Texas Promulgated contract Forms

D

A seller who wants to be fully released from liability on an assumed loan would need to complete the TREC A. seller financing Addendum B. Third Party Financing Addendum C. Loan Assumption Addendum D. Release of Liability Addendum

A

A title insurance policy _______ cover problems with title arising from the buyer's marital status A. will not B. will

B

During the Termination Option Period, the buyer is required to A. inspect the property B. do nothing C. inspect the property and send the seller a repair request D. complete all contingencies in the contract

B

During the Termination Option Period, the seller A. has a solid contract and should start packing their belongings B. is obligated to sell and may not terminate the contract C. may terminate anytime during the option period D. must perform an inspection for the buyer

D

All of the following would be part of the pre-offer information the buyer's agent obtains EXCEPT A. the legal description B. the amount of earnest money C. the seller's legal names D. the appraisal

A

An applicant must complete ______ semester hours of course work on constitutional law A. 3 B. 6 C. 12 D. 9

A

Each of the following is an acceptable exception to the title insurance coverage EXCEPT A. wrong guaranty file or order number B. buyer's loan lien C. survey exception D. unpaid standby fees, taxes, and assessments

B

Before working with the buyer, the agent should do which of the following A. make sure the buyer has the appropriate credit rating to make a purchase B. verify how much the buyer had been qualified for from their lender C. have a down payment and earnest money

B

Each of the following is one of the notices to the parties listed in the Title notices subparagraph of the real estate sales contract EXCEPT A. annexation B. property conditions C. membership of property owners' association(s) D. tide waters

C

Earnest money is the A. sum paid by seller into escrow when a contract is signed B. sum paid by buyer to lender to hold interst rate C. sum paid by buyer into escrow when a contract is signed D. consideration in the contract

D

FHA loans are originated by A. the VA B. the FHA C. Fannie Mae D. a private lender

C

In the TREC Third Party Financing Addendum, all of the following are loan financing options EXCEPT A. USDA Guaranteed B. conventional C. FHA assumption D. FHA/VA

B

Including professional title suffixes or prefixes when entering names in the Parties paragraph of a real estate sales contract is A. required B. not required

C

Notice to Prospective Buyer form is used by licensees A. as an addendum to the sales contract B. to comply with mandatory use of TREC-promulgated forms C. on a voluntary basis for attorney-prepared contracts D. with every sales transaction

D

Of the nine members of the TREC, six must be A. state employees B. members of the general public C. licensed real estate salespersons D. licensed real estate brokers

A

Once a closing date is specified in the signed sales contract, the parties ______ close before the date A. can B. cannot

D

One discount point equals A. 1% percent of the purchase price B. 2% of the purchase price C. 2% of the loan amount D. 1% of the loan amount

B

Option money is different from earnest money because it is A. paid directly to the title company B. paid directly to the seller C. paid directly to the lender D. paid directly to the closing attorney

C

Real estate licensees typically handle the repair issue for commercial sales using which approach? A. requiring the seller to complete all repairs B. having seller pay buyer's closing costs C. reducing the price by the amount of the repairs D. all of the answers shown

D

Remedies for breach of contract include A. economic damages B. liquidated damages C. specific performance D. all of the answers shown

D

The consideration in the contract is the A. sales price B. option money C. earnest money D. promises made

C

The contingency allowing the FHA/VA borrower to terminate the contract if the property does not apprasie for the sales price is created in which section of the TREC Third Party Financing Addendum? A. security B. Authorization to Release Information C. FHA/VA Required Provisions D. Approval of Financing

A

The disposition of an executory contract when real property involved in a sales contract is destroyed is governed by the A. Uniform Vendor and Purchaser Risk Act B. Consumer Protection Act C. Statute of Frauds D. Statute of Limitations

B

The environmental addendum allows a homebuyer to obtain reports for which of the following issues? A. termites B. wetlands C. foundation problems D. all of the answers shown

