Texas 30-Hour Promulgated Contract Forms

title commitment

An agreement by a title insurer to issue the final title insurance policy on the property

The Texas Workforce Commission consists of how many members?

3

executory contract

A contract that has not yet been fully performed.

For purposes of performance, what is the effective date of the "Back-Up" contract based upon?

The date the buyer received notice of the termination of the first contract

In Texas, the Loan Assumption Addendum to the TREC One to Four Family Residential Contract (Resale) allows for a variance of ______ in the amount of the total principal balance at time of closing.

$500

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)?

15 DAYS

In order to recover damages for a construction defect, buyers must provide notice to the contractor by certified mail, return receipt requested, no later than ________days before the date they file suit to recover damages.

60 days

The maximum term that a Texas buyer may lease from a seller under the buyer's temporary residential lease

90 days

What is one of the exceptions to the rules requiring the use of TREC-promulgated forms?

A property owner may prepare an alternate form.

short sale

A transaction in which the sales proceeds will not be sufficient to pay off the seller's loan obligations, plus closing costs

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.

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

Agreement of Parties

Donald is a seller of a new construction property. Which of the following must he disclose to prospective buyers?

All known defects and issues that would impact a buyer's decision to buy

resale certificates

Anticipated fees and rules of governance - provide information about the property owners association fees, rules of governance, issues, and finances. The certificate may also indicate if there is a transfer of ownership fee and, if so, what that amount is.

Texas licensee Chip needs a form. TREC hasn't promulgated a form for this specific use, but does have an approved form available. Chip should ______.

Ask his broker which form to use.

Where should the Texas Consumer Protection Notice be displayed, if anywhere?

At all of a broker's place(s) of business

You'd like to add your own touches to the TREC forms that are being used in your office. How can you modify the forms?

By adding your broker's business logo

According to the Objections paragraph of the TREC One to Four Family Residential Contract (Resale) , how much time does the Texas buyer have to object to title defects after receiving the commitment, exception documents, and survey?

By closing or the number of days specified, whichever is earlier

If the Texas buyer does not need any financing, then in the TREC residential resale contract, the Cash Portion of the Sales Price will be the same as the ______.

Sales price

When the parties couldn't mutually decide how to disperse the earnest money after a contract terminated, buyer Kevin sent the escrow agent a written request to return the earnest money to him. What should the escrow agent do next?

Send a copy of Kevin's request to the seller

Which entity was formed for the purpose of enforcing the Real Estate Dealers Act in Texas?

TREC

Texas licensee Alexandra is helping her clients, the Kents, fill out the Sales Price section of the TREC One to Four Family Residential Contract (Resale). What amount will they put in this space?

The Kents' purchase offer

What options does the TREC-promulgated Addendum for the Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement give the Texas seller if the restoration of VA entitlement is not approved by closing?

To terminate the contract or not delay the closing

When a Texas buyer assumes the seller's existing loan, what happens if the buyer defaults on mortgage payments after the transaction is completed?

Unless the lender approved a release of liability for the seller, the seller remains liable for the loan.

Besides the name of the title company, which of the following information is needed in the Title Policy paragraph of the TREC One To Four Family Residential Contract (Resale) in Texas?

Whether the buyer or the seller will pay for the title policy

Undue influence

exists when an act of persuasion overcomes another person's free will and judgment

Good Consideration

is a gift. For example, it could be a gift of a car from one family member to another.

Your buyer clients Adam and Maria want to make an offer on a ranch. You'll need to use the ______ method of property description on the Farm and Ranch Contract.

metes and bounds

Residential Condominium Contract (Resale)

references the condominium unit number, building name, and address, rather than the lot and block description that appears on the One to Four Family Residential Contract

Statute of Frauds

requires that a legal description of the property be included in a real estate contract in Texas

Jose is selling his condominium. He must provide ______ to the buyer which is no more than three months old.

resale certificate

representations

statements included in the sales contract. Representations, along with any covenants or warranties that are made, continue beyond the closing date

Which Texas law requires contracts for real property to be in writing?

statute of frauds

Which of the following requires that a legal description of the property be included in a real estate contract in Texas?

statute of frauds

When a condominium is sold, what's not part of the sale?

the land beneath the unit

how many back-up contracts can you enter into?

unlimited

if there is no stipulation in the contract, how long can you entertain other offers?

up until closing

Non-Realty Items Addendum

used to identify personal property that can be negotiated as part of the sales transaction.

