Promulgated forms chapters 6-9
Complete this activity using your knowledge of the Notice of Buyer's Termination of Contract. Despite several promises to do so, the seller's agent never delivers the Seller's Disclosure of Property Condition, resulting in your client's giving notice to terminate using_____ of the Notice of Termination.
paragraph 5
OGM as a category is generally deemed to be_____
severable
Absent an agreement, the mineral owner is not required to_____ for damage to the surface.
compensate
Question #2 of 10 Question ID: 838547 Which of the following is NOT in the Seller's Disclosure in the TREC Unimproved Property Contract? A) Endangered species B) Wetlands C) Dumpsites D) Foundation problems
The answer is foundation problems. Since the property is not improved, the seller's disclosure addresses flooding of the property, litigation, environmental hazards, dumpsites, wetlands, and endangered species.
Hydraulic fracturing is also known as ___
fracking
what are the 17 TREC promulgated addenda
-addendum for sale of other property -addendum for back-up contract -addendum for release of liability on assumed loan and or restoration of sellers VA entitlement -sellers temporary residential lease -buyers temporary residential lease -seller financing addendum -environmental assessment, threatened or endangered species and wetlands addendum -addendum for costal area property -addendum for property located seaward of the gulf intracoastal waterway -addendum for property subject to mandatory membership in an owners association -third party financing addendum -loan assumption addendum -addendum for reservation of oil, gas and other minerals -short sale addendum -addendum to property in a propane gas system service area -addendum concerning right to terminate due to lenders appraisal -addnedum for authorizing hydrostatic testing
what are the two promulgated resale certificates
-condominium resale certificate -subdivision information, including resale certificate for property subject to. mandatory membership in an owners association
what are the three promulgated consumer disclosures
-consumer protection notice -disclosure of relationship with residential service company -information about brokerage services
Match each addendum with the phrase that describes the form or its use. 1. If you own a structure on property near a Gulf Coast beach, it may come to be located on the public beach because of coastal erosion. 2. When is service available? How much will it cost? 3. The real property adjoins and shares a common boundary with the tidally influenced submerged lands of the state. Addendum for Coastal Area Property Addendum for Property Located Seaward of the Gulf Intracoastal Waterway Addendum for Property in a Propane Gas System Service Area
1. If you own a structure on property near a Gulf Coast beach, it may come to be located on the public beach because of coastal erosion. -Addendum for Property Located Seaward of the Gulf Intracoastal Waterway 2. When is service available? How much will it cost? -Addendum for Property in a Propane Gas System Service Area 3. The real property adjoins and shares a common boundary with the tidally influenced submerged lands of the state. -Addendum for Coastal Area Property
How many back-ups does the TREC Addendum for Back-Up Contract allow? A) Two B) One C) Three D) May be negotiated by the seller
The answer is one. The TREC Addendum for Back-Up Contract allows for just one back-up.
If a transaction is contingent upon the sale of buyer 1's property and the seller notifies buyer 1 that the seller has accepted a back-up offer, buyer 1 must A) pay the additional earnest money agreed to in the Addendum for Sale of Other Property by Buyer. B) waive the contingency on or before the date they have agreed upon and pay the additional earnest money agreed to in the Addendum for Sale of Other Property by Buyer. C) waive all negotiations of repairs. D) waive the contingency on or before the date they have agreed upon in the Addendum for Sale of Other Property by Buyer.
The answer is waive the contingency on or before the date they have agreed upon and pay the additional earnest money agreed to in the Sale of Other Property by Buyer Addendum.
When should the Addendum for Reservation of Oil, Gas, and Other Minerals be used? A) When seller conveys all of the mineral estate B) When seller reserves all or a portion of the mineral estate C) When seller is aware of other mineral estate owners D) Only when an attorney is involved in the transaction
The answer when seller reserves all or a portion of the mineral estate. The note at the top of the addendum states that it is for use only if seller reserves all or a portion of the mineral estate.
