Promulgated Forms Unit 7
Who must approve a short sale?
The seller's lender
How many back-ups does the TREC Addendum for Back-Up Contract allow?
One
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 timely waives the contingency but fails to sell his existing house and is unable to close on the new house?
Buyer 1 will be in default
A buyer wishes to sell her existing home before buying a new home. Which TREC form should be used?
Addendum for Sale of Other Property by Buyer
Which TREC form should be used if buyer wishes to terminate the contract because buyer cannot obtain approval?
Notice of Buyer's Termination of Contract
Paragraph 1 of Notice of Termination
"I changed my mind and don't want that place. My lawyer says I don't need a reason and can terminate the deal and give Notice of Termination"
The buyers wish to have the refrigerator remain on the property after closing and are willing to pay a nominal price for it and the sellers agree. What form or paragraph in the contract should be used?
The Non-Realty Items Addendum
What is the purpose of the Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies?
To help the buyer understand the meaning of hazards and deficiencies as reported by a home inspector
Which of the following types of information are included in the Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners Association?
All of these
Under the TREC Short Sale Addendum, when must the option fee be paid?
As provided in the contract
Which of the following is considered a surface material that may be used for developing or removing oil, gas, or other minerals?
Sand
Addendum for Property in a Propane Gas System Service Area
When is service available? How much will it cost?
Paragraph 2 of Notice of Termination
Your client does not qualify for a loan large enough to buy the property under the contract as it reads, and gives notice to terminate
Which of the following is considered part of the mineral estate in the TREC mineral rights addendum?
Oil
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 two both parties
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.
Addendum for Coastal Area Property
An individual is selling a house on the Gulf of Mexico.
Buyer and seller enter into an agreement for buyer to purchase seller's property which is located in a property owners association. Seller provides buyer with the subdivision information, and buyer requests that seller provide an updated resale certificate at buyer's cost. What is the buyer's option if seller fails to obtain it as required by paragraph A(3) of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association?
Buyer may terminate and receive the earnest money.
Paragraph 5 of Notice of Termination
Despite several promises to do so, the seller's agent never delivers the Seller's Disclosure of Property Condition, resulting in your client's giving notice to terminate
Addendum for Property Located Seaward of the Gulf Intracoastal Waterway
If you own a structure on property near a Gulf Coast beach, it may come to be located on the public beach because of coastal erosion.
Where should TREC's Consumer Protection Notice be prominently displayed?
In the office of every licensed inspector and broker in Texas
Under the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, who is required to pay for the updated resale certificate if required by the title?
It is negotiated
The seller and the buyer under the first contract extend the closing date due to the seller's difficulty in completing the required repairs. The new closing date is after the backup's automatic closing date. What happens?
The backup contract automatically terminates per the terms of the backup and the earnest money is refunded.
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 his right to terminate under paragraph 23.
According to the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway, who is responsible for the cost of removing a structure from a public beach pursuant to a removal order?
The owner of the structure
Paragraph 4 of Notice of Termination
The owners' group requires preapproval of all exterior paint colors in the subdivision, and refuses to approve your client's proposed paint color, resulting in the giving notice to 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.
The buyers love the freestanding antique wardrobe in the sellers' master bedroom and the sellers have agreed to leave it with the property for an additional $2,000. What is the most appropriate way to account for this in the transaction?
Use the Non-Realty Items Addendum
The buyers want to include some unusual paintings in the purchase of their new home. How should it be noted in the contract?
Use the Non-Realty Items Addendum
Paragraph 3 of Notice of Termination
You say to your client, "I'm sorry the property doesn't meet your lender's approval without all those repairs and that the seller wouldn't agree to pay for them. You can give notice to terminate and get your earnest money back.
If a buyer or the buyer's agent has questions regarding the coastal location of property, the source for information is
the General Land Office in Austin.