9: Practice Makes Perfect
Under the lead-based paint addendum to the contract from Fleming to Donaldson, how long does Donaldson have to get a lead paint inspection?
10 days
Under the contract from Johnson to Swanson, how long does Swanson have to deliver a credit report?
5 days
Under the Seller Financing Addendum to the contract from Johnson to Swanson, what is the due on sale clause?
A provision that requires Johnson's consent if Swanson decides to sell the property
Regarding the referenced transaction from Fleming to Donaldson, why is the lead-based paint addendum attached to the contract?
Because the house was built in 1975
Under the contract from Fleming to Donaldson, if the effective date is February 12, when must the Donaldsons terminate the contract under paragraph 23?
By 5:00 pm February 27
Who is responsible for paying for the residential service contract under the contract from Fleming to Donaldson?
Fleming
Under the Seller Financing Addendum to the contract from Johnson to Swanson, what happens if Swanson timely delivers his credit report but Johnson does not terminate within seven days after expiration of the time for delivery?
Johnson will be deemed to have approved Swanson's credit.
Under the contract between Kramer and Sweeney, Deep Pocket Mortgage decides to increase the interest rate on the loan to 5.5%. What are Sweeney options under the Loan Assumption Addendum?
May terminate and the earnest money will be refunded to Sweeney
Under the contract between Kramer and Sweeney, Deep Pocket Mortgage decides to charge an assumption fee of $3,000. What are Sweeney's options under the Loan Assumption Addendum?
May terminate if Kramer refuses to pay the amount in excess of 1% of the loan amount
Why is it irrelevant if the parties did not wish to mediate any disputes under the TREC contract?
Mediation is automatically agreed to.
How much is Fleming contributing to Donaldson's closing costs under the contract from Fleming to Donaldson?
Nothing
Under the Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum attached to the contract from Johnson to Swanson, who gets the earnest money if Swanson timely terminates based on the environmental assessment?
Swanson
Under the contract from Johnson to Swanson, who represents Swanson?
Swanson is not represented.
What happens if cable TV services are not available under the contract from Johnson to Swanson?
Swanson must object within 10 days of receiving the documentation.
Under the contract between Kramer and Sweeney, what happens if Sweeney paid the option fee on May 19 if the first contract terminated on May 16 and Sweeney received notice on the same day?
Sweeney does not have the unrestricted right to terminate the contract
Under the Seller Financing Addendum to the contract from Johnson to Swanson, what happens to the earnest money if Johnson terminates after Swanson fails to deliver his credit report in five days?
The earnest money will be paid to Johnson.
Under the Seller Financing Addendum to the contract from Johnson to Swanson, what happens to the earnest money if Swanson timely delivers his credit report but Johnson determines that Swanson's credit is unacceptable and Johnson terminates?
The earnest money will be paid to Swanson.
Under the Seller Financing Addendum to the contract from Johnson to Swanson, what happens if Swanson fails to get Johnson's consent before Swanson sells the property?
The entire amount is due and payable.
Under the Seller Financing Addendum to the contract from Johnson to Swanson, for how many years can Swanson continuously rent the property without having the due on sale clause kick in?
Three
Under the lead-based paint addendum to the contract from Fleming to Donaldson, how long does Donaldson have to keep the addendum?
Three years
Under the Seller Financing Addendum to the contract from Johnson to Swanson, how long does Johnson have to terminate if Swanson timely delivers his credit report but Johnson determines that Swanson's credit is unacceptable?
Within 7 days after expiration of the time for delivery
