Texas Promulgated 6-9

Any increase in costs from change orders by the buyer, beyond the specified allowance, will be paid by the...?

Buyer

Broker fees are covered in which of the following documents...?

Listing agreements

A local real estate developer is in the process of building a subdivision with 135 houses. A buyer who purchases one of these houses prior to the substantial completion date should use which of the following contracts...?

New Home Contract - Incomplete Construction

What form should be used if a buyer would like to back out of a contract after the seller refuses to fix any repairs noted during the inspection period...?

Notice of Buyer's Termination of Contract

The sale of a property within a subdivision, which includes a small house on it will use which of the following contracts...?

One to Four Family Residential Contract - Resale

According to the New Home Contract - Incomplete Construction, any change orders by the buyer which result in a decrease of construction costs will...?

Reduce the sales price

Any special condominium assessments due and unpaid at closing will be the obligation of the...?

Seller

If both parties sign the Notice of Buyer's Termination of Contract, what still remains to be done...?

Seller needs to release the buyer's earnest money

If the seller will occupy the property after closing, which of the following forms must be used in conjunction with the purchase contract...?

Seller's Temporary Residential Lease

Unless specified otherwise in the New Home Contract - Incomplete Construction, the ............date should not extend beyond the closing date?

Substantial completion

A breakdown of broker fees is NOT covered in the One to Four Family Residential Contract - Resale...?

T (True)

James is purchasing a farm outside of Dallas. If the sales price needs to be adjusted by more than 10% after reviewing the survey, James may do which of the following...?

Terminate the contract

Who is responsible for paying any deposits for reserves required at closing by a condominium's association...?

The buyer

Who serves as the tenant in a Buyer's Temporary Residential Lease...?

The buyer

In order for a broker to represent both parties in a transaction, the broker must obtain the written agreement from...?

The buyer and seller

Which of the following contracts should be used to purchase a new house currently being built...?

New Home Contract - Incomplete Construction

Who owns any submerged lands along a coastal waterfront...?

The State

A contract between owner and tenant, setting forth conditions upon which tenant may occupy and use the property and the term of the occupancy. Sometimes used as an alternative to purchasing property outright, as a method of financing right to occupy and use real property.

Lease

This refers to a contract between an owner and tenant, setting forth conditions upon which the tenant may occupy and use the property and the term of the occupancy...?

Lease

The boundary of a property adjoining coastal waters is subject to change and can only be determined accurately by a...?

Licensed state land surveyor

Which of the following forms are NOT promulgated...?

Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies

Who is responsible for completing the Condominium Resale Certificate...?

The condominium owners' association

The term of a Seller's Temporary Residential Lease commences on what date...?

The date the property is closed and funded

According to the Addendum For Back-Up Contract, the Amended Effective Date is equal to...?

The date the seller notifies the buyer of termination of the first contract

Which of the following is considered an accessory to a condominium unit...?

Window air conditioning unit, Stove, Door keys

According to the Addendum For Reservation of Oil, Gas, and Other Minerals, if the seller does not reserve all of the mineral estate, the seller shall provide the buyer with the contact information of any existing mineral lessees within...?

7 days

Which of the following is a red flag for real estate fraud...?

Contracts that call for future improvements

An action that allows money to go back to the buyer at, or after closing, without the knowledge of the lender is considered a...?

Buyer rebate

A deceptive act by an agent in the sale or leasing of a property may lead to a violation of the...?

DTPA

Which of the following deals with consumer protection...?

DTPA

What should an agent do as a means of risk management practice against real estate fraud...?

Document your communication with the parties involved in the transaction

If the sales price on a farm needs to be adjusted after the buyer reviews the survey, the sales price will be adjusted on what basis...?

Dollars per acre

What must be disclosed to prospective buyers in a transaction...?

Everything the seller or agent knows about the condition of the property

Agricultural properties will use which of the following promulgated contracts...?

Farm and Ranch Contract

Which of the following contracts should NOT be used when purchasing raw land....?

Farm and Ranch Contract, Residential Condominium Contract- Resale, One to Four-Family Residential Contract

When a property is purchased and then quickly resold at a value that is artificially inflated by false appraisal or loan fraud, it is referred to as...?

Flipping

Which of the following are considered improvements within a condominium unit...?

Ceiling fans, wall-to-wall carpeting, Plumbing fixtures

A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property.

Condominium

A form of ownership of real property that consists of individual ownership of some aspects and co-ownership in other aspects of the property is known as a...?

Condominium

Which of the following is considered a non-contract form...?

Condominium Resale Certificate

Which of the following is added in paragraph 7 of the New Home Contract - Incomplete Construction, which is NOT included in the One to Four Family Residential Contract - Resale...?

Construction Documents, Buyer's Selections, Cost Adjustments

A property being purchased using the New Home Contract - Incomplete Construction, must be built according to the...?

Construction documents

According to the New Home Contract - Incomplete Construction, the Substantial Completion Date occurs when...?

Construction is complete and all required inspections and approvals have been obtained

Which of the following addenda is pursuant to Section 33.135 of the Texas Natural Resources Code...?

Addendum For Coastal Area Property

Net listing are illegal in Texas...?

F (False)

Which of the following documents should a buyer read prior to signing the Residential Condominium Contract - Resale...?

The condominium bylaws, The rules of the condominium association, The declaration of the condominium

Which of the following are considered farm and ranch improvements...?

Windmills, Barns, Sheds

According to the lease, the buyer will become the ________ and the seller the tenant.

landlord

Paragraph 2 of the Residential Condominium Contract describes which of the following...?

Property and condominium documents

The effectiveness of building insulation is measured in...?

R-Value

The Unimproved Property Contract should be used to purchase which of the following...?

