Promulgated Contract Forms Practice Test

How many lawyers does the governor appoint to the Broker-Lawyer Committee?

0

If sellers need additional time past the closing date due to no fault of their own in order to restore the property to its original state after a casualty loss occurs, how much time is permitted under the terms of the TREC One to Four Family Residential Contract (Resale)?

15 days

Chapter 27 of the Texas Property Code specifies that, in order to recover damages for a construction defect, buyers must notify the contractor ______ days before the date they file suit to recover damages.

60 days

The maximum term that a Texas buyer may lease from a seller under the buyer's temporary residential lease is ______.

90 days

Which of the following types of death, if it occurred on the property, is a required disclosure in Texas?

A death due to a carbon monoxide leak on the property

Your client Samantha is selling coastal area property. Which of the following forms must she complete as part of the TREC One To Four Family Residential Contract (Resale)?

Addendum for Coastal Area Property

What's an option fee as it's used in the TREC residential resale contract?

An amount of money paid for the buyer's right to terminate the contract during a defined period of time

Unimproved Property Contract

Used for the sale of properties with no existing structures.

A ______ is a financial guaranty from the government to repay a portion of the home mortgage in the event of default.

VA entitlement

Licensees are required to relate all information that's material to the transaction to their clients. How does this relate to presenting offers to the seller?

licensees must present and explain all offers

In the TREC One To Four Family Residential Contract (Resale), the Title Policy paragraph has checkboxes to indicate which of the following?

whether the seller or buyer will pay for title policy

The Broker Information section of the TREC One to Four Family Residential Contract (Resale) is reserved for ______ in the transaction.

Both the listing and selling agents' brokers' information

A local real estate developer is in the process of building a subdivision with 135 houses. A buyer who purchases one of these houses prior to the substantial completion date should use which of the following contracts...?

New Home Contract - Incomplete Construction

rollback taxes

Tax assessed when a property no longer has an agricultural exemption

Which of the following qualifies as an example of a buyer default?

Failing to remove one or more contingencies by the agreed-upon date

Per the Addendum for "Back-Up" Contract, which of the following statements about a "Back-Up" contract is true? An amendment or modification to the first contract can result in the "Back-Up" contract being terminated. Neither party is required to perform under the contract until the first contract is terminated. Only the seller has the right to terminate a "Back-Up" contract. With a "Back-Up" contract, the buyer doesn't normally provide earnest money.

Neither party is required to perform under the contract until the first contract is terminated.

What's an example of a "warning label" you might see on a Texas promulgated form?

Not for use of condominium transactions

When does timing for certain contract requirements begin?

On the first full day after the executed date (effective)

Mary agreed to buy her mother's house when her mother planned to move to a senior living community. They signed a purchase agreement, but when Mary had to move because of work, she signed her rights in the contract over to her sister, Tina. Mary may still owe money if Tina can't come up with the agreed-upon funds. What's happening in this scenario?

assignment

Before signing the Addendum for Reservation of Oil, Gas, and Other Minerals, what should you advise your client to do?

consult an attorney

Hilda is a Texas buyer who has gathered her financial statements, proof of employment, and credit report to show the seller that she can be relied upon to pay back a loan from the seller. Where in the Seller Financing Addendum is this information required?

credit documentation

Which of the following properties requires a lead disclosure?

duplex built in 1959

The Nettles have accepted the Briars' purchase offer, and both parties have signed the sales contract. What type of contract do the Nettles and the Briars have?

executory

Georgie Banker is the widow of the late Gordon Banker. How should Georgie be listed as a party in a TREC sales contract regarding a property that Georgie owns?

georgie banker, an unmarried person

If a buyer requests subdivision information using the Addendum for Property Subject to Mandatory Membership in a Property Owners Association form, who pays to obtain the information and have it delivered?

it depends

What is an advantage to using mediation as a problem-solving tool in a contract dispute?

it offers a win-win solution for both parties

What other Texas addendum is required if the Addendum for the Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement is used with the TREC One to Four Family Residential Contract (Resale)?

loan assumption addendum

Mary contracted to buy her mother's house when her mother moves to a senior living community, but now Mary has to move because of work and no longer wants to buy the house. With their mother's agreement, Mary's sister, Tina, steps in, releasing Mary from her obligation. They write up a new contract, with the only change being that Tina is now the party to the contract rather than Mary. What's happened here?

novation

Which types of forms are the Property Located Seaward of the Gulf Intracoastal Waterway and the Coastal Area Property?

promulgated addenda

Chapter 27 of the Texas Property Code requires that buyers follow certain procedures in order to ______.

recover damages for construction defects

Ahmed is selling his three-bedroom home to Ruth. Under the terms of their agreement, he must replace the roof, which was damaged in a severe thunderstorm. At the walk-through just before closing, Ruth learns he hasn't yet done this. She loves the house, though, and isn't interested in "making him pay"—she just wants the roof replaced. In this case, which of the following remedies could Ruth pursue?

sue him for specific performance

who is responsible for paying the rollback taxes

the current owners

Texas sellers Tim and Carol are in a hurry to move closer to their new grandbaby, who lives across the country. They've even offered seller financing to qualified buyers. However, an interested buyer, Lyle, would rather assume Tim and Carol's mortgage. To do this, Lyle would have to complete which of the following addenda to the TREC One to Four Family Residential Sales Contract (Resale)?

the loan assumption addendum

Where should the Texas Consumer Protection Notice be displayed, if anywhere?

to all broker's places of business

Asher is buying a piece of land in Texas from his friend Nolan. The land is vacant and there are no improvements. Which contract should be used for this transaction?

unimproved property contract

Joy is a licensee preparing the contract for her buyer client, who's purchasing a condominium. Which of the following is a true statement?

joy should not use the the New Home Contract (completed construction)

Which of the following pieces of information would you find in the Special Provisions section of the sales contract?

Information about the buyer's agreement to take over care of a group of local feral cats after closing and in perpetuity

Before the title company will issue an insurance policy to a Texas buyer, which of the following must the seller furnish to the buyer?

a committment

Desmond has a signed listing agreement with his clients, the Harpers. In exchange for helping the Harpers list, market, and sell their home, the Harpers have agreed to pay Desmond a commission. What type of agreement do Desmond and the Harpers have?

biilateral

When the parties couldn't mutually decide how to disperse the earnest money after a contract terminated, buyer Kevin sent the escrow agent a written request to return the earnest money to him. What should the escrow agent do next?

Send a copy of Kevin's request to the seller

By signing the Non-Realty Items Addendum in Texas, what is the seller representing or warranting?

That they own the property and it's free and clear of all encumbrances

To which party is the title policy issued?

the buyer

Ingo has a "Back-Up" contract with Sally, the seller. Ingo really wants the house and has put down $10,000 in earnest money. What happens if the first contract isn't terminated by the date specified in the Addendum for "Back-Up" Contract?

The "Back-Up" contract is terminated and Ingo's earnest money is refunded.