Texas Promulgated Contract Forms Quiz

Executed contract

A contract that has been fully performed is known as a/an...?

New Home Contract - Incomplete Construction

A local real estate developer is in the process of building a subdivision with 135 houses. A buyer who purchases one of these houses prior to the substantial completion date should use which of the following contracts...?

Fraud

A mortgage broker who is earning an extremely high fee for a transaction may be an indication of...?

Construction documents

A property being purchased using the New Home Contract - Incomplete Construction, must be built according to the...?

Fill-out a promulgated contract form the way it was intended

A real estate agent is NOT in violation of the unauthorized practice of law if they do which of the following...?

The equity in the house

A reverse mortgage is paid back using which of the following...?

Accept the offer Make a counter-offer Reject the offer

A seller can respond to an offer in which of the following ways...?

The buyer moves into the property prior to closing

A temporary lease is used when which of the following occurs...?

Competent parties Consideration Mutual agreement

A valid and enforceable contract must include which of the following elements...?

Seller's net proceeds

According to the Short Sale Addendum, the sales price minus the seller's full closing costs equals the...?

landlord

According to the lease, the buyer will become the ________ and the seller the tenant.

tenant

According to the lease, the buyer will become the __________ and the seller the landlord.

Termination option

After signing a purchase contract, the seller typically receives money from the buyer for which of the following...?

Steering

Ely is a real estate agent who is helping a client find a new apartment. Since Ely's client is Korean, Ely decides to only show his client apartments in a predominately Asian neighborhood. Ely is guilty of which of the following actions...?

New Home Contract - Incomplete Construction

Finally, agents need to understand which contracts to use for new residential construction. The __________ is used when purchasing a property in which the developer is currently building the home. As such, parts of the contract rely on the construction document and specifications, rather than an actual inspection by the buyer.

Short Sale Addendum

Finally, real estate agents should be familiar with the _____________. This addendum is used when a property owner is selling their house, but the sales price is less than the outstanding loan balance on the property. In this case, the lender must offer consent and provide the seller with a release of lien against the property.

Buyer

The title policy is a contract between the title company and the...?

A temporary gap in insurance coverage

The use of a temporary lease may lead to which of the following occurring...?

Blockbusting

The use of prejudice to instill fear, or panic (also known as panic selling), in order to motivate individuals in a particular area or neighborhood to sell or dispose of their property because of the entrance, or potential entry, of a protected class.

Seller's Temporary Residential Lease

There are certain transactions when either the buyer or seller needs to occupy the property before, or after, the closing date. As a real estate agent, you should be aware of TREC's requirements regarding these scenarios. If a seller needs more time closing on their new property, they may ask the buyer to stay in the property several more days after closing. If the buyer agrees, the parties must sign a ____________ and attach it to the purchase contract.

Addendum For Back-Up Contract

There are many TREC promulgated addenda that are used in conjunction with the purchase contract. As an agent, you must be aware of these addenda and how/when they should be completed. If a seller enters into a contract with a buyer, but would still like to entertain offers in case the buyer backs out of the contract, they should sign a/an _________ with the other buyer. This addendum gives the other buyer the right of first refusal in the event the primary buyer terminates the contract. While this addendum primarily protects the seller, the secondary buyer may be unwillingly locked into a contract at a future date, which is why it should only be used if the secondary buyer is confident the primary buyer will back out of the contract.

90 days

These leases can only be used if the seller will stay in the property for less than _________ after the closing date. The seller must pay the buyer the full amount of rent by the closing date.

The seller

Unless otherwise stated in the Seller's Temporary Residential Lease, who shall bear the cost of all expenses for the repairs and maintenance of the property during the term of the lease...?

Substantial completion

Unless specified otherwise in the New Home Contract - Incomplete Construction, the ............date should not extend beyond the closing date?

Improvements

Unless specified otherwise, chandeliers are considered...?

Steering

Using racial, ethnic, or religious criteria in suggesting, recommending, and/or influencing individuals regarding locations for the purchase or rental of a single family residence or rental dwelling

DTPA

Which of the following deals with consumer protection...?

