Chapter 5
Which paragraph mentions the extraterritorial jurisdiction?
6.E.(5) - Title Notices - Annexation
Who is a "third party" to a contract?
Anyone listed on the contract that is not the buyer or seller
If the buyer does not receive the seller's disclosure notice and the transaction is terminated by the buyer, what happens to the earnest money?
It is returned to the buyer. Paragraph 7.B.(2)
Using a TREC promulgated purchase agreement, who is required to pay for the title insurance?
It's negotiable
How many days does the seller have to deliver the seller's disclosure notice to the buyer after the effective date of the contract?
It's negotiable - Paragraph 7.B.(2)
What is a disclosure statement by the seller that states no changes have been made on the property that could affect the survey?
T-47 Affidavit
The buyer backs out of the contract before closing, what three options does the seller have?
Terminate the contract. Suit for specific performance. Sue for damages. Paragraph 15-Default.
How many days does the title company have after receiving a contract to produce a title insurance commitment?
20 days - Paragraph 6.B. - Title - Commitment
How many days does the buyer or the buyer's agent have to deliver the termination option check to the seller or the listing agent?
3 days - Paragraph 23-Termination Option
Which one of the following is a TREC rule on filling in Paragraph 3 of the Texas Real Estate Commission One to Four Family Residential Contract (Resale)?
3.A. + 3.B. = 3.C.
Which paragraph indicates the possibility of the buyer assuming the seller's existing loan?
3.B. - Financing - Assumption
What paragraph in the Texas Real Estate Commission One to Four Family Residential Contract (Resale) is the sales price for the contract written?
3.C.
What is the fee that is charged every time a property changes hands?
Transfer fee
How should a licensee fill out a TREC One to Four Family Residential Contract (Resale) if the seller is willing to finance the transaction for the buyer?
Use paragraph 3.B and check the appropriate box for Seller Financing Addendum.
Suppose a buyer was willing to offer a seller $285,000 on a property with a first lien of $200,000 and a second lien of $60,000, with $25,000 as a down payment. What would the licensee put in paragraph 3.B of the TREC promulgated purchase agreement?
$260,000
Which paragraph is most likely to get a licensee into difficulty for practicing law?
11 - Special Provisions
Which paragraph indicates that the tax bill will be divided between the seller and the buyer on closing day?
13 - Prorations
If a tornado destroys the improvement on the property prior to closing day, which paragraph comes into play?
14 - Casualty Loss
Which paragraph indicates that the chandeliers will be staying with the home?
2.B. - Property Improvements
Which paragraph involves endangered species?
7.G. - Property Condition- Environmental Matters
What is the difference between a title policy and a title commitment?
A title commitment is issued prior to closing to describe the items on the title policy which will be issued after closing.
The seller must allow the buyer the right to have the property inspected during which times?
Reasonable times
Where is the TREC Contract Form number located on the document?
The lower right corner of each page
Which addendum spells out the details of the loan and will be included on almost all contracts?
Third Party Financing Addendum
A seller that has agreed to pay for the title policy can or cannot require a buyer to use a specific title company?
can
If the title commitment is not delivered to the buyer in time, what is the length of the extension in days?
15 days - Paragraph 6.B.
Which paragraph deals with the termination of the contract and the responsibility of the title company if the contract terminates?
18.C. - Escrow -Demand
Which paragraph indicates that the seller may continue to show the property while it is under contract?
19 - Representations
A lead-based paint notification is required on all properties built prior to what year?
1978
If the seller fails to make repairs that were agreed to, how many days may the buyer extend the closing date to give the seller time to perform?
5 days - Paragraph 7.F.
Which paragraph includes a possible need for a statement from the seller indicating that the property may be influenced by coastal waters?
6.E.(4) - Title Notices-Tide Waters
Which paragraph indicates that a buyer may be required to pay special costs before he or she can have water service?
6.E.(6) - Certified Utility Area
Which paragraph warns the buyer that the property may have a special assessment tax on the property?
6.E.(7) - Public Improvement Districts
How many days does the buyer have to terminate the contract after receiving the seller's disclosure notice, if the disclosure was not provided on the effective date?
7 days - Paragraph 7.B.(2)
Which paragraph mentions that negotiations may have to be entered into again after contract if the lender requires certain repairs?
7.E. - Lender Required Repairs
According to the TREC promulgated ONE TO FOUR FAMILY RESIDENTIAL CONTRACT (RESALE), who is required to pay for lender-required repairs?
Neither party is required to pay. If, however, both parties refuse, the contract terminates.
Which Texas Real Estate Commission One to Four Family Residential Contract (Resale) paragraph must be filled in regarding notification?
Notices
What are the Important features on the top of page one of the TREC promulgated purchase agreement?
One to Four Family - Means that this contract cannot be used for any transaction over four families or for apartment complexes with hundreds of families. Residential - Means not commercial. Commercial contracts are typically drawn up by attorneys. No TREC promulgated purchase contracts exist for commercial sales. (Resale) - Means no new construction. There is a different TREC promulgated contract to use for selling new construction. Not For Use For Condominium Transactions - There is a different TREC promulgated contract to use for selling condominiums. Equal Housing Opportunity - The Equal Housing logo is located in the upper right hand corner and indicates this contract is fair to all persons.
According to the TREC promulgated ONE TO FOUR FAMILY RESIDENTIAL CONTRACT (RESALE), who is responsible for having the utilities turned on?
Seller
If the buyer sues the seller for something related to the contract, who will pay the attorney's fees?
The losing party - Paragraph 17 - Attorney's Fees
On page 9, when will the section "Contract and Earnest Money Receipt" be filled out?
When the contract and earnest money check is delivered to the title company
On page 9, when will the section "Option Fee Receipt" be filled out?
When the termination option money is delivered to the seller or listing agent