Promulgated Forms Test
When HUD receives a discrimination complaint from Texas, what step does it take? Asks assistance in investigation the complaint from the Texas Fair Housing Board Forwards the complaint to the Texas Workforce Commission Civil Rights Division Opens an investigation into the complaint Sends the complaint to the federal district court where the complaint occurred
Forwards the complaint to the Texas Workforce Commission Civil Rights Division
Kyle and his brother, Bob, have been raising their four young nephews since the children's mother was killed in a car accident. What is the fewest number of bedrooms Kyle and Bob may have in an apartment they rent in Texas? Five bedrooms One bedroom Three bedrooms Two bedrooms
One bedroom
Sarah hasn't been able to get a loan to finance the unimproved property she wants to buy. However, the seller has agreed to loan her the money to purchase the property. Which addendum should be attached to the contract? Down Payment Addendum Loan Assumption Addendum Seller Financing Addendum Third Party Financing Addendum
Seller Financing Addendum
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 A death due to the previous owner having a stroke A death due to the previous owner having HIV/AIDS A suicide on the property
A death due to a carbon monoxide leak on the property
Since there is an accepted sales contract and you've filled in the effective date, what else should you do? Call the other agent to notify him of the final acceptance Contact the loan underwriter Contact your lawyer Present a new offer to your client
Call the other agent to notify him of the final acceptance
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 The difference between the down payment and loan amounts The seller's listing price The seller's listing price, minus the down payment and loan amounts
Cash Price, Sum of all financing and Sales price
As the seller, Mona wants to reserve all of her property's mineral estate. With her agent's assistance, she has completed the Addendum for Reservation of Oil, Gas, and Other Minerals. What should she do prior to signing the addendum? Ask her agent for legal advice. Consult an attorney. Notify other owners of the mineral estate, who are not party to the transaction, about her decision. Provide the buyer with the contact information of any existing mineral lessee.
Consult an attorney.
For any property to close, all _________________ must be removed prior to closing. Contingencies Earnest money Lead-based paint Window treatments
Contingencies
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? Buyer's Credit Approval Credit Documentation Deed of Trust Promissory Note
Credit Documentation
When a real estate transaction involving a governmental agency takes place, the forms used in the transaction will need to be provided by that agency. This is what is known as an ______ to TREC's rule. Addition Amendment Exception Omission
Exception
Buck and his wife, Betsy, made an offer on a home and specified in the sales contract the items 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 _____________________. Accessories Exclusions Improvements Sundries
Exclusions
Harvey and his wife, Dana, have made an offer on a home but specified in the sales contract the items on the property that they wanted the seller to remove prior to them taking possession. These items are referred to in the Property section of the TREC residential One to Four Family (resale) contract as ______. Accessories Exclusions Improvements Sundries
Exclusions
Which of the following is a financing option listed on the Third Party Financing addendum? Balloon mortgage Conditional FHA-insured VA-insured
FHA-insured
You're helping your client with a transaction and are careful to include the disposition of crops. That's because the promulgated form you're using for this transaction is ______. Farm and Ranch New Home Contract (Incomplete Construction) Oil, Mineral, Gas, and Timber Land One to Four Family
Farm and Ranch
In what way does good consideration differ from valuable consideration? Good consideration is a gift Good consideration is a promise to do something Good consideration is llegal. Valuable consideration must always be in cash, but good consideration may be a loan.
Good consideration is a gift
Hector signs a contract to buy a home belonging to Sadie. Before closing, it's discovered that Hector is only 17 years old. Since he's a minor, he's not considered legally competent to enter into a contract. Which of the following parties is allowed to void the contract? Hector Only a judge Sadie Sadie or Hector
Hector
Which information is required in the Deed of Trust paragraph in the Texas Seller Financing Addendum? A legal description of the property Documentation of creditworthiness The terms of repayment of the loan Whether or not consent to property transfer is required
Whether or not consent to property transfer is required
Donald Lee's best friend, Jake, is helping him look for a house in Dallas. It just so happens that one he listed just yesterday might be the perfect fit for Donald and his girlfriend. Can Jake show a house that he has listed with another client to his new client and friend Donald? No, Jake can only represent Donald and his girlfriend as a buyer agent. No, Jake can only represent Donald and his girlfriend as a listing agent. Yes, Jake will just make a note in the Special Provision paragraph of the TREC sales contract that he is doing this. Yes, Jake will need to follow all of the requirements to act as an intermediary.
