351 Promulgated Contract Forms #5

In the late 1960s and the early 1970s, the _______ and the _______ attempted to resolve the dispute by agreeing to several earnest money contracts that would be acceptable for real estate practitioners to use in their daily business. a. texas state bar association --- Texas association of REALTORS b. the broke committee --- local board c. texas real estate licensing act ---- TAR d. the multiple listing service --- state association of commercial brokers

a. tx state bar association -- tx ass of realtors

If either party withdraws their offer before it is accepted by the other party, it is called: a. rejection b. rescission c. reflection d. withdrawal symptom

b

A license holder who gives advice or opinion as to the legal effect of a contract or give opinions concerning the status of validity of title to real estate: a. is allowed to do this if they are a broker b. is practicing law c. may give legal opinions to a client buy not to a customer d. may give legal opinions if they have been a broker for four years

b.

If a buyer needs to receive the funds from the sale of another property, they will need to do all of these EXCEPT: a. attach a "Sale of Other Property" addendum creating a contingency contract b. attach a non-realty items addendum c. offer an additional earnest money amount that allows the buyer to waive the contingency d. place a closing date on the addendum that does not exceed the closing date in the contract

b.

If there is an existing survey on the property, what does the seller take to the title company and the lender? a. the existing survey b. the existing survey and a notarized affidavit stating if there have been any changes in the survey since the time the existing survey was completed c. a copy of the deed and the existing survey d. the seller's appraisal and a copy of the survey

b.

Standard forms of TREC must be used unless: a. a broker or salesperson wishes to use a different form b. a principal in the transaction requests a different form to be used c. the listing broker disagrees with certain language in the contract d. a lender requires a different form to be used

b.

The TREC One-to-Four Family Residential Contract (Resale) states that if the license holder is apart to the transaction and owns more than ________ of the property, the other property may be notified in writing before entering into a contract. a. 50% b. 10% c. there are no guidelines for disclosure in the One-to-Four Fam Residential Contract (resale) d. the licensee cannot be a party to a contract

b.

Which of the following is not promulgated by TREC? a. unimproved Property Contract b. Residential Lease Contract c. Farm and Ranch Contract d. New Home Contract (complete construction)

b.

If there is no time limit specified in a contract, then the limit would be: a. determined to be "time is of the essence" b. within a reasonable time c. determined by the lender d. three weeks

b. ??

All changes from the original contract once it is receipted by the title company are completed on the ________: a. termination notice b. amendment c. third party financing addendum d. original contract that agent requests back from the title company

b. amendment

Earnest money: a. constitutes the consideration b. is used to make the offer more enticing to the seller c. is required in the contract d. always equals 1% of the sales price

b. is used to make the offer more e to the seller

On the Seller's default, what should happen to the earnest money? a. it belongs to the broker b. it should be returned to the buyer c. it should be retained by the seller d. the title company should keep it

b. it should be returned to the buyer

If a Buyer wants the Seller to pay some or all of their closing costs, it should be added to the One to Four Family Residential Contract (Resale) in: a. paragraph #11 (special provisions) b. paragraph #12 - seller participation in Buyer's costs c. third party financing addendum d. all the above

b. paragraph #12

If an Agent receives confidential info from a Client while the agency agreement is in force, that agent may: a. share that info once the agreement expires b. share that info if the Client authorizes the agent to share it c. never share the info with another client d. share the info, but only to another agent

b. share that info if the client authorizes the agent to share it

Any changes to the original contract once it is finalized and receipted must be done: a. at the title company on the original contract b. using an amendment c. on the Third-Party Financing Addendum d. on a real estate change form

b. using an amendment

TREC is a nine-member association. Six are brokers and three are not licensed by the commission. The three unlicensed members must: a. have experience in the real estate market b. have a degree in real estate c. have no financial interest in real estate, except as consumers d. all the above

c

A Buyer/Tenant Representation Agreement is: a. only available through TREC b. only available through TAR c. sometimes available through local Realtors Boards d. available to the public on the TREC website

c.

Broker's fees are: a. included in the One to Four Family Residential Contract (Resale) between the Buyer and the Seller b. determined by writing in the Buyer/Tenant agreement c. determined by writing in the Listing Agreement d. both B & C

c.