The obligation to choose between the least damaging of two alternatives is another way to express the_____
accommodation doctrine
A mineral reservation generally does not include_______
clay
what are the two promulgated notices
notice of buyers termination of contract notice of sellers termination of contract
Complete this activity using your knowledge of the Notice of Buyer's Termination of Contract. "I changed my mind and don't want that place. My lawyer says I don't need a reason and can terminate the deal and give Notice of Termination using _____of the promulgated form."
paragraph 1
Complete this activity using your knowledge of the Notice of Buyer's Termination of Contract. Your client does not qualify for a loan large enough to buy the property under the contract as it reads, and gives notice to terminate using _____of the Notice of Termination.
paragraph 2
______found within 200 feet of the surface of land are not deemed to be minerals.
resources
Use your knowledge of the Residential Condominium Contract to match each item to the most appropriate definition Resale Certificate Right of refusal Auto termination of contract Paragraph 2's treatment of "Property" Sixth Day What the contract refers to as 'Documents' Deadline to cancel for nonreceipt of Certificate Causes amendment of effective date of contract Right of refusal exercised Nonreceipt equals right to cancel contract Includes undivided interest in common elements Declaration, bylaws and rules of the association
sixth Day: deadline to cancel auto termination of contract: right of refusal exercised What the contract refers to as 'Documents': declaration, bylaws etc. resale cert: non receipt equals right to cancel right of refusal: causes amendment of effective date paragraph 2: includes undivided interest etc.
what are the 7 approved optional/voluntary use forms
-notice to prospective buyer -sellers disclosure notice -texas real estate consumer notice concerning hazards or deficiencies -lead-based paint addendum -non-realty items addendum -notice concerning easements and rights-of- ways -property inspection report
TREC promulgates six contract forms, what are they?
-unimproved property -one to four family residential contract (resale) -new home contract (incomplete construction) -new home contract (completed construction) -farm and ranch contract -residential condominium contract (resale
which 7 paragraphs contain information different from the one to four family residential contract?
-paragraph 2 is different in each contract, describing the type of property. that is covered -paragraph 3 is only different in the farm and ranch contract because the sales price can be adjusted by the survey -paragraph 6 is different in the condominium contract and the farm and ranch contract. Farm. and ranch allows for info regarding exception documents and surface leases. -paragraph 7 is different in both new home contracts, unimproved. property contracts, and. farm and ranch contracts -paragraph 12 is only different in the condominium contract. it addresses association fees and deposits -paragraph. 13 is different in both new home contracts, the unimproved property contract, the farm and ranch contract and the condominium contract but for different reasons - paragraph 14 is different only in the condominium contract the seller owns the units only so that must be defined
What phrase in paragraph 5 of the contract eliminates the buyer's flexibility in delivering earnest money? A) All of these phrases provide the buyer some flexibility in the delivery of earnest money B) "Within 3 days after the Effective Date . . ." C) "If the last day to deliver earnest money is a Saturday, Sunday, or legal holiday . . ." D) "Time is of the essence for this paragraph."
The answer is "time is of the essence for this paragraph." This phrase means that if the obligation noted is not performed on or before the exact deadline specified in the contract, a breach has occurred and the nonbreaching party may exercise the remedies called for by the contract.
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) A number of days agreed upon by the parties B) 3 days C) 7 days D) 10 days
The answer is 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.
Which Texas state agency promulgates the Residential Real Property Affidavit? A) Department of Insurance B) Real Estate Commission C) Department of Savings and Mortgage Lending D) Surveyors Board
The answer is Department of Insurance. The remaining answers are incorrect.
What law or rule requires disclosure of insulation R-Value? A) TDLR rule B) TREC rule C) State law D) Federal regulations
The answer is federal regulations. Federal law requires that builders reveal to the buyer the R-value of the insulation installed in the new home.
If a buyer or the buyer's agent has questions regarding the coastal location of property, the source for information is A) the Intracoastal Waterway Office in Austin. B) the county surveyor's office in the county in which the property is located. C) the Coastal Surveyor's Office in Austin. D) the General Land Office in Austin.
The answer is the General Land Office in Austin. If there is any question about the property, it is prudent for the agent to refer the client to this resource.
If as a result of a condemnation of a portion of the property by the local municipality, the use of the property went from residential to commercial, thus increasing the value of the property substantially, which of the following would be TRUE? A) The tax and all interest would be due immediately and would accrue interest at 7% per year. B) The tax would be retroactive for a period of five years. C) There would be no rollback taxes because property condemned is not subject to rollback taxes. D) The value would be based on the new, higher tax base use.