Yes, Jake will need to follow all of the requirements to act as an intermediary.
Janet and Hank are buying a condominium from Shirley. Who's responsible for the transfer fees charged by the association, up to the amount specified in the contract? Janet and Hank Janet, Hank, and Shirley Shirley The HOA
Janet and Hank
According to the Property Condition paragraph of the TREC One To Four Family Residential Contract (Resale), at whose expense are any property inspections conducted in Texas? Broker Buyer Seller Seller or the buyer
Buyer
Margo received a copy of the seller's disclosure notice, but she wasn't happy with what she read. She decided to terminate the agreement three days after she received the notice. Which of the following reasons should Margo check on the Notice of Buyer's Termination Contract for terminating the contract? "Buyer cannot obtain Buyer Approval in accordance with the Third Party Financing Addendum to the contract." "Buyer elects to terminate under Paragraph 7B(2) of the contract relating to the Seller's Disclosure Notice." "Buyer elects to terminate under Paragraph A of the Addendum for Property Subject to Mandatory Membership in a Property Owners' Association." The unrestricted buyer's right to terminate the contract under Paragraph 5 of the contract.
"Buyer elects to terminate under Paragraph 7B(2) of the contract relating to the Seller's Disclosure Notice."
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)? 14 days 15 days As many days as needed as long as it is in writing Seven days
15 days
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)? 10 15 20 35
20
Which of the following constitutes fraud in real estate according to the Texas Fraud in Real Estate and Stock Transactions statute? A buyer agent speculates that an underground storage tank is likely safe and wouldn't cause any future problems. A listing agent forgets to post a copy of the seller's disclosure notice on the MLS. A listing agent purposely fails to disclose foundation issues mentioned by the seller. A seller promises to leave certain personal items, then changes her mind prior to closing.
A listing agent purposely fails to disclose foundation issues mentioned by the seller.
Martina is buying five acres of unimproved land on which to build a home. The property was part of a large family farm for the last 150 years. Which of the following is true? A substantially larger down payment will be required than if there were structures on the land. Martina can continue to enjoy the benefits of the agricultural exemption after she builds a home on the property. Martina can expect a much lower interest rate to finance the property. Martina must pay cash for the purchase.
A substantially larger down payment will be required than if there were structures on the land.
Samantha makes an offer to buy Dirk's home, and he accepts it. Under the terms of the agreement, Samantha is supposed to put down an earnest deposit of $15,000. However, she only puts down $10,000. Dirk accepts the lesser deposit, and the sale is ultimately finalized. Of what is this an example? Accepting partial performance Rescinding the contract unilaterally Suing for damages Suing for specific performance
Accepting partial performance
When Jan sells her house, she'll leave behind the draperies, shades, window air conditioner, and garage door opener, which are considered ______________. Accessories Exclusions Improvements Sundries
Accessories
Sheila is looking for a document that describes additions to the scope or terms of her offer to purchase. Where might she find this information? Addendum Agreement of parties Settlement and other expenses Special provisions
Addendum
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 Ad hoc Stipulation Supplement
Addendum
Which of the following addenda is required as part of the TREC residential One to Four Family (resale) contract if the seller wants to retain all or a portion of the property's mineral estate? Addendum for Coastal Area Property Addendum for Property in a Propane Gas System Service Area Addendum for Property Located Seaward of the Gulf Intracoastal Waterway Addendum for Reservation of Oil, Gas and Other Minerals
Addendum for Reservation of Oil, Gas and Other Minerals
Your buyer clients Nina and Peter are interested in purchasing a ranch. As their agent, what should you tell them about this type of transaction? Additional considerations may apply, including equipment, surface leases, and royalties. Crops are always excluded from the sale of farm and ranch property. Improvements and accessories can't be excluded. Residential property and accessories must be included on a separate contract.
Additional considerations may apply, including equipment, surface leases, and royalties.
