Promulgated Contract Forms
Paragraph 7D(1) indicates that the buyer:
Accepts the property As-Is
The _____ paragraph of the contract provides options for the buyer if the property is damaged or destroyed after the Effective Date of the contract.
Casualty loss
In order for a buyer to purchase a property using VA Guaranteed financing, the buyer must receive a(n) _____, which establishes the value of the property.
Certificate of Reasonable Value
The practice of taking buyers or renters to or away from a particular area based on a protected class is known as _____.
Channeling
The Notice to Prospective Buyer:
Complies with the TRELA requirement that license holders advise buyers to have an abstract examined or to obtain title insurance
By default, TREC-promulgated contract forms _____.
Convey all of the mineral estate owned by the seller
Which statement regarding earnest money is INCORRECT?
In Texas, earnest money is set at 6% of the sale price.
The five essential elements that must exist for a real estate sales contract to be considered valid and enforceable are legal purpose, competent parties, mutual assent, consideration, and _____.
In writing
The _____ of the property must be inserted into Paragraph 6D. of the One to Four Family Residential Sales Contract.
Intended use
Buyer Dale defaulted on a sales contract when he failed to apply for financing within the time period specified in the document. As the injured party, Seller Ling can choose to accept Dale's earnest money as _____.
Liquidated damages
Which of the following is NOT considered an accessory?
Mailbox
_____ is the process of resolving contractual issues between parties.
Mediation
The actual fee split agreement between the brokers is by virtue of the _____.
Multiple listing services
A(n) _____ gives the buyer the unrestricted right to terminate the contract within a specified period.
Option
For a valid _____ to exist, all of the blanks in Paragraph 23 must be filled in.
Option
Tammy is interested in Jolene's property but wants to research the zoning laws before purchasing. She has an agreement in which she paid a fee of $100 to keep the property available for a preset price for 30 days, during which time Jolene cannot sell the property to another. Tammy, however, can change her mind if she likes. What kind of agreement is this?
Option
House Bill 2532 establishes notice requirements for a homeowner who proposes to sell or convey real property located in a(n) _____.
Propane Gas System Service Area
_____ are implemented when property operating under an exemption has its usage changed.
Rollback taxes
Which of the following was added to federal fair housing laws as a protected class in 1974?
Sex
The _____ has promulgated nine exceptions to title insurance policies.
Texas Department of Insurance
The Seller's Disclosure Notice should be completed by _____.
The seller
Who is responsible for furnishing a commitment to the buyer for title insurance?
Title company
Bertha, a law school dropout is a licensed real estate agent who wants to make sure that she is providing her buyers with the best representation possible, so she drafts an iron-clad purchase contract for them. Bertha's sponsoring broker is horrified because Bertha is guilty of _____.
Unauthorized Practice of Law
If a contract has been entered into with a person who has been judged to be incompetent, that contract is considered _____ because that person never had the capacity to enter into it.
Void
John and Bev made an offer on Fernando's 3-bed, 2-bath home. When does that offer become a contract?
When it is accepted and communicated
Martina is representing Charles, who is making an offer of $460,000 on a home. Martina recommends that Charles offer 1% earnest money to demonstrate his level of commitment to the seller.Charles, however, insists on offering $30,000 in earnest money, but he agrees to go as high as$40,000 if the earnest money ends up being a point of disagreement with the seller. They will use XYZ Title Company, which is located at 123 Main St, Anywhere, TX. 1. In Paragraph 5 of the TREC approved sales contract, what information should be listed in the fields for Charles' initial offer? 2. Charles wants the seller to pay for the title policy. He prefers to use the seller's existing survey, but he doesn't mind paying for a new one if the existing survey is found to be unacceptable. He wants to receive the survey within 7 days. In Paragraph 6. C, Martina should: 3. 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:
1. $30,000 - XYZ Title Company - 123 Main St, Anywhere, TX - 0 - 0 2. 3. * advise Charles that moving forward with an offer before receiving the signed addendum could be very risky * 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 *Inform Charles about the risks of moving forward with an offer and make sure he has received the pamphlet and signed the addendum
Linda is the buyer's rep for Guy, who is inheriting some money and wants to buy a home. Guy's offer of $190,000 has been accepted, and the parties have agreed to allow Guy plenty of time to secure financing (20 days) since he has not yet received his inheritance money and his financing pre-approval is based on a sizable down payment (80% of property value). The deadline has passed and Guy has not yet secured financing. He claims he has not even tried yet because there has been a delay in receiving his inheritance, which he claims will be received in about a week. Guy states that he is not sure he still wants to buy the property. 1. Which of the following courses of action are not available to the seller? 2. If Guy quickly secures financing and learns he can buy a $180,000 property without the inheritance, which of the following is TRUE about renegotiating the sales contract? 3. What could happen if - a couple of days after the contract was executed - the title company had pointed out that Guy is 17 ½ years of age?
1. If Guy cannot obtain financing and still wants to purchase the property, the seller has to accept the 80% down payment. 2. The seller is under no obligation to renegotiate the sales price and may still seek remedy against Guy if he does not complete the sale. 3. Guy could choose to void the contract.
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. 1. What will happen if Corina's home does not sell? 2. If the seller receives and accepts an offer during the contingency period, and Corina declines to waive the contingency: 3. If Corina waives the contingency and then fails to close and fund due to non-receipt of proceeds from the sale of her home, all of the following remedies are available to the seller EXCEPT:
1. The contract will terminate automatically and the earnest money will be refunded to Corina 2. The contract will terminate and her earnest money will be refunded 3. Filing a DTPA lawsuit against Corina
Which of the following correctly defines a counteroffer?
A rejection of the original offer coupled with a new offer
The Buyer's Temporary Lease states that rent is paid for per _____.
Day
Raul is Moises's father and real estate agent. What must Raul do when filling out the sales contract?
Disclose this relationship in Paragraph 4
is often 1% of the purchase price of the property.
Earnest money
Who pays for a survey?
Either the buyer or the seller
A(n) _____ is a change made to a standard insurance policy.
Endorsement
Property includes:
Land, Accessories, Improvements
All of the TREC-promulgated contracts were drafted with identical provisions to the _____.
One to Four Family Residential Contract
What is TRUE of the Special Provisions paragraph in the TREC-promulgated forms?
Only factual statements and business details of the transaction should be inserted into the paragraph.
Sean's loan balance on his mortgage is $175,000. Since he purchased his home in 2006, property values in his neighborhood have dropped precipitously, and market value on his property is now $120,000. Sean's lender has agreed to accept less than what is owed on his property. What addendum should be filled out when purchasing Sean's property?
Short Sale Addendum