AYPO Real Estate Promulgated Contracts Final Exam Review
Which of these IS NOT included in the Seller's Disclosure?
Psychological stigmas, e.g., a violent death on the property
Which of these IS NOT an item properly suited to inclusion in a Non-Realty Items Addendum?
Smart Car
Which of these IS NOT a potential reason for terminating a contract?
Specific performance
An executory contract is one that does which of the following
Still has a material duty needing to be preformed.
An amendment must always include reference to all of these, except:
The title report
Which of these IS NOT in the information requested above?
Who is the buyer's employer?
Which of these IS NOT required to have a valid executed date?
Notarized third-party witness
In most circumstances, the licensee will obtain two checks from the prospective buyer when writing the offer:
One for earnest money payable to the escrow or title company, and one for the option money payable to the seller.
Which of these contracts does not include rollback taxes in §13?
One to Four Family Residential Contract (Resale) [TREC 1-4]
Which of these IS NOT a difference between the Condominium Sales contract and the TREC 1-4?
Paragraph 7 disclosures.
Which category of disclosure do "psychological stigmas" fall into in Texas?
Permitted
"Psychological stigmas," which involve violent or catastrophic events on a property, fall under which category of disclosure?
Permitted disclosures
"psychological stigmas," which involve violent or catastrophic events on a property, fall under which category of disclosure?
Permitted disclosutes
If there is a field in a promulgated form for which you have no information to include, your safest option is which of the following?
Place "N/A" so it is cleat that the buyer/buyer's agent is aware that the section exists and was not just overlooked.
To waive a contingency on the Addendum for Sale of Other Property by Buyer, one must do all of these except which of these?
Provide evidence to support a decision to waive the contingency.
The Addendum for Property Subject to Mandatory Membership in a Property Owners Association gives the buyer the choice to which of the following
Receive or not receive the Subdivision Information
Which of these is generally considered to be a "seller's cost"?
Releases of existing liens, including prepayment penalties and recording fees
Which form of financing does the "Third Party Financing Addendum" NOT cover?
Seller Financing
Which form of financing does the "Third Party Financing Addendum NOT cover?
Seller financing
Which of these IS NOT an item properly suited to inclusion in a Non-Realty Items Addendum?
Smart car
Which of these IS NOT a potential reason for terminating a contract
Specific performance
If the Property is damaged or destroyed after the contract's effective date, and Seller fails to fix due to factors beyond their control, Buyer may:
Accept the Property as it is with an assignment of insurance proceeds, if permitted by Seller's carrier, and receive credit equal to the deductible from Seller at closing Terminate the contract and the earnest money will be refunded to the Buyer Extend the time for performance up to 15 days and the Closing Date will be extended as necessary
The offer to purchase does not become a "contract" until which of the following acts?
Acceptance on exact terms of an offer/counteroffer is communicated to the other part or their representative and has been signed by both parties
The TAR 1904 form is properly used to:
Acknowledge termination of a contract and release earnest money according to the terms of the agreement.
The Texas Association of Realtors (TAR) 1094 Release of Earnest Money Form is which of the following?
Acknowledging that there is an agreement between the parties the contract is terminated
An attachment added to the end of a contract and incorporated in the contract terms is called an:
Addendum
Which of these IS NOT an addendum listed in TREC 1-4 §22 Agreement of Parties?
Addendum for Inclusion and Exclusion of Personal Property
According to TREC a "reasonable time" within which to deposit the escrow check is:
By the end of the second business day following formation of the contract.
Which of these IS NOT part of the subdivision information referenced by the Addendum for Property Subject to Mandatory Membership in a Property Owners Association?
The title commitment
Unless otherwise agreed, the Option Fee must be delivered to the seller by:
Third day after the sales contract was executed.
If Buyer and Seller execute a back-up contract effective on a Monday (in a week with no holidays) with a 10-day option to terminate, unless otherwise agreed, what is the deadline for depositing the buyer's earnest money?
Wednesday by 5pm
In the Back-up Addendum, it states that an amendment or modification of the First Contract:
Will not terminate the first contract
A title insurance "commitment" provides a buyer:
With the terms and conditions under which the title company will be issuing the title insurance policy
To be able to effectively use the option provided under §5 Earnest Money and Termination, the option must be signed and paid for by which of these points?
Within 3 days of the parties signing the contract
The information About Brokerage Services handout should be provided to a prospect
at the first substantive discussion
Which paragraph is different from the TREC 1-4 in all five of the other property sales contracts?
§13
Which of these Farm and Ranch Contract sections IS NOT distinguished from the TREC 1-4?
