Real Estate

Damian enters into a contract to sell his home to Lori, who puts down a 5,500 earnest money deposit. At the last minute, Lori backs out of the deal. Damian keeps the earnest money deposit. This is an example of ?

Accepting liquidated damages

The parties are moving thee closing date back by four days, so instead of occuring on March 24th the closing will occur on March 28th. What form must be completed and signed?

Amendment to Contrac

Once there is accepted sales contract and you have filled in the effective date, what else should you do ?

Call the other agent to notify him of the final acceptance.

In paragraph 3 of the TREC one to four family residential sales contract resale the plus the sum of all financing will equal the sales price offered?

Cash down payment

A common form of mortgage fraud-illegal property flipping-involves a recently purchased property being?

Falsely appraised at an inflated value than sold for that higher price

Which of the following Texas promulgated forms is most like the TREC new home contract (Completed Construction)?

New Home Contract (Incomplete Construction)

What does it mean that Peter Hubble is identified as a party to a sales contract as "Peter Hubble, as separate property?

Peter is married, but his spouse is not joining in the conveyance of the property.

When a condominium is sold, what is not part of the sale?

The land beneath the unit

The Texas Broker Lawyer Committee contains different types of members appointed by different parties. How many layers does the governor appoint to this Committee?

Zero

The Texas Workforce Commission consist of how many members?

Three

An unenforceable contract is one that?

Won't stand up in court

What is the purpose of the Special Provisisons section of the TREC one to four faimly (resale) sale sales contract?

To list terms that are not otherwise covered in the ales contracct

Kimmys buyer clients want the seller to leave behind the work bench that is in the basement, something that was not originally identified as an inclusion in the original Texas sales contract. Which of the following will Kimmy use to indicate change?

A TREC promulgated addendum form

You are helping your buyer client complete a buyers temporary residential lease form for a transaction closing is set for January 5th. which of the following lease terms falls outside thee maximum term allowed under thee provisions of the buyers Temporary Residential Lease?

A lease beginning October 2

Cain purchased a residential service contract. IF during his year of contracted service he has a repair issue, which of the following would likely be covered?

Dishwasher if it breaks

The seller of a Texas home with a shed built in the backyard would like to remove the shed before the buyer takes possession of the property. In order to remove the shed, the seller should refer to this item in the property section of the TREC residential resale contract as a ?

Exclusion

Buck and his wife, Betsy made an offer on a home and specified in the sales contract the items on the property they want the seller to remove prior to them taking possession. These items are referred to in the property section of the TREC One to four family residential contract?

Exclusions

With which type of buyer financing is a seller likely to pay higher fees?

Government

What is the purpose of the earnest money deposit?

To show the seller that the buyer is serious and intends to go through with the purchase.

The buyers is responsible for which of the following expenses?

Loan application fees

Which entity administers license law in Texas

Texas Real Estate Commission

What is the purpose of the Lawyer Committee?

To draft contract forms

When a Texas buyer needs to obtain a mortgage loan from a lender to purchase the property the must be attached to the contract?

Third Party Financing Addendum

Whats the purpose of the special provisions paragraph of the one to four family residential Contract (Resale)?

To clarify facts found in the contract.

A casualty is defined as?

Damage or destruction to the property

Whats one key difference between the one to four family residential resale contract and the new home contract incomplete construction?

The new home contract incomplete construction does not contain improvements, accessories, or exclusions.

Which of the following is true about financing unimproved land?

The risk is higher, so interest rates are usually higher.

What about the owners policy of title insurance can me negotiated in the TREC One to Four Family Residential Contract (Resale)?

The selection of the title company and who will pay for the Title Policy.

If a casualty loss occurs on a property subject to a real estate transaction, who or what entity is responsible for bringing the property back to its original condition?

The seller, through the seller's insurance

Carl and Sadie, who are neighbors, got into a disagreement about early morning noise on the weekends. The tow came to an agreement. Carl promises to not mow the lawn before ten and Sadie promised to put bark collars on her dogs in the early morning hours. Their promises to each other represents what?

Consideration

Fdor any property to close, all must be removed prior to closing?