The answer is there would be no rollback taxes because property condemned is not subject to rollback taxes. There are a number of exceptions to the application of the rollback tax: if the change of use occurs as a result of a sale for a right-of-way; a condemnation; a transfer of the property to the state or a political subdivision of the state to be used for a public purpose; and several others, including ownership by or dedication for a cemetery by a nonprofit cemetery organization.
Under the TREC Unimproved Property Contract, why must a buyer of an unimproved building lot carefully research availability of utilities? A) Utilities are not transferrable. B) Utilities are unsustainable. C) They may affect the suitability of the lot for the buyer's intended use. D) They are not negotiable if not already in place.
The answer is they may affect the suitability of the lot for the buyer's intended use. A buyer of an unimproved building lot must carefully research availability of utilities, access, and other matters that will affect the suitability of the building lot for the buyer's intended use.
Complete this activity using your knowledge of the Notice of Buyer's Termination of Contract. You say to your client, "I'm sorry the property doesn't meet your lender's approval without all those repairs and that the seller wouldn't agree to pay for them. You can give notice to terminate using ______of the Notice of Termination and get back your earnest money."
paragraph 3
match term to most appropriate definition: Paragraph 3 Metes and bounds Paragraph 14 Paragraph 2 Rollback tax Sale for right-of-way Paragraph 6 Exempt from rollback tax Discusses Texas Agricultural Development Districts Only paragraph different in each contract Imposed retroactively Used for larger tracts Allows for sales price adjustment Different only in the condominium contract
paragraph 3: allows sales price adjustments metes and bounds: used for larger tracts paragraph 2: only paragraph different in each rollback tax: imposed retroactively sale for right-of-way: exempt from roll back paragraph 14: different only in condominium paragraph 6: discusses Texas agricultural development
Complete this activity using your knowledge of the Notice of Buyer's Termination of Contract. The owners' group requires preapproval of all exterior paint colors in the subdivision, and refuses to approve your client's proposed paint color, resulting in the giving notice to terminate using____ of the Notice of Termination.
paragraph 4
Under the TREC Farm and Ranch Contract, who has the right to harvest all growing crops until delivery of possession of the property? A) Tenant B) Buyer C) Sharecropper D) Seller
seller
For each scenario below, indicate which form should be used. A seller's home is being sold and his VA loan is being assumed. The seller hopes to have his VA entitlement restored. An individual is selling a house on the Gulf of Mexico. The buyer wants her offer to be contingent upon her home, which is already under contract, closing as scheduled. The seller accepts a contingency offer. She then receives and wants to negotiate another offer but can't become obligated to sell to two both parties The parties agree that the seller will leave the televisions in the living room and in the family room for the buyer. The buyer wants to exercise his right to terminate under paragraph 23. Addendum for Sale of Other Property by Buyer Non-Realty Items Addendum Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement Addendum for Coastal Area Property Addendum for Back-Up Contract Notice of Buyer's Termination of Contract
1. A seller's home is being sold and his VA loan is being assumed. The seller hopes to have his VA entitlement restored. -Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement 2. An individual is selling a house on the Gulf of Mexico. -Addendum for Coastal Area Property 3. The buyer wants her offer to be contingent upon her home, which is already under contract, closing as scheduled. -Addendum for Sale of Other Property by Buyer 4. The seller accepts a contingency offer. She then receives and wants to negotiate another offer but can't become obligated to sell to two both parties -Addendum for Back-Up Contract 5. The parties agree that the seller will leave the televisions in the living room and in the family room for the buyer. -non-realty items addendum 6. The buyer wants to exercise his right to terminate under paragraph 23. -Notice of Buyer's Termination of Contract
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 last day of the option period? A) January 19 B) January 17 C) January 10 D) January 9
The answer is January 17. If buyer has the unrestricted right to terminate the contract, the time for giving notice of termination begins on the effective date of the contract, continues after the amended effective date and ends upon the expiration of buyer's unrestricted right to terminate the contract under paragraph 23.