Raw land

Which of the following contracts should be used when purchasing a condominium apartment...?

Residential Condominium Contract - Resale

What is the maximum number of Addendum For "Back-Up" Contracts a seller can have a one time...?

1

Civil penalties under the DTPA may be up to .......per violation?

20,000 Dollars

Which of the following is NOT listed in detail on a TREC promulgated form...?

Broker's fees

A mineral estate does NOT includes which of the following...?

Water, Surface shale, Gravel

According to paragraph 6 of the Residential Condominium Contract - Resale, the seller is given .......days to cure any objections from the buyer?

15

Which of the following is a reasonable standard according to HUD...?

2 persons per bedroom

The DTPA was amended in what year...?

2011

Farm and ranch improvements are discussed in paragraph ..........of the Farm and Ranch Contract?

2B1

buyer of a condominium may terminate the contract within ......... days of receiving the condominium's bylaws, if the buyer received the bylaws after signing the contract?

6

In a short sale, the seller's lender agrees to do which of the following...?

Accept the seller's net proceeds in full satisfaction, Provide the seller with an executed release of lien, Offer consent to the seller to sell the property

If a buyer is purchasing a property adjacent to coastal waters, what form must be included with the purchase contract...?

Addendum For Coastal Area Property

If the seller will reserve all or a portion of the property's mineral estate, which of the following forms must be used...?

Addendum For Reservation of Oil, Gas, and Other Minerals

Which of the following should an agent flag as possible fraud...?

An unknown title company is being used in the transaction

According to the Seller's Disclosures in the Unimproved Property Contract, the seller is said to have no knowledge of which of the following...?

Any flooding of the property, Any environmental hazards, Any wetlands affecting the property

Which of the following acts is considered a violation of fair housing laws...?

Blockbusting Steering Redlining

Which of the following actions violates the federal fair housing laws...?

Blockbusting Testing Off-market selling

Who signs the Seller's Disclosure of Property Condition form...?

Both the seller and buyer

A mortgage broker who is earning an extremely high fee for a transaction may be an indication of...?

Fraud

Which of the following may be considered farm and ranch accessories...?

Hunting blinds, Fuel tanks, Game feeders

Unless specified otherwise, chandeliers are considered...?

Improvements

Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords...?

Information About Brokerage Services Form

Which of the following items should be included in the Non-Realty Items Addendum...?

Items of personal property to be included with the sale of the property

Which of the following contracts are not promulgated by TREC...?

Listing agreements Agreements between broker Buyer representation agreements

Which of the following are considered protected classes under the federal fair housing laws...?

National origin Disability Religion

Blockbusting is also known as...?

Panic selling

There are certain transactions when either the buyer or seller needs to occupy the property before, or after, the closing date. As a real estate agent, you should be aware of TREC's requirements regarding these scenarios. If a seller needs more time closing on their new property, they may ask the buyer to stay in the property several more days after closing. If the buyer agrees, the parties must sign a ____________ and attach it to the purchase contract.

Seller's Temporary Residential Lease

A ......... means the seller's net proceeds at closing will be insufficient to pay the balance of the seller's mortgage loan?

Short sale

Ely is a real estate agent who is helping a client find a new apartment. Since Ely's client is Korean, Ely decides to only show his client apartments in a predominately Asian neighborhood. Ely is guilty of which of the following actions...?

Steering

A real estate broker is required to put the interest of their client above all others...?

T (True)

A sales agent must be sponsored by a broker...?

T (True)

According to the Addendum For "Back-Up" Contract, neither party is required to perform until the first contract is terminated...?

T (True)

According to the Farm and Ranch Contract, unless otherwise agreed upon in writing, the seller has the right to harvest all growing crops until delivery of possession of the property...?

T (True)

As stated in the Addendum For Coastal Area Property, a property adjoining coastal waters may gain or lose portions of the property due to tidal changes...?

T (True)

Which of the following title notices are included in the Unimproved Property Contract but not the One to Four Family Residential Contract - Resale...?

Texas Agricultural Development District

The Addendum For Reservation of Oil, Gas, and Other Minerals favors which of the following parties...?

The Seller

According to the Notice of Buyer's Termination of Contract, a buyer may terminate a purchase contract for which of the following reasons...?

The buyer cannot obtain third party financing, The buyer has not received the Seller's Disclosure Notice, The buyer has identified serious defects with the property during the inspection period

According to the Notice of Buyer's Termination of Contract, which of the following are grounds for the buyer to terminate the purchase contract...?

The buyer does not want to be subject to mandatory membership in a Property Owners' Association

An agent can refuse to rent property to a prospective tenant on what basis...?

The financial capability of the prospective tenant

According to the Buyer's Temporary Residential Lease, the buyer must pay the seller the full amount of rent by what date...?

The move-in date

Which of the following are required attachments to the Condominium Resale Certificate...?

The operating budget The insurance summary The balance sheet

Paragraph 1 of the Residential Condominium Contract describes which of the following...?

The parties

Who serves as the landlord in a Buyer's Temporary Residential Lease...?

The seller

A buyer rebate may illegally be granted by which of the following parties...?

The seller The mortgage loan broker The real estate agent

Who is responsible for completing the Seller's Disclosure of Property Condition form...?

The seller only

According to the Short Sale Addendum, the seller's net proceeds are equal to the sales price minus...?

The seller's full closing costs

John recently entered into a contract to purchase Abby's house. If John and Abby mutually agree to terminate the purchase contract, what promulgated form should be used...?

There is no promulgated form for mutual termination

Which of the following promulgated contracts should be used for the purchase of vacant land...?

Unimproved Property Contract

According to the Addendum For Coastal Area Property, a property owner cannot ..........any state-owned submerged lands below the applicable tide line?

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