At what point does an offer become a contract? After the buyer signs the offer After the licensee fills in all of the blanks After the seller accepts the buyer's offer After the seller's acceptance is communicated to the buyer
After the seller's acceptance is communicated to the buyer
By when must Richard, a seller, complete contracted repairs, according to the TREC One To Four Family Residential Contract (Resale)? Any time prior to closing, or earlier, if stipulated in the agreement between the parties Within 15 days of acceptance of the buyer's offer Within 15 days of receipt of the buyer's repair addendum Within 30 days prior to closing
Any time prior to closing, or earlier, if stipulated in the agreement between the parties
Where should the Texas Consumer Protection Notice be displayed, if anywhere? At a broker's main office At all of a broker's place(s) of business No need for a physical display of the form On the front door and in every room at a brokerage firm
At all of a broker's place(s) of business
Hannah's buyer clients are proposing a change to the original sales contract. Who is required to sign the amendment? Both parties Only the party who is being asked to approve the change Only the party who makes the proposed change The attorneys for both parties
Both parties
Wendell's buyer client has made an offer on a property that's already under contract. Wendell needs to add the TREC Addendum for Back-Up Contract to the sales contract. Who's required to sign this addendum? Both parties Nobody The attorneys for both parties The buyer of the first contract
Both parties
Barb is concerned that the Texas residential property she's considering buying may be a habitat of an endangered species. How can she protect herself when making the offer? Ask the seller to sign an affidavit that no endangered species exist on the property Include an Endangered Species Protection Plan in her offer Include the TREC Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum in her offer Request the right to camp out on the property prior to the purchase to look for the elusive creature
Include the TREC Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum in her offer
When Marcy toured her new client's house, she noticed paint peeling off of the shutters. When she asked the seller if the house was painted with lead-based paint, he replied, "I'm not sure ... I inherited the house from my dad, who built it in the '50s." What is Marcy required to do? Based on the build date, she should assume the property has lead-based paint and advise the seller that it must be remediated before listing the property. Have the seller test for lead-based paint. Inform the seller that he needs to complete the lead-based paint disclosure form and provide potential buyers with the EPA pamphlet regarding lead hazards. Take a sample of the peeling paint with her, have it tested, and have the seller reimburse her for the testing cost at settlement.
Inform the seller that he needs to complete the lead-based paint disclosure form and provide potential buyers with the EPA pamphlet regarding lead hazards.
Megan, a seller, tells the party buying her home that the property will soon be part of the public water system. She makes this claim based on erroneous information supplied to her by the city. The buyer relies upon this information and moves forward with the purchase of the home. This is an example of ______. Duress Fraud Innocent misrepresentation Undue influence
Innocent misrepresentation
Glynnis is ready to close on her new house, but her agent told her that they have to wait for the homeowner to fix the electrical box as agreed. What clause in her contract allowed her to request the repair? Appraisal contingency Financing contingency Home sale contingency Inspection contingency
Inspection contingency
Which of the following statements about the owner's title insurance policy is true? It insures the buyer against loss due to title defects under the provisions of the title policy, which are subject to existing exclusions and a list of exceptions. It must be provided at the seller's expense. It's issued in the amount of the financing needed for the transaction. It's issued to the seller.
It insures the buyer against loss due to title defects under the provisions of the title policy, which are subject to existing exclusions and a list of exceptions.
hat 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. It's placed in an escrow account. It's refunded to the buyer. It's used to pay the broker's fees.
It's applied to the down payment and closing costs owed by the buyer.
Daniel knows that a recent hail storm has caused severe damage the roof of one of his listings. He decides he doesn't want to disclose this to potential buyers. Jack and Jill buy the property and later find out there was a terrible storm, and half the neighborhood had their roofs replaced. They decide to sue Daniel for fraud. Which of the following is true? Daniel is protected under the DTPA 2011 Amendment. Daniel's broker, not Daniel, will bear the brunt of the lawsuit. It has been one year since Jack and Jill purchased the house, therefore, it's too late to file a lawsuit. Jack and Jill must prove that Daniel intentionally deceived them.
Jack and Jill must prove that Daniel intentionally deceived them.
