Promulgated Forms
Buyer and seller have entered in a contract for buyer to purchase residential property from seller. Buyer wants to move in early and begin remodeling so that the house will be ready to move in at closing. What are the buyer's rights under the TREC Buyer's Temporary Residential Lease?
The buyer has no right to remodel without the prior written consent of the seller.
Buyer and seller enter into a contract where buyer intends to take out a loan to purchase a home. The lender requires termite treatment before it will issue a loan to the buyer. What are the buyer's options under the One to Four Family Residential Contract?
The buyer may refuse to pay for the termite treatment.
Under the TREC Buyer's Temporary Residential Lease, what happens if buyer fails to close on the closing date in the contract and wants to remain in the property longer than the term provided in the lease?
The buyer must pay an additional daily holdover fee.
The buyer wants to make the contract contingent on a satisfactory home inspection. What should the agent advise the client using the One to Four Family Residential Contract?
The buyer should purchase an option to terminate under paragraph 23.
When should the TREC Buyer's Temporary Residential Lease be used?
The buyer wants to move in before closing for no more than 90 days.
What happens if a buyer fails to pay to the seller an option fee she promises to pay within three days of execution of the contract under paragraph 23 of the TREC One to Four Family Residential Contract?
The buyer will not have the right to terminate the contract.
A buyer pays an option fee of $25 under paragraph 23 of the TREC One to Four Family Residential Contract to purchase a 10 day option to terminate. What happens if the buyer fails to terminate by the 10th day?
The buyer will not have the unrestricted right to terminate the contract.
A buyer promises to pay an option fee of $100 within three days of execution under paragraph 23 of the TREC One to Four Family Residential Contract to purchase a 10-day option to terminate. What happens if the buyer fails to pay the fee?
The buyer will not have the unrestricted right to terminate the contract.
What happens to the earnest money if the buyer terminates within the option period under paragraph 23 of the TREC One to Four Family Residential Contract?
The earnest money is refunded to the buyer.
Whose name should be added into the licensed supervisor's name if the agent is a broker associated with the firm and the sponsoring brokerage firm has not assigned a supervisor?
The name of the broker of record
Whose name should be added into the licensed supervisor's name if the agent is a salesperson and the sponsoring brokerage firm has orally assigned a supervisor?
The name of the broker of record
What happens if no dollar amount is inserted in paragraph 23 of the TREC One to Four Family Residential Contract but the time period is filled in as 10 days?
The paragraph is not part of the contract.
What can happen if a buyer fails to pay for an option fee within three days of execution of a contract under paragraph 23 of the TREC One to Four Family Residential Contract?
The paragraph will not be a part of the contract.
Which of the following is TRUE regarding mediation under paragraph 16 of the One to Four Family Residential Contract?
The parties agree to mediate disputes related to the contract.
What should be done if the closing date needs to be changed under the TREC One to Four Family Residential Contract?
The parties must both sign the amendment form.
Who keeps the option fee under the One to Four Family Residential Contract once it has been executed by both parties?
The seller
Under paragraph 9 of the TREC One to Four Family Residential Contract, what happens if buyer fails to close the sale by the closing date?
The seller may exercise a remedy under paragraph 15.
Whose name should be added into the licensed supervisor's name if the seller's agent is a salesperson and the sponsoring broker has not assigned a supervisor?
The sponsoring broker's name
How is paragraph 13 different in the New Home Contracts, the Unimproved Property Contract, and the Farm and Ranch Contract?
There is a possibility of the assessment of rollback taxes.
Why are improvements and accessories not addressed in paragraph 2 of the two TREC New Home Contracts?
They are addressed in the Construction Documents which are attached by reference to the contract.
How are cash reserves from regular condominium assessments for deferred maintenance and capital improvements established by the association addressed in the TREC Residential Condominium Contract?
They are not credited to seller.
Which of the following forms should be attached and referenced on the One to Four Family Residential Contract?
Third Party Financing Addendum
How should a change to the One to Four Family Residential Contract be made after the contract is executed?
Using the Amendment to Contract form
Which of the following may be included in paragraph 11, Special Provisions, of the One to Four Family Residential Contract?
Multiple sellers if the blanks in paragraph 1 are insufficient
Under paragraph 7 of the One to Four Family Residential Contract, who is required to pay for lender required repairs?
Neither buyer nor seller
Buyer and seller enter into a contract for buyer to purchase seller's property using the One to Four Family Residential Contract. The effective date is a Wednesday. Buyer pays for a seven-day option to terminate the contract on the following Sunday. Does the buyer have an option to terminate?