Contingencies

Jamie a seller deliberately hid the evidence of a termite infestation from potential buyers. Annette his listing broker agreed to not disclose the presence of termites in the home, even though she has seen them for herself. Jamie also paid Fred, a friend and home inspector to leace it out of his report. According to Fraud in Real Estate and Stock Transactions Act, Who is Liable.

Jamie, Annette and Fred

Which party to the contract will provide the sales price and financing to be used in the transaction?

Buyer

In order to recover damages for a construction defect, buyers must provide notice to the contractor by certified mail, return receipt requested, no later than days before the date they file to recover damages?

60 days

Which of the following is considered unauthorized practice of law?

Interpreting the legal consequences of a clients actions.

Where does the buyer deposit the earnest money when the sales contract is signed?

Into an Escrow account

What typically happens to any earnest money when a sales transaction successfully closes?

It is applied to the down payment and closing costy owned by the buyer.

When Max entered into a contract to purchase a condo unit, the first right of refusal period was marked as ten days. On day seven, the condo association called the sellers agent to let the know that they would be buying the property. What happens to Maxs contract?

It is terminated, unless the condo association provides proper certification that it's waiving the right of first within that ten day period.

What happens if the seller is unable to furnish the buyer with the commitment and exception documents within 20 days after the title company has received a signed copy of the TREC one to four family residential contract resale?

The deadline for delivery is automatically extended.

Oscar and Lucy are selling their home. They have agreed to provide the buyer with a new survey within a fifteen days of the executed date of the contract, which is June 10th. On what day does the clock start for the contigency period.

June 11/The day after

If buyer are identified as Kathleen Leary and Trent Carpenter, as tenants in common, which of thee following is true?

Kathleen Leary and Trent Carpenter are unmarried persons buying a property together.

The seller is responsible for which of the following expenses?

Liens

Which of the following would be a violation of the Texas Deceptive Trade Practices Consumers Protection Act (DTPA)?

Misrepresenting the facts about the reasons for a price decrease

When an option contract is being used, the buyer agrees to pay the seller a fee. This fee is know as the ?

Option Fee

What is a restrictive covenant?

Promises that may appear on a deed, and prohibit or require specific use of the property.

Which of the following is a protected class under federal fair housing laws?

SEX

Archie is behind in his mortgage payments. He wants to sell his house and get out form under the loan. You agree to help Archie list his property. Which TREC addendum will you and Archie need to complete and attach to the sales contract?

Short Sale Addendum

TREC is charged with passing rules to enforce, interpret, and explain the provisions of which of the following?

Texas Real Estate License Act

Assessments for rollback taxes are the responsibility of under thee New Home Contract (Completed Construction)?

The Seller

The environmental Assessment, Threatened or Endangered Species, and wetlands addendum specifies which type of assessment the buyer performed and what else?

The amount of time the buyer has to terminate the contract if the reports find conditions that will adversely affect how the property can be used.

How does the right of first refusal affect the sale of a condominium unit?

The condo assocciation is given the first opportunity to buy the unit. .

When is the Subdivision information including resale certification for property subject to mandatory membership in a property owners association form used?

When a property is subject to mandatory membership in a property owners association and the buyer is requesting more information.

Finn Tutul is applying for FHA Financing. Based on this you know that he will need to use which addendum to the TREC residential one to four family resale contract?

Third Party Financing Addendum

Many real estate contracts contain the phrase reminding the paries to avoid unneecessary delays to the transaction and to adhere to all contract dates

Time is of the essence

What is the purpose of a sales contract?

To document the agreement between a buyer and seller in a real estate sales transaction.

Whats the purpose of the subdivision information, including re sale certificate for property subject to mandatory membership in a property owners association form?

To provide information about the property owners association fees, rules of governance, issues, and finances

Which of the following does the Residential Condominum contract resale refreence?

Unit Number

A building manager refused to grant an exception to a resident who suffered from physical disability and asked for a reserved parking space closer to his unit for easier access. Is this a violation and if so what type?

Violates fair housing

Steve is positive that his late cat, Chester still roams the six bedroom Texas home where he has lived for fourty years. Steve has made the decision to move from this large property and into a retirement community. Steve feels that disclosing the fact that chester is still in the home may scare buyers away. What do you do?

You tell Steve that you, as a licensee are required to disclose this information to potential buyers because "Haunting" and other paranormal occurences are considered material facts.