the parties in a sales contract in Texas?

Because Texas is a community property state

When does timing for certain contract requirements begin?

On the first full day after the executed date (effective)

What's an option fee as it's used in the TREC residential resale contract?

An amount of money paid for the buyer's right to terminate the contract during a defined period of time

Which of the following types of death, if it occurred on the property, is a required disclosure in Texas?

A death due to a carbon monoxide leak on the property

Why is it so important that the legal description be captured correctly in the sales contract?

A mistake in the legal description may lead to more or less land being conveyed to the buyer than was intended.

What is one of the exceptions to the rules requiring the use of TREC-promulgated forms?

A property owner may prepare an alternate form.

As specified in the TREC Residential Condominium Contract (Resale), what must the seller of a condo prepare for the buyer at least three months before delivery to the buyer?

A resale certificate

Items that aren't attached permanently to the real property but are assumed to belong to the house, such as draperies, fireplace inserts and screens, and above-ground swimming pools, are referred to in the Property section of the TREC residential One to Four Family (resale) contract as ______.

Accessories

What section of the TREC Unimproved Property contract is used to indicate which addenda are attached?

Agreement of Parties

The parties to a sales transaction in Texas are moving the closing date back by four days, so instead of occurring on March 24, the closing will occur on March 28. What TREC-promulgated form must be completed and signed to accomplish this?

Amendment to Contract

What type of information do resale certificates provide to prospective buyers?

Anticipated fees and rules of governance

When crops are excluded from the sale of a farm or ranch, by when must they be removed from the property?

Before closing

According to the Property Condition paragraph of the TREC One To Four Family Residential Contract (Resale), at whose expense are any property inspections conducted in Texas?

Buyer

Which party to the contract will provide the sales price and financing to be used in the transaction?

Buyer

Under the terms of the TREC One to Four Family Residential Contract (Resale), what recourse do buyers have if a seller is unable to deliver the title commitment and exception documents to the buyer within the allotted time, due to factors beyond the seller's control?

Buyers can terminate the contract and have their earnest money refunded.

In the TREC One To Four Family Residential Contract (Resale), the Title Policy paragraph has checkboxes to indicate which of the following?

Whether the seller or the buyer will pay for the title policy

In Texas, which of the following forms must be prominently displayed in the office of every inspector and licensed broker?

Consumer Protection Notice

Which of the following is sufficient as a legal description of a property on the TREC residential resale contract?

Lot 2, Block 12, Greendale subdivision in the city and county of Dallas

In addition to the names of the parties, what other information must be provided in the naming of the parties section of the sales contract?

Marital status

A seller has signed an Addendum for "Back-Up" Contract and likes the second offer better than the first. May the seller terminate the original offer?

No, the seller may not unilaterally terminate

Familial status includes families with children under age 18 living with parents or a legal custodian, people securing the custody of children, and what other group of people?

Pregnant women

Properties granted agricultural exemptions are taxed at a much lower rate. If the use of the property changes to a non-agricultural use, what happens?

Rollback taxes are assessed.

Which of the following is a responsibility of the Texas Real Estate Commission, as provided in the Texas Real Estate License Act?

Rulemaking authority for real estate licensees that has the full force and effect of the law

Expenses paid by the buyer and the seller at the closing are detailed in which paragraph of the TREC One To Four Family Residential Contract (Resale)?

Settlement and Other Expenses

Besides the name of the title company, which of the following information is needed in the Title Policy paragraph of the TREC One To Four Family Residential Contract (Resale) in Texas?

Whether the buyer or the seller will pay for the title policy

Of the nine total members of TREC, how many members are licensed brokers?

Six

What is the term length for a member of the Texas Real Estate Commission?

Six years

Reginald Barker and Stacey Lee are married and purchasing a property together. Which of the following is the best way to identify them as parties on a sales contract?

Stacey Lee and husband Reginald Barker

What notarized statement about any changes to the property since an existing survey may a seller in Texas provide to the buyer's lender and title company?

T-47 Residential Real Property Affidavit

The seller and the buyer have agreed to make a change to the sales price of the Texas property. Which of the following will be used to indicate the change?

TREC Amendment form

You represent a Texas seller who states that his roof is new on the seller disclosure. You can tell the roof is at least 15 years old, if not older, and will need to be replaced soon. What's your responsibility here?

Tell your client he must complete the disclosure as truthfully as possible, and that if he lies about the roof, you will tell potential buyers the truth (and then do it, if necessary).

If a TREC One-to-Four Family Residential Contract (Resale) contract states that closing fees may not exceed $3,800, what can the buyer do if closing fees exceed that amount?

Terminate and get her earnest money back

Before Texas established its own occupancy standards law, the federal policy would have likely been considered. How does the Texas law differ from the federal law?

The Texas law allows for more adults per bedroom than the federal occupancy standard.

What happens if the seller is unable to furnish the buyer with the commitment and exception documents within 20 days after the title company has received a signed copy of the TREC One to Four Family Residential Contract (Resale)?

The deadline for delivery is automatically extended.

Real estate professionals handle many documents related to real estate transactions. Which one of the items listed below is one of the most important in detecting mortgage fraud?

The original sales agreement and any addenda

What about the owner's policy of title insurance can be negotiated in the TREC One To Four Family Residential Contract (Resale) in Texas?

The selection of the title company and who will pay for the title policy

What happens when a Texas buyer who has paid the seller an option fee under the TREC One to Four Family Residential Contract (Resale) terminates the contract during the option period?

The seller keeps the option fee, and the buyer gets the earnest money back.

A couple have signed an offer to purchase a home that is still being constructed. If rollback taxes are assessed, who must pay them?

The seller pays for the whole thing.

What's the purpose of the Addendum for Back-Up Contract?

To allow a buyer to place a back-up offer on a property that's already under contract

What's the purpose of the Special Provisions paragraph of the One To Four Family Residential Contract (Resale)?

To clarify facts found in the contract

What is the purpose of the Addendum for Sale of Other Property by Buyer?

To disclose to the seller that the buyer has a contingency to sell their current property

What is the purpose of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association?

To give buyers the opportunity to request subdivision information

Regarding the need for consent for a contract to be valid, which of the following exists when an act of persuasion overcomes another person's free will and judgment?

Undue influence

A building manager refused to grant an exception to a resident with a physical disability who used a service dog. The resident asked for a reserved parking space closer to his unit for easier access. Is this a violation, and if so, what type?

Violates fair housing

If a party to a contract signs a contract with a buyer for a sale of property the "seller" doesn't legally own, what type of contract is this?

Void

In Texas, when is a licensee required to provide an agency disclosure to the party they are not representing in a transaction?

When engaging in substantive dialogue about a specific property

In which of the following Texas real estate transactions must a Seller's Temporary Residential Lease be completed?

When the seller will remain in the property after closing