Failure on the part of the broker to advise the purchaser in writing to have an abstract examined by an attorney or obtain a title policy: a. is in no way a violation of the Texas Real Estate License Act b. is the normal practice in Texas c. may be cause for an agent to have their license suspended or revoked, and precludes the receipt of any commissions paid at the sale d. is the correct action as this is clearly a legal matter

c.

If there are unusual circumstances surrounding a transaction, the client should: a. not close on the property b. ask the owner to finance the property c. seek the advice of an attorney d. make his agent responsible for removing any problems

c.

Within ________ days after the title company receives a copy of the contract, Seller shall furnish to Buyer a Commitment for title insurance. a. 10 b. 5 c. 20 d. 30

c. 20

A voluntary dispute resolution is called: a. litigation b. mandatory arbitration c. mediation d. civil argument

c. ?

If a buyer makes an offer on a property and the seller counters the offer (makes changes), the counter is considered: a. a reflection b. a rescission c. a rejection d. a resentment

c. ?

Once a contract is finalized and receipted: a. it cannot be changed b. it can be amended only one time c. it can be amended multiple times if all parties agree d. it can only be amended by the buyer

c. ?

In Texas: a. dual agency is legal b. an agent may represent both buyer and seller without any agreement from either c. a broker may represent both buyer and seller under signed intermediary agreements d. a broker may not, under nay circumstances represent both buyer and seller

c. ?? intermediary

Fraud is: a. a crime b. a civil law violation c. both a & b d. only b

c. both a & b

Use of the TREC promulgated One to Four... a. is allowed on the sale of a residential co.. b. can be used for a vacant residential lot.. c. covers single family, duplex, triplex, and d. all the above

c. covers single family, duplex...

If a property was built before 1978, what specific addendum is required? a. walk through and Acceptance Addendum b. Addendum for asbestos inspection c. Disclosure of Lead-Based Paint Addendum d. Addendum for Inspection with Right to Terminate

c. disclosure of lead-based paint addendum

In Paragraph 3B of the sales contract, the 'sum of all financing': a. includes the earnest money deposited at the time the contract is executed b. includes the closing costs c. excludes any loan funding fee or mortgage insurance premium d. all the above

c. excludes any loan funding fee or mortgage insurance premium

When a "fixture" in a property does not remain for the buyer, how do we inform the buyer of the fact and make sure the item does not convey with the property? a. list the item as not included in the Listing Agreement b. list the item on the "Seller's Disclosure Notice" c. list the item on the "Residential Contract" d. list the item on the "Amendment" form

c. list the item on the "residential contract"

Failure on the part of the broker/sales associate to advise the purchaser in writing to have an abstract of title examined by an attorney or obtain a title insurance policy: a. is not a violation of the Texas Real Estate License Act b. is the normal practice in Texas c. may be cause to have the agent's license suspended or revoked, and precludes receiving any commissions or agreed fees associated with the sale d. is the correct action as this is clearly a legal matter

c. may be cause to have....

In a real estate transaction, the legal description is NOT: a. lot and block b. metes & bounds c. a street address d. a description of the property from a surveyor's field notes

c. street address

Who is designated as responsible for promptly sending a copy of the contract to any attorneys that are named in the contract? a. the title company b. the lender c. the broker d. the buyer

c. the broker

A suit for specific performance is: a. to force the buyer not to default on the contract b. to force the seller not to default on the contract c. to force either the buyer or the seller to perform on the terms of the contract d. a lawsuit against the inspection company

c. to force the buyer or the seller to perform..

If a contract has a correct street address but an incorrect legal description, the contract is: a. legal and binding b. irrevocable c. voidable d. irrefutable

c. voidable

Additional disclosures that may be required in a transaction include: a. an agent's relationship with the prospective buyers or sellers b. any deficiencies in the property not otherwise named on a seller's disclosure c. the buyer's intention to resell the property at a profit d. all the above

d

By law, a Seller must disclose anything they know about the property. To do this, they must use: a. a TREC promulgated disclosure form b. a form provided by the local Realtors Board c. the Seller Disclosure form from the TExas Association of Realtors or the TREC d. any form they choose

d

The sales price in Paragraph 3: a. is determined by adding the down payment (3A) and the loan amount (3B) b. does not include closing costs c. can be all cash d. all the above

d.

