Unit 7: Promulgated Addenda, Notices, and Other Forms TEST

Often in real estate transactions, a potential buyer will make on offer on a new home, but still has a house to sell. Which addendum is used to accommodate these situation? Addendum for Sale of Other Property By Buyer Addendum for Back-up Contract Addendum for Property Subject to Mandatory Membership in a Property Owners' Association Addendum for Reservation of Oil, Gas, and Other Minerals

Addendum for Sale of Other Property By Buyer

If a seller wants to keep a portion of a mineral estate after it is sold, what addendum is used? Addendum for Reservation of Oil, Gas, and Other Minerals Oil and Gas Reservation Addendum Mineral Estate Retention Addendum Oil, Gas, and Minerals Addendum

Addendum for Reservation of Oil, Gas, and Other Minerals

What form provides proper notice to the seller of the buyer's wish to terminate the sales contract? Notice of Buyer's Termination of Contract Notice of Seller's Termination of Contract Notice of Contract Rescission by Buyer Notice of Contract Renunciation by Buyer

Notice of Buyer's Termination of Contract

__________ is anything movable that is not real property. Personal property Real estate Other property Subdivided property

Personal property

Which of the following does not apply to a mineral estate according to the Addendum for Reservation of Oil, Gas, and Other Minerals? Rights to membership in an owners' association All oil, gas, and other minerals in or under the property Any royalty under an existing or future lease covering part of the property Surface rights, including rights of ingress and egress

Rights to membership in an owners' association

Except as provided by the Short Sale Addendum, the seller and buyer are not obligated to perform under the purchase contract until what is obtained? The Lienholder's Consent and Agreement The Buyer's Consent and Agreement The Seller's Consent and Agreement The Broker's Consent and Agreement

The Lienholder's Consent and Agreement

Paragraph B of the Addendum for Back-up Contract states the effective date of the Back-Up Contract changes to the date the buyer obtains notice of the first contract's termination. What is this date? The amended effective date The adjusted non-effective date The altered effective date The modified effective date

The amended effective date

What must happen before a short sale can occur? The lender must approve the sale. The buyer must assume the seller's existing loan. The buyer must approve the sale. The seller must approve the sale regardless if the lender agrees or not.

The lender must approve the sale.

The association charges for related to the transfer of ownership costs $200. A buyer is only willing to pay up to $100 for the charges. Who pays the other $100? The seller The buyer The agent The association

The seller

A buyer is requesting an updated resale certificate. After paying the seller the amount required to obtain the certificate, how long does the seller have to deliver the certificate? 10 days 5 days One week 14 days

10 days

Salesperson Smith is representing a seller who owns property that adjoins tidewaters. What addendum to the purchase contract should Salesperson Smith use? Addendum for Coastal Area Property Addendum for Property Located Seaward of the Gulf Intracoastal Waterway Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum Unimproved Property Contract

Addendum for Coastal Area Property

If the sales price changes, which of the following forms can be used? Amendment to Contract Sales Price Adjustment Addendum Sales Price Change Addendum Adjusted Sales Price Addendum

Amendment to Contract

The __________ can be used to modify a purchase agreement. Amendment to Contract Contractual Alteration Purchase Agreement Change Form Contract Modification Form

Amendment to Contract

The Back-Up Contract is contingent upon the termination of the: First Contract. Second Contract. Preliminary Contract. Contingency Contract.

First Contract.

When is the Addendum for Reservation of Oil, Gas, and Other Minerals used? If the seller reserves all or a portion of the mineral estate If the seller owns an oil exploration company If the seller does not wish to reserve any portion of the mineral estate If the seller wishes to build a structure over a mineral estate

If the seller reserves all or a portion of the mineral estate

The __________ is a 3,000-mile inland waterway along the Gulf of Mexico coast running from Florida, along the Gulf Coast to Brownsville, Texas. Texas Coastal Bend barrier islands Laguna Madre Intercoastal Waterway

Intercoastal Waterway

Why must agents not add their own clauses regarding the sale of other property by the buyer in the Addendum for Sale of Other Property by Buyer form? It is a violation of TREC Rules and Regulations. It complies with TREC Rules and Regulations. It violates federal real estate laws. It complies with federal real estate laws..

It is a violation of TREC Rules and Regulations.

Which of the following is not true regarding the Condominium Resale Certificate? It is an addendum. It addresses the Texas Property Code. It mimics information required in the resale packet for a POA. It is a TREC promulgated form.

It is an addendum.

As indicated in the Information About Brokerage Services form, if a party to a transaction pays a fee to a broker, does this establish broker representation? Yes, representation is automatically in effect. Yes, as long as the payment is cash. No, unless the payment is cash. No, representation is not established.

No, representation is not established.

If a real estate transaction involves personal property, which addendum can be used to specify items included in the sale? Non-Realty Items Addendum Short Sale Addendum Amendment to Contract Addendum for Sale of Other Property

Non-Realty Items Addendum

Which of the following best resembles the definition of a short sale as defined by the Short Sale Addendum? The seller's net proceeds are not enough to pay off the existing loan The seller's net proceeds are equal to the amount of the existing loan The seller's net proceeds are more than the existing loan amount The buyer's closing costs are less than the existing loan amount

The seller's net proceeds are not enough to pay off the existing loan

The Addendum for Property Subject to Mandatory Membership in a Property Owners' Association is not used for transactions involving: condominiums. 3-bedroom homes. homes with two levels. homes with basements and attics.

condominiums.

Property boundaries next to coastal waters can only be determined by a(n): licensed land surveyor. licensed real estate broker. environmental specialist. natural resources professional.

licensed land surveyor.

Based on the wording in the form, the seller and buyer are not required to perform under the provisions of the Back-Up Contract while it is contingent upon: termination of the first contract. the buyer depositing earnest money. the agent receiving a commission. termination of the second contract.

termination of the first contract.

In the Non-Realty Items Addendum, the seller must warrant: that he or she owns the personal property free and clear of all encumbrances. the condition of the personal property conveyed by the addendum. the future performance of the personal property conveyed by the addendum. that he or she does not own the personal property detailed in the addendum.

that he or she owns the personal property free and clear of all encumbrances.

According to the Information About Brokerage Services form, before working with a real estate broker, an owner or buyer should know: that the duties of a broker depend on whom the broker represents. the type of property the broker likes to represent. what fees the broker charges. that a broker who assists in locating a property, preparing a contract or lease, or obtaining financing is an agent.

that the duties of a broker depend on whom the broker represents.

An agent who adds his or her own wording regarding the sale of other property by the buyer in the Special Provisions section of the Addendum for Sale of Other Property by Buyer is: violating TREC Rules and Regulations. in compliance with TREC Rules and Regulations. violating federal real estate laws. in compliance with federal real estate laws.

violating TREC Rules and Regulations.