Promulgated Contracts - Missed Questions

Which act requires multifamily housing, commercial, and public buildings to the accessible to individuals with disabilites

Americans with Disabilities Act

Which party to the contract will provide the sales price and financing to be used in the transaction?

Buyer

When does HUD receives a discrimination complaint from Texas, what step does it take?

Forwards the complaint to the Texas Workforce Commission Civil Rights Division

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

It offers a win-win solution because both parties come out with satisfactory results

Unlike condo owners, townhome owners have fee simple title to what?

Land beneath their units

How many members does TREC have?

Nine (9)

A seller has signed an Addendum for "Back-Up" Contract and likes the second offer better than the first. May the seller terminate the original offer?

No, the seller may not unilaterally terminate

A residential service contract is an agreement to repair or replace major appliances and electrical, plumbing, heating, or air conditioning systems that fail under what kind of circumstances

Normal wear and tear

When does timing for certain contract requirements begin?

On the first full day after executed date (effective)

Familial status includes families with children under age 18 living with parents or a legal custodian, people securing the custody of children, and what other group of people?

Pregnant women

Before signing the Addendum for Coastal Area Property, which of the following should buyers take into consideration?

Property boundary changes due to moving tide lines

When you are ready to sit down with your client and write up an offer to purchase a condominium, which TREC-promulgated contract should you use?

Residential Condominium Contract (Resale)

Properties granted agricultural exceptions are taxed at a much lower rate. If the use of the property changes to a non-agricultural use, what happens?

Rollback taxes are assessed.

Which of the following is a responsibility of the Texas Real Estate Commission, as provided in the Texas Real Estate License Act?

Rulemaking authority for real estate licensees that has the full force and effect of the law

Which party can provide legal description of the property?

Seller

What notarized statement about any changes to the property since an existing survey may a seller in Texas provide to the buyer's lender and title company?

T-47 Residential Real Property Affidavit

The seller and the buyer have agreed to make a change to the sales price of the Texas property. Which of the following will be used to indicate the change?

TREC Amendment form

Which contract is used for the purchase of townhomes in Texas?

TREC One to Four Family Residential Contract (Resale)

If a TREC One to Four Family Contract (Resale) contract states that closing fees may not exceed $3,800, what can the buyer do if closing fees exceed that amount?

Terminate and get her earnest money back

Before Texas established its own occupancy standards law, the federal policy would have likely been considered. How does the Texas law differ from the federal law?

The Texas law allows for more adults per bedroom than the federal occupancy standard

If a seller is in breach of contract, which of the following is the possible remedy for the buyer?

The buyer could sue the seller for specific performance

Per the Notice of Buyer's Termination Contract, which of the following is a reason why a buyer may terminate the contract?

The buyer had the unrestricted right to terminate the contract under Paragraph 5 of the contract.

If the buyer is putting earnest money down, which of the following statements is true?

The buyer must specify the exact amount in the contract

In Texas, a real estate contractor must be for a lawful objective. What does this mean?

The contract must be written for a legal purpose

What is the purpose of the Addendum for Coastal Area Property?

To disclose that owners of coastal property may gain or lose portions of their property because of changes in the boundaries

What's the purpose of the Non-Realty Items Addendum in Texas?

To identify personal items of the seller's that are to remain with the property

The TREC Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum gives the buyers time to have an evaluation and what right if there's an adverse finding?

To terminate the contract

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

Why is it so important that the legal description be captured correctly in the sales contract?

A mistake in the legal description may lead to more or less land being conveyed to the buyer than was intended

As specified in the TREC Residential Condominium Contract (Resale), what must the seller of a condo prepare for the buyer at least three months before delivery to the buyer?

A resale certificate

When a Texas buyer's purchase of the property is contingent upon obtaining financing, what type of document is attached to the sales contract?

Addendum

At what point does an offer become a contract?

After the seller's acceptance is communicated to the buyer

What section of the TREC Unimproved Property contract is used to indicate which addenda are attached?

Agreement of Parties

What type of information do resale certificates provide to prospective buyers?

Anticipated fees and rules of governance

Why is it important to identify the martial status of the parties in a sales contract in Texas?

Because Texas is a community property state

When crops are excluded from the sale of a farm or ranch, by when must they be removed from the property?

Before closing

If the Texas seller wants to provide an existing survey of the property, what other document is required under the Title Policy and Survey section of the TREC One to Four Family Residential Contract (Resale)?

Residential Real Property Affidavit T-47

In Texas, if the buyer doesn't object in writing within the time allotted in the Objections paragraph of the TREC One to Four Family Residential Contract (Resale), which of the following is waived?

Buyer's right to object

Under the terms of the TREC One to Four Family Residential Contract (Resale), what recourse do buyers have if a seller is unable to deliver the title commitment and exception documents to the buyer within the allotted time, due to factors beyond the seller's control?

Buyers can terminate the contract and have their earnest money refunded.

Connie is helping the Morrisons fill out the Sales Price paragraph of the TREC One to Four Family Residential Contract (Resale). What amount will they put in these spaces?

Cash Price, Sum of all financing and Sales Price

In Texas, which of the following forms must be prominent displayed in the office of every inspector and licensed broker?