C

The substitution of a new contract, which terminates and replaces an existing contract is called A. assignment B. substitution C. novation D. replacement

C

The term "origination changes" includes A. credit report fees B. appraisal fees C. fees shown on the Loan Estimate or pre-qualification letter D. escrow fees

C

The threat of force to obtain an agreement to a contract is A. duress B. undue influence C. menace D. mistake

B

The title insurance that protects the lender is called A. mortgagor's title insurance B. mortgagee's title insurance C. seller's title insurance D. owner's title insurance

C

Typically, the longer the option time, the ______ option money needed A. less B. option money is always the same C. more

D

Under the TREC residential sales contract, what is the normal amount of time that the title company has to issue a commitment after receiving a copy of the contract? A. until closing B. 30 days C. 15 days D. 20 days

C

Under the Texas Real Estate License Act, licensees are required to notify ______ of the need for either a title insurance policy or an attorney review of an abstract of title A. the buyer, orally and in writing B. the seller, orally or in writing C. the buyer, in writing D. the seller, in writing

B

Under the provisions in an option, the buyer has the ______ right to terminate A. restricted B. unrestricted

A

What document authorizes an officer to sign a contract on behalf of a corporation? A. resolution B. title company rule C. certificate of incorporation D. power of attorney

A

What if prorating? A. dividing payment of property costs between buyer and seller B. dividing closing costs between buyer and seller C. projection of future income D. none of the answers shown

C

What is one of the requirements for a certificate of registration? A. be a US citizen only B. be at least 21 years of age C. be at least 18 years of age D. be a lawfully admitted alien only

B

What is the purpose of having both parties initial at the bottom of each page of a TREC contract? A. verify the legality of a contract B. verify that the page should be part of a larger contract C. all of the answers shown D. verify that they have read it

A

When a seller receives a better offer from another buyer, can the seller accept the new offer without telling the first buyer? A. no, the seller must withdraw his/her counter offer and then he/she may accept the new offer B. yes, the seller may accpet a new offer

A

When can a person do business under another name other than one's own natural name? A. when an assumed named certificate (DBA) is filed B. only if the person becomes a corporation C. when using a family name D. never

A

When filling in the loan amount in the Third Party Financing Addendum, the amount of any closing cost along with the loan is A. not included B. included

D

When is a contract considered to be valid and binding? A. when the buyer signs the contract B. when the seller signs the contract C. when both parties sign the contract D. when acceptance is communicated back to the offeror

D

Where do Texas closings usually take place? A. at the seller's home B. at a real estate attorney's office C. at the lender's office D. at a title company office

C

Which of the following is NOT a basic schedule in a title commitment? A. specific exceptions B. standard exceptions C. objections D. basic information

C

Which of the following is NOT a statutory exemption from the seller's disclosure notice? A. bankruptcy trustee's sale B. sale of a builder home no one has occupied as a home C. sale of a home won in a lawsuit D. family sale to one's child

C

Which of the following is a statutory exemption from the seller's disclosure notice? A. divorce sale from one spouse to another B. sale from co-owner to another C. all of the answers shown D. sale to or from the government

B

Which of the following is a statutory exemption from the seller's disclosure notice? A. sale by military personnel B. deed in lieu of foreclosure sale C. all of the answers shown D. agent's home

B

Which of the following is a subparagraph of the property condition section of the residential sales contract? A. buyer's disclosure of lender and financing B. completion of repairs and treatments C. buyer required repairs and treatment D. all of the answers shown

A

Which of the following is an example of a fixture? A. a ceiling fan B. all of the answers shown C. drapes D. a stove

D

Which of the following is generally a seller's expense? A. all of the answers shown B. credit reports C. recording fees D. preperation of deed

D

Which of the following is most likely to still be using abstract of titles? A. none of the answers shown B. all large cities C. Dallas/Fort Worth area only D. rural areas