No, the deadline was Saturday.
Which of the following is an appropriate use for paragraph 11, Special Provisions, of the One to Four Family Residential Contract?
None of these are correct.
Under the TREC New Home Contract (Incomplete Construction) how are change orders that result in a lower sales price addressed in the contract?
the amounts paid in cash and financed are reduced proportionately
A buyer promises to pay an option fee of $500 within three days of execution under paragraph 23 of the TREC One to Four Family Residential Contract to purchase a 12-day option to terminate. What happens if the buyer pays half of the fee up front and half four days after execution?
the buyer will not have the unrestricted right to terminate the contract.
Notices from one party to the other are effective when they are sent to
the email address and address listed in paragraph 21.
Which of the following may be included in paragraph 11, Special Provisions, of the One to Four Family Residential Contract?
the seller is unavailable by phone Tuesdays and Thursdays from 1:00 to 4:00 pm.
The buyer gets buyer's remorse and cannot decide whether to close on a home already under contract with the seller. Under paragraph 9 of the TREC One to Four Family Residential Contract, what can the seller do if the buyer fails to close the sale by the closing date?
the seller may exercise a remedy under paragraph 15
How should the seller acknowledge receipt of the option fee under the One to Four Family Residential Contract?
the seller should sign the receipt on page 9.
The buyer needs to sell his existing home before buying a home from the seller. What should the buyer's agent do?
use the Addendum for Sale of Other Property by Buyer.
Rollback taxes can be assessed when
zoning is changing and the property no longer qualifies for a previous exemption.
Who is allowed to insert legal rights or remedies in the special provisions paragraph of the One to Four Family Residential Contract?
A party
A buyer and seller enter into an agreement for buyer to purchase seller's property using the TREC Unimproved Property Contract. The buyer intends to develop the property for commercial use. Which of the following has the biggest impact on buyer's decision to purchase?
All of these
Which of the following is NOT a seller's expense under paragraph 12 of the One to Four Family Residential Contract?
Appraisal fees
When must the agent deliver the option fee to the seller or the seller's agent?
Within three days after the effective date
Rollback taxes are discussed in
all of these.
Restrictive covenants may include rules regarding
all of these. - pets. - minimum size requirements. - fees for road maintenance.
In the TREC Unimproved Property Contract, who is responsible for getting the survey done if seller fails to provide it as promised?
buyer
In the Earnest Money paragraph, the One to Four Family Residential Contract
gives the parties the option to negotiate for the buyer to pay the earnest money in two installments.
Seller's disclosure of lead-based paint is
included in the One to Four Family Residential Contract but not the New Home Contracts.
Seller wishes to contribute $1,000 to buyer's closing costs. Using the TREC One to Four Family Residential Contract, what should the seller's agent advise the seller?
insert $1,000 into paragraph 12A(1).
Buyer wants seller to help buyer out with closing costs by paying $1,500. What should the buyer's agent advise the buyer regarding the TREC One to Four Family Residential Contract?
insert $1,500 into paragraph 12A(1).
Which of the following may be included in paragraph 11, Special Provisions, of the One to Four Family Residential Contract?
multiple sellers if the blanks in paragraph 1 are insufficient.
Buyer and seller enter into a contract for buyer to purchase seller's property using the One to Four Family Residential Contract. The effective date is a Thursday. Buyer pays for a 10-day option to terminate the contract on the following Monday. Does the buyer have an option to terminate?
no, the deadline was Sunday.
Seller offers to reimburse buyer $350 for a residential service contract for a home to be purchased by buyer using the TREC One to Four Family Residential Contract. The parties discover that the residential service contract will cost $500 and the buyer refuses to pay the additional $150. What is the seller's option under paragraph 12B?
seller may terminate.
Seller and buyer enter into a contract for buyer to purchase seller's home and the effective date is July 1. On July 4, the home is lightly damaged by fire in the laundry room. What is required of seller under paragraph 14 of the One to Four Family Residential Contract?
seller must restore the property to its previous condition by the closing date.
The TREC contract forms say that if the property is damaged by fire or other casualty prior to closing, the
seller will be obligated to restore the property prior to closing.
