TX 30 Hour Promulgated Contract Forms (REVISED)

in the TREC Residential Condominium Contract (Resale), property descriptions must include...

Unit number Building name Address Condominium project

Addendum for Property Subject to Mandatory Membership in a Property Owners Association factors

Used if the property the seller is selling is subject to mandatory membership in a property owners association (POA) The form identifies the buyer's obligations with regard to POA membership

if you need more space for the special provisions paragraph, the parties should...

be advised to seek the counsel of an attorney.

If the closing date needs to be extended, an amendment to the contract will need to...

be signed by all parties.

the New Home Contract (Incomplete Construction) factors

construction documents Sellers must provide insulation information to buyers. Rollback taxes are the responsibility of the seller.

The seller is not required to respond to...

multiple offers received in any particular order.

All Broker information must be included on page...

nine of the contract.

in the TREC Residential Condominium Contract (Resale), sellers must provide buyers with a resale certificate that is...

not more than three months old.

The New Home Contract (Completed Construction) factors

Can't be used for condominium transactions, or incomplete construction. Rollback taxes are the responsibility of the seller. No Seller's Disclosure Notice is required for new homes. Sellers must still disclosed seller listed in Seller's Disclosure paragraph.

broker's fees factors

located on the last page of the TREC One to Four Family Residential Sales Contract, where brokers notate the commission fee when an agreement between brokers is established. Are discussed in the listing agreement Are discussed in the buyer's representation agreement Are established through the MLS

Notices are considered effective when...

mailed, hand delivered or sent via fax.

information needed from the parties to the transaction to complete the TREC residential resale contract (for sales price)

Cash down payment Sum of financing Sales price

Elements of a Valid Real Estate Contract

Competent parties Mutual agreement Lawful objective Consideration

addendum needed for property

Non-Realty Items Addendum

The agent doesn't have to submit all offers to the seller if the seller...

has specifically requested in writing.

to prevent fraud, buyers and sellers should

initial each page of the contract

in The TREC Farm and Ranch Contract, the sales price can be adjusted a maximum of...

10% after the contract's effective date.

Commitment for title insurance

20 days, 15-day automatic extension, or three days prior to closing, whichever comes first

how long are temporary leases good for?

90 days

Residential Real Property Affidavit

If seller provides survey, must provide affidavit stating no changes have been made that would require a new survey

Addendum for Sale of Other Property by Buyer factors

Used when buyer's offer is contingent on sale of another property Contingency not waived, deadline not met—contract terminates, earnest money refunded Contingency waived, but buyer unable to close—buyer in default; seller retains earnest money

Non-Realty Items Addendum factors

Used when the seller will leave behind personal items

Discharge of contract

When parties to a contract agree to terminate it

The buyer can pay an option fee for the right to "hold" a property exclusively for...

an "option period."

Financing information is provided in...

related addendums

Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum

sale is contingent on satisfactory assessments

Seller Financing Addendum

seller provides a loan to the buyer for purchase

addendums should be identified in...

the Agreement of Parties section of contract

Construction documents should be referenced in...

the New Home Contract (Incomplete Construction).

possession refers to...

the time in which the seller turns over possession to the buyer.

Remedies for Breach of Contract:

Accept liquidated damages Accept partial performance Rescind contract unilaterally Mutually rescind the contract Sue for money damages Sue for specific performance

Consumer Information Form factors

Consumer notice of recovery fund Must be published in the office of every inspector and licensed broker

earnest money is...

Held by escrow or in client trust fund (neutral) until consummation or termination of contract Applied toward buyer's closing costs or down payment Retained by seller as liquidated damages in the case of buyer default Returned to buyer who terminates for cause

factors of an option fee

Holds property for buyer Buyer may terminate during option period without cause Option fee goes to seller

Contract without an effective date

Invalid, breach of contract, lawsuit for incompetence.

what's in a license holder disclosure?

Licensee's personal or business interest Family members Trustee relationships

addendum needed for sales price

Loan Assumption Addendum Seller Financing Addendum Third Party Financing Addendum Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement

The New Home Contract (Completed Construction)

No improvements, accessories, or exclusions.

Chapter 27 of the Texas Property Code

Procedures for buyers to recover damages for construction defects.