C

Which of the following is one of the common uses for the special provisions paragraph? A. disclosure that seller or buyer is a real estate licensee B. permitting walkthroughs C. all of the answers shown D. requiring buyer to furnish inspections

A

Which of the following is one of the main TREC contract forms? A. New Home Contract (complete construction) B. all of the answers shown C. One to Five Family Residential Contract (Resale) D. Mobile Home Residential Contract

C

Which of the following is required for common law marriages? A. cohabitation B. telling the world that one is married C. all of the answers shown D. agreement to be married

A

Which of the following is required when a seller moves out after closing or a buyer moves in prior to closing? A. a temporary lease B. neither of the answers shown C. a backup contract D. both of the answers shown

D

Which of the following is the BEST way to extend a closing date after a sales contract is signed? A. use the closing extension addendum B. strike through the date and initial it C. notify buyer by fax or phone of the change D. use the TREC Amendment to Contract form

B

Which of the following reduces the interest rate for a short time? A. loan discount fees B. buydown fees

A

Which of the following reduces the interest rate for the life of the loan? A. loan discount fees B. buydown fees

C

Which of the following requirements must be met to create an enforceable real estate sales contract? A. all of the answers shown B. must be signed by the buyer only C. must give the legal description of the property D. must show intent to convey real estate immediately

A

Which of the following suffixes must be included in a person's name on a legal real estate sales contact if it applies? A. Jr. B. CPA C. Ph.D. D. M.D.

A

Which type of lease starts at a set date and runs until a set date? A. seller's temporary residential lease B. buyer's temporary residential lease

B

Which type of lease starts at a set date and runs until closing? A. seller's temporary residential lease B. buyer's temporary residential lease

B

Who is permitted to use the forms developed by TAR? A. either REALTORS or non-REALTORS B. REALTORS only C. attorneys only D. real estate professionals who are not REALTORS only

B

Who signs a contract for a limited partnership? A. neither of the answers shown B. a general partner C. a limited partner D. either of the answers shown

B

______notice defines some of the rights of the buyer in terms of obtaining information from the homeowners' association A. TREC B. The Membership in Property Owners Association(s)

B

A broker who represents a party in a real estate transaction or who has an exclusive listing agreement with a party is called a(n) A. acting broker B. agent C. listing broker D. principal broker

A

A business organization set up as a partnership with a limited purpose is called A. a joint venture B. a limited liability corporation C. a business venture D. a double venture

C

A home warranty is another term for A. long-term repair contract B. home repair guarantee C. residential service contract D. residential service guarantee

D

A problem with having the seller give the buyer money for repairs is A. the money isn't actually used for repairs B. all of the answers shown C. the seller becomes a repair contractor D. many lenders object to cash from the seller to the buyer

C

According to the lender required repairs and treatments subparagraph of the real estate sales contract, the buyer may terminate the contract if the cost of the lender-required repairs exceeds______ of the sale price A. 10% B. 4% C. 5% D. 15%

A

After buying a house, the new homeowner fails to pay taxes and foreclosure takes place. If the owner has title insurance, the policy cover the owner's monetary loss. A. will not B. will

A

An investor is selling a single-family home in which he/she has never lived. In this case, providing a seller's disclosure notice is A. required B. not required

B

An offer is accepted by the offeree and acceptance is communicated by the offeree back to the offeror. A contract _______ exist A. does not B. does

B

An offeror revokes an offer and the revocation is received by the offeree before the offeree can communicate his/her decision. A contract____ exist A. does B. does not

D

An unconditional acceptance is one A. the seller has not yet accepted B. that cannot be canceled for any reason C. none of the answers shown D. without changes

C

Annexation may occur as far as_____ outward from the city's boundaries A. 2 miles B. 3 miles C. 5 miles D. 7 miles

B

Before a title insurance policy is issued, the examiner can issue a preliminary document called A. an abstract of title B. a title commitment C. a title assurance D. a title agreement

A

Before the offer is written, the buyer's agent should try to obtain all the following EXCEPT. A. loan approval B. a copy of leases if the property is a rental C. a lead-based paint disclosure if required D. the seller's property disclosure