Jamie, a seller, deliberately hid the evidence of a termite infestation from potential buyers. Annette, his listing broker, agreed to not disclose the presence of termites in the home, even though she had seen them for herself. Jamie also paid Fred, a friend and home inspector to leave it out of his report. According to the Fraud in Real Estate and Stock Transactions Act, who is liable? Annette only Jamie and Annette Jamie, Annette, and Fred Jamie only
Jamie, Annette, and Fred
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 New Home Contract (Completed Construction). Joy should use the New Home Contract (Completed Construction). Joy should use the New Home Contract (Completed Construction) if the condominium is new. Joy should use the One to Four Family Residential Contract (Resale).
Joy should not use the New Home Contract (Completed Construction).
One main difference between condominiums and townhomes is that townhome owners have fee simple title to the ______. Common areas Garage Land beneath their units Owners' association
Land beneath their units
Which of the following elements does the Statute of Frauds require as part of a valid real estate contract in Texas? Consideration Lawful objective Legal description Mutual agreement
Legal description
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 are not required to review the offers, just to present them. Licensees must present all offers after determining whether they meet the seller's criteria. Licensees must present and explain all offers. Licensees should advise sellers to share information about offers on social media sites.
Licensees must present and explain all offers.
Lena's buyer client Mindy is making an offer on Joe's house. Which party decides how much earnest money to offer? joe Joe's agent Lena Mindy
Mindy
Gavin, an investor, secures an owner-occupied loan at a much lower rate than the general public is allowed, yet never plans to live in the property. Gavin is committing ______. Buyer rebate fraud Fraud as a straw buyer Fraud by illegal flipping Mortgage fraud
Mortgage fraud
Which promulgated form would be used for the purchase of a finished home that has never been occupied? Farm and Ranch Contract New Home Contract (Completed Construction) New Home Contract (Incomplete Construction) Unimproved Property Contract
New Home Contract (Completed Construction)
Is the Seller Disclosure of Property Condition noted under the Agreement of Parties? No, only addenda are noted in the Agreement of Parties paragraph. The Seller's Disclosure Notice is not considered an addendum. No, this is listed under Special Provisions. Yes, but this does not need to be written into the "other" box. Yes, the "other" box should be checked and the name of the disclosure should be written out.
No, only addenda are noted in the Agreement of Parties paragraph. The Seller's Disclosure Notice is not considered an addendum.
You have a signed contract in your hand, but it's missing the effective date. Is this a binding contract? No, the contract isn't binding because the brokers haven't agreed on their commission. No, the contract isn't binding because the effective date hasn't been filled in. Yes, the contract is binding because both parties have signed it. Yes, the contract is binding because it's in writing.
No, the contract isn't binding because the effective date hasn't been filled in.
JoEllen is buying Magdalena's property in Oak Brook. They are set to close on the property today. Last night, Magdalena's home was robbed and vandalized. The 75-inch flat screen television was ripped from the wall, as were the crystal chandeliers in the dining room and kitchen. In addition, considerable damage was done to the walls and ceilings. Is JoEllen responsible for replacing these items and making the needed repairs before the closing today? No. Because closing has not yet occurred, Magdalena is responsible. No. The parties will have to amend the contract to negotiate who will restore the property and replace the stolen TV and other fixtures. Yes. She must make an insurance claim as soon as they close. Yes. The property will become hers today, so it is her responsibility.
No. Because closing has not yet occurred, Magdalena is responsible.
Under a residential service contract, if anything goes wrong with covered appliances or systems due to ______ during the year that's covered, the issuer will provide repair or replacement. Damage to the dwelling Natural disasters Normal wear and tear War or civil unrest
Normal wear and tear
Your Texas buyer client, Amanda, finally received a copy of the seller's disclosure. After reviewing the disclosure and the subdivision information about the homeowners association, she wants out of the deal. Which form must Amanda complete to stop the transaction from going forward? Addendum for Property Subject to Mandatory Membership in an Owners Association Consumer Protection Notice Notice of Buyer's Termination of Contract Seller's Disclosure of Property Condition
Notice of Buyer's Termination of Contract
Per the Short Sale Addendum, when does the time for giving notice of termination begin if the buyer has the unrestricted right to terminate the contract? On the date the contract was signed On the effective date of the contract The day the buyer receives a copy of the seller's disclosure notice Two days after the effective date of the contract
On the effective date of the contract
What does it mean that Peter Hubble is identified as a party to a sales contract as "Peter Hubble, as separate property?" Peter is married and is buying the property as community property. Peter is married, but does not wish to provide the name of his spouse. Peter is married, but his spouse is not joining in the conveyance of the property. Peter is not married.