Under paragraph 9 of the TREC One to Four Family Residential Contract, what happens if the seller fails to close the sale by the closing date?
the buyer may exercise a remedy under paragraph 15
A buyer and seller agree that buyer will buy the seller's home for $475,000 with no option to terminate using the TREC One to Four Family Residential Contract. The lender requires the roof to be replaced, the perimeter to be treated for termites, and the stucco on the back of the house to be repaired. The roof will cost $10,000, the termite treatment will cost $1,800, and the stucco repair is estimated to cost $8,000. Seller agrees to pay for everything. What are the buyer's options?
the buyer may not terminate the contract
Which of these is a licensee allowed to enter under Special Provisions on the One to Four Family Residential Contract?
Business details
Which of the following is TRUE regarding the Special Provisions section of the One to Four Family Residential Contract?
Business details and factual statements can be entered by licensees.
Who receives the earnest money if the buyer terminates the contract because of lender required repairs under the One to Four Family Residential Contract?
Buyer
What are liquidated damages the buyer must pay to the seller if the buyer wrongfully fails to sign a release of earnest money to the seller under paragraph 18 of the One to Four Family Residential Contract?
Damages, earnest money, reasonable attorney's fees, and all costs of suit
Buyer and seller enter into a contract for buyer to purchase seller's property using the One to Four Family Residential Contract. Seller wants to reference and attach the seller's disclosure notice to the contract. What should the seller's agent advise the seller?
Do not attach the notice to the contract
Buyer and seller enter into a contract for buyer to purchase seller's condominium unit using the TREC Residential Condominium Contract with an effective date of January 31. The roof of the complex is partially destroyed by a fire on February 3. Seller notified buyer on February 5 of the fire. What is the latest date buyer can terminate the contract because of the fire?
February 12
Which of the following is NOT in the Seller's Disclosure in the TREC Unimproved Property Contract?
Foundation problems
Under the TREC One to Four Family Residential Contract, what type of warranty deed is conveyed at closing?
General warranty deed
Under the One to Four Family Residential Contract, what should the buyer do if she wants to park her boat in the driveway of the home she wants to purchase and is concerned about deed restrictions?
List it as an objection under paragraph 6D
Which of the following is NOT a seller's expense under paragraph 12 of the One to Four Family Residential Contract?
Loan application fees
Who is responsible for paying for the owner's title policy under the TREC Unimproved Property Contract?
Negotiated
In the TREC One to Four Family Residential Contract, which paragraph addresses possession?
Paragraph 10
How is paragraph 3 different in the Farm and Ranch Contract from the other five contracts?
Sales price can be adjusted after the effective date.
A buyer and seller enter into an agreement for buyer to purchase seller's 150 acre ranch using the TREC Farm and Ranch Contract. The parties agree that the sales price is calculated at $6,000 per acre and that the sales price will be adjusted based on the survey. The buyer gets a survey done which indicates that the ranch is 135 acres. The buyer wants to adjust the sales price accordingly. What is seller's option under the contract?
Seller may not terminate because the variance is 10%.
A buyer wishes to make an offer on a house but wants to ensure that she has time to ensure that the foundation is sound. What should she do using the TREC One to Four Family Residential Contract?
She should purchase an option to terminate under paragraph 23.
Which of the following is NOT an appropriate use for paragraph 11, Special Provisions, of the One to Four Family Residential Contract?
The contract is in a second or back-up position.
Buyer and seller enter into a contract for buyer to purchase seller's condominium unit using the TREC Residential Condominium Contract with an effective date of March 1. Seller timely delivers the resale certificate five days after the effective date. Assuming the buyer gives timely notice, what happens when she terminates the contract?
The earnest money will be refunded to the buyer.
Under the TREC One to Four Family Residential Contract, how long does the seller have to provide the seller's disclosure notice to the buyer?
The time period is negotiated between the parties
What are unallowables under the TREC One to Four Family Residential Contract?
Lender fees that the borrower is prohibited from paying so the seller pays them
A buyer and seller enter into an agreement for buyer to purchase seller's 300-acre ranch using the TREC Farm and Ranch Contract. The parties agree that the sales price is calculated at $5,000 per acre and that the sales price will be adjusted based on the survey. The buyer gets a survey done which indicates that the ranch is 303 acres. The seller wants to adjust the sales price accordingly and buyer agrees. Is the additional amount financed or paid in cash at closing?
