30-Hr. TX Law of Promulgated Contracts Course

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

Legal description

In a condominium transaction, which of the following is true?

The buyer pays for a portion of the transfer fees up to a specific amount, and the seller pays the remainder.

Per the Addendum for Sale of Other Property by Buyer, what happens if the contingency is not waived or met by the date specified in the addendum?

The contract is automatically terminated, and the earnest money is refunded to the buyer.

In situations where a coastline property owner has been forced to remove their home by the state of Texas because the property is now located on public beach property, who or what entity covers the cost of removal?

The property owner is solely responsible for the cost of removal.

What is the purpose of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association?

To give buyers the opportunity to request subdivision information

If the sellers don't reserve all of their interest in the mineral estate, the sellers have ______ days after the effective date of the contract to provide the buyer with the contact information of any existing mineral lessee known to the seller.

7

The addenda that are part of the TREC residential resale contract are listed in the ______ paragraph.

Agreement of Parties

Items of personal property included in a Texas sale are considered ______ and can be negotiated in an addendum of the same name.

Non-realty items

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

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

The Environmental Assessment, Threatened or Endangered Species, and Wetlands addendum in Texas specifies which type of assessment the buyer wants performed and what else?

The amount of time the buyer has to terminate the contract if the report(s) find conditions that will adversely affect how the property can be used.

The seller's disclosure notice is a required form by Texas law; however, it is not ______ by TREC.

promulgated

Arbitration

A situation in which the parties involved in a contract dispute present their argument to an unbiased third party, who then makes a final decision

In Texas, the Loan Assumption Addendum to the TREC One to Four Family Residential Contract (Resale) allows for a variance of ______ in the amount of the total principal balance at time of closing.

$500

According to TREC's Consumer Protection Notice, how many recovery funds does TREC administer?

2

seven protected classes under federal fair housing laws are

1. race 2. color 3.religion 4. national origin 5. familial status 6. disability 7. sex.

If sellers need additional time past the closing date due to no fault of their own in order to restore the property to its original state after a casualty loss occurs, how much time is permitted under the terms of the TREC One to Four Family Residential Contract (Resale)?

15 days

Nikola is a Texas seller who agrees to allow the buyer to assume his mortgage loan. What TREC-promulgated addendum will he need if he wants to terminate the contract if his application for release of liability is not approved by closing?

Addendum for the Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement

Per the Addendum for Property Subject to Mandatory Membership in a Property Owners Association form, who pays any deposits for reserves that might be required by the property owners association?

Buyer

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

Your client is selling a condominium. Which of the following forms is your client required to provide to the buyer?

Condominium Resale Certificate

Which type of document is provided to the consumer to notify them that a recovery fund is available, should they be unable to collect a judgment against a licensee?

Consumer Disclosure

On which type of real estate transaction would the buyer's lender most often disallow certain expenses related to closing?

Government

If a buyer requests subdivision information using the Addendum for Property Subject to Mandatory Membership in a Property Owners Association form, who pays to obtain the information and have it delivered?

It depends

In instances where the buyer isn't requesting subdivision information, but the title company is, who pays to obtain the information per the Addendum for Property Subject to Mandatory Membership in a Property Owners Association?

It depends

Chapter 27 of the Texas Property Code requires that buyers follow certain procedures in order to ______.

Recover damages for construction defects

What is another term for earnest money that is dispersed to the non-defaulting party when a contract terminates due to default?

Liquidates damages

Nick, a Texas license holder, is helping his son, Peter, locate a home he can afford to buy and is acting as Peter's agent. Peter has found a property that he wants to make an offer on. Which of the following statements regarding this situation is true?

Nick is required to disclose his relationship to the seller in writing prior to the parties entering into the contract.

Besides the name of the title company, which of the following information is needed in the Title Policy paragraph of the TREC One To Four Family Residential Contract (Resale) in Texas?

Paragraph 6A has a blank line for the name of the title company, and checkboxes to indicate whether the title policy will be furnished at the seller's or the buyer's expense.

What does it mean that Peter Hubble is identified as a party to a sales contract as "Peter Hubble, as separate property?"

Peter is married, but his spouse is not joining in the conveyance of the property. Peter is not married.

Familial status includes families with children under age 18 living with parents or a legal custodian, people securing the custody of children, and what other group of people?

Preganaant Women

What type of forms are the Condominium Resale Certificate and the Subdivision Information, including Resale Certificate for Property Subject to Membership in a Property Owners Association?

Promulgated resale certificates

In what paragraph of the TREC One To Four Family Residential Contract (Resale) in Texas does the seller agree to permit the buyer and buyer's agent access to the property at reasonable times?

Property Condition

Which of the following is a responsibility of the Texas Real Estate Commission, as provided in the Texas Real Estate License Act?

Rulemaking authority for real estate licensees that has the full force and effect of the law

How many members does TREC appoint to the Broker-Lawyer Committee?

TREC appoints six members—who are all licensed brokers in Texas—to the committee.

The Addendum for Coastal Area Property and the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway include notices required by the ______.

Texas Natural Resources Code

The Texas notice that advises the buyer to have the abstract or title policy examined by an attorney is required by which of the following pieces of legislation?

Texas Real Estate License Act (TRELA)

Teri is concerned that nearby wetlands will affect how she's able to use the property on which she's making an offer. Which Texas addendum should be attached to the contract?

The Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum

Which party can provide a legal description of the property?

The Seller

Vanessa has had her Texas real estate broker's license for 12 years. What law or organization stipulates the requirements Vanessa must follow to keep her license?

The Texas ealL Estate License Act

According to the TREC One to Four Family Residential Contract (Resale), what recourse does a buyer have if a seller is unable to complete agreed-upon repairs and treatments prior to closing?

The buyer can extend the closing date up to five days to allow the seller to complete the repairs.

What happens if a buyer wants to terminate the contract, but fails to deliver the Notice of Buyer's Termination Contract to the seller prior to the expiration of the option period?

The buyer must close the transaction in accordance with the terms of the contract.

What does TAR's Release of Earnest Money form do?

The form releases all parties, brokers, and title companies from all liability under the contract.

Who is responsible for filling in the effective date on the sales contract?

The licensee who obtains the final signature or initials should complete this section of the contract.

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

Under the New Home Contract (Incomplete Construction), assessments for rollback taxes are the responsibility of ______.

The seller

When a Texas buyer assumes the seller's existing loan, what happens if the buyer defaults on mortgage payments after the transaction is completed?

Unless the lender approved a release of liability for the seller, the seller remains liable for the loan.

What's an option period as it's used in a TREC residential resale contract?

When the buyer who has paid an option fee can terminate the contract for any reason

Which information is required in the Deed of Trust paragraph in the Texas Seller Financing Addendum?

Whether or not consent to property transfer is required