Buyer and seller enter into a contract for buyer to purchase seller's condominium unit using the TREC Residential Condominium Contract with an effective date of January 15. Seller timely delivers the resale certificate three days after the effective date. Assuming no option period, what is the latest date on which buyer may cancel the contract based on the resale certificate and still get her earnest money refunded? A) January 21 B) January 18 C) January 23 D) January 31
The answer is January 23. The contract provides that buyer may cancel the contract before the sixth day after buyer receives the resale certificate by hand-delivering or mailing written notice of cancellation to seller by certified United States mail, return receipt requested. We know that the effective date is January 15 and that the certificate was delivered on January 18. The sixth day after delivery would be January 24. Since the contract allows cancellation before the sixth day after receipt of the certificate, (which was January 18), January 23 is the correct
Question #5 of 10 Question ID: 1189824 In which paragraphs or forms would you address the fact that the buyer will be acquiring the eight-burner freestanding propane grill on the pool deck as part of the transaction? A) Paragraph 2C B) Non-Realty Items Addendum and paragraph 22 C) Non-Realty Items Addendum D) Paragraph 2B
The answer is Non-Realty Items Addendum and paragraph 22. The grill is not covered by either paragraph 2B or 2C. Because the Non-Realty Items Addendum is being used, it must be checked in paragraph 22 as one of the additional contract documents.
Buyer and seller have agreed to terminate a contract and agree on how to distribute the earnest money. The buyer's agent is a REALTOR®. Which form should be used? A) TAR 1904 B) TREC 20-13 C) T-57 D) TDLR 21-5
The answer is TAR 1904. TAR 1904 Release of Earnest Money Form has language that releases everyone from the contract. It can only be used by individuals who are members of the Texas Association of REALTORS®.
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) Current regular assessment B) Capital expenditures C) All of these D) Special assessment
The answer is all of these. All of the items are addressed in the resale certificate.
TREC's new home contracts A) address only construction that has been completed. B) are required in the sale of all new homes. C) are the same as the One to Four Family Residential Contract except for the title of the form. D) are available for both complete and incomplete construction.
The answer is are available for both complete and incomplete construction. Property owners can instruct license holders to use a form preferred by the owner rather than a TREC-promulgated form. The new home contracts have important differences from the one to four family contract, specifically in paragraphs 2, 7, and 13, and in the notice on page 8.
When must the Information About Brokerage Services be provided to a consumer? A) Before closing B) Before a listing agreement is signed C) At first contact D) At the first substantive discussion
The answer is at the first substantive discussion. A substantive discussion is defined as the first discussion at which substantive information about a particular property occurs.
A buyer and seller enter into an agreement for buyer to purchase seller's 2,000-acre ranch using the TREC Farm and Ranch Contract. The parties agree that the sales price is calculated at $2,000 per acre and that the sales price will be adjusted based on the survey. The buyer gets a survey done which indicates that the ranch is 2,400 acres. The seller wants to adjust the sales price accordingly and buyer disagrees. What is buyer's option under the contract? A) Buyer may not terminate because the variance is less than 10%. B) Buyer may not terminate because she agreed to the adjustment. C) Buyer may terminate and forfeit the earnest money. D) Buyer may terminate with written notice to the seller.
The answer is buyer may terminate with written notice to the seller. Since the variance is more than 10% of the original sales price, the buyer may terminate as long as she gives notice within the time agreed to by the parties.
Under paragraph 12A(4) of the TREC Residential Condominium Contract, who pays for any deposits for reserves required at closing by the Association? A) Seller B) Buyer C) Title company D) It is negotiated
The answer is buyer. Buyer shall pay any deposits for reserves required at closing by the association.
A buyer and seller enter into an agreement for buyer to purchase seller's lot, which is currently used for grazing, using the TREC Unimproved Property Contract. The buyer intends to develop the property for commercial use. Who pays for any rollback taxes in this case? A) Buyer B) Title company C) Seller D) Both buyer and seller proportionally
The answer is buyer. The party changing the usage is responsible for the rollback assessment.
Under the Addendum for Reservation of Oil, Gas, and Other Minerals, what information must seller provide to the buyer if seller conveys all of seller's interest in the mineral estate? A) Contact information of any existing mineral lessee B) Copies of all existing mineral leases C) Contact information for all landmen who have contacted seller D) Copies of all royalty conveyance contracts in seller's possession
The answer is contact information of any existing mineral lessee. 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.
Which of the following is not listed as a farm and ranch improvement in paragraph 2 the TREC Farm and Ranch Contract? A) Sheds B) Windmills C) Garages D) Tanks
The answer is garages. Garages are included as a residential improvement, not a farm and ranch improvement.
