Lesson 7: Promulgated Addenda, Notices and Other Forms
The TREC-promulgated Addendum for Back-Up Contract (and Texas regulations) allows for how many back-up offers to be in place at a time? A) Only one. B) Up to three. C) Two. D) There isn't a limit.
Only one. The TREC-promulgated Addendum for Back-Up Contract (and Texas regulations) allows for just one back-up offer at a time.
Using the Addendum for Reservation of Oil, Gas, and Other Minerals, a seller can reserve: A) Any portion of their mineral estate rights. B) All of their mineral estate rights. C) Both of these. D) Neither of these.
Both of these. A) Any portion of their mineral estate rights. B) All of their mineral estate rights.
Which of these forms is for general consumer or client information, and not directly related to a sale? A) Information About Brokerage Services B) Consumer Information Form C) Both of these. D) Neither of these.
Both of these. A) Information About Brokerage Services B) Consumer Information Form
Which of these IS NOT a termination of contract form? A) TAR 1904 Release of Earnest Money form B) Short Sale Addendum C) All of these are used. D) Notice of Buyer's Termination of Contract
Short Sale Addendum We'll follow that with a discussion of two critical forms used in the termination of contracts, the Notice of Buyer's Termination of Contract and the TAR 1904 Release of Earnest Money form.
Which of these IS NOT an item properly suited to inclusion in a Non-Realty Items Addendum? A) Refigerator B) Smart car C) Washer/dryer D) Couch
Smart car
If Buyer and Seller execute a back-up contract effective on a Monday (in a week with no holidays) with a 10-day option to terminate, unless otherwise agreed, what is the deadline for depositing the buyer's earnest money? A) Tuesday by 5pm B) Not until primary offer falls through. C) Wednesday midnight. D) Wednesday by 5pm
Wednesday by 5pm
Which of these IS NOT part of the subdivision information referenced by the Addendum for Property Subject to Mandatory Membership in a Property Owners Association? A) The title commitment B) The resale certificate from a property owners' association C) The by-laws D) Rules and regulations
The title commitment "Subdivision Information" means: (i) a current copy of the restrictions applying to the subdivision and bylaws and rules of the Association, and (ii) a resale certificate, all of which are described by Section 207.003 of the Texas Property Code.
The TAR 1904 form is properly used to do which of these? A) Terminate a contract and release the earnest money. B) Allow a seller to unilaterally terminate a contract. C) Acknowledge termination of a contract and release earnest money according to the terms of the agreement. D) Release the earnest money to the first party filing for it.
Acknowledge termination of a contract and release earnest money according to the terms of the agreement. For those instances when a buyer and a seller agree that they want to terminate the contract, and they agree on how the earnest money will be distributed, there is the TAR 1904 Release of Earnest Money Form. The TAR form contains language releasing everyone from the contract.
Which of these forms generally should be attached to the buyer's original contract offer? A) Buyer's Termination of Contract B) Addendum for Sale of Other Property C) Addendum for Reservation of Oil, Gas, and Mineral Rights D) Addendum for Back-up Contract
Addendum for Sale of Other Property
Which of these IS NOT listed as a reason for termination? A) Buyer elects to terminate under Paragraph 7B(2) of the contract relating to the Seller's Disclosure Notice. B) The Property does not satisfy Property Approval in accordance with the Third Party Financing Addendum to the contract. C) The unrestricted right of Buyer to terminate the contract under Paragraph 23 of the Contract. D) All of these are reasons for termination.
All of these are reasons for termination. A) Buyer elects to terminate under Paragraph 7B(2) of the contract relating to the Seller's Disclosure Notice. B) The Property does not satisfy Property Approval in accordance with the Third Party Financing Addendum to the contract. C) The unrestricted right of Buyer to terminate the contract under Paragraph 23 of the Contract.
Which of these IS NOT a warning issued on the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway? A) Be prepared to move or demolish any structure determined to be too close to the shoreline even if it was legal when built or purchased. B) Take caution because beach erosion can change the shoreline and, along with it, change the legal status of a structure's location. C) Beware of legal risks inherent with purchase of this property. D) All of these are warnings on the Addendum.
All of these are warnings on the Addendum. A) Be prepared to move or demolish any structure determined to be too close to the shoreline even if it was legal when built or purchased. B) Take caution because beach erosion can change the shoreline and, along with it, change the legal status of a structure's location. C) Beware of legal risks inherent with purchase of this property.
One of the most delicate and volatile subjects in Texas real property is which of these? A) Homestead rights. B) Castle doctrine. C) air rights. D) Mineral rights.
Mineral rights. The subject of mineral rights is one of the most delicate and volatile issues in Texas real property today. The Addendum for Reservation of Oil, Gas, and Other Minerals form is promulgated by TREC, but the one-page form includes more than one admonishment to consult an attorney when dealing with these rights.
The Short Sale Addendum protects both the buyer and seller because: A) The parties have contractually agreed performance requirements and seller's ability to perform these obligations is subject to lender approval. B) The addendum dictates that the contract is binding on the lender regardless of their approval. C) Both of these reasons. D) Neither of these reasons.
The parties have contractually agreed performance requirements and seller's ability to perform these obligations is subject to lender approval.
The TAR 1904 form is properly used to: A) Allow a seller to unilaterally terminate a contract. B) Terminate a contract and release the earnest money. C) Acknowledge termination of a contract and release earnest money according to the terms of the agreement. D) Release the money to the first party filing for it.
Acknowledge termination of a contract and release earnest money according to the terms of the agreement.
The Addendum for Reservation of Oil, Gas, and Other Minerals form allows the seller which of these options? A) All of these. B) Retaining all mineral rights. C) Retaining partial mineral rights. D) Retaining no mineral rights.
All of these. B) Retaining all mineral rights. C) Retaining partial mineral rights. D) Retaining no mineral rights. Paragraph B was written to make the seller's basic choice easy to identify and be clearly understood. The two options provided essentially are (1) reserving all of the mineral estate held by the seller; or (2) any portion thereof.
If a buyer makes the decision to terminate a sales contract, ______________________________ must be used to ensure the buyer's release of obligation. A) a notarized affidavit B) TREC Notice of Buyer's Termination of Contract form C) TAR Form 784 D) Release of Earnest Money form
TREC Notice of Buyer's Termination of Contract form The TREC 1-4 Paragraph 21 requires all notices between the parties to be in writing. Notice of termination being a particularly significant item to be communicated, TREC promulgated the Notice of Buyer's Termination of Contract form specifically intended to give the licensee assisting a buyer an appropriate method to provide notice to the seller of the exercise of the buyer's termination option.
The Addendum for Coastal Property Area informs buyers that structures or improvements ___________________ are subject to being sued by the state. A) within 50 feet of the water B) past the sand line C) in any way submerged at high tide D) seaward of the vegetation line
seaward of the vegetation line The Addendum for Coastal Area Property, too, is an addendum to the earnest money contract attached to an agreement between parties regarding coastal area property, stating that the real subject property adjoins and shares a common boundary with tidally-influenced submerged lands. The addendum also emphasizes that structures or other unpermitted improvements or obstructions located "seaward of the vegetation line" or otherwise encroaching on an easement are subject to being sued by the state.
If a buyer needing to sell another property chooses not to use the addendum then fails to come up with the funds, they risk: A) A lawsuit from the seller who could file a legal action for specific performance or other remedies. B) Losing their earnest money. C) Being found in default. D) All of these.
All of these. A) A lawsuit from the seller who could file a legal action for specific performance or other remedies. B) Losing their earnest money. C) Being found in default.