Promulgated Contracts
According to Paragraph 9 of the One to Four Family Residential Contract, how must a buyer pay for the property?
"in good funds acceptable to the escrow agent"
How long after receiving an Addendum for Property Subject to Mandatory Membership in an Owner's Association does a buyer have to terminate the contract?
3 days
What is the statute of limitations to claim fraud or misrepresentation against a license holder?
4 years from discovery
Buyer Raz goes into contract on a house in Texas. At the last minute, he is unable to obtain financing. What would he need to have in his contract to terminate it without penalty?
A third party financing addendum
When a contract has been fully executed, what has happened to it?
It has been terminated
Buyer Javier sends a formal offer to Seller Joy: $250,000 and the appliances stay. Joy counters: $250,000, no appliances. She then reconsiders and accepts the first offer. Is Javier obligated to buy the home? Why or why not?
No, because the first offer was dead when Joy countered
What are rules about the maximum number of people allowed to live together in a single dwelling called?
Occupancy standards
By what time is the seller required to furnish a new survey?
The seller must furnish the buyer a new survey no later than 3 days prior to closing
Which of these is NOT something that is appropriate to put in Paragraph 11 (the Special Provisions section) of a TREC promulgated contract?
that the contract is contingent on the inspection
Laura is in contract for a home. Her contract contains a Sale of Other Property by Buyer Addendum. The seller has just accepted a back-up contract for the property that doesn't have this contingency. What happens to Laura and her contract?
Laura can waive the addendum by a date she and the seller agree on, otherwise her contract terminates
Which of these must the broker maintain a copy of for three years following a sale?
Lead Based Paint Addendum
If a seller wants to reserve part of their mineral rights after selling, where on the Reservation of Oil, Gas and Other Minerals Addendum would they note what percentage they're keeping?
Paragraph B2
What part of the Third Party Financing Addendum for Credit Approval specifically pertains to people getting VA loans?
Paragraph D
Where in the One to Four Family Residential Contract does it spell out what remedy the buyer has if the property is damaged after going into contract but before closing?
Pragraph 14
According to the promulgated contracts, rollback taxes assessed because the buyer changed the usage after closing will be settled how?
The buyer will be obligated to pay the rollback taxes
Which of these is NOT true about a Seller's Temporary Residential Lease?
The buyer/ Landlord hs no recourse if the seller/tenant overstays
What is the name of the document prepared by a condo association (or HOA) to outline the fees and rules of the condo for a prospective buyer?
The condominium resale certificate
Paragraph D of the Short Sale Addendum contains a date by which the seller must get approval from their lender for the sale. What happens if the lender does not give approval by the date?
The contract will terminate and the earnest money will be refunded to the buyer
A Residential Real Property Affidavit Promulgated by the Texas Department of Insurance (T-47 Affidavit) must be furnished to the buyer _______________________.
When the seller provides the existing survey
In TREC promulgated contracts, what does Paragraph 21: Notices provide information about?
Where to send official notices about the contract
What does Paragraph A of the Addendum for Back-Up Contract specify a back-up contract holder do when they execute the contract?
deposit the earnest and option money agreed to in the contract
What is the only time it is acceptable for a license holder not to present all offers to a seller client?
if the listing agreement specifies that it is not necessary
The seller of an unimproved property would provide a disclosure about the property in what location?
in paragraph 7E of TREC unimproved property contract
Before the Lead Based Paint Addendum can be considered complete, which of these must happen?
the buyer, seller, and both brokers must sign it
Which of these does NOT create housing occupancy standards?
the federal housing administration
Which of these is a possible result of when zoning is changed and a property no longer qualifies for a previous exemption?
the property's owner owes charged rollback taxes
Which of these is an example of something that could go in Paragraph 12 of the One to Four Family Residential Contract?
the seller plans to pay some of the buyer's closing costs
What is the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway for?
warns buyers that if their property become located on the beach area by erosion, they can be required to remove structure at their own expense
A seller is selling a property that is under a lease. When does the seller have to deliver a copy of the lease and any move-in condition form to the buyer?
within seven days after the effective date
Additions to the standard coverage in a title policy can be purchased via:
Endorsements
How can a buyer ensure they pay the least possible amount of pre-paid interest to the mortgage company?
