Lesson 6: The Remaining Promulgated Forms - 08. Case Study/Workshop

Which of these items is addressed in §(6) Title and Policy Survey in both the TREC 1-4 and Farm and Ranch Contracts? A) Membership in property owners associations B) None of these C) A commitment for title insurance D) The Texas Agricultural Development District

C) A commitment for title insurance

§2(C) Accessories includes a subsection not in the TREC 1-4 addressing accessories such as which of these choices? (Best answer.) A) Irrigation equipment B) Hunting blinds C) All of these. D) Game feeders

C) All of these.

Which of these descriptions is included in §(2) Property description of the New Home Contract (Incomplete)? A) Neither of these. B) All rights, privileges and appurtenances thereto, including but not limited to: permits, easements, and cooperative and association memberships C) Both of these. D) Improvements, fixtures and all other property described in the Construction Documents

C) Both of these.

Which of these is addressed in §14 Casualty Loss of the Condo contracts and NOT in the TREC 1-4? A) Seller opportunity to repair or replace damaged property B) Fire or other casualty damage C) Damage to common elements D) Buyer option to terminate

C) Damage to common elements

TREC 1-4 is another name for which contract? A) One to Four Family Residential Contract (Resale) B) Farm and Ranch Contract C) Residential Condominium Contract (Resale) D) Unimproved Property Contract

A) One to Four Family Residential Contract (Resale)

Which of these contracts addresses the issue of Lead-based Paint Hazard disclosure? A) The One to Four Family Residential Contract (Resale) B) Unimproved Property Contract C) New Home Contract (Completed) D) New Home Contract (Incomplete)

A) The One to Four Family Residential Contract (Resale)

The Farm and Ranch Contract includes rollback taxes, which are taxes, in this instance, imposed because of Seller's _______ _____________ prior to closing. A) Use or change in use of the Property B) Failure to pay taxes previously assessed C) Falsely classifying the nature of the property D) Renting to the buyer for more than 90 days

A) Use or change in use of the Property

The Farm and Ranch Contract §(6) includes two sections not in the TREC 1-4, which are which of the following? A) §6(E) Exception Documents, §6(F) Surface Leases B) §6(E) Exceptional Leases, §6(F) Surface Documents C) §6(E) Superficial Documents, §6(F) Exception Leaseholds D) §6(E) Subsurface Leases, §6(F) Exceptional Documents

A) §6(E) Exception Documents, §6(F) Surface Leases

§2(A)(2) Improvements of the Condo contract does not include which item(s) that is/are included in the TREC 1-4? A) Valances, screens and shutters B) House and garage C) Heating and air conditioning units D) Carpeting, mirrors, and ceiling fans

B) House and garage

§2(A) of the Farm and Ranch Contract includes all of the following language reflecting additional concerns, except which of these? A) Water rights. B) Livestock and crops. C) Easements. D) Cooperative or association memberships.

B) Livestock and crops.

Which of these items/groups of items ARE NOT exempted from proration in the Condo contract? A) Cash reserves from regular condominium assessments for deferred maintenance established by the Association B) Taxes for the current year, interest, maintenance fees, regular condominium assessments, dues, and rents C) Cash reserves from regular condominium assessments for capital improvements established by the Association D) Any special condominium assessment due and unpaid at closing

B) Taxes for the current year, interest, maintenance fees, regular condominium assessments, dues, and rents

§(2)(F) Reservations of the Farm and Ranch Contract is a section not in the TREC 1-4 which addresses which of these? A) Timber B) Minerals C) Oil and gas D) All of these.

D) All of these.

§(2)(D) of the Farm and Ranch Contract is a section NOT in the TREC 1-4 which addresses which of these? A) Crops B) Water rights C) Livestock D) Dairy products

A) Crops

Other §7 Property Condition issues addressed include all of these, except which of these? A) Oil, gas, and mineral rights B) Flooding C) Environmental hazards D) Wetlands

A) Oil, gas, and mineral rights

Which of the New Home Contracts includes the construction defect language stating that 'This contract is subject to Chapter 27 of the Texas Property Code...?' A) Both of them. B) New Home Contract (Completed) C) Neither of them. D) New Home Contract (Incomplete)

A) Both of them.

