Champions Test 2
If Buyer fails to comply with the terms of the contract the Buyer will be in _______________. Default Expenses Trouble Termination
Default
Surveys may be paid for by: Either buyer or seller Neither buyer or seller Seller Buyer
Either buyer or seller
The _______________ is not a party to the contract and has no liability for the performance of either party. Buyer Seller Party Escrow agent
Escrow agent
A/n ______________ contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed. Fully executed Legal Mutual consent Executory
Executory
When inserting provisions into a contract, the license holder should only add _______________ and business details that are required for the transaction. Factual statements Addenda Opinion
Factual statements
An addendum to a contract occurs when a new contract is substituted for an existing one.
False
An novation to a contract is an attachment that adds or further describes the rights and duties of the parties.
False
Changes to the sales price, down payment or amount financed may not be agreed to by the parties for any reason.
False
Communication is not the same thing as notification.
False
Contracts may be valid, void, voidable, but not unenforceable.
False
House Bill 2352 amends the Utilities Code to establish standards for oil and gas distribution system retailers.
False
TREC has promulgated forms for right of first refusals or leases with option to purchase.
False
The Addendum For Sale of Other Property By Buyer is used when a property is already under contract to a buyer, and another buyer wants to enter into a contract that would become effective if the first contract fails to close.
False
The Non-Realty Addendum is used when a seller is unable to sell property at or above what the seller owes the lender.
False
The Texas Real Estate Commission was created to draft and revise contract forms capable of standardization for use by real estate license holders.
False
The management of a condominium project does not prepare promulgated resale certificates.
False
Though the sale is closed, that does not necessarily mean the contract has been fully executed.
False
The Texas Real Estate Commission is comprised of six members.
False (9)
Lando, a buyer, needs to terminate a contract because of his inability to obtain credit approval.The correct form to use is _____________________________________________. Notice of Buyer's Termination of Contract Seller Financing Addendum Third-Party Financing Addendum Seller Financing Addendum
Notice of Buyer's Termination of Contract
In the One to Four Family Residential Contract (Resale), the buyer and seller agree to a closing date that is _______________. Time is of the essence On or before the date specified Named at a later date Determined when all the documents are ready
On or before the date specified
The One to Four Family Residential contract stipulates the buyer is to receive _______________ of the property on closing and funding or according to a temporary lease. Ownership Possession Prorations Title
Possession
All of the following expenses are typical seller expenses, except: Tax statement or certificates Release of existing liens Preparation of deed Preparation of loan document
Preparation of loan document
All of the following expenses are typical buyer expenses, except: Loan application fee Appraisal fee Prepayment penalties Credit report
Prepayment penalties
_______________ is the process of dividing ongoing expenses between the seller and the buyer at closing. Prorations Amendment Cooperative Possession
Prorations
The primary duty of TREC is to _______________ the general public. Oversee Encumber Protect Regulate
Protect
A decrease in selection costs resulting from change orders will: Reduce construction time Reduce the sales price Delay building permits Be credited to the buyer at closing
Reduce the sales price
If any _______________ of Seller in this contract is untrue on the Closing Date, Seller will be in default. Tax requirement Representation Notice Lien
Representation
A TREC promulgated buyer's or seller's temporary lease is for _______________ property only. Residential and commercial Commercial Industrial Residential
Residential
______________ is a provision in a lease that gives the tenant the right to purchase the leased property by matching or bettering an offer before the property will be sold to someone else. Lease-purchase Lease Right of first refusal Contract
Right of first refusal
If the property is subject to a residential lease, the seller shall transfer _________________ to the buyer, if any. All rent A cashier's check Earnest Money Security Deposit
Security Deposit
When a property is listed for sale, the _______________ generally prepares a Seller's Disclosure Notice. Inspector Seller Seller's agent Buyer
Seller
A _______________ reduces the amount of cash needed by the buyer at closing. Provision Lease Lease-purchase agreement Seller contribution
