Unit 7 - Promulgated Addenda, Notices, and Other Forms

Paragraph 7 (Buyer's Termination of Contract)

6.D of the condominium contract - timely objections were not cured by the end of the cure period

Paragraph 5 (Buyer's Termination of Contract)

7B(2) Sellers Disclosure Notice

HOA's cannot restrict:

A property owner from measures that promote solid-waste composting or flying a US Flag.

Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement

A seller's home is being sold and his VA loan is being assumed. The seller hopes to have his VA entitlement restored.

Paragraph 4 (Buyer's Termination of Contract)

HOA restrictions

Addendum for Property Located Seaward of the Gulf Intracoastal Waterway

If you own a property near a Gulf Coast beach, it may come to be located on the public beach because of coastal erosion.

What happens if coastal erosion moves the public easement to a public beach in the Texas Gulf Coast?

Private coastal real property may become a public beach.

Paragraph 3 (Buyer's Termination of Contract)

Property does not satisfy lenders property approval.

________ found within 200 feet of the surface of land are not deemed to be minerals.

Resources

Paragraph 1 (Buyer's Termination of Contract)

Right to terminate under paragraph 23

Mutual Termination of Contract

TREC does not offer one. TAR offers one and so do most brokerages.

Addendum for Sale of Other Property by Buyer

The buyer wants her offer to be contingent upon her home, which is already under contract, closing as scheduled.

Notice of Buyer's Termination of Contract

The buyer wants to exercise their right to terminate

Under the Addendum for Sale of Other Property by Buyer, what happens if the seller accepts a back-up offer from buyer 2 and buyer 1 does not waive the contingency before the agreed upon date?

The first contract will terminate. If the seller accepts a back-up offer, buyer 1 may waive the contingency on or before a date they have agreed upon; otherwise, this first contract will terminate.

Non-Realty Items Addendum

The parties agree that the seller will leave the televisions in the living room and in the family room for the buyer.

Addendum for Coastal Area Property

The real property adjoins and shares a common boundary with the tidally influenced submerged lands of the state.

Addendum for Back-Up Contract

The seller accepts a contingency offer. She then receives and wants to negotiate another offer but can't become obligated to sell to both parties.

As a license holder, you may not write more than one backup contract on a parcel. True or false?

True - There is no promulgated form to cover a second or subsequent backup. While a second backup is not expressly prohibited, only a licensed attorney should be involved in drafting it.

Seller and buyer enter into an agreement for buyer to purchase seller's property and seller conveys a portion of his mineral estate to seller. The effective date of the contract is February 2. The closing date is February 28. Under the Addendum for Reservation of Oil, Gas, and Other Minerals by what date must the seller provide buyer with the contact information of any existing mineral lessee known to seller?

Within 7 days - By Feb 9th

The obligation to choose between the least damaging of two alternatives is another way to express the _______________.

accommodation doctrine

A mineral reservation generally does not include ______.

clay

Absent an agreement, the mineral owner is not required to ___________ for damage to the surface.

compensate

The resale certificate (Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners' Association) is not to be used for ____________ transactions

condominium

Hydraulic fracturing is also known as _________.

fracking

Paragraph E of the addendum for Property Subject to Mandatory Membership in a Property Owners Association allows the parties to decide which one will pay for the ___________.

resale certificate

OGM as a category is generally deemed to be _________.

severable

Paragraph 2 (Buyer's Termination of Contract)

Buyer cannot Third Party financing approval

To qualify for a short sale, a seller only needs to demonstrate economic hardship that is not likely to improve in the foreseeable future. True or false?

False - A seller must also demonstrate the loan in or near default, a decrease in value of the property below the remaining loan balance, and that the lender's chances for collecting the deficiency are slim.

Addendum for Property in a Propane Gas System Service Area

For properties located in a rural area that is not serviced by natural gas lines and/or a public utility providing electricity.

Buyer 1 enters into a contract with seller with an option to terminate 14 days after the effective date. The effective date is January 5. The seller accepts a back-up offer with the Addendum for Back-Up Contract attached from buyer 2 with an effective date of January 6, and with the date in paragraph B of the addendum filled in as January 15. Buyer 1 terminates the first contract on the last day of the option period and the seller gives notice to buyer 2 on the same day. What is the status of the second contract with buyer 2?

It terminated on January 15. If the first contract does not terminate on or before the date in the addendum, the back-up contract terminates and the earnest money is refunded to buyer 2. In this case, the date in paragraph B was January 15, so the contract terminated.

Paragraph 6 (Buyer's Termination of Contract)

Lender's Appraisal