TPF #3

According to Addendum for Coastal Area Property attached to the contract between Kramer and Sweeney, who owns tidally influenced submerged lands that adjoin beach property?

The state of Texas

Under the Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement attached to the contract between Kramer and Sweeney, how long must the parties wait for Deep Pockets to release Kramer from liability on the loan to be assumed by Sweeney?

Until the closing date

The buyers want to include some unusual paintings in the purchase of their new home. How should it be noted in the contract?

Use the Non-Realty Items Addendum

A broker, while representing a buyer, absconds with the earnest money. The buyer ends up suffering economic damages of $1,000,000 and mental anguish damages of $500,000 and sues the broker. The broker may be held liable for which of the following amounts?

$1,500,000 if the broker acted knowingly

Why is the interest rate of the ARM addressed in paragraph 11 under the contract from Fleming to Donaldson?

Because the financing addendum does not address the ARM specifics

What happens if cable TV services are not available under the contract from Johnson to Swanson?

Swanson must object within 10 days of receiving the documentation.

A seller of real property wishes to sell to a buyer for an additional price the home theater television. Which form or paragraph in the contract should be used?

The Non-Realty Items Addendum

A buyer wants to make sure that the neighborhood is safe for their young daughters. He asks about whether there are any sex offenders on the street. The seller knows that the man that lives across the street is a registered sex offender but wishes to conceal this from potential buyers because he really needs to sell the property. What should the seller's agent do?

The agent is not required to disclose the information.

Where is the written compensation agreement between a purchaser and a broker?

The buyer's representation agreement

Where is the current interest rate of the assumed loan referenced in the contract and attached addenda between Kramer and Sweeney?

The interest rate is not referenced

The agreement between the brokers regarding the amount to be paid by the listing broker to the selling broker is a contractual agreement contained in the

agreement between brokers (frequently in MLS).

Broker and buyer enter into a buyer representation agreement where the buyer agrees to pay the broker 4% if the broker is not paid by the seller or the listing agent. The MLS listing indicates a 3% compensation offer to selling broker. How much will the buyer have to pay?

1%

Under the Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum attached to the contract from Johnson to Swanson, how long does Swanson have to get an environmental assessment?

10 days

Under the lead-based paint addendum to the contract from Fleming to Donaldson, how long does Donaldson have to terminate the contract if lead paint is present?

14 days

Under the contract from Fleming to Donaldson, who holds the earnest money?

ABC Title

Which of the following addenda contains the words time is of the essence?

Addendum for Sale of Other Property by Buyer

Which of the following is NOT a protected class under the federal Fair Housing Act?

Age

What happens if seller fails to complete paragraph C of the Addendum for Reservation of Oil, Gas, and Other Minerals?

All surface rights are conveyed.

What type of loan are the Donaldsons applying for under the contract from Fleming to Donaldson?

An adjustable rate mortgage

Under the contract between Kramer and Sweeney, what happens if Kramer and Wright amend the first contract?

An amendment of the first contract does not terminate it.

Under the Addendum for Sale of Other Property by Buyer, what happens if the seller accepts a back-up offer?

Buyer 1 may waive the contingency before the agreed upon date.

Buyer and seller enter into an agreement for buyer to purchase seller's property which is located in a property owners association (POA). Buyer wants additional information about the POA and agrees to obtain and pay for the subdivision information. What is the buyer's option if buyer, through no fault of her own, fails to obtain it as required by paragraph A(1) of the Addendum for Property Subject to Mandatory Membership in a Property Owner's Association?

Buyer may terminate and receive the earnest money.

Which of the following is TRUE under the Fair Housing Act?

Disability includes those being regarded as having an impairment that substantially limits one or more major life activities.

Who is responsible for choosing the residential service contract under the contract from Fleming to Donaldson?

Donaldson

Under the contract from Fleming to Donaldson, who holds the option fee?

Fleming

When may a defendant be held jointly and separately responsible for all damages recoverable by the claimant?

If the defendant's percentage of responsibility is greater than 50%

Buyer enters into a short sale agreement with seller with an option to terminate 14 days after the effective date using the TREC Short Sale Addendum. The effective date is February 5. The seller has until February 19 to notify buyer that seller has obtained lienholder's consent and agreement. The seller notifies the buyer that the lienholder has consented to the sale on February 20, even though he received the notice on February 19. What is the status of the earnest money?

It is refunded to buyer.

If the back-up buyer (buyer 2) has an option to terminate, when does the option period start?

On the original effective date of the back-up contract

Buyer 1 enters into a contract with seller with an option to terminate 21 days after the effective date. The effective date is January 5. The seller accepts a back-up offer with the Addendum for Back-Up Contract attached from buyer 2 with an effective date of January 6, and with the date in paragraph B of the addendum filled in as January 25. Buyer 1 terminates the first contract on the last day of the option period and the seller gives notice to buyer 2 on the same day. What is the status of earnest money on the second contract?

It was refunded to buyer 2.

Under the contract between Kramer and Sweeney, Deep Pocket Mortgage does not consent to the assumption of Kramer's loan. What are Kramer's options?

Kramer may terminate but Sweeney is refunded the earnest money.

The seller wants to keep the above ground pool. How should it be addressed if using the TREC One to Four Family Residential Contract?

List the pool in paragraph 2, Exclusions

Under the contract between Kramer and Sweeney, Deep Pocket Mortgage decides to charge an assumption fee of $3,000. What are Sweeney's options under the Loan Assumption Addendum?

May terminate if Kramer refuses to pay the amount in excess of 1% of the loan amount

What happens if coastal erosion moves the public easement to a public beach in the Texas Gulf Coast?

Private coastal real property may become a public beach.

Which of the following is considered a surface material that may be used for developing or removing oil, gas, or other minerals?

Sand

Which form should be used when a seller wants to sell his property for less than what is owed on the property?

Short Sale Addendum

Which of the following disclosures related to the sale of a house is permitted but not required?

Suicide on the property

Which of the following is TRUE regarding occupancy restrictions?

Both the Fair Housing Act and HUD allow for housing providers to comply with reasonable local, state, and federal occupancy restrictions.

A buyer purchases a home for $350,000 and then resells it for $500,000 to a second buyer based on a fraudulent appraisal and then splits the $150,000 with the second buyer. The lender eventually forecloses after the second buyer fails to make any payments on the loan. This is an example of which of the following?

Flipping

Where should TREC's Consumer Information Form be prominently displayed?

In the office of every licensed inspector and broker in Texas

What font size must be used to disclose the Information About Brokerage Services?

No smaller than 10-point type

Would an apartment complex that limits two-bedroom apartments to only two adults and two children be acceptable?

No, because the age of the two persons per bedroom is not a consideration

Broker and seller enter into a listing agreement where the seller agrees to pay the listing broker 7% of the purchase price if the house is sold. The property is not listed in the MLS but eventually sells. How much will the seller have to pay the selling broker under the agreement?

Nothing

Under the Seller Financing Addendum to the contract from Johnson to Swanson, for how many years can Swanson continuously rent the property without having the due on sale clause kick in?

Three

Housing for older persons is exempt from the prohibition against familial status discrimination if any of the following apply EXCEPT

it is occupied by persons 52 or older.

If anyone is helping the buyer with the down payment or closing cost, it

must be disclosed to the lender on the contract and on the closing documents.