Contract Forms Finale Exams - 2

Which of the following is a real estate licensee allowed to do:

Advise clients that the contract is binding Advise to seek a lawyer Fill in the blanks on the advice of the principal May employ a lawyer to represent himself Must add business details in special provision

Which of the following method of purchasing does not require the use of a TREC promulgated addendum to define the transactions financial details

All cash purchase

To modify who pays for what in para 12, the parties may define their Agreement in the

Amendment

What form is used if the parties want to negotiate different terms after a contract has been executed

Amendment

Which of the following is the best way to extend the closing date on a contract

Amendment to the contract

When a buyer gains possession prior to closing

Buyer's Temporary Residential Lease

If the seller allows the buyer to move in prior to the closing of the sale, the seller is

Buyer's Temporary Residential Lease - the seller becomes the landlord.

According to the provisions of the sales contract, who will purchase a residential service contract, if so desired.

Buyer, the buyer can negotiate with the seller that the seller reimburses buyer at closing for the cost of the residential service contract.

Issues addressed in the Farm and Ranch Contract do NOT include which of the following

Includes Crops Equipment Royalties Surface leases Not Included Mineral Rights as there is a separate addendum for it

When selecting a title company, price is NOT a consideration because or the premium for title insurance policies.

Is the same throughout the state The same fee in the state of Texas Because for properties with the same sale price, the premium cost to insure the title of the property is the same at all title companies in the state.

The Fair Housing Act's protection of people with disabilities

It Is unlawful to discriminate against prospective buyers or tenants on the basis of disability the term includes those having a history of or being regarded as having an impairment that substantially limits one or more major life activities people with AIDS are protected by the Fair Housing Laws under the classification

Agents must make clear where notices are to be delivered. This is done in one to four family residential contract (resale) para

Para 21 - Notices

What group promulgated forms for mandatory use by licensees.

TREC promulgates forms - 9 members - 6 Real Estate Brokers - 3 Public

The notice about tide waters in the TREC promulgated contract is required by the

Texas Natural Resources Code

Which of the following may be addressed by the agent in Para 11, Special Provisions

The offer will become void on Sat at 7 pm

Which contract is used for 1-Acre lot in an upscale subdivision

Unimproved property contract

When a seller owes more than the home is worth, what form is used if the lender is willing to take less than the amount owned

Short Sale Addendum

Financing approval occurs when

when lenders determine that the buyers has assets and stable income and they creditworthiness

How many back-up contracts can be created using the TREC promulgated addendum for that purpose

1 back up contract

Which of the following is the most commonly used promulgated form.

1-4 family residential contract (Resale)

The promulgated form for the purchase of 1-4 Family was authored by the.

Broker's lawyer committee 13 members 6 Real Estate Brokers 6 Lawyers appointed by the President of the State Bar of Tx 1 public member appointed by the governor

Tx real estate licensees may determine whether they are using the correct version of a TREC form by

Checking the date on the forms TREC and TAR website under zip forms

According to the preprinted language, what type of deed is to be used at closing to convey the title to the real property that is being sold using a TREC-promulgated contract form.

General Warranty Deed conveying title to the property to the buyer

What is required of licensees who are selling or buying a property for them selves

Licensee holder disclosure (Para 4 in the sales contract) Put in MLS for the knowledge of other realtors

A buyer must object no later than the closing date or within how many days after receiving the commitment, exception documents and survey.

Negotiated between the buyer and seller

If one of the party defaults and the non-defaulting party accepts the earnest money a damages, that party can

Not sue for special performance

What para includes the information regarding the property's accessories.

PARA 2 C

Regarding escrow agent's and title policy issuers the company selected to issue the owner's title policy.

RESPA reveals that federal regulation prohibits the seller from requiring the buyer to use the services of a particular title company.

In the rental of housing, the Fair Housing Act prohibits discrimination on the basis of

Race, Color, National Origin, Religion, Sex, Familial Status and Disability

The One to Four Family Residential Contract (Resale) calls for which of the following parties to furnish an existing property survey. .

Seller should furnish to the buyer and the title company an existing property survey. It is the buyer who must live with the coverage and deal with the Insurance company when a title problem surfaces. The buyer may want to be able to pick the title insurance company

If the seller has an existing survey, she can provide the buyer an affidavit promulgated by the.

TAR - zipforms -Texas department of insurance (T-47 Affidavit), filled out by seller

A real estate licensee has a business with a home warranty company where the licensee receives a referral fee. Which form is required.

TREC - Disclosure of relationship with residential service company

A real estate licensee is selling a new home and is using the builder-required contract form. How can the licensee ensure that the buyer receives the required notice that the buyer should have the abstract examined by an attorney or obtain a policy of title insurance

TREC - Notice to the buyer. Give the form and get it signed by the buyer

A legal remedy states what

That the buyer or seller are required to do/not to do something Usually the language is prepared by an attorney

Para 7H of the contract indicates that who should review and decide on the company to use the residential services company.

The buyer should review any residential service contract for the scope of coverage, exclusions and limitations and he should decide which company to use

If a buyer decides to terminate a contract within the option period, where And how must the promulgated notice of Termination of Contract be delivered.

The buyer/buyer's agent deliver the notice of termination to the seller/seller's agent prior to expiration of the option period, details are in the sales contract in para 21.

Which addendum is commonly used in a transaction involving an 80% fixed rate loan.

Third Party Financing Addendum

An offer becomes a binding contract when

When the offer is accepted and the acceptance is conveyed to the other party all the elements are met of the contract

The Addendum for Sale of other property by buyer Is the form to use if the buyer

Will be unable to buy the new property unless their existing property is sold and closed, it is usually used when the buyer needs the money from the first sale to complete the second sale.

Para C2 on the Lead Base Pain Disclosure gives the buyer how many days to have the property inspected for lead-base paint.

Within 10 days after the effective date

What information is needed in para 2 of the 1-4 family residential contract.

legal description of the property Improvements accessories exclusions if there is any

Who pays for the lenders required repairs

unless in writing neither party is obligated to pay for it

Which financing option listed in particular 3 requires the use of a promulgated addendum.

• Third Financing Addendum • Loan Assumption Addendum • Sellers Financing Addendum

Earnest money is:

• not a consideration • Liquidated damage • Not mandatory • Deposited Within 2 business day in an escrow account • The initial & additional cash deposits tendered by the prospective buyers of real property to show good faith