Promulgated Contract Forms
Paragraph 23 "termination option" of the TREC 1-4 Family Residential Contract:
Requires a fee for a special period of time
If the Buyer does not give notice to the Seller that he/she cannot obtain credit approval with the number of days stated in the contract, the contract will not longer be subject to the buyer's credit approval
True
If the contract includes an option period for the buyer and the buyer does not tender the option fee to the Seller within the time limit (currently with 3 days from effective date of the contract) the Buyer no longer has an unrestricted right to terminate under the option.
True
In Texas, dual agency has been replaced with Intermediary
True
Steering is illegal and is described as channeling a minority to or away from an area to change the character of the neighborhood.
True
The Buyer's Agency Agreement allows an agent to show the same properties to competing clients
True
The Residential Condo Contract allows a limit to the amount a Buyer will pay for Association transfer fees.
True
The sales price is determined by paragraph 3 by adding the down payment (3A) and the loan amount (3B)
True
What is the status of a contract if the seller does not make the buyer aware of a property being located within a municipal utility district?
Voidable by the buyer
Standard forms of TREC must be used unless:
WRONG NOT D a) a broker or salesperson wishes to use a different form b) a principal in the transaction requests a different form to be used c) the listing broker disagrees with certain language in the contract d) a lender requires a different form to be used
Seller must comply with federal tax requirements regarding residency in the United States or the _______________ must withhold sales proceeds to satisfy the tax law.
buyer
The _______________ date is agreed upon by the buyer and the seller.
closing
The escrow agent is always _______________.
named by agreement.
In most cases, the title policy is paid for by the ______________.
seller
If the buyer fails to deliver earnest money within the time prescribed by the contract, _______________.
the seller may exercise remedies found in the contract.
The Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement is used
to release the seller's liability on a loan the buyer will assume.
The Third-Party Financing Addendum is used
when the buyer is using an outside lender
The financing paragraph will be used to indicate:
a) third party financing b) assumption c) seller financing ALL OF THE ABOVE
In a closing, _______________ are described as a cashier's check or wire transfer.
good funds
Seller is to permit the buyer to perform _______________ provided they are performed at reasonable times.
inspections
The contract requires that the _______________ deliver the title commitment to the buyer within the 20 days after the Title Company receives the contract.
seller
Who is designated as responsible for promptly sending a copy of the contract to any attorneys that are named in the contract?
The broker
Who is responsible for ensuring that the effective date is filled in?
The broker
According to the TRELA, which one of the following actions is a fair and impartial act for an Intermediary?
a) Appointing associated licensees to work with the parties b) appointing subagents to work with the parties c) agreeing to represent only the buyer d) agreeing to represent only the buyer ANSWER IS A
Fraud is:
a) a crime b) a civil violation BOTH A& B
A TREC promulgated Farm and Ranch contract can include:
a) buildings b) crops c) equipment ALL OF THE ABOVE
When electing to use the option paragraph of the contract, the buyer ay, within the time specified in the paragraph, do any of the following EXCEPT:
a) complete the repairs himself before the end of the option period b) terminate the contract c) do nothing and proceed to close d) amend the contract waiving the right to terminate ANSWER IS A
The amount of earnest money is ____________.
negotiated between the seller and the buyer.
The T-47 must be signed in the presence of a _________.
notary
gives Buyer the unrestricted right to terminate the contract within the option period
option
When a property is listed for sale, the _______________ generally prepares a Seller's Disclosure Notice.
seller
The Special Provisions paragraph allows agents to add _______________ to the contract.
Business Details
The TREC promulgates an addendum to be used in a short sale. This Short Sale Addendum is to be signed by:
Buyer and Seller
Failure on the part of the broker/sales associate to advise the purchaser in writing to have an abstract of title examination by an attorney or obtain a title insurance policy:
May be cause to have the agent's license suspended or revoked, and precludes receiving any commissions or agreed fees associated with the sale
If a Buyer wants the Seller to pay some or all of their closing costs, it should be added to the contract in:
Paragraph #12- Seller participation in the Buyer's costs
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.
possession
The buyer is required to deposit the earnest money with the escrow agent _______________.
within 3 calendar days after the effective date of the contract.
If a property has a "Sale of Other Property" contingency contract on it, Seller:
Can ask the original buyer to remove the contingency if the Seller has accepted another offer as a back up
Once a contract is finalized and receipted it:
Can be amended multiple times if all parties agree
Your buyers have signed a contract to buy a new home. The contract is subject to the sale of their present home. This is called a:
Contingency
Earnest money:
Is used to make the offer more enticing to the seller
Option money is delivered to the ___________ within three days of the effective date of the contract.
escrow agent
The Seller contracts to furnish the buyer an existing survey, but neglects to furnish an "affidavit" with the time specified. The lender requests a new survey be furnished. Who pays for the new survey?
The seller
If the use of an existing survey is anticipated, listing agents should have the T-47 completed when _______________.
the listing is taken
A voluntary dispute resolution is called litigation.
False
What must a Buyer's Representation Agreement have?
A termination date
If a property was built before 1978, what specific addendum is required?
Disclosure of Lead-Based Paint Addendum
A "deposit" paid upfront by the buyer
Earnest Money
_______________ is a deposit paid upfront by a buyer to show that he/she is serious in intent.
Earnest Money
On the Seller's default, what should happen to the earnest money?
It should be returned to the Buyer
When a "fixture" in a property does not remain for the buyer, how do we inform the buyer of that fact and make sure the item does not convey with the property?
