Ch. 7 - Promulgated Addenda, Notices and Other Forms
What is the Gulf Intracoastal Waterway?
- It is a 1,300-mile man-made canal. - It is a canal that runs along the Gulf of Mexico coastline from Brownsville all the way to St. Marks, Florida. - The Waterway links Texas ports with the rest of the country and enables Texas to handle most of the shipping traffic.
two things to keep in mind when completing a short sale
- calculate closing costs so the lender takes on the expenses because the seller most likely can not pay - write the closing date a far distance away to ease waiting frustration
reasons a buyer would terminate the contract
- needed repairs - loan difficulties - appraisal issues - Property Owner's Association - Seller's Disclosure Notices not received - other reasons: cold feet, spouse did not like, found other property
TREC 36-8 addendum
Addendum for Property Subject to Mandatory membership in an Owner's Association
TREC 44-2 addendum
Addendum for Reservation of Oil, Gas, and Other Minerals
What is the purpose of Ground Fault Circuit Interrupters (GFCI)'s?
Any electric plugs near a water source there is a reset button that will help to prevent electric shock, those plugs are GFCI's.
According to the Addendum for "Back-Up" Contract, what happens if there is a modification to the first contract?
Any modification to the first contract does not terminate that contract.
When should the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway be used?
Anytime a coastal real property is sold near a beach.
when using this form it is vitally important to hire an attorney
Contract for Deed since there is no form for this type of transaction and there is no way for a licensee to manipulate the forms to accomplish this type of owner financing.
What style of transfer of ownership in which the seller gives possession of the property to the buyer and stipulates that at some time in the future the buyer will receive a deed that shows actual ownership called?
Contract for deed
Addendum for the property located seaward of the Gulf Intracoastal waterway
IF YOU OWN A STRUCTURE LOCATED ON COASTAL REAL PROPERTY NEAR A GULF COAST BEACH, IT MAY COME TO BE LOCATED ON THE PUBLIC BEACH BECAUSE OF COASTAL EROSION AND STORM EVENTS.
when would the Addendum for "back up" contract be used?
If a buyer wants to make an offer on a property that already has a contract on it
What is the purpose of the form Information About Brokerage Services?
It fully informs the buyer and the seller as to the function of the real estate licensee.
What is the central purpose of the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway?
It is a warning statement.
What should a licensee representing the buyer do with the information found from Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners' Association?
Present it to the buyer as soon as the documents are received but do not discuss with the buyer. The buyer should review the documents and if they do not understand the implications, they should seek legal advice from an attorney.
TREC 37-5 form
SUBDIVISION INFORMATION, INCLUDING RESALE CERTIFICATE FOR PROPERTY SUBJECT TO MANDATORY MEMBERSHIP IN A PROPERTY OWNERS' ASSOCIATION
Addendum for Coastal Area Property
State law prohibits the use, encumbrance, construction, or placing of any structure in, on, or over state-owned submerged lands below the applicable tide line, without proper permission.
What is the meaning of the term "time is of the essence?"
Strict compliance to the dates on the contract.
Which addendum should be used when personal property is conveyed?
TREC NON-REALTY ITEMS ADDENDUM
Who are the parties of a One To Four Family Residential Contract (Resale) when a "short sale" is involved?
The buyer and seller
With the Addendum for Sale of Other Property by Buyer, if a back-up offer is received by the seller and he or she chooses to accept it, the seller will notify the buyer and then what would happen to the contract?
The buyer could waive the contingency
Which of the following is the best reason to use the Addendum for Reservation of Oil, Gas & Other Minerals?
To keep the real estate real estate agents from practicing law.
According to the Addendum for "Back-Up" Contract, when must the option money be paid?
Upon execution
Can a seller continue to receive and accept offers during the time period in the Addendum For Sale of Other Property by Buyer?
Yes, the seller would contact the buyer and they can either waive the contingency or terminate the contract and receive the earnest money back
Is it possible in the state of Texas for one person to own the mineral rights and another person own the surface rights?
Yes, they can be severed laterally.
Can a Property Owners' Association charge transfer fees legally?
Yes, this transfer fee is perfectly legal.
