Real Estate U Texas Promulgated Contract Forms(4)
A real estate salesperson is allowed to provide legal advice to clients if it is in the best interest of the client...? T (True) F (False)
(False)
Veterans are allowed to have how many VA loans at any given time...? 1 2 A As many as they desire
1
The Texas Real Estate Commission was created in what year...? 1949 1964 1988 2001
1949
Improvements and accessories that the seller would like to retain should be listed in paragraph .........of the One to Four Family Residential Contract - Resale? 1 2D 3A 4
2D
The buyer loses their right to a termination option if they fail to provide the options money within how many days of the effective date of the contract...? 1 3 7 30
3
Reverse mortgage financing is typically reserved for borrowers over the age of...? 21 55 62 66
62
A buyer needs to obtain a loan to purchase a $320,000 house. If the lender is willing to loan at an 80% LTV, how much of a down payment must the buyer put down...? 32,000 Dollars 54,000 Dollars 64,000 Dollars 75,000 Dollars
64,000 Dollars
The title policy for a property is discussed in paragraph ........of the One to Four Family Residential Contract - Resale? 1 3A 5 6A
6A
A buyer's objections to defects or encumbrances to title are described in which paragraph...? 2 3D 6D 21
6D
Which of the following is an example of a termination of a contract by operation of law...? A buyer has entered into a contract to purchase a commercial property but the city has now rezoned the property as residential The property was substantially damaged in a fire The buyer could not obtain financing to purchase the property The parties agreed to terminate the contract
A buyer has entered into a contract to purchase a commercial property but the city has now rezoned the property as residential
Optionor -
A person who gives an option.
Optionee -
A person who receives an option.
Option -
A right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right.
If a prospective buyer decides to rescind their offer before the seller responds, the prospective buyer should submit which of the following...? A novation A contingency offer A termination The prospective buyer should not submit anything
A termination
ABC Corporation is purchasing a residential property in Houston. How should the corporation's name appear on the purchase contract...? ABC Corporation ABC Corporation, a Texas Corporation ABC Corporation, and its shareholders ABC Corp.
ABC Corporation, a Texas Corporation
Which of the following addenda must a veteran complete when purchasing a new home with a VA loan when they already have an outstanding VA loan...? Addendum For Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement Assumption Approval Addendum TREC Seller Financing Addendum Financing and Credit Addendum
Addendum For Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement
A binding contract between a buyer and seller must include which of the following...? AAll of the above BMust be in-writing CSigned by all parties DThere must be a mutual agreement between the parties
All of the above
According to TREC, a real estate licensee may not do which of the following...? Practice law Give legal advice Discourage a client from hiring a lawyer All of the above
All of the above
If a buyer is obtaining a conventional mortgage, they must include which of the following information on the TREC Third Party Financing Addendum...? Amount of the loan Interest rate of the loan Term of the loan All of the above
All of the above
The One to Four Family Residential Contract - Resale is used for which of the following properties...? AAll of the above BSingle family homes CDuplex properties DTri-plex properties
All of the above
The Texas Real Estate Commission is responsible for regulating which of the following...? Residential service companies Real estate inspectors Real estate brokers All of the above
All of the above
When filling out a pre-printed form, a real estate agent cannot do which of the following...? Add sections to the form Strike-out sections of the form Sign on behalf of the principal All of the above
All of the above
Which of the following are considered improvements to a property...? Fences A shed A garage All of the above
All of the above
Which of the following is an example of a bilateral contract...? Listing contract Sales contract Independent contractor agreement All of the above
All of the above
Which of the following is an example of a termination of a contract...? Substantial performance Partial performance Impossibility of performance All of the above
All of the above
Which of the following is included in the legal description of a property...? Section number Lot number Block number All of the above
All of the above
Which of the following may be used as an alternative to novation...? Transfer the existing contract Discharge the existing contract Amend the existing contract None of the above
Amend the existing contract
A change in a legal document made by adding, altering, or omitting a certain part or term is referred to as a/an...? AAmendment BAddendum CBulletin DRFP
Amendment
Once a seller receives an offer, the seller can do which of the following...? AAny of the above BAccept the offer CMake a counter-offer DReject the offer
Any of the above
A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a/an...? Assignment Amendment Novation Bulletin
Assignment
A ..........is submitted by a prospective buyer who wants the right of first refusal is the event the current buyer backs out of the contract during the options period? Substitute offer Back-up offer Secondary offer Contingency offer
Back-up offer
A contract in which each party promises to do something is referred to as a...? Unilateral contract Bilateral contract Void contract Exclusive contract
Bilateral contract
A real estate agent should advise their client that any contract they sign is...? Void Binding Executed Unenforceable
Binding
Since a title policy is a contract, it is...? Binding and enforceable Unenforceable Acknowledged and recorded Void
Binding and enforceable
A violation of any of the terms or conditions of a contract without legal reason leads to a/an...? Assignment of contract Breach of contract Amendment of contract Novation of contract
Breach of contract
The One to Four Family Residential Contract - Resale is NOT used for which of the following properties...? Single family homes Duplexes Tri-plexes Condominiums
Condominiums
Anything given or promised by a party to induce another to enter into a contract is referred to as...? AConsideration BPerformance CNovation DAcknowledgement
Consideration
Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or stipulating certain uses or non-uses of the property are known as...? Covenants Surveys Commitments Endorsements
Covenants
Earnest Money -
Down payment made by a purchaser of real estate as evidence of good faith. A deposit or partial payment.