The Broker/Lawyer Committee

Which of the following originally drafts the promulgated contract forms...?

Unimproved Property Contract

Which of the following promulgated contracts should be used for the purchase of vacant land...?

Negotiation

Which of the following should be attempted before disputing parties go to mediation...?

The buyer puts down earnest money at the signing of a purchase contract

Which of the following shows a serious intent by the buyer to purchase a specific property...?

Neither party is required to pay

Which party is required to pay for lender required repairs and treatments...?

The seller only

Who is responsible for completing the Seller's Disclosure of Property Condition form...?

The buyer

Who is responsible for ensuring that property insurance is in place after closing and funding...?

Appraisal fees Loan application fees Credit reports

The buyer is responsible for paying which of the following expenses...?

Options money

The buyer typically provides money for which of the following after signing a purchase contract...?

move-in date

The lease requires the buyer to pay the seller the full amount of rent by the ____________.

Redlining

The refusal to lend money within a specific area for various reasons.

The seller's motives for selling their property Any unknown defects with the property Everything the seller or agent knows about the condition of the property

What must be disclosed to prospective buyers in a transaction...?

Unimproved Property Contract

When selling or purchasing raw land, the ___________ should be used. What distinguishes this contract from the One to Four Family Residential Contract - Resale is the lack of real property improvements, accessories, and exclusions listed under paragraph 2. The reason being is this contract is used for properties which haven't been developed.

Addendum For Coastal Area Property

If a property being purchased adjoins a coastal body of water owned by the State, the _________ should be completed and attached to the purchase contract. The buyer should be aware that any property boundary adjoining coastal waters may gain land, or lose land, depending on the tide. The buyer should also be aware that they cannot build on, or encumber, any state-owned submerged lands.

Non-realty items

Personal property items are considered...?

The broker's duties and responsibilities to the client Who pays the broker's commission How the broker's commission is calculated

In order to avoid disputes, which of the following should be in writing and clearly established...?

The contract is terminated and the buyer receives their earnest money back

What happens to the contract if the seller cannot cure the buyer's objections, and the buyer refuses to waive their objections...?

Providing opinions as to the condition of title

Which of the following actions by an agent may be considered as unauthorized practice of law...?

Blockbusting Steering Redlining

Which of the following acts is considered a violation of fair housing laws...?

Flipping

Which of the following acts is considered fraud...?

National origin Disability Religion

Which of the following are considered protected classes under the federal fair housing laws...?

Listing agreements Agreements between broker Buyer representation agreements

Which of the following contracts are not promulgated by TREC...?

The condominium bylaws The rules of the condominium association The declaration of the condominium

Which of the following documents should a buyer read prior to signing the Residential Condominium Contract - Resale...?

Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies

Which of the following forms are NOT promulgated...?

Information About Brokerage Services Form

Which of the following forms describes a broker's minimum required duties by law...?

2 persons per bedroom

Which of the following is a reasonable standard according to HUD...?

Contracts that call for future improvements

Which of the following is a red flag for real estate fraud...?

Easements

Which of the following is an example of a restrictive covenant...?

Items of personal property to be included with the sale of the property

Which of the following items should be included in the Non-Realty Items Addendum...?

DTPA

A deceptive act by an agent in the sale or leasing of a property may lead to a violation of the...?

2011

The DTPA was amended in what year...?

20,000 Dollars

Civil penalties under the DTPA may be up to .......per violation?

Unauthorized practice of law

David is a real estate agent who was recently hired to sell Andrew's home. As a curtesy, David offers to help Andrew draft a sales contract. David may be in violation of which of the following...?

Must be in-writing Signed by all parties There must be a mutual agreement between the parties

A binding contract between a buyer and seller must include which of the following...?

T (True)

A breakdown of broker fees is NOT covered in the One to Four Family Residential Contract - Resale...?

Amendment

A change in a legal document made by adding, altering, or omitting a certain part or term is referred to as a/an...?

The Resale Certificate

A condominium's owners association is responsible for delivering which of the following documents...?

The financial capability of the prospective tenant

An agent can refuse to rent property to a prospective tenant on what basis...?