The Gulf Intracoastal Waterway
a 1,300-mile man-made canal that runs along the Gulf of Mexico coastline from Brownsville all the way to St. Marks, Florida. The Waterway links Texas ports with the rest of the country and enables Texas to handle most of the shipping traffic. The 423-mile long Texas stretch handles up to 90 million tons of freight annually. It allows ports on the Texas gulf coast to be key hubs for shipping throughout North America.
mutual agreement
a meeting of the minds and is also referred to as mutual assent
why use non-promulgated form that are optional
to make the seller and buyer as fully informed as possible about the property involved in the transaction
when should the Notice of Buyer's Termination of Contract document be used by the buyer
to terminate the previously agreed to One to Four Family Residential Contract (Resale) for any reason
short sale
when a buyer has been located and an agreement is reached for an amount that is less than what is owed. the seller receives nothing and the lender will receive less than what the bank is currently owed
underater or upside down on a loan
when a homeowner owes more on the property than what it is worth
mutual rescission
when the parties mutually agree to voluntarily cancel a contract
when would the TREC No. 10-6 Addendum for Sale of Other Property by Buy be used?
when their current property must be sold in order to purchase a new property
who does not sign TREC 38-6 Notice of Buyer's Termination of Contract
the seller
TREC No. 10-6
Addendum For Sale of Other Property By Buyer
TREC No. 11-7
Addendum for "Back-Up" Contract
TREC No. 33-2 addendum
Addendum for Coastal Area Property
TREC No. 34-4 addendum
Addendum for Property Located Seaward of the Gulf Intracoastal Waterway
According to the TREC Addendum for Property Subject to Mandatory Membership in a Property Owners Association, who is responsible for paying the title company for the cost of obtaining information from the association?
Its negotiable, the real estate agent would mark the correct box
Does TREC has a form creating a listing agreement that defines agency between the seller/buyer and the broker?
NO - forms need to be obtained from the Texas Association of REALTORS, the local board, or an attorney
According to the Addendum for "Back-Up" Contract, what are the parties obligations if the first transaction closes?
Neither party will have any further obligations.
Who signs the Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies addendum?
No one
TREC 38-6
Notice of Buyer's Termination of Contract
According to the TREC promulgated Addendum for Sale of Other Property by Buyer, what must the seller do if they accept a back-up offer?
Notify the buyer.
who is not a party in a short sale but must approve the sale
the lender
When is the effective date of the back-up offer?
The date that the buyer was notified that the first contract was terminated
If the buyer wants to terminate the TREC One to Four Family Residential Contract (Resale) for any reason that is not on the Notice of Buyer's Termination of Contract, what should the real estate agent do?
The real estate agent should advise the buyer to seek legal counsel.
During a short sale, how much is the maximum the seller can receive?
The seller cannot make any money on the sale.
Information about Brokerage Services
This form accomplishes the purpose of fully informing the buyer and the seller as to the function of the real estate licensee in terms of how he or she will function if the seller is represented, the buyer is represented, and then, both the buyer and the seller are represented by the same brokerage in the same transaction in an Intermediary transaction.
Addendum for Property Located Seaward of the Gulf Intracoastal Waterway
This form is not really something that is filled out as much as it is a warning notice to the buyer to make him or her completely aware of all of the things that could go wrong in a purchase of land between the gulf and the intra-coastal waterway.
when is the Addendum for Property Subject to Mandatory Membership in A Property Owners Association used?
This form is to be used when the buyer wants information from the POA. In many cases, this form is given by the licensee to the seller to take to the property owner's association.
Non-Realty Items addendum OP-M
This form is used when there are some items that are personal property that will be conveyed from the seller to the buyer.
Contract for Deed
This is a style of transfer of ownership in which the seller gives possession of the property to the buyer and stipulates that at some time in the future the buyer will receive a deed that shows actual ownership. This is considered an executory contract in that the possession and ownership transfer at some meaningful time apart.
When should Notice of Buyer's Termination of Contract addendum be used?
after a buyer and seller have formed a contract and now the buyer wants to terminate that contract
What do the words "to bring to a conclusion" mean?
bring something to a finish or to an end
Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies
given to sellers when listing home to educate the seller that these conditions may be addressed by a buyer when an offer is made
he primary concern that Addendum for Property Located Seaward of the Gulf Intracoastal Waterway addresses
is the possibility that because of erosion an improvement that was not built on a public beach could actually be considered to be on the beach and become property of the public (government).
when do customers receive the Information About Brokerage Services Form?
seller - when listing the property buyer- when first meeting to see a property
TREX 45-1 addendum
short sale addendum
who requires the Information About Brokerage Services Form? who does not?
the Texas Assocation of REALTORS TREC