Promulgated Resale Certificates factors

Provides prospective buyers of properties governed by an owners association with information about the anticipated fees, rules of governance, issues, and finances of the association.

notice of buyer's termination of contract factors

Used if the buyer decides to terminate a contract for any reason When delivered in a timely fashion, it allows the buyer to receive a refund of earnest money

addendum for Reservation of Oil, Gas, & Other Minerals factors

Used if the seller of the property is intending to reserve all or a portion of the mineral estate

Addendum for Property Located Seaward of the Gulf Intracoastal Waterway

Used if the seller's property is located seaward of the Gulf Intracoastal Waterway Alerts the buyer to the legal and economic risks of purchasing coastal real property near a beach

Licenses and parties to the transaction are entitled to...

reimbursement of legal fees when either prevail in a law suit related to a sales transaction.

in The TREC Farm and Ranch Contract, the seller can harvest the crops up until...

the day of closing, come back and harvest for as long as the parties agree.

If the buyer is needing the temporary lease, the rent is due...

to the seller in full and at the time of move in, including a security deposit.

The Residential Condominium Contract (Resale) cannot be used for...

townhomes

an option fee is due to the seller...

within 3 days of the effective date of the contract.

Either party can request the release of escrow funds, if the parties agree...

the earnest money is releases.

Mediation is strongly recommended as...

the form of dispute resolution as it is fast, low cost, privately held and considered a win/win for each party once compromise is reached.

possession can happen...

"upon closing and funding" or a date before or after closing date.

Metes and bounds used for property description of...

The TREC Farm and Ranch Contract

The seller is responsible for...

a property through closing

"as is"

Buyers still have the right to inspect property and negotiate repairs and treatments.

what's needed for the REC One to Four Family Residential Contract (Resale)?

The offer or offer to purchase Purchase agreement Sales contract

Stock Transactions Statute

punishes the person committing fraud, as well as anyone who knew about the fraud and failed to take action to disclose it.

TAR Release of Earnest Money factors

Used in conjunction with contract termination by the buyer Specifies earnest money disbursemen Releases all parties from any liability in regard to the contract

Short Sale Addendum factors

Used when the seller's net proceeds at closing will be inadequate to pay the balance of the seller's mortgage loan The seller must disclose this to the buyer Buyers need to be aware that short sales require the lienholder's consent and agreement

Addendum for Sale of Other Property by Buyer

buyer's purchase contingent on selling an existing property

If casualty repairs cannot be made by the closing date, condominium buyers may...

cancel the contract, extend the closing date, or accept the property damaged with assignment of insurance proceeds.

When the closing date is established, it is an "on or before" date, which means that...

closing can only take place on that date or beforehand.

Taxes are prorated in Texas due to...

property taxes being paid in arrears, nearly a year later.

The licensee is responsible for...

filling in the effective date on the contract.

list the Issues with Unimproved Property, and the Role of Contingencies

Financing, larger down payments, and higher interest rates. Prospective buyers need to do their due diligence before making an offer. A real estate attorney can help prospective buyers of unimproved land avoid costly mistakes.

The New Home Contract (Incomplete Construction)

No improvements, accessories, or exclusions. Focuses on new construction

effective date

One day after executed date.

Addendum for Coastal Area Property factors

Required for properties that share a common border with lands that are tidally submerged Notifies buyers that use and development restrictions exist

Casualty loss prior to closing

Seller is responsible for returning the property to its previous condition by closing.

contingencies

Start on the effective date.

The TREC Unimproved Property Contract factors

The Property section of the Unimproved Property Contract doesn't include improvements, accessories, or exclusions. The party who changes the use of the land is responsible for rollback taxes.

addendum for back-up contract factors

The agreement that the seller and interested buyers enter into for a back-up offer on the property Attached to the back-up buyer's sales contract and doesn't come into play until the termination of the contract that is currently in place

a resale certificate is...

a document issued by a homeowners association that certifies the requirements placed upon the property owner by the restrictive covenants and association rules.

If possession occurs other than upon closing and funding...

a temporary lease agreement will need to be completed

The TREC Farm and Ranch Contract must have...

all information relating to crops and other assets is entered correctly.

in the TREC Residential Condominium Contract (Resale), condominium buyers are responsible for...

association fees up to a specified amount.

title policy factors

buyer pays lender policy; seller pays buyer policy (negotiable)

If the parties do not agree on the release of earnest money, then...

demand and damages come into play.

If either party defaults on the contract, the other party is...

entitled to damages, including the receipt of the earnest money.

The seller pays "unallowables" which are...

expenses the buyer is not permitted to pay. Unallowables are typical in government loans.

the special provisions paragraph is reserved for...

factual statements or business details and serve as clarifications, expanding on something that is addressed in the sales contract.

After a contract is considered executed, the contract can only be changed...

through the use of the TREC Promulgated Amendment to Contract form.

If the seller is needing the temporary lease, the rent is due...

to the buyer in full at the time of closing.