Consideration

Anything given or promised by a party to induce another to enter into a contract is referred to as...?

Austin Holdings, LLC

Austin Holdings is a limited liability company, which is purchasing a residential property for the company. How should Austin Holdings' name appear on the purchase contract...?

Panic selling

Blockbusting is also known as...?

Listing agreements

Broker fees are covered in which of the following documents...?

The seller accepts an offer and the parties enter into a binding contract

Curtis is a real estate agent who represents a seller in a transaction. Curtis must present all offers to the seller until which of the following occurs...?

Redlining

David is a mortgage broker in Houston. A client comes to David to obtain financing on a new house; however, David denies the client, citing he won't lend on properties in the neighborhood the client is looking to live. David is guilty of which of the following actions...?

Lead-based paint addendum

Houses built prior to 1978 need to include which of the following addenda....?

Notice of Buyer's Termination of Contract

If a buyer elects to terminate the purchase contract, they must sign and attach the __________. The buyer may terminate for various reasons, including the inability to obtain third party financing, or the seller's refusal to cure defects with the property. In any event, the buyer must still work with the seller to obtain their initial earnest money deposit.

New Home Contract - Completed Construction

If a buyer is purchasing a house that was recently completed by a developer, the __________ should be used.

Addendum For Coastal Area Property

If a buyer is purchasing a property adjacent to coastal waters, what form must be included with the purchase contract...?

Addendum For Reservation Of Oil, Gas, and Other Minerals

If a seller's property includes valuable natural resources, and the seller would like to maintain control of those resources after closing, they must complete the _________ and attach it to the purchase contract. This gives the seller the rights to the property's mineral estate. If agreed upon, the seller can even have access to ingress and egress for the mining, drilling, and removal of the property's natural resources.

Seller needs to release the buyer's earnest money

If both parties sign the Notice of Buyer's Termination of Contract, what still remains to be done...?

The non-defaulting party only

If either party fails to close the sale by the closing date, who may exercise their right to remedies...?

Residential Condominium Contract - Resale

In addition to the One to Four Family Residential Contract - Resale, there are several other purchase contracts that may be used in a transaction. These contracts are used for specific transactions. If the agent is not sure which contract to use, they should confirm with the buyer's lender. The One to Four Family Residential Contract - Resale explicitly states it should not be used for condominium transactions. Instead, the ____________ should be used. This contract is similar to the One to Four Family Residential Contract - Resale, but several paragraphs are modified to includes language about the condominium owners' association.

Buyer's Temporary Residential Lease

In contrast, there may be a scenario where the seller has already moved out of the property prior to the closing date and the buyer wants to move-in early. In this case, the parties should sign a _________, which should only be used if the buyer is moving in less than 90 days prior to the closing date.

Both parties

In order for a broker to represent both parties in a transaction, the broker must obtain the written agreement from...?

Terminate the contract

James is purchasing a farm outside of Dallas. If the sales price needs to be adjusted by more than 10% after reviewing the survey, James may do which of the following...?

The seller's deed

John is a real estate agent who is preparing a contract for his client, the seller. Where should John look to find the name of the seller...?

Must be in-writing

John is about to enter into a contract with Amy, to purchase Amy's house. The real estate sales contract between John and Amy...?

F (False)

Net listing are illegal in Texas...?

Accept the offer Make a counter-offer Reject the offer

Once a seller receives an offer, the seller can do which of the following...?

Earnest money

Paragraph 5 of the One to Four Family Residential Contract - Resale primarily deals with...?

Paragraph 2

The Residential Condominium Contract - Resale differs from the One to Four Family Residential Contract - Resale in which of the following paragraphs...?

Farm and Ranch Contract

The ___________ should be used when purchasing existing agricultural properties. This contract includes specific real property improvements and accessories such as windmills, barns, outbuildings, irrigation equipment, and hunting blinds. It also includes information regarding crops.

Licensed state land surveyor

The boundary of a property adjoining coastal waters is subject to change and can only be determined accurately by a...?

One to Four Family Residential Contract - Resale

The sale of a property within a subdivision, which includes a small house on it will use which of the following contracts...?