D

For written real estate contracts, the statute of limitations to sue for a breach of contract in Texas is A. 2 years B. 3 years C. 1 year D. 4 years

B

If a TREC home inspector finds an item in need of repair, the inspector _____ complete the repair A. may B. may not C. must

B

If a party to a valid real estate contract dies while the contract is executory, the contract A. is voidable B. is enforceable until there is no one left to perform C. must be renegotiated with the estate of deceased party D. terminates

A

If a property is located INSIDE a city limit, water and drainage_______ be provided by a MUD(municipal utility district) A. will not B. will

A

In a contract, the transfer of one's interest, but not liabilities, to another person is called A. assignment B. substitution C. novation D. assumption

C

In a real estate sales transaction, who prepares the deed of trust? A. the lender B. the seller chooses an attorney to prepare it C. the lender chooses an attorney to prepare it D. the buyer chooses an attorney to prepare it

B

In addition to the four essential elements, which of the following is necessary to make a real estate sales contract valid? A. all of the answers shown B. it must be in writng C. the mortgage lender must be listed D. the closing must take place at a lender's place of business

A

In addition to the seller's listing agent(s), whose duty is it to see that all parties are incompliance? A. buyer's agents B. lenders C. all of the answers shown D. title companies

C

If an expense exceeds the amount set in the contract that the seller has to pay, _______ may terminate the contract unles ______ agrees to pay such excess A. the buyer/the buyer B. the seller/the seller C. the seller/the buyer D. the buyer/the lender

B

If applicable, the propane gas system service area form must be provided to the prospective buyer by the A. homeowners' association B. seller C. local propane utility provider D. lender

D

If the buyer does not terminate the contract on or before the date listed in the Buyer Approval section , the contract A. will allow the buyer to have until the appraisal to fully terminate B. is terminated but no earnest money is returned C. is terminated D. continues without the contingency

B

If the property is subject to a private transfer fee obligation, the seller is required to_____ A. notify the buyer of the governing water code B. notify the buyer of the governing property code C. remind the buyer to pay the fee D. pee the fee

B

In Texas, earnest money is typically held by the A. seller B. escrow company C. lender D. broker

D

In Texas, it is advised that personal property should be sold on A. either of the answers shown B. neither of the answers shown C. the real estate purchase contract D. a seperate form

B

Mutual agreement is also referred to as A. mutual assent B. all of the answers shown C. offer and acceptance D. meeting of the minds

B

The 4-year statute of limitations time period for the breach of contract is from the A. signing date B. breach date C. closing date D. drafting date

D

The first person the buyer's agent should speak to when writing an offer is the A. the seller B. the listing broker C. the title company D. the buyer's lender

B

The first step once the offer is completed is for the A. the lisitng broker to present the offer to the seller B. buyer's agent to present the offer to the listing broker C. buyer's agent to present the offer to the seller D. buyer to complete the contract requirements

A

The law that requires contracts for the sale of personal property of $500 or more be in writing to be enforceable is the A. Uniform Commercial Code B. statute of limitations C. law of contracts D. Statute of Frauds

B

The loan or loans that do not allow for a prepayment clause are A. FHA only B. FHA and VA C. conventional D. VA only

C

The party responsible for paying points and/or buydown fees is A. the seller B. the buyer C. negotiable D. both automatically share equal responsibility

A

The purpose of the Texas Real Estate Broker-Lawyer Committee is to A. draft and revise standard real estate contract forms B. prevent licensees from practicing law C. all of the answers shown D. write regulations implementing the license law

A

The representation paragraph states all covenants, representations and warranties in the contract A. survive closing B. require and addenda to survive closing C. survive closing if agreed to by the parties D. will not survive closing

B

To be enforceable, real estate leases must be in writing if the length of term is A. 1 year or more B. longer than 1 year C. less than 1 year D. 1 year or less