Promulgated quiz

There are three different types of financing choices in Paragraph Three of TREC's One to Four Family Residential Contract. They are:

Third party, Loan assumption, seller financing

What does paragraph 7A of the One to Four Family Residential Contract grant every buyer the right to do?

have the property inspected

If nothing is added in Paragraph 7D, the agreement says that the buyer is accepting the property:

in its present condition

Which of these is NOT necessary for a contract to be binding and effective?

the contract myst be hand delivered to the title company

Which of these is NOT true about the residential service contract?

the seller can prevent the buyer from purchasing it

According to TREC rules, which of these must be delivered to the seller within three days of a contract's effective date?

Earnest Money

Which of these is NOT a TREC promulgated form?

Condo addendum

How can a buyer ensure they pay the least possible amount of pre-paid interest to the mortgage company?

Close near the end of the month

In Paragraph 9 of the One to Four Family (Resale) contract, what must happen "on or before" the specified date?

Closing

A seller is planning to convey a refrigerator through the Non-Realty Items Addendum. They financed the applianced purchase, and still have a few payments left. Is this allowed? Why or why not?

No, items conveys through the non realty items addendum must be owned fully by the seller

Which element of the TREC promulgated contracts is the same across all contract forms?

Paragraph 1 identities the parties to the contract

What part of the One to Four Family Residential Contract advises the buyer to get an abstract of title reviewed by a lawyer?

Paragraph 6E1

If a seller wants to reserve part of their mineral rights after selling, where on the Reservation of Oil, Gas and Other Minerals Addendum would they note what percentage they're keeping?

Paragraph B2

What part of the Third Party Financing Addendum for Credit Approval specifically pertains to people getting VA loans?

Paragraph D

A landlord may have to make adjustments for a tenant with a disability to be able to live in a dwelling. Those adjustments do not include:

Permitting a tenant to use illegal drugs

In a Texas real estate contract, what does an Addendum for Property Subject to Mandatory Membership allow a buyer to do?

Terminate a contract if not given information about the property HOA

According to the Addendum for Back-Up Contract, if a first contract is terminated and the seller notifies the back-up buyer of the termination, what happens?

That date becomes the effective date of the back up contract

Which of these is NOT something that is appropriate to put in Paragraph 11 (the Special Provisions section) of a TREC promulgated contract?

That the contract is contingent on the inspection

If an agent makes a change to Paragraph 6A8 in a TREC promulgated contract, which of these is most likely to be the result?

The title policy will be amended to read "shortage in area" rather than the standard exception

Alex is a licensed sales agent. Her client is selling her single-family home. In order not to violate TRELA contract law and run afoul of TREC, how should she create the contract?

Using TRECs promulgated one to four family residential contract

In loan fraud, the lender is usually the ____

Victim

In TREC promulgated contracts, what does Paragraph 21: Notices provide information about?

Where to send official notices about the contract

A seller is selling a property that is under a lease. When does the seller have to deliver a copy of the lease and any move-in condition form to the buyer?

Within seven days after the effective date

Because many things in the contract depend on these two items, it is important that the agent finalizing the acceptance of the contract fill in which of the following dates for their broker:

effective and executed dates

Additions to the standard coverage in a title policy can be purchased via:

endorsements

According to Paragraph 10B, Possessions, what is a seller prohibited from doing after the effective date?

execute a lease without the buyers permission

According to TRELA, which of these does one NOT need to be a licensed attorney to do?

fill out a TREC promulgated contract

The seller of an unimproved property would provide a disclosure about the property in what location?

in paragraph 7E of TREC unimproved property contract

What is one exception to HUD's occupancy guidelines of two people per bedroom?

infants in a room with parents

What does the date in the Third Party Financing Addendum provide a deadline to buyers for?

informing a seller they didn't get their financing approved

Agent Sarah knows her client wants to make the sales contract contingent on appraisal, so she adds a notation to that effect in the Special Provisions section of the contract. Why is that wrong?

it could be considered the unauthorized practice of law

A murder/suicide took place in a property. The crime was widely publicized. What is the disclosure requirement for this crime?

it must be disclosed forever

According to the Short Sale Addendum the effective date of the contract is amended to the date the Seller notifies the Buyer that the ___________

lender has approved the short sale

What are rules about the maximum number of people allowed to live together in a single dwelling called?