If you understand all the facts, you can: a. give legal advice to a client b. interpret a survey for the client showing setback and building lines and utility easement c. explain the real estate terms in a title policy d. advise the client they have the right to receive a title policy or abstract of title

d. advise the client...

Chapter 531 Canons of Professional Ethics & Conduct includes: a. fidelity b. integrity c. competency d. all the above

d. all the above

Federal Fair Housing Laws forbid discriminatory practices by parties including: a. owners of properties b. lenders c. real estate brokers d. all the above

d. all the above

Intermediary requires: a. disclosure of who represents whom in a transaction b. written agreement by both seller and buyer c. involvement of only one company d. all the above

d. all the above

Items that must be completed in Paragraph 23 are: a. the dollar amount of the options money b. the number of days for the option c. what happens to the option money at closing d. all the above

d. all the above

A contract is described as: a. mutually binding b. legally enforceable c. an agreement between two or more parties to do or not to do something d. all the above

d. all the above ? or c.

In Paragraph #14 of the Residential Contract (Casualty Loss), if a seller cannot complete the repairs within the time limit, the buyer has the option of: a. terminating the contract b. extending the closing c. accepting the property in the damaged condition with an assignment of insurance proceeds d. any of the above

d. any of the above

A broker may not disclose any confidential info unless: a. the broker is given permission in writing by the client b. it is required by law c. confidentially is not required in real estate d. both a & b

d. both a & b ?

According to the TREC One to Four Residential Contract (Resale), who is responsible for paying the owner policy of title insurance fee? a. the buyer b. the seller c. the title company named in the contract d. the party stipulated in the contract

d. the party stipulated in the contract

The Seller contracts to furnish the buyer an existing survey, but neglects to furnish an "affidavit" within the time specified. The lender requests a new survey be furnished. Who pays for the new survey? a. if the existing survey is rejected, then whoever is stated in the contract pays b. the title company can approve the existing survey and override the lender c. the buyer d. the seller

d. the seller

How does the Texas Real Estate License Act define the first face-to-face meeting which requires agency disclosure? a. when a licensee first meets a prospect b. when a prospect is ready to sign an agreement c. only when a specific property is being shown d. when substantive dialogue about a specific real property occurs

d. when a substantive....

Even though a buyer and/or seller agree to mediate: a. they cannot do so within the promulgated contract b. they have agreed to mandatory arbitration c. they are not giving up their right to pursue relief through the courts d. the party who requested mediation will pay for the cost of the mediator

not c

A license holder must disclose if he is a party to the transaction, or acting on behalf of a spouse, parent, child, business entity in which the license holder owns more than 10%. This is done in Paragraph ______ of the One-to-Four Family Residential Contract (Resale). a. 4 b. 7 c. 19 d. 25

a. 4

The Residential Condominium Contract Resale: a. allows a limit to the amount a Buyer will pay for Association transfer fees b. can be used for new condominium construction c. can be used on a residence with a Lot and Block legal description d. does not address any parking assignments

a. allows a limit... or d.

Time is of the essence means that certain items in the contract must be performed: a. as specified in the contract b. as verbally agreed between buyer and seller c. as verbally agreed between the sales agents representing buyers and sellers d. none of the above

a. as specified in the contract

The TREC promulgated Seller Financing Addendum states that if the buyer does not furnish the required qualifying documentation within the time limit allowed: a. seller may terminate the contract and keep the earnest money b. seller may terminate the contract but must return the earnest money c. seller must tell Buyer why he is terminating d. Buyer will be liable for the cost of the credit report

a. seller may terminate the contract and keep the earnest money

If the seller backs out of a contract for a reason not covered by the contract contingencies, the buyer has the option of: a. suing for specific performance b. charging the sellers for any fees the buyer incurred c. buying another home at a lower price and requiring the seller to make th down payment d. the buyer is not allowed to sue

a. suing for specific performance

What is the status of a contract if the seller does not make the buyer aware of a property being located within a municipal utility district? a. the contract is voidable by the buyer b. the contract is void c. the contract is voidable by the seller d. the contract is voidable by the buyer or the seller

a. the contract is voidable by the buyer