A down payment made by a purchaser of real estate as evidence of good faith is referred to as...? Buy-down money Earnest money Discount money Origination deposit
Earnest money
Paragraph 5 of the One to Four Family Residential Contract - Resale primarily deals with...? AEarnest money BSales Price CLegal description of the property DImprovements and accessories Correct Answer:AYour Answer:A
Earnest money
Which of the following acts as liquidated damages if the buyer defaults on the purchase contract...? Earnest money Buy-down money Discount money Origination deposit
Earnest money
Who pays for the title policy as stated in the purchase contract...? The seller only The buyer only Either the buyer or seller, whatever is agreed upon The escrow company
Either the buyer or seller, whatever is agreed upon
A buyer has ............ during the options period? Legal title to the property Full title to the property Equitable title to the property Interim title to the property
Equitable title to the property
A contract that has been fully performed is known as a/an...? AExecuted contract BExecutory contract CExpired contract DUnenforceable contract
Executed contract
An assignment can occur when a contract is...? Executory Executed Void Enforced
Executory
An earnest money deposit is required in all residential transactions...? T (True) F (False)
F (False)
Real estate brokers are allowed to give legal advice while real estate salespersons are not...? T (True) F (False)
F (False)
According to TREC, an offer received by an agent must be presented to the principal...? Immediately Within 3 business days Within 7 business days Within 48 hours
Immediately
An executory contract is...? AIn-progress BCompleted CVoid DUnenforceable
In-progress
The loan amount in a reverse mortgage ........over time? Increases Decreases Remains the same Significantly decreases
Increases
Any changes to a contract must be...? Orally acknowledged by all parties Recorded Notarized Initialed by all parties
Initialed by all parties
The Non-Realty Items Addendum includes which of the following...? AItems of personal property that will stay with the property after closing BFixtures that will stay with the property after closing CReal property that will stay with the property after closing DImprovements that will stay with the property after closing Correct Answer:AYour Answer:A
Items of personal property that will stay with the property after closing
John Doe is an unmarried individual who is buying his first house. How should John's name be listed on the purchase contract...? John Doe Doe, John John Doe, a Single Person John Doe, An Unmarried Person
John Doe, An Unmarried Person
In order to be considered a competent party, an individual must be of the age of the...? Majority Minority Other party None of the above
Majority
Trust Funds -
Money, or other things of value, that a real estate agent receives on behalf of the principal or any other person involved in a transaction.
A contract in which there is fraud by either commission or omission is voidable by the...? Either the non-fraudulent or fraudulent party Fraudulent party The contract is not voidable Non-fraudulent party
Non-fraudulent party
Personal property items are considered...? ANon-realty items BRealty items CReal property DFixtures
Non-realty items
The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties is known as...? Amendment Bulletin Novation Assignment
Novation
Which of the following refers to a right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right...? Exclusive agreement Earnest agreement Open agreement Option
Option
A person who receives an option is known as the...? Optionee Optionor Trustee Trustor
Optionee
A person who gives an option is known as the...? Optionee Optionor Trustee Trustor
Optionor
Marcus has entered into a contract to purchase a new house. What will Marcus do during the options period to ensure the property is in the proper condition...? Perform his due diligence Obtain title insurance Obtain a certificate of occupancy for the property All of the above
Perform his due diligence
A typical real estate sales contract between a buyer and seller is considered a/an...? APerformance contract BForbearance contract CVoid contract DUnenforceable contract
Performance contract
Which of the following prohibits the seller from requiring a specific title company as a condition of the sale...? HUD TREC NAR RESPA
RESPA
A home warranty is also known as a...? Home Appliance Contract Title Warranty Residential Service Contract Refund Warranty
Residential Service Contract
Rules regarding pets in a subdivision are included under which of the following...? Commitments Endorsements Title policy Restrictive covenants
Restrictive covenants
Which of the following would not fall under the unauthorized practice of law...? Revealing material facts about the property Providing legal advice to the principal Drafting a contract for a client All of the above
Revealing material facts about the property
According to TRELA, a salesperson's license may be suspended or ............. for the unauthorized practice of law? Renewed Granted Revoked Enabled
Revoked
Which part of a sales contract most leaves an agent liable for the unauthorized practice of law...? Addendum Paragraph 1 Amendment Special Provisions
Special Provisions (paragraph 11)
A law establishing the time period within which certain lawsuits may be brought is known as the...? Statute of frauds Statute of law Statute of limitations Statute of contracts
Statute of limitations
A real estate agent cannot pay for a lawyer to act on behalf of his/her client...? T (True) F (False)
T (True)
The title company used in a transaction must be agreed upon by both the buyer and seller...? T (True) F (False)
T (True)