Which of the following IS included in both the TREC 1-4 contract and the Condo contract under §2(C) Accessories? A) Right of refusal under which the Association or a member of the Association may purchase the property B) Above ground pool, swimming pool equipment and maintenance accessories C) Declaration, Bylaws and any Rules of the Association D) Resale Certificate

B) Above ground pool, swimming pool equipment and maintenance accessories

§6A Title Policy and Survey in the TREC 1-4 includes which policy exception(s) not in the Farm and Ranch Contract? A) Utility easements created by the dedication deed or plat of the subdivision in which the Property is located B) Both of these. C) Neither of these. D) Restrictive covenants common to the platted subdivision in which the Property is located exception

B) Both of these.

§§2(A-D) of the TREC 1-4 reflect the same general information as what portion of the Condo contract? A) §§2(A-D) B) §§2(A)(1-4) C) §§2-4 D) §§1(A-D)

B) §§2(A)(1-4)

The Chapter 27 of the Texas Property Code language of the New Home contracts DOES NOT charge the buyer filing a complaint with which of the following duties? A) Provide notice to the contractor not later than the 60th day before filing suit. B) If requested by the contractor, provide the contractor an opportunity to inspect and cure the defect. C) Have any complaints regarding construction defects notarized before filing suit. D) Include in the notice to the contractor reference to Ch.27 of the Texas Property Code and describe the construction defect.

C) Have any complaints regarding construction defects notarized before filing suit.

Which of these IS NOT listed as a subject of disclosure in §(7) Property Condition of the Unimproved Property Contract? A) Threatened or endangered species B) Flooding adversely impacting the property C) Membership in a homeowner's association D) Environmental hazards adversely affecting the property

C) Membership in a homeowner's association

Which of these items addressed in §2(A)(1) of the Condo contract IS/ARE NOT addressed in §2 of the TREC 1-4 contract? (Best answer.) A) Common elements,assigned parking areas B) Condominium Declaration and Plat C) None of these are addressed. D) A unit number and building designation

C) None of these are addressed.

What warning is used in §(7) Property Condition of the Unimproved Property and Farm and Ranch contracts that is not in the TREC 1-4? A) The lead-based paint and lead-based paint hazards warning B) Neither of these. C) The warning that buyer should determine the availability of utilities to the Property suitable to satisfy Buyer's needs D) Both of these.

C) The warning that buyer should determine the availability of utilities to the Property suitable to satisfy Buyer's needs

Under §2(B) Improvements, the Farm and Ranch Contract names all of these, except for which of the following? A) Outbuildings B) Windmills C) Weather vanes D) Tanks

C) Weather vanes

Which of these §12 Settlement and Other Expenses subsections is included in the Condo contract but NOT in the TREC 1-4? A) (4) Buyer shall pay any deposits for reserves required at closing by the Association. B) Neither of these. C) (3) Except as provided by 12(A)(4) below, Buyer shall pay any and all Association fees or other charges resulting from the transfer of the Property not to exceed $ and Seller shall pay any excess. D) Both of these.

D) Both of these.

§3(D) Sales Price in the Farm and Ranch Contract adds a significant layer to the sales price equation. §(3)(D) provides an option for which of the following? A) Include livestock in the price of the sale. B) Substitute a third-party financer. C) Exempt any oil, gas, or mineral rights from the sale D) Either adjust or not adjust the sales price according to the survey required under §(6)(C) Survey

D) Either adjust or not adjust the sales price according to the survey required under §(6)(C) Survey

Which of these §(7) Property Condition subsections is not included in both the TREC 1-4 and Farm and Ranch Contracts? A) Environmental Matters B) Residential Service Contracts C) Acceptance of Property Condition D) Government Programs

D) Government Programs

§7 Property Condition (G) is a disclosure specific to New Home contracts, which deals with which of these matters? A) Lead-based paint in new homes B) Flooding C) New home homeowner's associations D) R-value of insulation

D) R-value of insulation

The major difference in §6 between the TREC 1-4 contract and the Condo contract is which of the following? A) Resale Certificate in the Condo contract B) Survey included in the Condo contract C) Resale Certificate in the TREC 1-4 D) Survey included in the TREC 1-4

D) Survey included in the TREC 1-4

The Unimproved Property Contract §(2) Property is quite simplified compared to the others because: A) Neither of these. B) Both of these. C) A street address is all that is required. D) There is no residence or other improvements on the property to be concerned with

D) There is no residence or other improvements on the property to be concerned with