Peter is married, but his spouse is not joining in the conveyance of the property.
TREC does NOT have the right to do which of the following? Change the design of TREC seal. Enforce the adopted rules concerning conduct and ethics. Impose fees it determines are necessary. Prohibit a license holder from using a contract that has been drafted by the property owner's attorney.
Prohibit a license holder from using a contract that has been drafted by the property owner's attorney.
Chapter 27 of the Texas Property Code requires that buyers follow certain procedures in order to ______. Have access to the home before it is completed Recover damages for construction defects Request changes to the original plans Take occupancy
Recover damages for construction defects
Daryl, the buyer, and Sydney, the seller, have mutually agreed to terminate their sales contract. They have also agreed to a 50/50 split of the earnest money. Which promulgated form can they use to release all parties from their contractual liabilities, while at the same time providing directions to the escrow agent as to how the earnest money should be disbursed? Mutual Termination of Contract Notice of Buyer's Termination of Contract Release of Earnest Money Short Sale Addendum
Release of Earnest Money
The Hatfields and the McCoys can't agree on anything, including the sale of the Hatfield's property. Surprisingly, the parties agree to terminate their contract. More surprising is that they're in complete agreement as to how the earnest money should be disbursed. What form will the parties complete to release all parties from their contractual obligations and disburse the earnest money? Consumer Protection Notice Non-Realty Items Addendum Notice of Buyer's Termination of Contract Release of Earnest Money
Release of Earnest Money
Only the TREC ______ Form should be used for condominium transactions. Either the One to Four Family Residential Contract (Resale) or the Residential Condominium Contract (Resale) New Home Contract (Completed Construction) One to Four Family Residential Contract (Resale) Residential Condominium Contract (Resale)
Residential Condominium Contract (Resale)
Tom is anxious to sell his unimproved property so he can use the funds to pay for his daughter's college tuition. He finally has an interested buyer, Nate. However, because the land is unimproved, the lender is requiring a much larger down payment than Nate can afford, so he can't get financing from a lender. What type of financing might enable Nate to buy the property anyway? Bridge loan Commercial bank loan Seller financing addendum Third party financing
Seller financing addendum
Bobby is buying Tandra's property. They have a closing date of October 3. Bobby will move in early on September 15, and pay rent to Tandra, who is moving out September 12. What date should be listed as "buyer possession" in the sales contract? October 1, the beginning of the first mortgage period October 3, the closing date September 12, when Tandra vacates September 15, when Bobby moves in
September 15, when Bobby moves in
Which of the following is a protected class under federal fair housing laws? Age Marital status Sex Sexual orientation
Sex
Nancy is meeting with her agent to make an offer on unimproved land, which was previously part of a family farm. She is sinking every penny she has saved into the down payment on the property. Which of the following is a true statement? Her down payment will be lower because she is buying agricultural property. It will be easier to secure financing for the land than it would be if there were structures on it. She will be eligible for a lower interest rate because she is buying agricultural property. She will be responsible for rollback taxes if she changes the use of the land.
She will be responsible for rollback taxes if she changes the use of the land.