Consumer Protection Notice

What type of contract for you have once the seller has accepted the buyer's offer in writing and the buyer has been notified of the acceptance?

Enforceable

Which term describes a contract that will stand up in court?

Enforceable

Buck and his wife, Betsy, made an offer on a home and specified in the sales contract the terms on the property they want the seller to remove prior to them taking possession. These items are referred to in the Property section of the TREC One to Four Family Residential Contract (Resale) as ______.

Exclusions

What happens if the seller is unable to furnish the buyer with the commitment and exception documents within 20 days after the title company has received a signed copy of the TREC One to Four Family Residential Contract (Resale)?

The deadline for delivery is automatically extended.

The New Home Contract (Incomplete Construction) doesn't include improvements, accessories, or exclusions in the property section. Why is that?

The home is unfinished

Real Estate professionals handle many documents related to real estate transactions. Which one of the items below is one of the most important in detecting mortgage fraud?

The original sales agreement and any addenda

If a party to a contract lacks legal capacity but enters into a contract anyway, which party may void the contracts?

The party lacking legal capacity

According to the Unimproved Property Contract, who's responsible for paying rollback taxes, if applicable?

The person who changes the used of the land

Physical stigmas must be disclosed in Texas. Which of the following is an example of a physical stigma?

The property was used manufacture methaphetamine.

A couple have signed an offer to purchase a home that is still being constructed. If rollback taxes are assessed, who must pay them?

The seller pays for the whole thing

If a casualty loss occurs on a property subject to a real estate transaction, who or what entity is responsible for brining the property back to its original condition?

The seller, through the seller's insurance

The Unimproved Property Contract doesn't include improvements, accessories, or exclusions in the property section. Why is that?

These items don't apply to unimproved land

How would a licensee explain seller financing to a buyer?

"Seller financing is when the seller extends credit to the buyer for the purchase of the property. The buyer then pays back the loan with interest, over time."

How many days does the Texas seller have to deliver a "commitment for title insurance" to the buyer under the terms of the TREC One To Four Family Residential Contract (Resale)?

20

Corrinne and Lucy are buying a home together. Corinne wants to be sure the seller removes the above ground swimming pool. Where on the One to Four Family Residential Contract (Resale) should this item be listed?

Exclusions

In Texas, contracts for deed, lease-purchase agreements, and lease-option agreements are referred to as ______ contracts.

Executory

Things like shrubbery, landscaping, wiring, and lighting that are attached to the property are considered _____ and are part of the property being sold unless they are specifically excluded.

Improvements

What typically happens to any earnest money when a sales transaction successfully closes?

It's applied to the down payment and closing costs owed by the buyer

Which of the following elements does the Statute of Frauds require as part of a valid real estate contract in Texas?

Legal description

Which of the following forms should the Texas buyer or seller use if there is personal property that the parties want to be included in the sale of the property?

Non-Realty Items Addendum

Your client is interested in keeping the seller's free-standing workbench that's in the garage, and is willing to pay the seller to leave it behind. Which form will you help your client complete to submit to the seller for consideration?

Non-Realty Items Addendum

Who's responsible for providing the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway in the sale of a property to which the addendum applies?

Seller

A seller must sell her home immediately, but it's worth far less than she owes. What form must she complete?

Short Sale Addendum

Of the nine total members of TREC, how many members are licensed brokers?

Six (6)

What is the term length for a member of the Texas Real Estate Commission?

Six years

In a contract, consideration is the giving of ______.

Something of value in exchange for something of value

At whose request may a licensee strike through a clause or line item on a Texas promulgated form if it is not applicable to the transaction?

The client

Per the Addendum for Sale of Other Property by Buyer, what happens if the contingency is not waived or met by the date specified in the addendum?

The contract is automatically terminated, and the earnest money is refunded to the buyer

Which section of the TREC One to Four Family Residential Contract (Resale) identifies the party who will pay for title insurance and the extent of the policy coverage?

Title Policy and Survey section

What's the purpose of the Addendum for Back-Up Contract?

To allow a buyer to place a back-up offer on a property that's already under contract

What's the purpose of the Special Provisions paragraph of the One to Four Family Residential Contract (Resale)?

To clarify facts found in the contract

What is the purpose of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association?

To give buyers the opportunity to request subdivision information

Which of the following is a requirement of a seller of a new construction on what was formerly agricultural property?

To pay any rollback taxes due

Which TREC-promulgated form would be needed for your buyers who will be purchasing a 10-acre parcel of land on which to build their dream home one day?

Unimproved Property Contract

If a Texas property is listed in the MLS, but the commission amount is blank, and the fee isn't listed in the buyer agency compensation agreement, what should a buyer's agent do?

Verify that there are commission arrangements in writing

If a party to a contract signs a contract with a buyer for a sale of property the "seller" doesn't legally own, what type of contract is this?

Void

As part of a sales contract, the seller was supposed to provide a copy of the seller's disclosure to the buyer, but the seller failed to do so. What type of contract is this?

Voidable

What's an option period as it's used in a TREC residential resale contract?

When the buyer who has paid an option fee can terminate the contract for any reason

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 the buyer will pay for the title policy