Unit 7: Promulgated Addenda, Notices, and Other Forms

When is the TREC Addendum for Sale of Other Property by Buyer used?

When a new lender will not approve the loan on the new property until a mortgage on an existing property is paid in full

Under the Addendum for Reservation of Oil, Gas, and Other Minerals, how long the seller have to provide contact information of any existing mineral lessee to the buyer if seller conveys all of seller's interest in the mineral estate?

Within seven days after the effective date

According to the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway, who is responsible for the cost of removing a structure from a public beach pursuant to a removal order?

The owner of the structure

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

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.

Which of the following is NOT a lender requirement for a short sale? A) Loan at or near default B) Value of property below balance due on loan C) Financial hardship of seller D) A collapsed real estate market

A collapsed real estate market

Under the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, who is required to pay the deposits for reserves?

Buyer

Where should TREC's Consumer Protection Notice be prominently displayed?

In the office of every licensed inspector and broker in Texas

Under the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, who is required to pay for the updated resale certificate if required by the title?

It is negotiated

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.

A buyer decides to exercise her right to terminate under the option period. What is the proper process?

Execute a Notice of Buyer's Termination of Contract and deliver it to the seller according to the instructions in paragraph 21 of the contract.

Buyer 1 enters into a contract with seller with an option to terminate 14 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 15. 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 the second contract with buyer 2?

It terminated on January 15. If the first contract does not terminate on or before the date in the addendum, the back-up contract terminates and the earnest money is refunded to buyer 2. In this case, the date in paragraph B was January 15, so the contract terminated.

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 amended effective date of the short sale agreement?

January 10 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 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?

TAR 1904

Under paragraph B of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, when is seller required to provide information to buyer regarding material changes to the subdivision information?

Promptly

The buyers wish to have the refrigerator remain on the property after closing and are willing to pay a nominal price for it and the sellers agree. What form or paragraph in the contract should be used?

The Non-Realty Items Addendum

Under the Addendum for Sale of Other Property by Buyer, what happens if the seller accepts a back-up offer from buyer 2 and buyer 1 does not waive the contingency before the agreed upon date?

The first contract will terminate.