Promulgated contracts

Which of these is an example of a unilateral contract?

A unilateral contract is an agreement made between two or more parties in which only one of those parties makes a promise or otherwise accepts an obligation.

Seller Vera agrees to allow another veteran to assume their mortgage loan. To make sure Vera can get their VA entitlement restored, what must be attached to the contract?

Addendum for Release of Liability on an Assumed Loan and/or Restoration of Seller's VA Addendum

When all parties have agreed to all terms of an offer, have signed the offer, and have initialed any changes that took place during negotiations, what happens to the offer?

An offer becomes a contract when all parties have agreed to all terms of the offer, have signed the offer, and have initialed any changes that took place during negotiations.

When both parties mutually agree to terminate a contract, who provides the appropriate form?

While there is not a promulgated form for mutual termination, the title company can provide the parties with a form for each of them to sign for the release of contract that will address what will happen with the earnest money

Reggie made Betty an offer on her house. She countered, but Reggie has not yet accepted. Then along comes Archie with a better offer. Before accepting Archie's offer, what must Betty do?

Before accepting Archie's offer, Betty has to withdraw her counteroffer to Reggie.

Which of these does NOT create housing occupancy standards?

Cities, states and sometimes housing providers enforce occupancy standards.

What is the purpose of TREC form OP-C Notice to Prospective Buyer?

Form OP-C Notice to Prospective Buyer provides a notice to buyers using their own contract to obtain an Abstract of Title.

How can a buyer ensure they pay the least possible amount of pre-paid interest to the mortgage company?

Most buyers want to close near the end of the month to avoid paying extra prepaid interest to the mortgage company. This means that scheduling an appointment to close with the title company late in the month is difficult.

According to Paragraph 10B, Possessions, what is a seller prohibited from doing after the effective date?

Paragraph 10B, Possessions, says that after the effective date, the seller cannot execute any lease without the buyer's permission.

In TREC promulgated contracts, what does Paragraph 21: Notices provide information about?

Paragraph 21: Notices informs parties where to send official notices.

The words "time is of the essence" are in:

Paragraph 23 of the One to Four Family Contract

According to Paragraph 9 of the One to Four Family Residential Contract, how must a buyer pay for the property?

Paragraph 9 of the One to Four Family Residential Contract says that the buyer will pay the sales price, ""in good funds acceptable to the escrow agent."

What part of the Third Party Financing Addendum for Credit Approval specifically pertains to people getting FHA or VA loans?

Paragraph D of the Third Party Financing Addendum for Credit Approval concerns FHA and VA loans.

What is the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway for?

The Addendum for Property Located Seaward of the Gulf Intracoastal Waterway warns buyers that, if their property comes to be located on the beach area because of storms or erosion of the soil, the state can require them to remove the structure at their own expense.

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 is completed by the condo association and outlines the costs and rules of the condo.

Why does the Option to Terminate require an extra consideration in the form of option money?

The Option to Terminate is a contract within the contract, and valid contracts require consideration.

What is the purpose of the Short Sale Addendum?

The Short Sale Addendum protects the seller by referring to "net proceeds" and giving them a way to break the contract if the lender doesn't approve the sale.

Which of these is appropriate to put in the Special Provisions section of the One to Four Family Residential Contract?

The Special Provisions section of the One to Four Family Residential Contract provides space for the addition of contract terms that are not already included in the sales contract, or for which a TREC promulgated form does not already exist

What should an agent do if asked to violate anti-discrimination laws by a client?

The agent should educate the seller about anti-discrimination laws and inform the seller they cannot make that promise.

A buyer needs more option period time. They have asked the seller, who agreed, and signed TREC's Amendment to Contract. What else must they do to make the extension official?

The buyer can get more option time by paying the seller an additional option fee and signing a mutual amendment agreeing to the additional option time.

Paragraph C2 on the Lead Based Paint Disclosure states that:

The buyer has 10 days to have the property inspected for lead-based paint.

If legal action is required regarding a TREC sales contract, what will the non-prevailing party be responsible for?

The non-prevailing party will be required to cover the prevailing party's reasonable attorney fees and court costs.

What is the difference between contracts that TREC has promulgated and those that TREC has approved?

They are optional if the situation calls for them

How can an agent help protect the earnest money of a buyer who is financing their purchase?

If a buyer is getting financing in order to purchase property, submitting a Third Party Financing Addendum protects their earnest money.

In which of these situations is the seller required to provide a seller's disclosure?

Investors still have to provide seller's disclosures.

Agent Sarah knows her client wants to make the sales contract contingent on appraisal, so she adds a notation to that effect in the Special Provisions section of the contract. Why is that wrong?

It's a violation to include anything in the Special Provisions section that alters the parties' legal rights, because that could be considered the unauthorized practice of law.

Which of these is NOT a protected class of people, according to Fair Lending Laws?

Laws prohibit lenders from discriminating against all of the same protected classes as the Fair Housing Act, with the addition of age, marital status, and receipt of public income.