he Texas Workforce Commission consists of three members who serve ______-year terms. 13 Four Nine Six
Six
This section may be used to clarify facts of the contract. It's not to be used in place of a promulgated form, if one exists, to cover the situation. Contingencies are covered elsewhere in the contract. Escrow Provisions Miscellaneous Paragraph Settlement and Other Expenses Special Provisions
Special Provisions
Which of the following requires that a legal description of the property be included in a real estate contract in Texas? Property Code Real Estate Code of Ethics Statute of Frauds Statute of Limitations
Statute of Frauds
Koby is a Texas seller who has a recent property survey that he would like to provide to the buyer's lender and title company. Koby swears and notarizes a statement about any changes to the property since the existing survey. What document does Koby use to provide his statement? Lead-Based Paint Addendum Notice to Prospective Buyer Seller's Disclosure of Property Condition T-47 Residential Real Property Affidavit
T-47 Residential Real Property Affidavit
Cindy is interested in buying a great old Victorian home she has had her eye on for a while. The price has just been reduced and it's ripe for the picking. Her agent is all set to sit down with her and write up the offer. Which contract will be used? Farm and Ranch Contract Residential Condominium Contract (Resale) TREC One To Four Family Residential Contract (Resale) Unimproved Land Contract
TREC One To Four Family Residential Contract (Resale)
Jerry is buying an income property, which is a four-family apartment building. When his agent writes up the offer, what Texas contract should he use? TREC Farm and Ranch Contract TREC One to Four Family Residential Contract (Resale) TREC Residential Condominium Contract (Resale) TREC Unimproved Land Contract
TREC One to Four Family Residential Contract (Resale)
he ______ of the TREC sales contract allows the buyer to unilaterally end an option contract within a certain period of time after contract acceptance. Attorney review Earnest money Second-thought period Termination option
Termination option
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? Ingo can approach the first buyer and offer to buy them out. Ingo can increase his offer and extend the term of the "Back-Up" contract. The "Back-Up" contract is terminated and Ingo's earnest money is refunded. The term of the "Back-Up" contract is automatically extended by one month.
The "Back-Up" contract is terminated and Ingo's earnest money is refunded.
Which of the following statements is true about the Consumer Protection Notice in Texas? Real estate brokers may make alterations to the Consumer Protection Notice as necessary. The Consumer Protection Notice must be completed before it is delivered or posted to a business website. The Consumer Protection Notice must be displayed in a readily noticeable location in each place of business the broker maintains. The Consumer Protection Notice need only be linked to the brokerage firm website.
The Consumer Protection Notice must be displayed in a readily noticeable location in each place of business the broker maintains.
What's one key difference between the One to Four Family Residential (Resale) Contract and the New Home Contract (Incomplete Construction)? The New Home Contract (Incomplete Construction) doesn't contain a property condition section. The New Home Contract (Incomplete Construction) doesn't contain improvements, accessories, or exclusions. The New Home Contract (Incomplete Construction) doesn't have a title policy and survey section. The New Home Contract (Incomplete Construction) doesn't require a sales price.
The New Home Contract (Incomplete Construction) doesn't contain improvements, accessories, or exclusions.
If a seller is in breach of contract, which of the following is the possible remedy for the buyer? The buyer can rely on the seller's agent to act in the place of the seller to complete the terms of the contract. The buyer can request payment of earnest money from the seller. The buyer can sue his agent according to the terms of the buyer broker agreement. The buyer could sue the seller for specific performance.
The buyer could sue the seller for specific performance.
In a condominium transaction, which of the following is true? The buyer pays for a portion of the transfer fees up to a specific amount, and the seller pays the remainder. The buyer pays for the transfer fees assessed by the HOA. There are no transfer fees. The seller pays for the transfer fees assessed by the HOA.
The buyer pays for a portion of the transfer fees up to a specific amount, and the seller pays the remainder.
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 buyer's earnest money is refunded. The contract is automatically terminated. The deadline for delivery is automatically extended. The seller must pay a late fee
The deadline for delivery is automatically extended.
How would a delay in closing be handled within a sales transaction in Texas? Buyers can send a letter to the sellers stating their intention to extend the closing date. It can't be handled, because it's a breach of contract. The parties must terminate. The broker of the party requesting the change would have to notify the escrow and title company of the scheduling change. The parties can complete and sign an Amendment to the Contract form.
The parties can complete and sign an Amendment to the Contract form.
What about the owner's policy of title insurance can be negotiated in the TREC One To Four Family Residential Contract (Resale) in Texas? The amount of the title policy coverage and when the title policy will be issued The selection of the title company and the amount of the title policy coverage The selection of the title company and who will pay for the title policy Who will pay for the title policy and when the title policy will be issued
The selection of the title company and who will pay for the title policy
Under the New Home Contract (Incomplete Construction), assessments for rollback taxes are the responsibility of ______. Both the buyer and the seller The builder hired by the seller The buyer The seller
The seller
Per the Addendum for Sale of Other Property by Buyer, what happens if the seller accepts a written offer to sell the property? The buyer can sue the seller for breach of contract. The buyer is given the opportunity to counter the offer and continue with the transaction. The contract is terminated automatically, and the earnest money is refunded to the buyer. The seller is required to notify the buyer and give the buyer the opportunity to waive the contingency.
