Texas Promulgated contract forms Level 10 all chapters
Paragraph F Short Sale Addendum
Explains that if the buyer has the option to terminate, the number of days for the option period in Paragraph 23 will begin on the amended effective date.
Paragraph 2 Addendum for Property Located Seaward of the Gulf Intracoastal Waterway.
In this section, the seller needs to disclose any landfill or land retention efforts completed on the property.
Paragraph D Short Sale Addendum
Tells us the final date the purchaser is willing to wait for the seller to receive approval from their lender. If that date comes without approval from the lender, the contract will terminate, and earnest money will be refunded to the buyer. Option money is never refunded. It pays for the option to terminate.
Paragraph E Addendum for Back-Up Contract
Time is of the essence! Agents should advise their clients to allow time to communicate any amendments or terminations, as the contract sets specific duties to each party that are time sensitive.
Addendum for Property Located Seaward of the Gulf Intracoastal Waterway.
states that the public has a right to use the beach area, and the State of Texas protects that right. If the property at some point comes to be located on the beach area because of storms and erosion of the soil, the state can require the owner to remove the structure at their own expense.
If a broker represents both the buyer and seller in a transaction, the broker is?
the intermediary.
With a short sale, what happens with Earnest Money?
to be delivered to the title company by the close of business on the second working day after the original effective date, and option money is to be delivered to the seller or their agent within three days of the original effective date.
Disclosure of Relationship with Residential Service Company
was created by TREC to remind agents that it is a violation of the Real Estate Settlement Procedures Act (RESPA) for a license holder to receive a referral for simply passing on a name to a service provider.
A Broker's Minimum Duties Required by Law
1. Put the interests of the client above all others, including the broker's own interests 2. Inform the client of any material information about the property or transaction received by the broker 3. Answer the client's questions and present any offer to or counter-offer from the client 4. Treat all parties to a real estate transaction honestly and fairly
What restricted the private ownership of beach front property?
1959 with the enactment of the Texas Open Beaches Act.
A back-up contract was executed on August 9th. The parties agreed to a 12-day option period. On August 15th, the seller notified the buyer that the first contract had terminated. When does the back-up buyer's option period end?
August 27th
Why might a buyer receive the Subdivision Information form?
Because the property being bought is subject to mandatory HOA membership
Paragraph 4 Addendum for Property Located Seaward of the Gulf Intracoastal Waterway.
Buyers are advised to consult an attorney, especially since waterway rights and the laws affecting them are always changing.
A buyer considering buying property adjoining a beach area should:
Consult with attorney
Can real estate agents charge referral fees?
No, They can only pass on a name to a service provider without any charges.
Fiduciary duties of agent
Obedience Loyalty Disclosure Confidentiality Accounting Reasonable Care (OLD CAR Acronym)
When does the right to terminate begin in the Short Sale Addendum and the Back-Up Addendum?
On the amended effective date
Paragraph D Addendum for Back-Up Contract
Right to terminate. states that if the buyer has the option to terminate, then the right to terminate begins on the original effective date of the back-up contract. The right to terminate then continues after the amended effective date for the number of days agreed to in Paragraph 23 of the One to Four Family Residential Contract.
Paragraphs B and C Addendum for Back-Up Contract
Several points: 1. If the first contract survives and does not terminate by a deadline date negotiated by the parties, this back-up contract will terminate and the earnest money will be refunded to the buyer. 2. The seller is free to continue to work with the first buyer. 3. An amendment of the first contract does not terminate the contract. 4. If the first contract does terminate, the seller must notify the back-up buyer immediately. 5. The effective date of the back-up contract is amended to the date that the back-up buyer receives notification that the first contract has been terminated.
Paragraph 3 Addendum for Property Located Seaward of the Gulf Intracoastal Waterway.
State Law and Restrictions. Texas state law prohibits the use, encumbrance, construction, or placing of any structure in, on, or over state-owned submerged lands below the applicable tide line, without proper permission.
Paragraph 1 Addendum for Property Located Seaward of the Gulf Intracoastal Waterway.
States that all real property on or near coastal waterways (and their ever changing boundaries) should be professionally surveyed, and carefully considered by Buyers.
Paragraph A Addendum for Back-Up Contract
States that the back-up buyer is going to put the earnest money and option money down and wait to see if the first (pending) transaction terminates.
Paragraph C Short Sale Addendum
Verifies that this is a binding contract and that the earnest money and option money must be deposited the same as with any contract.
Addendum for Property in a Propane Gas System Service Area
When buyers purchase a property that is in a propane gas system area, there may be extra cost or charges before they can get the propane gas service. This addendum provides the purchaser with information about those costs.
Notice Concerning Easements and Rights-of-Ways
a notification to a property owner to be careful about selling the property, or giving an easement to someone because it could conflict with a different third party's current easement. The form states the name of the easement or right-of-way agent, their TREC registration number, as well as the person whom the agent is representing.
Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies
an approved form that can be given to buyers to educate them on the purpose of property inspections.
When does the option money and earnest money need to be paid on a contract with a short sale addendum attached?
both submitted after lender approval
Paragraph I Short Sale Addendum
clarifies that this addendum can apply to multiple liens if there is more than one on the property.
Paragraph E Short Sale Addendum
clarifies what will happen if the seller's lender does not close on the transaction.
Addendum for Back-Up Contract
enables the seller to negotiate with a second buyer and agree upon terms that will be used in the event that the first buyer's transaction falls through.
Information About Brokerage Services notice
helps explain agency representation to clients. This form informs clients of the types of license holders, a broker's minimum duties, and how a license holder can represent a party in a real estate transaction.
Consumer Protection Notice TREC No. CN 1-2
is to be posted in each real estate office to inform consumers about filing a complaint, the real estate recovery funds held by TREC, and the way the consumer can contact TREC.
Short Sale
lender agrees to accept sale proceeds, even if less than the debt
Paragraphs A & B Short Sale Addendum
protect the seller by describing "net proceeds" and giving the seller an out under the contract if the lender will not accept the net proceeds as full payment.
Condominium Resale Certificate.
provided to the buyer and prepared by the corresponding condominium association. The certificate outlines the various fees, as well as some basic knowledge of the condominium association.
Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners' Association form
provides information about assessments, judgments, right of first refusal on resale, and other information about a property owner's association when a property is subject to mandatory membership.
Paragraph G Short Sale Addendum
says that time is of the essence for this addendum, meaning that deadlines are strictly enforced.
Paragraph H Short Sale Addendum
says the seller will allow the lienholder to share relevant info with the buyer.