What does the R-Value address in the TREC new home contracts? A) Hot water heater B) Appraisal C) Insulation D) Air conditioner
The answer is insulation. R-Value is a measure of insulation. The higher the R-Value, the better resistance to the transfer of heat.
Under the TREC One to Four Family Residential Contract, how long does the seller have to complete required repairs? A) Until closing B) Within the option period C) Three days before closing D) Three days after closing
The answer is until closing. The TREC contract provides that the seller must complete required repairs by closing unless otherwise agreed in writing.
How is paragraph 13 of the Residential Condominium Contract different from the One to Four Family Residential Contract? A) It addresses cash reserves from regular condominium assessments. B) There is a possibility of the assessment of rollback taxes. C) Taxes for the current year are not prorated. D) Taxes for the current year are prorated differently.
The answer is it addresses cash reserves from regular condominium assessments. In paragraph 13, the Residential Condominium Contract states the following: "Cash reserves from regular condominium assessments for deferred maintenance or capital improvements established by the Association will not be credited to Seller. Any special condominium assessment due and unpaid at closing will be the obligation of Seller."
A buyer and seller enter into an agreement for buyer to purchase seller's 300-acre ranch using the TREC Farm and Ranch Contract. The parties agree that the sales price is calculated at $5,000 per acre and that the sales price will be adjusted based on the survey. The buyer gets a survey done which indicates that the ranch is 303 acres. The seller wants to adjust the sales price accordingly and buyer agrees. Is the additional amount financed or paid in cash at closing? A) It depends on what the parties negotiate B) It is always financed C) It is always paid in cash at closing
The answer is it depends on what the parties negotiate. The additional amount is allocated as paid in cash, financed, or allocated proportionally.
Under the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, who is required to obtain the subdivision information? A) Seller B) Buyer C) Title company D) It is negotiated
The answer is it is negotiated. Buyer and seller negotiate who will obtain and pay for the subdivision information.
Sellers purchased a home five years ago and had the property surveyed. After purchasing the property, they remodeled and added another structure in the backyard. Using the One to Four Family Residential Contract, what should the listing agent tell the sellers to do about a survey? A) Provide the old survey to the title company. B) Use the Residential Real Property Affidavit. C) Nothing, it will work itself out. D) Negotiate with the buyer on who pays for a new survey.
The answer is negotiate with the buyer on who pays for a new survey. Since the sellers added a structure, they cannot rely on the Residential Real Property Affidavit and the existing survey because the affidavit states that no structures have been added.
Sellers contribution to a residential service contract is addressed is which paragraph of the TREC One to Four Family Residential Contract? A) Paragraph 6 B) Paragraph 7 C) Paragraph 5 D) Paragraph 8
The answer is paragraph 7. Paragraph 7 addresses property disclosure and repair information including sellers contribution towards a residential service contract.
The buyer wishes to obtain an adjustable rate mortgage. How should paragraph 1 of the TREC Third Party Financing Addendum be filled out? A) Per annum for the first year of the loan. B) The blank should be filled in as NA since it envisions a term longer than one year. C) The blank should not be filled in since it makes sense blank D) Per annum for the first 15 years of the loan.
The answer is per annum for the first year of the loan. If the loan is an adjustable rate mortgage that will adjust in one year, it will be "per annum for the first year of the loan." Any adjustment caps or lifetime caps for an adjustable rate mortgage will need to be described in paragraph 11 of the contract.
How is paragraph 3 different in the Farm and Ranch Contract from the other five contracts? A) Sales price is dependent on the appraisal. B) Sales price can be adjusted after the effective date. C) Listing agent can contribute to the sales price. D) Title company can contribute to the sales price.
The answer is sales price can be adjusted after the effective date. Paragraph 3 is only different in the Farm and Ranch Contract because the sales price can be adjusted by the survey.
How is paragraph 3 different in the Farm and Ranch Contract from the other five contracts? A) Sales price is dependent on the appraisal. B) Title company can contribute to the sales price. C) Sales price can be adjusted after the effective date. D) Listing agent can contribute to the sales price.
The answer is sales price can be adjusted after the effective date. Paragraph 3 is only different in the Farm and Ranch Contract because the sales price can be adjusted by the survey.