List the item on the "residential contract"
Any changes to the original contract once is it finalized and receipted must be done:
On an amendment
What may Rosalinda do if Ti Lin fails to furnish the survey or the affidavit to her within the agreed upon four days?
Rosalinda may purchase a new survey at the seller's expense.
The Third Party Financing Condition Addendum is not used with:
Seller financing
Form stating known facts and defects concerning a property
Sellers Disclosure notice
If there is an existing survey on the property, what does the seller take to the title company and the lender?
The existing survey and a notarized affidavit stating if there have been any changes in the survey since the time the existing survey was created
According to the TREC 1-4 Residential Contract (resale), who is responsible for paying the owner policy of title insurance fee?
The party stipulated in the contract
How does the TRELA define the first face-to-face meeting with required agency disclosure?
When a substantive dialogue about a specific real property occurs
The buyer has _______________ days to object in writing to matters that might prohibit the buyer's use or activity of the property.
a negotiated number
Intermediary requires:
a) disclosure of who represents whom in a transaction b) written agreement by both seller and buyer c) involvement of only one company ALL OF THE ABOVE
When earnest money is deposited with an escrow agent, the escrow agent
a) is not responsible for the performance of any signatory b) has the right to secure written release of all signatories c) is not liable for interest on the money ALL OF THE ABOVE
The IABS states the broker may represent the:
a) owner b) buyer c) both owner and buyer as intermediary
Federal Fair Housing Laws forbids discriminatory practices by parties including:
a) owners of properties b) lenders c) real estate brokers ALL OF THE ABOVE
In the event of the buyer's default, the seller may:
a) terminate the contract b) receive earnest money liquidated damages c) enforce specific performance
In Paragraph #14 of the Residential Contract (casualty loss), if the seller cannot complete the repairs within the time limit the buyer has the option of:
a) terminating the contract b) extending the closing c) accepting the property in the damaged condition with an assignment of insurance proceeds ANY OF THE ABOVE
If Seller is to remain in the property for one night or more after closing or 90 days prior to closing and funding, a ________________ form should be completed.
Seller's Temporary Residential Lease
If an Agent receives confidential information from a Client while the agency agreement is in force, that agent may:
Share that information if the Client authorizes the agent to share it
The Condo Resale Certificate called for in paragraph 2 of the TREC Residential Condo Contract (Resale) must have been prepared no more than ___ before the date it is delivered to the buyer.
3 months
When using the seller's existing survey, the seller is given a number of days to deliver the survey and a ______________ to the Buyer and the title company.
T-47 affidavit
The TREC promulgated 1-4 Family Residential Contract (resale) states that if the cost of lender required repairs and treatment exceed ____% of the sales price, buyer may terminate the contract and the earnest money will be refunded to the buyer.
5%
The cost of coverage, which is commonly referred to as a "boundary deletion," is ____% of the cost of the owner's title policy on a residential transaction.
5%
If a seller is to remain in the property after closing:
A Seller's Temporary Lease Form promulgated by TREC should be completed and signed by buyer and seller and attached to the contract.
The Title Commitment delivery date has an automatic extension of _______________ days if the Title Commitment is not delivered to the buyer within the 20 days prescribed in the contract.
15
The Third-Party Financing Addendum allows the buyer to terminate the transaction if:
The property doesn't meet the lenders underwriting requirements
A measurement of boundaries and land area required in some sales contracts
survey
an automatic extension of the delivery period can be provided for up to ____ day(s) or ___ day(s) prior to closing if the commitment cannot be delivered within the 20 days allowed.
15, 3
The title company has ___ day(s) from the date that they receive the contract to furnish a commitment to the buyer for title insurance.
20
Within ____ days after the title company receives a copy of the contract, Seller shall furnish to Buyer a Commitment for title insurance
20
In Paragraph 3B of the sales contract, the "sum of all financing"
Excludes any loan funding fee or mortgage insurance premium
A Buyer/Tenant Representation Agreement is only available through the Texas Real Estate Commission
False
Brokers fees are included in the 1-4 Family Residential Contract (resale) between the Buyer and the Seller.
False
If a buyer and/or seller agree to mediate, they are giving up their right to pursue relief through the courts.
False
In a real estate transaction, a street address is considered sufficient to described the property being conveyed.
False
Per Paragraph #16 of the Residential Contract (Mediation), if a buyer and/or seller agrees to mediate, they are giving up the right to pursue relief through the courts.
False
The Seller as well as the Buyer has the unrestricted right to terminate the contract under the option period:
False
There are no TREC promulgated contracts for new construction. All builders use their own contracts.
False
Insurance policy against losses resulting from defects in title
Title policy
A suit for specific performance is:
To force either the buyer or the seller to perform on the terms of the contract
A contract is described as an agreement between two or more parties to do or not to do something.
True
An addendum has been provided by TREC for voluntary use to provide for transfer of personal property (Non-Realty Items)
True
If a Buyer chooses not to be represented by an agent, the Buyer must be made aware that any information they share can be communicated to the Seller.
True
The TREC promulgated Seller Financing Addendum states that if the buyer does not furnish the required qualifying documentation with the time limit allowed, Seller may terminate the contract and keep the earnest money.
True
Tie is of the essence means that certain items in the contract must be performed:
as specified in the contract
The number of days for objection is counted from the latest date that the buyer receives the _________________
commitment, exception documents, or survey
A change made to a standard insurance policy
endorsement
Use of the TREC promulgated One to Four Family Residential Contract (resale) is allowed on the sale of a residential condo.
False
Which paragraph in the One to Four Family Residential Contract (Resale) shows that Ti Lin will provide an existing survey?
Paragraph 6.C.(1)