Promulgated Forms

49. Seller allows someone to move into the property, what does that make the seller?

The seller becomes a landlord and is subject to rules and laws relating to the landlord - tenant issues/ requirements. If using a TREC temporary lease it will reduce some of those requirements. Example- the seller would not have to replace any of the locks

53. TREC has an addendum that must be attached to the sales contract in order for...

The seller to reserve some or all of the mineral rights. It used to be in the farm and ranch contract

28. In paragraph 2 the seller may inform the buyer what?

The specific items that will NOT remain after closing.

29. Paragraph 3C includes?

The sum of the down payment and any first or second loans equal the sales price

55. Every license holder is required to give TREC promulgated Notice to prospective buyer to who?

To every buyer Even if the buyer buying from a builder using the builders required form

37. The premium cost is the same and established by the state at all title companies in the State of Texas to do....

To insure the title of the property with the same sales price

43. The best way to extend a closing date in a contract is to...

Use the TREC promulgated amendment and have the buyers and sellers sign it

52. The Unimproved property contract form is used for?

Used for a 1 acre lot. It is located in a subdivision so the Farm to Ranch contract is not appropriate in this situation

14. When does a contract become binding?

When the last party has signed and the other party has been notified. Acceptance & communication to all parties creates the contract or meeting of the minds.

48. If an agent fails to define in paragraph 21 where the notices are to be delivered it can do what to the buyer and the seller?

It would cause confusion on the part of the buyer and seller

31. What the 2 purposes of earnest money?

1. Show good faith and serious intent on the part of the purchaser 2. Deposited money is to serve as liquidated damages in the event of default as addressed in the identified remedies listed in paragraph 15

8. A contract is created when...

A legally enforced a promise for a promise or a promise for money

15. What forms are required of license holders?

All Texas real estate commission promulgated forms

42. If the buyer decides to terminate a contract within the OPTION period then....

All the notices from one party to the other must be in writing and be delivered as required in paragraph 21

56. The short sale addendum form

Allows the parties to deal with Lender to work out a solution in which the home can be sold despite the fact the loan amount is greater than the value

12. When can a buyer or seller withdraw from a transaction?

Anytime prior to the seller acceptance and buyer notification Their is no agreement until acceptance

1. Purchase Contract

Bilateral, in which a promise is exchanged for a promise

17. Who authors the 1-4 family residential Contract (resale) ?

By Texas broker lawyer committee and promulgated by TREC

19. Real estate license holder

Can give business detail to their clients but can not offer give legal advice to the client

35. Paragraph 7H

Describes the bites right to choose a residential service contract and to negotiate for the seller to reimburse the buyer for the cost

2. What does a Broker do in the Contract?

Fills out the date of final acceptance

23. Usually the first 3 paragraphs in every real estate purchase agreement are?

Identification of the parties, of the property, and establishment of the price. There is not a paragraph about a parcel.

4. Buyer can void contract

If the seller does not deliver the disclosure on time

26. When is a 3rd party financing addendum for CREDIT APPROVAL is used?

In a transaction involving a mortgage loan

25. When is the 3rd party financing addendum used?

It is used when a transaction involves a mortgage loan.

45. How does a landlord tenant relationship occur?

It occurs when a buyer moves in before closing and funding or if a seller remains after closing and funding. This relationship must be defined by a sellers or buyers temporary lease

46. What does a legal right or remedy state?

It states what will happen if someone does or down not do a particular act

3. A specific performance

Legal proceeding asking the court to enforce the contract

21. It is the sellers right to be given information regarding the type of ____ the buyer is acquiring?

Loan Any financing needs to be explained on the appropriate addendum

6. Power of attorney granting the authority to transfer title to real property

Must recite the legal description of the subject of the authority

13. Can a liscensee give legal advice? What if it's a broker?

NEVER to either parties They can give advice and opinions regarding business details and general contract content

30. Paragraph 7E includes?

Neither the buyer nor seller is obligated to pay for lender repairs unless otherwise agreed in writing

20. Because there is no financing in a cash deal do you need a financing addenda?

No it is not required

54. The "back up" agreement allows for...

Only one back up contract

5. Novation

Parties agree to a NEW agreement

40. Paragraph 9B (1)

Provides for the seller to provide a general warranty deed

59. Protected classes under the fair housing act include?

Race, color, national origin, religion, sex, status , and disability

60. Fair housing act

Required a building w a "no pet" sign to allow an impaired tenant to keep their guide dogs. Also says that users are not to discriminate against those who are participating in addiction recovery Anyone w disabilities is allowed to make reasonable modifications to make the house more suitable for them.

57. The Texas natural resources code

Sates that the owner of the property described in the contract may gain or lose portions of the Tract because sod changes in the boundary caused by tide waters

9. What does seller do w multiple offers?

Seller withdraw the first counter offer before answering the new offer. An offer or counter offer will remain open until accepted rejected or withdrawn

11. To be a valid contract

Something is in exchange for something else. a promise in exchange for a promise is an adequate consideration to bind a purchase agreement.

16. TREC does not promulgate lease forms except....

Temporary seller or buyer leases And has not created a lease w an option to purchase

10. Texas Statute of Frauds requires

That anything involving the title or interest in real estate in Texas must be in writing and signed by both parties. Oral is void and also unforceable in Texas

22. What is the most frequently used of the TREC - promulgated forms?

The 1 to 4 family residential contract (resale)

39. Paragraph 7H

The buyer may purchase a residential service contract.

24. Lender determines what? What is the difference between financing approval and Lina approval?

The buyers assets, income, and credit are satisfactory. Financing- approval comes when the borrower is acceptable to and approved by the lender Loan- comes when both the borrower and the property being offered as collateral meet the lender's underwriting guidelines

51. By accepting the earnest money as loquats damages what happens to the contract?

The contract is terminated and both parties are released from the contract.

33. Paragraph 6C

The form calls for the seller to provide an existing survey of for a survey to be performed by a registered professional land surveyor acceptable to the title company or any lender

34. Paragraph 7C2

The lead based paint addendum , the buyer has the right to do inspections with in 10 days and the right to terminate within 14 days

27. Paragraph 2 includes?

The legal description , improvements, accessories, and, if there are to be any excluded, improve tons or accessories

36. Disclosure of relationship with residential service company is to be used by whom?

The license holder !?!?!?!?!?!

44. Who pays for what in paragraph 12?

The parties may define their agreement in the Special Provisions paragraph because it is a business detail that is usually addressed in this paragraph.