§15 Default
Residential service companies offer home warranty contracts for maintenance, repair, or replacement of all or any part of these, except for:
Furniture
To receive a daily rate of $40 in a buyer's or seller's lease, the monthly rate would have to be set at which of these monthly rates?
$1,200
How much will a bank be financing on a $240,000 home where the buyer puts 20% down?
$192,000
if a buyer is required to put 20% down on a $240,000 offering price, how much do they need for a downpayment?
$48,000
What is/are the seller's options when receiving an offer?
1. Counter. 2. Accept. 3. Reject.
The Real Estate License Act was created to:
1. Maintain high standards in the real estate profession. 2. Protect licensed brokers and salespersons from unfair or improper competition. 3. Protect the public interests from dishonest or incompetent brokers or salespersons.
TREC 1-4 Paragraph 6C lists what options for providing the survey to buyer within a number of days after the effective date of this contract set by the parties' agreement?
1. Seller, at Seller's expense, shall furnish a new survey to Buyer. 2. Buyer shall obtain a new survey at Buyer's expense. 3. Seller furnishes to Buyer and Title Company Seller's existing survey of the Property and a Residential Real Property Affidavit promulgated by the Texas Department of Insurance (T-47 Affidavit).
Which of these IS listed as a reason for termination?
1. The Property does not satisfy Property Approval in accordance with the Third Party Financing Addendum to the contract. 2. Buyer elects to terminate under Paragraph 7B(2) of the contract relating to the Seller's Disclosure Notice. 3. The unrestricted right of Buyer to terminate the contract under Paragraph 23 of the Contract.
The Environmental Assessment & Threatened or Endangered Species & Wetlands Addendum provides assessment opportunities for:
1. Wetlands 2. Environmental hazards 3. Endangered species
Which of these is an exemption to the "legal capacity" requirement to form a contract?
A contract for a life necessity.
Which of these IS NOT listed as a potential damages item for wrongfully failing or refusing to sign a release acceptable to the escrow agent within 7 days of receipt of the request?
Broker's fees
The Broker-Lawyer Committee:
Develops forms for TREC to adopt and promulgate at their discretion.
Before signing a purchase contract, the licensee must give a buyer written advice to:
Have the abstract covering the property examined by an attorney of the buyer's selection Obtain an owner's title insurance policy prior to closing
Failure to timely transmit an offer to a seller may result in which of the following?
License Revocation Lawsuits License suspension
A cost that is not prorated by the title company is which of these?
Loan fees
Which of these is not a subject of the Paragraph 6E Title Notices?
Names and boundaries of local school districts
How much earnest money does Texas state law require to validate a real estate sale contract?
No earnest money is required.
The Seller's Disclosure is designed to clearly identify all of these, except
Terms of the loan agreement.
Which of these creates the commitment for the listing broker to pay a commission to the buyer's broker?
The Multiple Listing Service (MLS) listing
Which of these contracts addresses the issue of Lead-based Paint Hazard disclosure?
The One to Four Family Residential Contract (resale)
The Broker-Lawyer Committee was established by:
The Real Estate License Act
most multi-page promulgated contracts have a blank space at the top of each page after page one for:
The address of the property central to the transaction
The buyer is obligated to pay the buyer's broker's fees generally only under which of the following situations?
The commission is agreed to in a buyer's representation agreement.
For how many days is a Paragraph 23 option valid?
The length of the option period is set by the contracting parties.
For items for which a promulgated addendum is provided the proper way to include the item is:
Through use of the addendum.
Which of the following is NOT a warning on the addendum for Property Located Seaward of the Gulf Intracoastal Waterway?
To be forewarned that the property may be subject to tsunami warnings
§7 Property Conditions (D)(2) of the TREC 1-4 contract should be used:
To identify specific repairs evident to buyer that buyer requires as a condition to purchase.
A "release clause" in a mortgage agreement would allow which of the following without additional lender approval?
To section off a portion of the property, the equivalent value of which has been paid off, and sell off that portion if desired.
An oral contract for the lease of a property for one year or less has a statute of limitation of:
Two years
An option is a form of which kind of contract?
Unilateral
The Promissory Note section of the Seller's Financing Addendum includes:
1. 5% penalty on installment payments paid more than 10 days past their due date. 2. 1.5% per month or highest lawful rate, whichever is lower, for mature unpaid amounts. 3. Prepayment without penalty.
