Promulgated Addenda, Notices, and Other Forms Exam Questions

A seller of real property wishes to sell to a buyer for an additional price the home theater television. Which form or paragraph in the contract should be used? A) Paragraph 7, as a repair item B) The Non-Realty Items Addendum C) Paragraph 2, with the price added D) Paragraph 11, Special Provisions

B) The Non-Realty Items Addendum

Which of the following types of information are included in the Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners Association? A) Capital expenditures B) Current regular assessment C) All of these D) Special assessment

C) All of these

Buyer and seller enter into an agreement for buyer to purchase seller's property which is located in a property owners association. Seller provides buyer with the subdivision information, and buyer requests that seller provide an updated resale certificate at buyer's cost. How long does seller have to provide the updated resale certificate under paragraph A(3) of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association? A) 10 days B) A number of days agreed upon by the parties C) 7 days D) 3 days

A) 10 days If buyer requires an updated resale certificate, seller, at buyer's expense, shall deliver it to buyer within 10 days after receiving payment for the updated resale certificate from buyer.

Under the Addendum for Sale of Other Property by Buyer, what happens if the seller accepts a back-up offer? A) Buyer 1 may waive the contingency before the agreed upon date. B) Buyer 2 may waive the contingency before the effective date. C) Buyer 1 must terminate the back-up contract. D) Seller may waive the contingency before the agreed upon date.

A) Buyer 1 may waive the contingency before the agreed upon date. If the seller accepts a back-up offer, buyer 1 may waive the contingency on or before a date they have agreed upon; otherwise, this first contract will terminate.

Buyer enters into a short sale agreement with seller with an option to terminate 14 days after the effective date using the TREC Short Sale Addendum. The effective date is February 5. The seller has until February 19 to notify buyer that seller has obtained lienholder's consent and agreement. The seller notifies the buyer that the lienholder has consented to the sale on February 19, but then withdraws its consent based on new information on February 27. What is the status of the contract? A) It is still live because seller gets additional time to obtain the lienholder's consent. B) The contract is in limbo. C) It is terminated. D) The contract is void.

C) It is terminated. The contract will terminate and the earnest money will be refunded to buyer if the lienholder refuses or withdraws its consent and agreement prior to closing and funding.

What is the purpose of the Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies? A) The appraisal report explanation B) The home inspection report C) To help the buyer understand the meaning of hazards and deficiencies as reported by a home inspector D) The home inspection contract

C) To help the buyer understand the meaning of hazards and deficiencies as reported by a home inspector

According to the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway, what causes coastal property to become part of a public beach? A) Lis pendens B) Condemnation C) Eminent domain D) Coastal erosion

D) Coastal erosion

According to the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, who may act on behalf of the parties to obtain the subdivision information? A) The title company B) The lender C) The seller's agent D) The buyer's agent

A) The title company The title company or its agent is authorized to act on behalf of the parties to obtain the subdivision information only upon receipt of the required fee for the subdivision information from the party obligated to pay.

Buyer enters into a short sale agreement with seller with an option to terminate seven days after the effective date using the TREC Short Sale Addendum. The effective date is January 2. The seller notifies the buyer that the lienholder has consented to the sale on January 10. What is the amended effective date of the short sale agreement? A) January 17 B) January 10 C) January 9 D) January 2

B) January 10 According to the Short Sale Addendum, "For purposes of performance, the effective date of the contract changes to the date Seller provides Buyer notice of the Lienholder's Consent and Agreement (Amended Effective Date)".

Which form should be used if the broker is a REALTOR® and the seller and buyer agree that they want to mutually terminate the contract and agree on how the earnest money will be distributed? A) Distribution of Earnest Money Form B) Release of Earnest Money Form C) Notice of Seller's Termination of Contract D) Notice of Buyer's Termination of Contract

B) Release of Earnest Money Form TAR 1904 Release of Earnest Money Form has language that releases everyone from the contract.

Which of these is FALSE regarding the Information About Brokerage Services form? A) A license holder can reproduce the IABS form for the purpose of prefilling the broker section. B) The form must be provided to a consumer at first substantive discussion. C) A license holder can manipulate the form as the license holder sees fit. D) A link to the completed IABS must be included on a broker's website.

C) A license holder can manipulate the form as the license holder sees fit.

Buyer and seller enter into an agreement for buyer to purchase seller's property which is located in a property owners association. Seller provides buyer with the subdivision information, and buyer requests that seller provide an updated resale certificate at buyer's cost. What is the buyer's option if seller fails to obtain it as required by paragraph A(3) of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association? A) Buyer may extend closing until the POA provides the information. B) Buyer may terminate and receive three times the earnest money. C) Buyer may terminate and forfeit the earnest money. D) Buyer may terminate and receive the earnest money.

D) Buyer may terminate and receive the earnest money.

Seller and buyer enter into an agreement for buyer to purchase seller's property and seller conveys a portion of his mineral estate to seller. The effective date of the contract is February 2. The closing date is February 28. Under the Addendum for Reservation of Oil, Gas, and Other Minerals by what date must the seller provide buyer with the contact information of any existing mineral lessee known to seller? A) February 5 B) February 21 C) February 25 D) February 9

D) February 9 If seller does not reserve all of seller's interest in the mineral estate, seller shall, within seven days after the effective date, provide buyer with the contact information of any existing mineral lessee known to seller.

A back-up contract allows A) an unlimited number of back-up buyers. B) the seller to terminate the first buyer's agreement if the seller prefers the terms of a back-up buyer. C) the seller to move up the closing date by up to five days without notifying the buyer. D) the seller to negotiate with a second buyer on terms that will be used if the first buyer's transaction falls through.

D) the seller to negotiate with a second buyer on terms that will be used if the first buyer's transaction falls through.