The seller is required to notify the buyer and give the buyer the opportunity to waive the contingency.
What happens when a Texas buyer who has paid the seller an option fee under the TREC One to Four Family Residential Contract (Resale) terminates the contract after the option period expires? The buyer gets both the option fee and the earnest money back. The seller keeps the earnest money and the buyer gets the option fee back. The seller keeps the option fee and may get to keep the buyer's earnest money. The seller keeps the option fee, and the buyer gets the earnest money back.
The seller keeps the option fee and may get to keep the buyer's earnest money.
When a casualty loss occurs in a condominium unit after an offer to purchase has been made and accepted, which of the following is true? The buyer is responsible for repairs. The seller has up to 30 days after the closing to return the property to its previous condition. The seller must refund the buyer's earnest money and cancel the contract. The seller must return the unit to its previous condition as soon as possible, and before the closing.
The seller must return the unit to its previous condition as soon as possible, and before the closing.
ally and Jake have signed an offer to purchase a home that is still being constructed. If rollback taxes are assessed, who must pay them? It's negotiable. The seller and the buyer each pay half. The seller pays 75% and the buyer pays 25%. The seller pays for the whole thing.
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 bringing the property back to its original condition? The buyer's insurance company, through casualty insurance The buyer, within 60 days after closing The escrow company, through title insurance The seller, through the seller's insurance
The seller, through the seller's insurance
Nancy wants to buy unimproved land in Texas. When she contacted her lender, she was surprised to find that she would need a 40% down payment. Why is that? Banks are required to charge a lower rate of interest for unimproved land. There is a shortage of unimproved land. There is more risk financing unimproved land. The Texas Property Code stipulates that lenders must require at least 40% down when making loans for unimproved property.
There is more risk financing unimproved land.
What is one major difference between condominiums and townhomes? Condo owners pay association fees, while townhome owners do not. The square footage is different. They each have different forms of ownership. Townhome owners do not own the land beneath their units.
They each have different forms of ownership.
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? Earnest Money section Financing section Property section Title Policy and Survey section
Title Policy and Survey section
What is the purpose of the Broker-Lawyer Committee? To draft contract forms To promulgate forms To review clients' legal complaints To sue citizens
To draft contract forms
What is the purpose of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association? To explain how homeowners associations operate To explain to buyers the advantages of a homeowners association To give buyers the opportunity to request subdivision information To provide buyers with information about the homeowners association
To give buyers the opportunity to request subdivision information
What is the purpose of the Uniform Electronic Transactions Act? To ensure that all contracts are in writing and signed by both parties To ensure that both parties are legally competent To ensure that the seller has title insurance To identify that electronic signatures are just as binding as written signatures
To identify that electronic signatures are just as binding as written signatures
According to TREC's Consumer Protection Notice, how many recovery funds does TREC administer? Four One Three Two
Two
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? Farm and Ranch New Home Contract (Incomplete) One to Four Family Residential Contract (Resale) Unimproved Property Contract
Unimproved Property Contract
Rollback taxes are assessed whenever an agricultural property's _______ changes. Assessment Ownership Use Value
Use
Which of the following types of consideration can be an exchange of money for a promise, an exchange of an item of value for money, or an agreement between the parties to do or not do something? Good One-time Valuable Valueless
Valuable
How should a licensee identify unmarried persons buying a property together as parties on a Texas sales contract? The names of the persons are Veronica Charles and Kathy Sharpe. Veronica Charles and Kathy Sharpe, as separate property Veronica Charles and Kathy Sharpe, as tenants in common Veronica Charles and Kathy Sharpe, a Texas partnership Veronica Charles, an unmarried person, and Kathy Sharpe, an unmarried person
Veronica Charles and Kathy Sharpe, as tenants in common
Is there a designated area for the broker information in the TREC One to Four Family Residential Contract (Resale)? No, the brokers only need to notate their information in the listing agreement and the buyer representation agreement. No, this information is only needed in the MLS listing. Yes, this information is required in the Special Provisions paragraph of the sales contract. Yes, this information is required on page ten of this contract.
Yes, this information is required on page ten of this contract.