occupancy standards

Which TREC promulgated contract are all the other contracts based on?

one to four family residential contract

What is the purpose of TREC form OP-C Notice to Prospective Buyer?

provides a notice to buyers using their own contract to obtain an abstract of tittle

Which of these is something TREC is empowered to do by TRELA?

require license holders to use contract forms for certain transactions

In TREC promulgated contracts, what does paragraph 6E(8) say about private transfer fees?

that if they exist, the seller must notify the buyer

Who is tasked with drafting and editing Texas's promulgated contracts?

the broker-lawyer committee

Before the Lead Based Paint Addendum can be considered complete, which of these must happen

the buyer, seller, and brokers must sign it

Why does the Notice of Buyer's Termination of Contract only have to be signed by the buyer?

the buyers termination rights are outlined in the contract

Paragraph D of the Short Sale Addendum contains a date by which the seller must get approval from their lender for the sale. What happens if the lender does not give approval by the date?

the contract will terminate and the earnest money will be refunded to the buyer

Which of these is appropriate to put in the Special Provisions section of the One to Four Family Residential Contract?

the names of the sellers that wouldn't fir in paragraph 1

According to the promulgated contracts, rollback taxes assessed because the buyer changed the usage after closing will be settled how?

they buyer will be obligated to pay the rollback taxes

Which is the purpose of the Information About Brokerage Services form?

to inform clients how a license holder can represent a party in a real-estate transaction

What is the purpose of the Short Sale Addendum?

to protect a seller who is selling their home for less than they owe their lender

The Seller's Temporary Residential Lease will only be used:

when the seller will remain on the property for no more than 90 days after closing

Which of these constitutes a voidable contract?

A contract made with a minor

According to Paragraph 9 of the One to Four Family Residential Contract, how must a buyer pay for the property?

"in good funds acceptable to the escrow agent"

How long after receiving an Addendum for Property Subject to Mandatory Membership in an Owner's Association does a buyer have to terminate the contract?

3 days

Agent Kara signed a buyer's representation agreement with her client that set her commission at 3%. The listing broker of the home her client chose offered 3.5% to the buyer's broker. What percentage of the sale price of the home will Kara's commission be?

3.5

What is the statute of limitations to claim fraud or misrepresentation against a license holder?

4 years from discovery

Why does the Option to Terminate require an extra consideration in the form of option money?

Because it is another contract within the overall contract

Buyer Javier sends a formal offer to Seller Joy: $250,000 and the appliances stay. Joy counters: $250,000, no appliances. She then reconsiders and accepts the first offer. Is Javier obligated to buy the home? Why or why not?

No, because the first offer was dead when Joy countered

Which MUST be disclosed to potential buyers?

Prior flood damage the was repaired by the owner

Agent Alicia is helping her client buy a newly built home. She does not use the New Home Contract (Completed Construction). What is the most likely reason why?

The builder required that she use their contract

Who pays for an investigation of an environmental, endangered species, or wetlands issue, according to the Environmental Assessment, Threatened or Endangered Species, & Wetlands Addendum?

The buyer

To be valid and enforceable, a contract must be in writing, represent a complete agreement, have acceptance communicated, and:

be signed by all parties

A buyer was unable to obtain financing. How would they notify the seller that they are terminating the contract?

by sending a promulgated notice of the Buyers termination

Which of these must the broker maintain a copy of for three years following a sale?

Lead based paint addendum

Agents are required to give all buyers a written copy of the title notice. Aside from Paragraph 6E(1) of the One to Four Family Residential contract, where else can this notice be found?

The notice to prospective buyer

A contract which courts cannot compel the parties to perform is:

Unenforceable

What is the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway for?

Warns buyers that if their property become located on the beach area by erosion, they can be required to remove the structure at their own expense

Which of these is a technique license holders can employ to avoid mortgage fraud?

disclose everything to the lender

When a contract has been fully executed, what has happened to it?

it has been terminated

A stand-alone refrigerator would be considered ______ .

personal property that will not transfer

If the seller is providing an existing survey during a real estate transaction, what must the license holder give to the buyer?

the T-47 Residential Real property affidavit

When should a license holder use form T-47, Residential Real Property Affidavit?