It depends on what the parties negotiate
A buyer and seller enter into an agreement for buyer to purchase seller's 550-acre ranch using the TREC Farm and Ranch Contract. The parties agree that the sales price is calculated at $2,000 per acre and that the sales price will be adjusted based on the survey. The buyer gets a survey done which indicates that the ranch is 547 acres. The buyer wants to adjust the sales price accordingly and seller agrees. Is the amount deducted from the amount financed or from the amount paid in cash at closing?
It depends on what the parties negotiate.
What is the purpose of the final page of the One to Four Family Residential Contract?
It is for information only.
How is paragraph 2 of the unimproved property form different than some paragraphs found in the other forms?
It is less complicated.
According to page nine of the Farm and Ranch Contract, who is responsible for payment of the commission to the buyer's broker?
It is negotiated by the parties
Under paragraph 23 of the One to Four Family Residential Contract, what happens to the option fee if buyer timely terminates the contract within the option period?
It is not refunded to buyer.
Under paragraph 23 of the One to Four Family Residential Contract, what happens to the earnest money if buyer timely terminates the contract within the option period?
It is refunded to buyer.
How is paragraph 2 of the Residential Condominium Contract different from the One to Four Family Residential Contract?
It provides the property description of the condominium unit.
Buyer and seller enter into a contract for buyer to purchase seller's condominium unit using the TREC Residential Condominium Contract with an effective date of January 5. Seller delivers the condominium documents before the effective date. Assuming no option period, what is the latest date in which buyer may cancel the contract based on the documents and still get her earnest money refunded?
January 11
Who is required to maintain insurance under the TREC Buyer's Temporary Residential Lease?
Landlord and tenant
What is the status of an option fee that has been physically delivered to the seller's agent?
Legally it has been delivered to the seller.
When does the Seller's Temporary Residential Lease terminate?
When the term in paragraph 3 expires
If one of the parties defaults, and the non-defaulting party accepts the earnest money as damages, that party
can do nothing more; the contract is terminated.
Under paragraph 13 of the TREC Residential Condominium Contract, which of the following is TRUE?
cash reserves from regular condominium assessments for deferred maintenance established by the association will not be credited to seller.
Under the TREC One to Four Family Residential Contract, who is responsible for payment of appraisal fees?
Buyer
Under paragraph 5 of the TREC One to Four Family Residential Contract, what happens if the buyer fails to deposit the earnest money?
Buyer is in default
What happens under paragraph 7E of the TREC One to Four Family Residential Contract if the cost of lender required repairs and treatments exceeds 5% of the sales price?
Buyer may terminate the contract and the earnest money will be refunded to buyer.
How are the earnest money and option fee typically paid under the One to Four Family Residential Contract?
A check to the title company and a check to the seller
A buyer and seller enter into an agreement for buyer to purchase seller's 2,000-acre ranch using the TREC Farm and Ranch Contract. The parties agree that the sales price is calculated at $2,000 per acre and that the sales price will be adjusted based on the survey. The buyer gets a survey done which indicates that the ranch is 2,400 acres. The seller wants to adjust the sales price accordingly and buyer disagrees. What is buyer's option under the contract?
Buyer may terminate with written notice to the seller.
Under paragraph 13 of the One to Four Family Residential Contract, what happens if taxes are not paid at or prior to closing?
Buyer shall pay taxes for the current year.
When must the agent deliver the earnest money to the title company?
By the close of business on the second day after the effective date
Under paragraph 13 of the TREC Residential Condominium Contract, who is responsible to pay for any special condominium assessment due and unpaid at closing?
Seller
Seller has entered into a contract with buyer to convey residential property using the TREC One to Four Family contract. Seller wishes to enter into a mineral lease. What are the seller's rights with respect to the mineral lease?
Seller must obtain buyer's written consent before entering into the lease.
Which of the following is NOT a buyer's expense under paragraph 12 of the One to Four Family Residential Contract?
Tax statements or certificates
How many different notices are in paragraph 6E of the One to Four Family Residential Contract?
Ten
Who pays for utilities under the TREC Buyer's Temporary Residential Lease?
Tenant
How are smoke alarms dealt with in the TREC temporary lease forms?
Tenant expressly waives landlord's duties to inspect and repair smoke alarms.
Seller and buyer enter into a contract for buyer to purchase seller's farm with an effective date of March 15, with a closing date of April 30. On April 1, the roof of the home is extensively damaged in a hailstorm. The seller is unable to restore the house by closing. What must seller do under paragraph 14 of the One to Four Family Residential Contract if buyer decides to accept the farm in its damaged condition?
assign insurance proceeds to buyer and credit buyer for insurance deductible at closing