DTPA only applies to real estate transactions in situations involving:
1. A failure to disclose information known by the licensee at the time of the transaction if the non-disclosure was intended to induce the consumer into a transaction they would not have entered if they were aware of the undisclosed information. 2. An express misrepresentation of a material fact that cannot be characterized as advice, judgment, or opinion. 3. An unconscionable action or course of action that cannot be characterized as advice, judgment, or opinion.
Using the Addendum for Reservation of Oil, Gas, and Other Minerals, a seller can reserve:
1. Any portion of their mineral estate rights. 2. All of their mineral estate rights.
Which of these IS a warning issued on the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway?
1. Be prepared to move or demolish any structure determined to be too close to the shoreline even if it was legal when built or purchased. 2. All of these are warnings on the Addendum. Take caution because beach erosion can change the shoreline and, along with it, change the legal status of a structure's location. 3. Beware of legal risks inherent with purchase of this property.
If a buyer needing to sell another property chooses not to use the addendum then fails to come up with the funds, they risk:
1. Being found in default. 2. Losing their earnest money. 3. A lawsuit from the seller who could file a legal action for specific performance or other remedies.
What factors need to be taken into consideration in determining the number of persons allowed to live in an apartment?
1. Configuration of the unit 2. Size and number of bedrooms 3. Age of the children
Which of these forms is for general consumer or client information, and not directly related to a sale?
1. Consumer Information Form 2. Information About Brokerage Services
§2 Property of the New Construction Contracts does not include which of these?
1. Exclusions 2. Improvements 3. Accessories
Which of these is a potential remedy for a Casualty Loss under §14 of the TREC 1-4?
1. Extension of the closing date of up to 15 for seller to fix the damage 2. Termination of the contract with earnest money returned to the buyer 3. Acceptance of the property "as is," with an agreement to receive proceeds of any insurance coverage allowable, with other compensation from seller, e.g., reduced price, or, with no compensation and buyer absorbs any costs
VA will not restore Seller's VA entitlement unless Buyer:
1. Has sufficient unused VA entitlement remaining. 2. Is a veteran. 3. Is otherwise qualified.
The current One to Four Family Residential Contract (Resale) is which of these form numbers?
20-16
Which paragraph of the TREC 1-4 contract lists the different addenda that are available?
22
The Sellers and Buyers Temporary Leases can be used for leasing up to:
90 days.
Which of these contracts is voidable and not inherently void?
A contract with a person not of legal competence at the forming of the contract
"subdivision information" means which of the following?
A resale certificate, all of which are described by section 207.003 of the Texas Property Code A current copy of the restrictions applying to the subdivision and bylaws and rules of the association.
According to TREC 1-4 §10.(A), any possession by Buyer prior to closing or by Seller after closing which is not authorized by a written lease will establish:
A tenancy at sufferance relationship between the parties.
An "assignment of rights"is best described by which of the following?
A transfer of rights or duties under a contract from a current party to a contract to another party
An assignment of rights is:
A transfer of rights or duties under a contract from a current party to a contract to another party.
A person is not engaged in real estate brokerage, regardless of whether the person is licensed under this chapter, based solely on engaging in which of the following activities
Constructing, remodeling, or repairing a home or other building
Contracts that are not promulgated by TREC but are used by licensees MUST be which of the following?
Created or approved by and attorney or used at the discretion of the seller.
A contract for deed is a classic example of a(n):
Executory contract
The TREC 1-4 §11 can be used only for which of these
Factual statements and business details applicable to the sale
§11 Special Provisions of the TREC 1-4 can be used only for:
Factual statements and business details applicable to the sale.
Identification of the buyer and seller must include:
Full name and marital status of all parties.
Which of these can a landlord of a facility not limited to older persons discriminate against?
Individuals who have been convicted of the illegal manufacture or distribution of a controlled substance
Which of these forms is for general consumer or client information, and not directly related to a sale
Information about brokerage services Consumer information form
The unauthorized practice of law would include all of these actions by a licensee, except:
Inserting minor handwritten notes on the contract initialed by all parties.
The Mineral Estate does NOT include which of these?
Iron
The offer becomes a sales contract when:
It is accepted, signed by the seller, and acceptance communicated to the buyer or buyer's agent.
The Short Sale Addendum protects both the buyer and seller because:
The parties have contractually agreed performance requirements and seller's ability to perform these obligations is subject to lender approval.
Paragraph 3 is different only in the Farm and Ranch Contract because:
The sales price can be adjusted by the survey
Which of these generally will not include a structure of any sort in the sale?
Unimproved Property Contract
A contract for non-life necessities with a person lacking legal capacity is:
Voidable