Seller contribution
Created in 1949, _______________ was established to administer and enforce the License Act. TRELA The Broker - Lawyer committee TREC State Bar Association
TREC
_______________ is comprised of 9 members. The Broker-Lawyer Committee TALCB The State Bar Association TREC
TREC
The buyer may not pay charges prohibited by FHA, VA, or _______________. The buyer's agent The title company Conventional lenders Texas Veteran's Land Board
Texas Veteran's Land Board
If the parties to the Farm and Ranch Contract agree to an Adjustment to the Sales Price due to a discrepancy in the survey, either party may terminate the contract if the adjustment is more than: 5% 25% 15% 10%
10%
A residential dwelling built prior to _______________ may expose a buyer to lead found in the paint. 1978 1968 1972 1970
1978
Enter the legal description and address of the property to be conveyed or attach the metes and bounds description to the contract 2(A) 2(D) 2(B) 2(C)
2(A)
Includes the improvements, such as the house, garage, and other permanently installed and built-in items 2(A) 2(C) 2(B) 2(D)
2(B)
Describes accessories, which are commonly conveyed to the buyer in the sale 2(C) 2(A) 2(B) 2(D)
2(C)
Enter exclusions to the sale with names and locations 2(D) 2(C) 2(A) 2(B)
2(D)
Addenda to the contract should be noted in paragraph _______________. 4 21 22 2
22
The sum of all financing from all sources 2(B) 3(C) 3(B) 3(A)
3(B)
Where do you find the sum of financing? 3(B) 3(C) 3(A) 3(D)
3(B)
Paragraph 7E of the sales contract allows the buyer to terminate the contract and receive a refund of earnest money if lender required repairs exceed _______________ of the sales price. 5% 7% 10% 3%
5%
Temporary Residential Leases, promulgated by TREC, allow for temporary possession of the property for up to _______________ days. 14 30 90 60
90
Reservations for oil, gas, and other minerals is found in: A Bill of Sale A separate addendum Paragraph 6 of the Unimproved Property contract Paragraph 2 of the Unimproved Property contract
A separate addendum
_________________ is an attachment that adds or further describes the rights and duties of the parties. Addendum Valid contract Bilateral contract Amendment
Addendum
Han is a license holder in Texas who is preparing an unimproved property contract. He knows that the seller is going to reserve all of the minerals in the sale. He can accomplish this by using the ___________________________________________________________. Unimproved Property Contract Addendum for Property in a Propane Gas System Service Area Non-Realty Item Addendum Addendum for Reservation of Oil, Gas and Other Minerals
Addendum for Reservation of Oil, Gas and Other Minerals
Luke, a buyer, wants to make an offer on a property. The contract is subject to the sale of the buyer's existing property. Which TREC-promulgated should Luke use? Notice of Buyer's Termination of Contract Consumer Protection Notice Addendum for Sale of Other Property by Buyer Third-Party Financing Addendum
Addendum for Sale of Other Property by Buyer
Any party who wrongfully fails or refuses to sign a release of earnest money acceptable to the escrow agent within 7 days of the request will be liable to the other party for: Reasonable attorneys fees Damages The earnest money All of the above
All of the above
A contract of sale between a buyer and a seller is a/n _______________. Valid contract Executed contract Bilateral contract Unilateral contract
Bilateral contract
The _______________ has 13 members. State Bar Association License Act Texas Real Estate Commission Broker - Lawyer committee
Broker - Lawyer committee
Paragraph 7 Property Condition of the New Home Incomplete Construction contract gives detail about all of the following except: Cost Adjustments Buyer Selections Broker's Fees Completion
Broker's Fees
The _______________ writes residential contract forms. State Bar Association Broker-Lawyer Committee Texas Real Estate Commission TALCB
Broker-Lawyer Committee
The Special Provisions paragraph allows agents to add _______________ to the contract. Amendment Lawful agreement Business Details Addenda
Business Details
At closing, earnest money is applied first to the __________ cash down payment and then to expenses. Buyer Title Company Listing Agent Seller
Buyer
Paragraph 12.A.(1)(b) includes _______________ expenses that will be paid at closing by the seller. Seller Title Company Listing agent Buyer
Buyer
Seller must comply with federal tax requirements regarding residency in the United States or the _______________ must withhold sales proceeds to satisfy the tax law. Party Escrow agent Buyer Broker
Buyer
A fire or other _______________ does not release the buyer or seller from the contract. Issue Casualty loss Serious issue Damage
Casualty loss
The _______________ date is agreed upon by the buyer and the seller. Funding Executory Closing Lease