Close near the end of the month
Which of these is NOT a TREC promulgated form?
Condo addendum
In which type of property does the buyer purchase rights to the unit and an undivided interest in the common areas?
Condominium
Which of these forms is least likely to be involved in the sale of unimproved property?
Condominium Resale Certificate
Agent Kara signed a buyer's representation agreement with her client that set her commission at 3%. The listing broker of the home her client chose offered 3.5% to the buyer's broker. What percentage of the sale price of the home will Kara's commission be?
3.5%
Even the most experienced home inspectors have limitations. Which of these are frequently difficult to vet by visual inspection?
HVAC, Leaks and Environmental Toxins
Which of the following is TRUE regarding a contract to transfer real estate which contains no earnest money?
It is valid
In the Farm and Ranch Contract, where does a legal description and list of improvements staying with the property go?
Paragraph 2
Which of these is NOT something TREC has the power to do?
Licensing developers and builders
A seller is planning to convey a refrigerator through the Non-Realty Items Addendum. They financed the applianced purchase, and still have a few payments left. Is this allowed? Why or why not?
No, items conveyed through the Non-Realty Items Addendum must be owned fully by the seller
Paragraph 7D(2) of the contract indicates:
Repairs that must be completed by the seller before closing
Rollback taxes are addressed in all of the following EXCEPT:
Residential Service Contract
Which of these is NOT a protected class of people, according to Fair Lending Laws?
Sexuality
If clients want to make an offer to the seller offering a "lease with option to buy," the buyer's agent should:
Tell the client they will need an attorney to draw up the documents
The Seller's Disclosure Notice is a requirement of
The Texas Property Code
If a property is occupied solely by people over the age of 62 and qualifies as senior housing it is exempt from:
The familial status portion of the Fair Housing Act
Agents are required to give all buyers a written copy of the title notice. Aside from Paragraph 6E(1) of the One to Four Family Residential contract, where else can this notice be found?
The notice to Prospective Buyer
Which of these is NOT a place where commission split agreements between cooperating brokers can be determined?
The sales contract
What happens when a home buyer takes out a residential service contract on their newly-purchased home
They get a warranty for the property, usually for a year
There are three different types of financing choices in Paragraph Three of TREC's One to Four Family Residential Contract. They are:
Third party, Assumption, Seller financing
If an agent makes a change to Paragraph 6A8 in a TREC promulgated contract, which of these is most likely to be the result?
The title policy will be amended to read " shortage in area" rather than the standard exception
If a buyer is sent an Addendum for Property Subject to Mandatory Membership in an Owner's Association and they don't like the terms, what remedy do they have?
They can terminate the contract within the first three days
Buyer Ashley is shopping for empty lots on which to build a home. She found a lot for sale that looks promising, but she's concerned its located on a wetland. What should her agent do?
Use the Unimproved Property contract and attach the Environmental Assessment, Threatened or Endangered Species and Wetlands Addendum
Alex is a licensed sales agent. Her client is selling her single-family home. In order not to violate TRELA contract law and run afoul of TREC, how should she create the contract?
Using TREC's promulgated One to Four Family Residential Contract
Agent Aaron was drawing up a contract, and opted to use his brokerage's (lawyer-created) Seller's Disclosure Notice instead of TREC's. Is this allowed? Why or why not?
Yes, because the seller's disclosure notice is not promulgated by TREC
Which of the following would constitute unauthorized practice of law and/or be a violation of TRELA?
adding or striking things from pre-printed contract forms
Your buyer client has received their inspection report. In it, there are several identified items that they want the seller to fix. Seller has agreed to fix these items before close. What will you need to include in the contract to ensure this agreement is enforced?
amendment
George Jr. inherited the family compound after George Sr. died. The will was contested, and some family is still disgruntled. George is now selling the property. How can a buyer best protect themself from any claims on the title?
ask the family to sign a quitclaim deed
Why does the Option to Terminate require an extra consideration in the form of option money?
because it is another contract within the overall contract
How can a license holder ensure that any relevant addenda or notices are officially included in a contract?
by checking the appropriate boxes in paragraph 22
How can an agent help protect the earnest money of a buyer who is financing their purchase?
by submitting a third party financing addendum