Which of the following is considered a surface material that may be used for developing or removing oil, gas, or other minerals? A) Lithium B) Sand C) Air D) Freon
The answer is sand. The mineral estate does not include water, sand, gravel, limestone, building stone, caliche, surface shale, near-surface lignite, and iron, but does include the reasonable use of these surface materials for mining, drilling, exploring, operating, developing, or removing the oil, gas, and other minerals from the property.
A buyer and seller enter into an agreement for buyer to purchase seller's 3,500-acre ranch using the TREC Farm and Ranch Contract. Seller was denied a special use valuation by the county that resulted in assessments. Who is responsible for payment of the assessments? A) Buyer and seller proportionally B) Buyer C) Neither buyer nor seller D) Seller
The answer is seller. If seller's change in use of the property prior to closing or denial of a special use valuation on the property claimed by seller results in assessments for periods prior to closing, the assessments will be the obligation of seller. Obligations imposed by this paragraph will survive closing.
In the TREC Unimproved Property Contract, who is responsible for paying for the survey if seller fails to provide it as promised? A) Seller B) Both buyer and seller C) Buyer D) Title company
The answer is seller. The contract provides that if seller fails to furnish the existing survey or affidavit within the time prescribed, buyer shall obtain a new survey at seller's expense no later than three days prior to closing date.
Under paragraph 13 of the TREC Residential Condominium Contract, who is responsible to pay for any special condominium assessment due and unpaid at closing? A) Buyer B) Seller C) The association D) It is negotiated
The answer is seller. The contract states that any special condominium assessment due and unpaid at closing will be the obligation of seller.
How long does the buyer have to terminate the contract after he receives the condominium documents in the TREC Residential Condominium Contract? A) The buyer may not terminate the contract based in the condominium documents. B) Three days after delivery of the documents C) Six days after delivery of the documents D) Seven days after the effective date
The answer is six days after delivery of the documents. The contract provides that buyer may cancel the contract before the sixth day after buyer receives the documents by hand-delivering or mailing written notice of cancellation to seller by certified United States mail, return receipt requested.
In what way is paragraph 2 in the TREC Farm and Ranch Contract different from paragraph 2 of the One to Four Family Residential Contract? A) The Farm and Ranch Contract calls for a tiers and range legal description rather than reference to a recorded plat. B) The Farm and Ranch Contract references a recorded plat rather than a metes-and-bounds legal description. C) The Farm and Ranch Contract calls for a metes-and-bounds legal description rather than reference to a recorded plat. D) The Farm and Ranch Contract has no property description.
The answer is the Farm and Ranch Contract calls for a metes-and-bounds legal description rather than reference to a recorded plat. The One to Four Family Residential Contract references to a recorded plat while the Farm and Ranch Contract uses metes and bounds.
What is the amended effective date under the TREC Short Sale Addendum? A) The date buyer inserts after seller provides the lienholder's consent and agreement B) The date seller obtains notice of the lienholder's consent and agreement. C) The date lienholder provides seller notice of the lienholder's consent and agreement. D) The date seller provides buyer notice of the lienholder's consent and agreement.
The answer is the date seller provides buyer notice of the lienholder's consent and agreement. As is stated in 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)."
Buyer and seller enter into a contract for buyer to purchase seller's condominium unit using the TREC Residential Condominium Contract with an effective date of March 1. Seller timely delivers the resale certificate five days after the effective date. Assuming the buyer gives timely notice, what happens when she terminates the contract? A) The earnest money will be held in escrow. B) The earnest money will be refunded to the buyer. C) The parties will split the earnest money. D) The earnest money will be paid to the seller.
The answer is the earnest money will be refunded to the buyer. The contract provides that if buyer cancels the contract pursuant to this paragraph, the contract will terminate and the earnest money will be refunded to buyer.
Buyer and seller enter into an agreement for buyer to purchase seller's lot using the TREC Unimproved Property Contract. Buyer has paid earnest money to the escrow agent. Buyer is unable to find financing and gives proper notice to seller. Buyer terminates the contract and requests a release of the earnest money. Which of the following is TRUE with respect to escrow agent's payment of the earnest money to buyer? A) The escrow agent may not deduct buyer's unpaid expenses before refunding the earnest money to buyer. B) The escrow agent may deduct all unpaid expenses before refunding the earnest money to buyer. C) The escrow agent may deduct buyer's unpaid expenses before refunding the earnest money to buyer. D) The escrow agent may only deduct seller's unpaid expenses before refunding the earnest money to buyer.