Closing
In a casualty loss, the seller must restore the property to its previous condition as soon as reasonably possible, but in any event by the _______________. Closing Date Amended Date Agreed upon date Termination Option date
Closing Date
__________ is something given in exchange for a promise. Option Competent parties Earnest money Consideration
Consideration
A _______________ is made when a party changes an offer in some way and communicates the change to the other party. Counter-offer Lease-purchase agreement Contract Withdrawal of offer
Counter-offer
A buyer has a signed sales contract that has box 7D.(2) checked with 4 days in the blank for the number of days the seller has after the effective date of the contract to deliver the completed Seller's Disclosure Notice. The seller fails to deliver the notice to the buyer within the agreed upon 4 days. What may the buyer do? The buyer may terminate the contract and receive a refund of the buyer's earnest money. The buyer may sue the seller for specific performance. The buyer has no remedies. The buyer may sue the seller for monetary damages.
The buyer may terminate the contract and receive a refund of the buyer's earnest money.
The New Home Contracts give a place for the seller to disclose: Distance between wall studs Proximity to fire hydrants Thickness of insulation Previous use of the property
Thickness of insulation
If the buyer is in default, the seller's remedies include all of the following except: Treble damages Liquidated damages Monetary damages Specific performance
Treble damages
A contract for an illegal purpose is void, and the law treats the contract as if it were never created.
True
All oral negotiations are voluntary, and do not become binding until written.
True
All states have a limitation of time in which an individual may file suit in court for damages because a party breached a contract.
True
An offer may be withdrawn at any time prior to its acceptance by the offeree.
True
An offer must be presented no matter how low or ridiculous it might be.
True
Contracts executed by minors are generally voidable at the option of the minor, but may be enforced by the minor against the adult party.
True
Once all the terms of an offer have been agreed to and signed by the parties, and the acceptance communicated to the offeror, the contract becomes binding on the parties.
True
Ownership of real property can be divided among three separate estates: surface, air rights, and subsurface rights.
True
The Addendum For Coastal Area Property is used when a property abuts any tidally influenced waters of Texas.
True
The Addendum for Property Located Seaward of the Gulf Intracoastal Waterway is actually a disclosure notice for purchasers of property in the affected area.
True
The Subdivision Information Form is completed by the property owners association or the management company representing the association.
True
The person to whom an offer is made has several options when responding to the offer, which includes doing nothing.
True
The process of offer/counteroffer will continue until an agreement is made or one of the parties grows weary and withdraws.
True
When property is sold, the Seller often reserves some if not all of the mineral estate.
True
A contract that lacks mutuality is a/n _____________. Amendment Void contract Unilateral contract Legal purpose
Unilateral contract
A contract that cannot be enforced against one or more of the parties is a/n ______________. Unenforceable contract Option Void Contract Voidable contract
Voidable contract
Included as Farm and Ranch Improvements in paragraph 2 of the Farm and Ranch Contract are: Farm Equipment Windmills Trucks Portable buildings
Windmills
Which of the following is detailed in Paragraph 2 of the Unimproved Property Contract? Exclusions Land Accessories Improvements
Land
A _______________ gives the tenant occupancy in the present time and the right to purchase at a future date. Lease-purchase agreement Right of first refusal Contract Buyer's Temporary Residential Lease
Lease-purchase agreement
The property Charles is making an offer on was built in 1970, and there was a signed seller's disclosure in the documents section of the multiple listing service, but there was no Lead-Based Paint Addendum. Martina has not been able to get the signed addendum from the listing agent, and Charles has indicated that he would like to move forward with making an offer. Martina could: Inform Charles about the risks of moving forward with an offer and make sure he has received the pamphlet and signed the addendum Advise Charles of his right to get an inspection and terminate the contract within 14 days if lead-based paint or lead-based paint hazards are present Advise Charles that moving forward with an offer before receiving the signed addendum could be very risky All of the above are actions that Martina can take.
