Texas 30-Hour Promulgated Contract Forms with Flex Units

Which of the following statements about waiving the contingency and the Addendum for Sale of Other Property by Buyer is true?

Buyers can waive the contingency, but they have to notify the seller and make an additional deposit.

What about the owner's policy of title insurance can be negotiated in the TREC One To Four Family Residential Contract (Resale) in Texas?

The selection of the title company and who will pay for the title policy

Robin, a Texas buyer, has offered to pay an option fee to the seller within three days of the effective date of the TREC One to Four Family Residential Contract. Robin put her check for the option fee in the email and, unfortunately, the seller received it six days after the effective date of the contract. What happens next?

The termination option will not be part of the contract. `

Approval for financing as described in the TREC third party financing addendum will be deemed to have been obtained when ______ are obtained.

buyer approval and property approval

Russel Maverick likes to get things done quickly, so when he decided to buy Kent Regent's property, he asked Kent if he'd be willing to take a promissory note for the difference between the down payment and the purchase price that he would pay off in installments. Kent agreed. What type of financing is this?

seller financing

Which of the following statements about the option fee in the TREC residential resale contract is true?

the option fee gives the buyer the right to terminate the contract for any reason during the option period.

In the Loan Assumption Addendum to the TREC One to Four Family Residential Contract (Resale) paragraph C states if the ______ of all assumed loans varies in an amount greater than $500, either party can terminate the contract

total principle balance

A Texas property is listed in the MLS, but the commission is blank, and the fee isn't listed in the buyer agency compensation. You should __________.

verify that there are commission arrangements in writing

Which entity was formed for the purpose of enforcing the Real Estate Dealers Act in Texas?

TREC

In a short sale, what happens if the lienholder refuses or withdraws their consent prior to closing or funding?

The contract is terminated and the buyer's earnest money is refunded

Casey signed a contract form offering a purchase price of $309,000 on a home, and gave his agent a $5,000 earnest money deposit. The owner is out of town and her agent can't reach her. At this point, what does Casey have?

An offer

Allison is helping her buyer complete a Seller Financing Addendum to a Texas sales contract. Where should she put that the buyer needs a $40,000 loan at a 6% fixed rate from the seller to be paid back in 120 monthly payments?

In the Promissory Note paragraph

What happens to any excess earnest money when the property closes?

It's refunded to the buyer

Which of the following type of form is not promulgated by TREC?

Loan origination forms

If a seller is in breach of contract, which of the following is the possible remedy for the buyer?

The buyer could sue the seller for specific performance

According to the Unimproved Property Contract, who's responsible for paying rollback taxes, if applicable?

The person who changes the use of the land.

Jane is interested in making an offer on a condominium. She's heard that the condominium owners association for the condominium development has several pending lawsuits for violations of the bylaws. Where can she verify this information?

The resale certificate

One main difference between condominiums and townhomes is that townhome owners have fee simple title to the ___________.

land beneath their units

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

legal description

When a contract doesn't provide a specific date for when the terms need to be met, what should the parties assume regarding performance of the contract?

performance must take place within a "reasonable time"

Per the Short Sale Addendum, when does the time for giving notice of termination begin if the buyer has the unrestricted right to terminate the contract?

on the effective date of the contract

Appraisal fees, loan application fees, and inspection fees are typically covered by __________ in the transaction.

the buyer

Unlike Texas, there are states that follow what organizations' policy allowing two people per bedroom as a "reasonable standard."

the department of housing and urban development

Hector signs a contract to buy a home belonging to Sadie. Before closing, it's discovered that Hector is only 17 years old. Since he's a minor, he's not considered legally competent to enter into a contract. Which of the following parties is allowed to void the contract?

Hector

What's the purpose of the Residential Real Property Affidavit T-47 in Texas?

To help the lender and title company decide whether to accept the seller's existing survey or to request a new survey.

What type of form has been prepared by the Broker-Lawyer Committee, approved by TREC, and made available on a voluntary basis?

Trial Use