The answer is the escrow agent may deduct buyer's unpaid expenses before refunding the earnest money to buyer. The contract provides that the escrow agent may deduct unpaid expenses incurred on behalf of the party receiving the earnest money.
What are seller's net proceeds in the TREC Short Sale Addendum? A) The sales price less seller's expenses under paragraph 12 of the contract and less seller's obligation to pay any brokerage fees B) The sales price plus seller's expenses under paragraph 12 of the contract and seller's obligation to pay any brokerage fees C) The sales price plus seller's expenses under paragraph 12 of the contract and less seller's obligation to pay any brokerage fees D) The sales price less seller's expenses under paragraph 12 of the contract and seller's obligation to pay any brokerage fees
The answer is the sales price less seller's expenses under paragraph 12 of the contract and seller's obligation to pay any brokerage fees. As used in the addendum, "seller's net proceeds" means the sales price less seller's expenses under paragraph 12 of the contract and seller's obligation to pay any brokerage fees.
Under the TREC New Home Contract (Incomplete Construction) how long does buyer have to select things such as carpeting and tile? A) 14 days B) 21 days C) 7 days D) The time period is negotiated
The answer is the time period is negotiated. In the contract, if the construction documents permit selections by the buyer, the parties can agree on a period for the buyer to make those selections.
Under the TREC New Home Contract (Incomplete Construction) how long does buyer have to select things such as carpeting and tile? A) The time period is negotiated B) 7 days C) 21 days D) 14 days
The answer is the time period is negotiated. In the contract, if the construction documents permit selections by the buyer, the parties can agree on a period for the buyer to make those selections.
How is paragraph 7 different in both New Home Contracts, the Unimproved Property Contract, and the Farm and Ranch Contract from the residential contract? A) There are different seller's disclosures required depending on the type of property. B) There are different inspections provided for depending on the type of property. C) They each address property condition the same but different from the one to four residential contract. D) Access to the property is different depending on the type of property.
The answer is there are different seller's disclosures required depending on the type of property. Paragraph 7 is different in both New Home Contracts, the Unimproved Property Contract, and the Farm and Ranch Contract. Different seller's disclosures are required by the type of property and are contained in these paragraphs.
Under the TREC Unimproved Property Contract, why must a buyer of an unimproved building lot carefully research zoning ordinances? A) Zoning for unimproved property is always assumed for industrial use. B) Zoning for unimproved property is always assumed for commercial use. C) Zoning for unimproved property is always assumed for residential use. D) They may affect the suitability of the lot for the buyer's intended use.
The answer is they may affect the suitability of the lot for the buyer's intended use. A buyer of an unimproved building lot must carefully research zoning ordinances and other matters that will affect the suitability of the building lot for the buyer's intended use.
The potential buyers wish to make an offer to purchase a home but they want the seller to pay for a new fence because the old one is falling down. How should they make the offer using the One to Four Family Residential Contract? A) They should check paragraph 7D(1) and indicate "repair fence" in the blank line. B) They should check paragraph 7D(1) and purchase the property as is and wait for the seller's to counter with an offer to repair the fence. C) They should check paragraph 7D(1) and purchase the property as is because the lender will replace the fence. D) They should check paragraph 7D(2) and indicate "replace fence" in the blank line.
The answer is they should check paragraph 7D(2) and indicate "replace fence" in the blank line. The buyers should make their best offer and if they want the seller to replace the fence, they should list it in the blank line in 7D(2).
What is the purpose of the Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies? A) The appraisal report explanation B) To help the buyer understand the meaning of hazards and deficiencies as reported by a home inspector C) The home inspection report D) The home inspection contract
The answer is to help the buyer understand the meaning of hazards and deficiencies as reported by a home inspector. It is an optional form that can be used to help the buyer understand the reason for the inspector reporting many items that were acceptable when the home was built (and are still functioning), but have been grandfathered in as the codes changed.
Under the TREC Residential Condominium Contract, what type of interest does a unit owner have in the common elements? A) Undivided B) Divided C) Qualified D) Special
The answer is undivided. Unit owners own an undivided interest in the common elements of a condominium