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

The person who changes the use of the land

When completing promulgated forms, licensees must ensure that the executed date is entered. What happens if it's left blank?

The terms of the contract are difficult to enforce

Your seller client, William, had multiple offers to consider. He decided to move forward with Ryan's offer, and reject the offer from Kevin. What should your client do with the offer from Kevin?

Write "rejected" on Kevin's offer

to whom do you write the escrow check to?

escrow company

can a sales contract be changed once it is executed?

no

Under the TREC rules relating to contract forms, what must a licensee do?

Inform the parties to a real estate transaction that the contract they are about to sign is legally binding on them.

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.

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.

Where would the buyer's agent find the seller's legal name, which is needed to complete the Parties paragraph of the TREC residential One to Four Family (resale) contract?

On the deed or owner's title policy

Jill and Jackie want to rent an apartment with their three children. Under the occupancy standards established in the Texas Landlord and Tenant Act, which of the following is the smallest unit they can rent?

One bedroom

When can specific performance be enforced under a sales contract?

One party didn't meet the terms of the contract in the specified timeframe, and is now being required to do exactly what was agreed to in the contract.

In what paragraph of the sales contract can Janice reserve the right for Sue to access the property for inspections?

Property Condition

What was the name of the first licensing act in Texas?

Real Estate Dealers License Act

The property that the Lincolns are interested in purchasing is subject to mandatory membership in the subdivision's homeowners association. If the Lincolns request more information about the subdivision, what form will they receive from the property owners association?

Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners Association

If a buyer will move in before closing or a seller will remain after closing, what form must be prepared in Texas?

Temporary lease

What happens if a buyer wants to terminate the contract, but fails to deliver the Notice of Buyer's Termination Contract to the seller prior to the expiration of the option period?

The buyer must close the transaction in accordance with the terms of the contract.

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.

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

The property was used to manufacture methamphetamine.

Craig is selling his condominium. What document must he provide to the buyer that contains information on HOA financials, frequency and amount of assessments, and any pending lawsuits?

The resale certificate

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 selection of the title company and who will pay for the title policy

Robin, a Texas buyer, has offered to pay an option fee to the seller within three days of the effective date of the TREC One to Four Family Residential Contract (Resale). Robin put her check for the option fee in the mail and, unfortunately, the seller received it six days after the effective date of the contract. What happens next?

The termination option will not be part of the contract.

Frank is a buyer who wants an option to purchase but doesn't want to pay the seller an option fee. He puts "0" for the option fee amount in the Termination Option paragraph in the TREC residential resale contract. What does this mean?

The termination option won't be a part of the sales contract.

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?

There is more risk financing unimproved land.

Credit Documentation paragraph of the Seller Financing Addendum

This paragraph is the buyer's agreement to deliver documents that show creditworthiness within a certain time period.

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

TAR's Release of Earnest Money form

To disburse earnest money and release all parties from their contract liabilities

What is the purpose of the Broker-Lawyer Committee?

To draft contract forms

A residential service contract

an agreement to repair or replace major appliances and electrical, plumbing, heating, or air conditioning systems that fail due to normal wear and tear.

Per the TREC One to Four Family Residential Contract (Resale), which of the following statements about lender-required repairs is true?

Neither party is obligated to pay for lender-required repairs.

You're posting a new listing on the MLS and ask your seller what type of buyer financing the seller prefers. You'd most likely hear "__________."

Conventional or cash only, because I don't want to pay higher fees

What are the documents that the title company provides to a Texas buyer along with a title commitment?

Evidence of exceptions in the title commitment

Special Provisions section of the TREC One To Four Family Residential Contract (Resale)

Expanding on statements presented elsewhere in the contract - 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

Condominium Resale Certificate

Financial and legal information about the condominium association - contains association financials, frequency and amount of assessments, pending lawsuits, information about the right of first refusal, and more.

One main difference between condominiums and townhomes is that townhome owners have fee simple title to the ______.

Land beneath their units

What other Texas addendum is required if the Addendum for the Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement is used with the TREC One to Four Family Residential Contract (Resale)?

Loan Assumption Addendum

Residential Real Property Affidavit T-47

a form completed by the seller to assure the buyer that they haven't changed the boundaries of the property since the last survey was done