STATE PRACTICE EXAM (7)

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 $

Janet has signed an offer to purchase a parcel of unimproved property. In the property condition section of the offer, she stipulated that she accepts the property "as is." Which of the following is true?

She can inspect it and still negotiate repairs and treatments. $ Buyers can still inspect the property and negotiate for any required repairs or treatments, regardless of which box they check in the property condition section.

What information is required to complete the Promissory Note paragraph in the Seller Financing Addendum to the sales contract?

The terms for repayment of the loan $ The Promissory Note paragraph requires the terms of repayment, including the amount of the loan, the interest rate, number of payments, and any other fees associated with the financing.

When a real estate licensee receives compensation for referring a client to a real estate licensee in a proposed real estate transaction, this is known as ______.

Valuable consideration $

In Texas, it is legal for licensed real estate brokers to rebate commissions to ______.

A party to a transaction $

Nathan is a sales agent. He convinced one of his clients to purchase in a specific area of town, guaranteeing that it would be the next hot spot in the city and that he was sure to make a profit when his client sold. Six months after closing on the home, his client lost his job and needed to sell. The area had taken a turn, and the client's home was now worth less than what he paid for it. Nathan should have never promised his client a profit. Which of the following is true?

Nathan committed a prohibited action and could have his license suspended or revoked by TREC. $ Guaranteeing, authorizing, or permitting a person to guarantee that future profits will result from a resale of real property is a prohibited action under TRELA, and can result in disciplinary actions.

A nonresident license applicant who resides in a municipality in which the boundary is contiguous with the boundary of a Texas municipality may be licensed under Texas law in the same manner as a Texas resident, provided that ______.

The nonresident has been a resident of that municipality for at least the 60 days immediately preceding the date the application is filed. $