If a buyer is purchasing a property involving the assumption of an existing loan, which of the following documents must be included with the purchase contract...? Third Party Financing Addendum for Credit Approval TREC Loan Assumption Addendum Assumption Approval Addendum Financing and Credit Addendum
TREC Loan Assumption Addendum
If a buyer is purchasing a property with the help of seller financing, what must be included with the purchase contract...? TREC Loan Assumption Addendum Third Party Financing Addendum for Credit Approval TREC Seller Financing Addendum Financing and Credit Addendum
TREC Seller Financing Addendum
Which of the following is responsible for issuing real estate licenses in Texas...? Texas Bureau of Real Estate Texas Real Estate Commission Texas Department of Real Estate Texas Board of Realtors
Texas Real Estate Commission
The Texas Real Estate Commission was created to administer which of the following...? Article 12-A Texas Fair Housing Laws Texas Associate of Realtors Texas Real Estate License Act
Texas Real Estate License Act
Which of the following describes how a contract becomes a promulgated form...? Texas Fair Housing Act Texas Real Estate Committee Texas Real Estate License Act Texas Associate of Realtors
Texas Real Estate License Act
Where can an agent search to find the legal description of a property...? The appraisal district's website Zillow.com The U.S Department of Finance website TREC's website
The appraisal district's website
If the seller does not specify improvements and accessories to be excluded from the sale of the property, which of the following will claim ownership of these items...? The State The buyer The seller will still claim ownership of the items Both the buyer and the seller
The buyer
A reverse mortgage is paid back using which of the following...? AThe equity in the house BA new loan sometime in the future CThe borrower's savings DSeller financing
The equity in the house
What does an agent first need from the seller when preparing a contract...? The last name of the seller(s) The name of the seller(s) as listed on their license The name of the seller(s) as listed on the deed None of the above
The name of the seller(s) as listed on the deed
Restrictive covenants are written into what document...? The mortgage commitment letter The property's deed The Certificate of Occupancy The building permit
The property's deed
The "excluded fixtures and accessories" section of the contract is completed by which of the following parties...? The seller The buyer Both the buyer and the seller The buyer's agent
The seller
Curtis is a real estate agent who represents a seller in a transaction. Curtis must present all offers to the seller until which of the following occurs...? AThe seller accepts an offer and the parties enter into a binding contract BThe seller accepts an offer CCurtis presents an initial offer to the seller DAny of the above
The seller accepts an offer and the parties enter into a binding contract
When preparing a contract, where should the agent look to find the name of the seller(s)...? The seller's title policy The seller's license The seller's birth certificate Any of the above
The seller's title policy
If a buyer is looking to purchase a property with the help of a Texas Veterans loan, which of the following must in included with the purchase contract...? TREC Seller Financing Addendum TREC Loan Assumption Addendum Third Party Financing Addendum Financing and Credit Addendum
Third Party Financing Addendum
Reverse mortgage financing is primarily used for owner-occupied residences...? T (True) F (False)
True
Money, or other things of value, that a real estate agent receives on behalf of the principal or any other person involved in a transaction is known as...? Earnest funds Agent fees Deposit funds Trust funds
Trust funds
A real estate agent who gives legal advice to a client is in violation of the...? RESPA ADA Unauthorized practice of law All of the above
Unauthorized practice of law
David is a real estate agent who was recently hired to sell Andrew's home. As a curtesy, David offers to help Andrew draft a sales contract. David may be in violation of which of the following...? AUnauthorized practice of law BRESPA CADA DAll of the above
Unauthorized practice of law
An options contract is an example of a/an...? Unilateral contract Bilateral contract Void contract Unenforceable contract
Unilateral contract
When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it, it is referred to as a...? Unilateral contract Bilateral contract Void contract Exclusive contract
Unilateral contract
If a property is not located within a city, what should be included in the legal description of the property on the purchase contract...? Town Village Unincorporated Any of the above
Unincorporated
A contract that is missing one or more of the elements of a valid contract is considered...? Enforceable Executed Expired Void
Void
To have no force or effect is referred to as a .......... contract? Void Valid Enforceable Executed
Void
That which is capable of being adjusted void, but is not unless action is taken to make it so, is referred to as a/an ............ contract? Unenforceable Voidable Executed Expired
Voidable
A contract in which one of the parties is a minor is considered a...? Void contract Executed contract Voidable contract Waived contract
Voidable contract
When does an offer become a valid contract...? When the seller accepts the offer When the offer is recorded When the offer is notarized When all essential elements of a contract are met
When all essential elements of a contract are met
Real estate professionals must use ........... of any promulgated forms? the most current version the oldest version the most used version the least used version
the most current version
