TPF #2

How are the earnest money and option fee typically paid under the One to Four Family Residential Contract?

A check to the title company and a check to the seller

Who is allowed to insert legal rights or remedies in the special provisions paragraph of the One to Four Family Residential Contract?

A party

What type of home is typically purchased using the TREC New Home Contract (Completed Construction)?

A spec home

The Statutory Tax District Notice in paragraph 6 of the One to Four Family Residential Contract applies to which of the following?

A utility district that provides water services

Who receives the earnest money if the buyer terminates the contract because of lender required repairs under the One to Four Family Residential Contract?

Buyer

When must the agent deliver the earnest money to the title company?

By the close of business on the second day after the effective date

Which of the following is FALSE regarding earnest money?

Earnest money is necessary to bind the contract.

Which type of loans have unallowable fees that a buyer is prohibited from paying under the TREC One to Four Family Residential Contract?

FHA loans

Under the TREC One to Four Family Residential Contract, what type of warranty deed is conveyed at closing?

General warranty deed

What is the difference in paragraph 2 between the two TREC New Home Contracts and the One to Four Family Residential Contract?

Improvements and accessories are not addressed in the New Home Contracts.

Buyer and seller enter into a contract for buyer to purchase seller's property using the One to Four Family Residential Contract. Buyer purchases a seven-day option to terminate the contract, but pays the option fee on the fifth day after the effective date of the contract. Does the buyer have an option to terminate?

No, the option fee must be paid within three days after the effective date.

Where in the One to Four Family Residential Contract would a licensee indicate that she is the seller in the transaction and that she has a real estate license?

Paragraph 4

Using the One to Four Family Residential Contract, the sellers must provide which of the following documents along with the existing survey if they wish to rely on an existing survey of the property?

Residential Real Property Affidavit

How is paragraph 3 different in the Farm and Ranch Contract from the other five contracts?

Sales price can be adjusted after the effective date.

In the TREC Unimproved Property Contract, who is responsible for payment of assessments if seller's change in use of the property prior to closing results in assessments for periods prior to closing?

Seller

Under paragraph 13 of the TREC Residential Condominium Contract, who is responsible to pay for any special condominium assessment due and unpaid at closing?

Seller

Under paragraph 23 of the One to Four Family Residential Contract, what happens to the earnest money if seller timely terminates the contract within the option period?

Seller may not terminate under paragraph 23.

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?

The Farm and Ranch Contract calls for a metes-and-bounds legal description rather than reference to a recorded plat.

Buyer and seller have entered in a contract for buyer to purchase residential property from seller. Buyer wants to move in early and begin remodeling so that the house will be ready to move in at closing. What are the buyer's rights under the TREC Buyer's Temporary Residential Lease?

The buyer has no right to remodel without the prior written consent of the seller.

Under paragraph 5 of the TREC One to Four Family Residential Contract, what happens if the buyer fails to deposit the earnest money?

The buyer is in default.

The buyer agrees to purchase a home "as is" in part relying on an existing inspection report. The buyer uses the One to Four Family Residential Contract with an option period of 14 days. What are the buyer's choices during the option period?

The buyer may have the property inspected again.

What happens if a buyer fails to pay to the seller an option fee she promises to pay within three days of execution of the contract under paragraph 23 of the TREC One to Four Family Residential Contract?

The buyer will not have the right to terminate the contract.

Who selects the appraiser to appraise a home when financing is involved?

The lender

What happens to the option fee if the buyer terminates within the option period under paragraph 23 of the TREC One to Four Residential Contract?

The option fee is not refunded to the buyer.

Who should fill out the Seller's Disclosure of Property Condition?

The seller

The buyer gets buyer's remorse and cannot decide whether to close on a home already under contract with the seller. Under paragraph 9 of the TREC One to Four Family Residential Contract, what can the seller do if the buyer fails to close the sale by the closing date?

The seller may exercise a remedy under paragraph 15.

Buyers are buying property from a trustee in bankruptcy sale. How should the seller trustee reply to the buyers' offer where the seller would be required to provide the seller's disclosure notice within five days of execution of the contract under paragraph 7 of the One to Four Family Residential Contract?

The seller should counter by indicating that he is not required to provide the notice.

How is paragraph 7 different in both New Home Contracts, the Unimproved Property Contract, and the Farm and Ranch Contract from the residential contract?

There are different seller's disclosures required depending on the type of property.

Which of the following forms should be attached and referenced on the One to Four Family Residential Contract?

Third Party Financing Addendum

Under the TREC Unimproved Property Contract, why should an adequate termination option be purchased?

To provide a sufficient amount of time to make absolutely certain that the property is suitable

When does the Seller's Temporary Residential Lease terminate?

When the term in paragraph 3 expires

Restrictive covenants may include rules regarding

minimum size requirements, pets, fees for road maintenance.

According to the One to Four Family Residential Contract (Resale), the title policy cost is the responsibility of the

party that agreed to pay the cost in the contract.

Most builders in Texas

provide their own contract.

According to paragraph 23, the option money is to be delivered to the

seller

Which of the following is NOT considered a construction document in the TREC New Home Contract (Incomplete Construction)?

survey

Rollback taxes can be assessed when

zoning is changing and the property no longer qualifies for a previous exemption.

Seller wishes to contribute $1,000 to buyer's closing costs. Using the TREC One to Four Family Residential Contract, what should the seller's agent advise the seller?

Insert $1,000 into paragraph 12A(1).

Who is responsible for paying for the owner's title policy under the TREC Unimproved Property Contract?

It is negotiated by the parties

Buyer and seller enter into a contract for buyer to purchase seller's property using the One to Four Family Residential Contract. Buyer purchases a 14-day option to terminate the contract. What happens to the earnest money if buyer terminates on the 14th day?

It is refunded to the buyer.

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 5. Seller delivers the condominium documents before the effective date. Assuming no option period, what is the latest date in which buyer may cancel the contract based on the documents and still get her earnest money refunded?

January 11

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 5. Seller delivers the condominium documents three days after the effective date. Assuming no option period, what is the latest date on which buyer may cancel the contract and still get her earnest money refunded?

January 14

What is the status of an option fee that has been physically delivered to the seller's agent?

Legally it has been delivered to the seller.

How many different notices are in paragraph 6E of the One to Four Family Residential Contract?

Ten

Under paragraph 9 of the TREC One to Four Family Residential Contract, the buyer needs to move in before closing because she is starting a new job and she is moving in from out of state. What kind of tenancy is formed if she moves in early if the parties fail to negotiate a written lease?

Tenancy at sufferance