STATE PRACTICE EXAM (10)
Jamie's new home has multiple defects. He has tried repeatedly to resolve the issues with the contractor, to no avail. According to the New Home (Incomplete Construction) Contract, Jamie must provide notice to the contractor by certified mail, return receipt requested no later than ________days before the date he intends to file suit to recover damages.
60 Days $ Buyers must provide notice to the contractor no later than 60 days before the date they file suit. The notice must refer to Chapter 27 of the Texas Property Code, and describe the construction defect. In addition, if the contractor requests it, the buyer must allow the contractor to inspect the defect, and make the required repairs.
In Texas, contracts for deed, lease-purchase agreements, and lease-option agreements are referred to as ______ contracts.
Executory $ In Texas, you won't find promulgated forms for executory contracts. These contracts must be prepared by a real estate attorney.
Texas broker Haley is assigning an interest in a contract to purchase real property. Which of the following is true of this situation?
Haley must disclose to any potential buyer that the principal does not have legal title to the real property. $ Texas license holders who engage in real estate brokerage activity by assigning an interest in a contract to purchase real property must disclose to any potential buyers that the principal is assigning an interest in a contract and does not have legal title to the real property.
Teri is concerned that nearby wetlands will affect how she's able to use the property on which she's making an offer. Which Texas addendum should be attached to the contract?
The Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum $ The Environmental Assessment, Threatened or Endangered Species, and Wetlands addendum should be attached to the contract. This will make the offer contingent on the assessment results, and will specify how much time Teri has to terminate the contract if the report results are unsatisfactory to her.
Where would Texas licensees find the requirements for completion of promulgated forms?
The Texas Property Code $ The requirements for completion of promulgated forms are found in the Texas Property Code. Contracts are created by the Broker-Lawyer Committee, and promulgated by TREC.
The ESAC makes recommendations to which agency?
The Texas Real Estate Commission $
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. $
Per TREC's residential One to Four Family (resale) contract, who is responsible for completing the option fee receipt if the buyer decides to go with the termination option?
The seller or the seller's agent $
According to TREC's Consumer Protection Notice, how many recovery funds does TREC administer?
Two $ There are two funds: one that applies to brokers, sales agents, or registered easement or right-of-way agents, and one that applies to real estate inspectors. These funds can be used to satisfy a civil court judgment against a license holder if the complainant meets certain requirements.
Which information is required in the Deed of Trust paragraph in the Seller Financing Addendum?
Whether or not consent to property transfer is required $ The Deed of Trust paragraph provides for consent to property transfer and tax and insurance escrow.