When a seller wants to use an existing survey

If a buyer is using VA financing, what will be part of the contract?

Third party financing addendum for credit approval

Which of these forms is least likely to be involved in the sale of unimproved property?

condominium resale certificate

Justine and Marilyn are legally competent parties. They want to create a valid real estate contract. What one other thing do they need?

consideration

Which of the following laws protect people based on race only?

Civiil rights act of 1866

Emily and Josh signed a real estate contract with each other. The contract is now fully executed. What does that mean that Josh and Emily have done?

Fulfilled the material terms of the contract

Which of these is NOT true about a Seller's Temporary Residential Lease?

The buyer/Landlord has no recourse if the seller/tenant overstays

Rollback taxes are addressed in all of the following EXCEPT:

Residential services contract

A potential buyer's current home is under contract. He has found a home he would like to make an offer on, but does not want to take a chance on being obligated to buy if his current home does not close. What form can help this buyer?

Addendum for sale of other property by the buyer

Which of these agent scenarios involving contracts is NOT inappropriate or in violation of TRELA?

Avery explains the meaning of factual statements or business details in the contract form

Which type of TREC promulgated contract form(s) gives disclosure about the type of insulation in the property?

Both New Home Contracts

In which of these situations is the seller required to provide a seller's disclosure?

Brian is selling an investment property he has never lived in

Which of these is the name of a TREC promulgated contract?

Farm and Ranch contract

A married couple is buying a property. Which is the BEST way to write their names in the contract?

Georgianna serif and spouse Bran serif

What is the purpose of the Consumer Notice Concerning Hazards or Deficiencies in TREC promulgated contracts?

It educates buyers on the purpose of property inspections

Which of the following is TRUE regarding a contract to transfer real estate which contains no earnest money?

It is valid

Agent Ralph has a buyer client that wants the seller to leave them the refrigerator, built-in microwave, and vent hood. Ralph notes this expectation in the Special Provisions section. What is wrong with this scenario?

It should be written in a non-realty items addendum, not in the social provisions section

A contract has an effective date of July 21st, with a seven day option period. What is the latest that contract can be terminated without penalty?

July 28 at 5pm

Mary has a rental property with a two year lease on it. She collected a $500 security deposit at the beginning of the lease. Now she is selling the property. What will happen to the security deposit?

Mary will transfer the security deposit to the buyer at closing

Which of these is an example of a unilateral contract?

Mike signs a listing agreement with broker amy, agreeing to pay a 6% commission if she sells his home

What is the difference between contracts that TREC has promulgated and those that TREC has approved?

Promulgated contracts are required, approved contracts are option if needed

Which of these is NOT a protected class of people, according to Fair Lending Laws?

Sexuality

How many lawyers are on the Broker-Lawyer Committee?

Six

A buyer who discovers a defect which they believe was misrepresented has a certain time after discovery to make a claim for damages. This is known as the:

Statute of limitations

If a property is occupied solely by people over the age of 62 and qualifies as senior housing it is exempt from:

The familial status portion of the fair housing act

By what time is the seller required to furnish a new survey?

The seller must furnish the buyer a new survey no later than 3 days prior to closing

Which of these is an example of something that could go in Paragraph 12 of the One to Four Family Residential Contract?

The seller plans to pay some of the buyers closing costs

A seller is renting back a property from a buyer using the Seller's Temporary Residential Lease. The seller damages the property while they are staying there. Who is responsible for the cost of the repairs?

The seller/ tenant

If a buyer is sent an Addendum for Property Subject to Mandatory Membership in an Owner's Association and they don't like the terms, what remedy do they have?

They can terminate the contract within the first three days

What is special about the earnest money section (paragraph five) and the option money section (paragraph 23) in the TREC promulgated sales contract?

They contain "time is of the essence" Language

In which of these scenarios could an HOA foreclose on a property that belongs to the HOA?

a property owner fails to pay their HOA assessments

Buyer Raz goes into contract on a house in Texas. At the last minute, he is unable to obtain financing. What would he need to have in his contract to terminate it without penalty?

a third party financing addendum

What is TRUE of a unilateral contract?

a unilateral contract is a promise exchanged for performance