All of the above are actions that Martina can take.
Notices are effective when _______________. Mailed Hand-delivered Electronically transmitted All of the above are effective
All of the above are effective
Seller's Disclosure in paragraph 7 of the Farm and Ranch Contract includes the residential Seller's Disclosure and a disclosure regarding: Wetlands Environmental hazards Flooding All of these conditions are addressed
All of these conditions are addressed
All of the following sellers are exempt from providing a Seller's Disclosure Notice, except: A builder of a new home that has not been lived in A fiduciary in the course of administration of a decedent's estate A co-owner in the sale to another co-owner An investor who has never lived in the property
An investor who has never lived in the property
Corina is selling her home and would like to purchase another home to move into as soon as her current home sells. When she finds a home she would like to purchase, her buyer's agent submits an offer on her behalf. To make the contract subject to the sale and funding of Corina's current residence, he also submits an Addendum for Sale of Other Property. If Corina waives the contingency and then fails to close and fund due to non-receipt of proceeds from the sale of her home, which of the following remedies are NOT available to the seller? Filing a lawsuit and seeking monetary damages Accepting Corina's earnest money as "liquidated damages" and taking no further action against her Filing a DTPA lawsuit against Corina Seeking specific performance
Filing a DTPA lawsuit against Corina
At closing, according to the One to Four Family Residential Contract (Resale), the seller will deliver a _______________ deed. Bargain and Sale General Warranty Special Warranty Quitclaim
General Warranty
According to the contract, the buyer is to bring ________________ to closing. A pen A deed Good funds Cash
Good funds
In a closing, _______________ are described as a cashier's check or wire transfer. Prorations Escrows Good funds Consideration
Good funds
An offer is presumed to have been delivered to the principal when it is delivered to the agent is a/n _____________. Deferred notice Contract Imputed notice Counter-offer
Imputed notice
Seller is to permit the buyer to perform _______________ provided they are performed at reasonable times. An Appraisal Inspections Title investigation Survey
Inspections
A buyer has a signed sales contract that has box 7D.(2) checked with 4 days in the blank for the number of days the seller has after the effective date of the contract to deliver the completed Seller's Disclosure Notice. The seller delivers the Seller's Disclosure Notice to the buyer within the agreed upon 4 days. What are the buyer's options? The buyer may sue the seller for monetary damages. The buyer may sue the seller for specific performance. The buyer has no remedies. The buyer may terminate the contract within 7 days of receipt of the notice and receive a refund of the buyer's earnest money.
The buyer may terminate the contract within 7 days of receipt of the notice and receive a refund of the buyer's earnest money.
Corina is selling her home and would like to purchase another home to move into as soon as her current home sells. When she finds a home she would like to purchase, her buyer's agent submits an offer on her behalf. To make the contract subject to the sale and funding of Corina's current residence, he also submits an Addendum for Sale of Other Property. If the seller receives and accepts an offer during the contingency period, and Corina declines to waive the contingency: The contract will terminate and her earnest money will be refunded. She is still under contract to purchase the property. The contract will terminate and the seller will keep the earnest money. None of these are correct
The contract will terminate and her earnest money will be refunded.
Corina is selling her home and would like to purchase another home to move into as soon as her current home sells. When she finds a home she would like to purchase, her buyer's agent submits an offer on her behalf. To make the contract subject to the sale and funding of Corina's current residence, he also submits an Addendum for Sale of Other Property. What will happen if Corina's home does not sell? The seller will have to wait for Corina to come up with the money another way. The contract may be terminated if both parties sign the Release of Contract within 10 days. The contract will terminate automatically and the earnest money will be refunded to Corina. The contract will terminate automatically, and the seller will keep the earnest money.
The contract will terminate automatically and the earnest money will be refunded to Corina.
Rollback Taxes are the responsibility of: The party that changed the use of the property The buyer The Assessment district The seller
The party that changed the use of the property