Real Estate

Hanna's buyer clients are proposing a change to the original sales contract. Who is required to sign the amendment?

Both parties

When it comes to buying unimproved land which of the following is true?

Buyer should be aware that there are many pit falls with purchasing unimproved land.

Established when parties enter into an agreement voluntarily with full understanding of the contract terms.

Consent

Why are there so ma many promulgated forms in Texas?

Different property types require different terms.

Which of the following elements does the statue of frauds require as part of a valid real estate contract in Texas?

Legal description

Which body adopts and enforces rules necessary to administer TRELA?

TREC (Texas Real Estate Commission

Who is responsible if there is a contract in place with a buyer and seller, If damage was done to the property. Who is responsible to fix it?

The Seller

The unimproved property contract doesn't include improvements, accessories, or exclusions in the property section. Why is that?

These items don't apply to unimproved land.

Both conventional and government insured loans are example of? What type of Addendum will you use for this type of loan?

Third party financing addendum

What is the purpose of the Addendum fro reservation of Oil, Gas, and other Minerals?

To give the seller the opportunity to reserve all or a portion of the property's mineral estate.

The purpose of promulgated forms in Texas is ?

To make contractual terms crystal clear to the parties involved and to protect the parties involved.

The max term that a Texas buyer may lease from a seller under the buyers temporary residential lease is?

90 days

Loans of unimproved land usually have a higher interest rate. What else is true?

A larger down payment is usually required.

Which of the following constitutes fraud in real estate according to the Texas Fraud in real estate and stock transactions?

A listing agent purposely fails to disclose foundation issues mentioned by the seller.

Lydia has opted to have the seller reimburse her for insurance that protects her if something goes wrong with any of the home's major systems or appliances. What contract provides this type of insurance.

A residential service contract ( A buyer should review thee contract for the scope of coverage, exclusions, and limitations.

What is a rollback

A tax assessed when agricultural property changes use

Where in the Texas sales contract should you indiccate that addena are being attached

Agreement to the parties

By when must Richard, a seller complete contracted repairs, according to the TREC One To Four Family Residential Contract Resale?

Any time prior to closing, or earlier, if stipulated in the agreement between the parties.

It is recommended that the seller and buyer consult with an before signing a contract?

Attorney

?The Broker information section of the TREC One to Four Family Residential Contract (Resale) is reserved for in the transaction.

Both the listing and selling agent's and brokers information

Lena's buyer Mindy is making an offer on Leo's house. Which party decides how much earnest money to offer?

Mindy the buyer

Usually, when you help a buyer client write an offer on a property, you will get one or two checks from them at that time. The first check is for the earnest money the second check is for the?

Only required in the case of an option, and must be given to the broker with the earnest money deposit.

Daryl, the buyer, and Sydney, the seller, have mutually agreed to terminate the sales contract. They has also agreed to a 50\50 split of the earnest money. Which promulgated form can they use to release all parties from their contractual liabilities, while at thee same time providing directions to the escrow agent as to how the earnest money should be disbursed.

Release of Earnest Money

Statue that requires real estate to be in writing?

Statue of frauds

What is an example of a "Warning Label" you might see on a Texas promulgated from?

"Not for Use for Condominium Transactions"

Although who pay for the title policy can be negotiated in Texas it's customary for the to pay for the title policy that the seller furnishes to the buyer?

It is negotiable, but often the seller will pay for the title policy.

What is the key difference between assignment and novation of a contract?

Novation releases the original party from all obligations, while assignment does not.

Where can licensees find all of the required forms promulgated by TREC?

On the TREC website

How many "back up" offers can be submitted on one Addendum for Back up contract forms?

One

If your buyer is concerned with a sex offenders in the area what do you tell them when they ask questions regarding your listing?

You may divulge this information to her, if you know it, or recommend that she do her own research on the sex offender registry depending on you brokerage's policy for handling such questions.

You are posing a new listing on the MLS and ask your seller what type of buyer financing the seller prefers you most likely hear " "?

Conventional or cash only, because I don't want to pay higher fees.

An act of persuasion

Undue Influence

To assume a VA loan. What addendum will she need if she wants to indicate that she does not want the closing to be delayed if restoration her VA entilement is not approved by the closing date?

Addendum for the release of liability on assumed loan and or restoration of seller's VA entitlement.

Your buyer clients Nina and Peter are interested in purchasing a ranch. As their agent what should you tell them about this type of transaction?

Additional condsideration's may apply including equipment surface leases and royalties.

The New Home Contract ( Completed Construction) does not contain inn the property section, which is a key difference between this contract and the one to four family residential contract?

Improvements, accessories, or exclusions

He indicated he would apply for financing within a specified time frame, which has passed without him doing so?

In default of the agreement

Joy is a licensee preparing the contract for her buyer's clients, who is purchasing a condominium. Which of thee following is a true statement.

Joy should not use the New Home Contract (Completed Construction) New Home contracts can not be used for a condominium or incomplete construction.

Karen, the seller, has sent a counter offer to Fred, a potential buyer. Before Fred accepts the counter offer on the property Karen receives another offer from James that is even better. She wants to accept James offer. What should she do?

Karen must withdraw the counter offer to Fred before responding to James offer.

Per the Addendum for "Back Up" Contract, which of the following statements about a "Back Up" contract is true?

Neither party is required to perform under the contract until the first contract is terminated.

Which types of forms are the property located Seaward of the Gulf Intracoastal Waterway an the Coastal Area Property?

Promulgated Addenda for applicable properties. They are required by TREC.

A divides closing costs fairly between the buyer and seller, base on the amount each party actually owes.

Proration

Who is responsible for providing the Addendum for property located Seaward of the Gulf Intracoastal Waterway in the sale of a property to which this addendum applies?

Seller

The seller must notify the buyer that the contract has been terminated within how many days to receive the earnest money.

Seven days days within the expiration of the delivery date.

Julie is making an offer on a condominium. Which of the following is a true statement?

She will not have fee simple ownership of the land beneath her unit.

Shelia, a buyer did not receive seller's disclosure notices until she went in to sign her closing paperwork. If Shelia, terminates her contract now?

She will receive her earnest money back

What are voluntary use forms in Texas?

TREC does not require you to use them, but they have been reviewed by attorneys.

The of the TREC sales contract allows the buyer to unilaterally end an option contract within a certain period of time after contract acceptance.

Termination Option

What entity enforces Texas Fair Housing Law

Texas Workforce Commission Civil Rights division

Jerry is buying an income property, which is a four family apartment building. When his agent writes up the offer what Texas contract shoud he use?

The Trec one to four family residential contract resale

To which party is the title policy issued?

The buyer

Why do Contract (Completed Construction) include improvements, accessories, or exclusions in the property section?

The home is new construction.

When preparing a saales contract, where can a licensee look for the legal description of a property that located in a city?

The lot, block, and subdivision information part of a recorded plat.

Frank is a buyer who wants an option to purchase but does not what to pay the seller an option fee. He puts 0 for the option fee amount in paragraph 23 termination option in the TREC residential resale contract. What does this mean?

The termination option won't be a part of the sales contract.

The contract meets all of the essential elements and the attorney is satisfied with the results.

Valid

Which information is required in the Deed of Trust paragraph in the seller financing Addendum?

Whether or not consent to property transfer is required