Promulgated Contract Forms
When a buyer purchases a condominium they are buying the:
Airspace between the walls
When the parties agree to change or revise a contract the proper form to use is the:
Amendment
In the 1-4 Family Residential Contract, any party to the contract wrongfully fails to sign a release acceptable to the escrow agent within 7 days of receipt of the request will be liable to the other party for liquidated damages in the amount of all
Any expenses the title company incurred related to holding the earnest money
What should be entered in paragraph 11 Special Provisions?
Only factual statements and business details about the sale
If a Buyer wants the Seller to pay some or all of their closing costs, it should be added to the contract in:
Paragraph #12 - Seller participation in the Buyer's costs
Paragraph 23 'termination option' of the TREC 1-4 Family Residential Contract:
Requires a fee for a specified period of time
In Texas, dual agency has been replaced with Intermediary
True
It is considered illegal for a contract to include any discriminatory provisions.
True
Steering is illegal and is described as channeling a minority to or away from an area to change the character of the neighborhood.
True
The TREC PROMULGATED CONTRACT FORMS are drafted by the Broker Lawyer Committee
True
The TREC promulgated Seller Financing Addendum states that if a Seller determines at Seller's sole discretion that the buyer's credit is unacceptable, the Seller may terminate the contract and return the earnest money to the buyer.
True
The sales price is determined in paragraph 3 by adding the down payment and the loan amount.
True
If the option money is not delivered to the proper party within the proper timeframe what is the status of the contract?
Valid - But, the buyer shall not have the unrestricted right to terminate this contract
If the seller fails to provide the buyer with the sellers disclosure of property condition as required by Section 5.008 of the Texas property code what is the status of the purchase contract?
Voidable
If a buyer is concerned about the presence of endangered species, toxic substances or wetlands on a property, the agent should:
add the environmental assessment addendum to the contract
A document that transfers contract obligations to another party but does NOT release the first party's obligation is:
an assignment
A sales contract in which a promise is exchanged for a promise is:
bilateral
An agent would use the same contract for new construction no matter if it was completed or incomplete.
false
If a home is to be sold, with lender's consent, at a price less than the outstanding balance on a mortgage, the sale is known as:
short sale
Who is responsible for filling in the effective day in the contract?
the broker
How long does a buyer have to object to defects, exceptions and encumbrances to title disclosed in the survey and the title commitment?
the negotiated days stated in contract
A voluntary dispute resolution is called litigation
False
An expressed agency cannot be orally agreed but must be in writing.
False
Per Paragraph #16 of the Residential Contract (Mediation), If a buyer and/or seller agrees to mediate, they are giving up their right to pursue relief through the courts.
False
Regarding mediation - the Buyer and Seller are obligated under the terms of the Residential contract to abide by the ruling of the mediator.
False
The Seller must notify the Buyer to have the abstract of title examined by an attorney or obtain a policy of title insurance.
False
All written notices between the parties are effective when:
A) Mailed B) Hand delivered C) faxed or emailed
A Back-Up contract to an existing contract can be terminated at any time under the termination option paragraph:
A) Only if option money has been submitted to the seller at the time the Back-up contract is signed and agreed by all parties B) It has not moved to primary position, at which time the number of days in paragraph 23 (Option paragraph) dictates the 'time is of the essence' C) The Back-Up Addendum form is attached to the contract
The Information About Brokerage Services (IBS) states the broker may represent the:
A) Owner B) Buyer C) Both owner and buyer as intermediary
Federal Fair Housing Laws forbids discriminatory practices by parties including:
A) Owners of properties B) Lenders C) Real estate broker
ttachments required in a Resale Certificate for Property Subject to Mandatory Membership in an Owner's Association includes:
A) Restrictions B) Current operating budget C) Rules and bylaws
In the event of the seller's default, the buyer may do any of the following
A) Terminate the contract B) Enforce specific performance C) Seek such relief as provided by law
If a contract is amended, copies of the amendment should go to:
A) The title company B) The lender C) Both buyer's agent and listing agent
The financing paragraph will be used to indicate:
A) Third party financing B) Assumption C) Seller financing
Use of the TREC promulgated One to Four Family Residential Contract (resale) is allowed on the sale of a residential condominium.
False
Per paragraph 9 (Closing) what type of deed is called for in a standard residential sale?
General warranty deed
Property approval, according to paragraph 7 of the one - four family contract includes;
If the property does not satisfy the lenders underwriting requirements for the loan, buyer may terminate this contract.
Which form informs the customer or client how agents represent consumers of real estate services?
Information About Brokerage Services (IABS)
Any changes to the original contract once it is finalized and receipted must be done:
On an amendment
Fraud is defined as a deliberate act of deception made for personal gain or to damage another individual.
True
If the property is subject to mandatory membership in an HOA, subdivision information means:
A) a current copy of restrictions apply into the subdivision and bylaws and rules of Association B) a resale certificate, all of which are described by section 207.003 of the Texas property code C) restrictions
How many resale certificates are currently promulgated by TREC?
2
The Condominium Resale Certificate called for in paragraph 2 of the TREC Residential Condominium Contract (Resale) must have been prepared no more than _________ before the date it is delivered to the buyer.
3 months
In Paragraph 3 of the One to Four Family Residential Contract (Resale), now includes the financing addendum options previously in Paragraph ____.
4
If a Seller is to remain in the property after closing:
A Seller's Temporary Lease Form promulgated by TREC should be completed and signed by buyer and seller and attached to the contract
The Non-Realty Items addendum form for transfer of personal property can include the following EXCEPT:
A warranty and guarantee from the seller that the items are in working condition
In Paragraph 3 of the One to Four Family Residential Contract (Resale), now includes the financing addendum options previously in Paragraph ____.
A) 4
Which addendum warns buyers that Texas may have the right to take their property?
A) Addendum for Property located Seaward of the Gulf Intercoastal Waterway B) Addendum for Coastal Area Propert
Addendum warns buyers that Texas may have the right to take their property?
A) Addendum for Property located Seaward of the Gulf Intercoastal Waterway B) Addendum for Coastal Area Property
A contractual agreement in which each party agrees to perform or forbear in exchange for the other party's promise to perform or forebear.
Bilateral Contract
Nonperformance of the legal terms of a valid contract.
Breach
What is the legal proceedings brought by party to a contract against another party to compel action call forth in the agreement?
Breach of contract
Brokerage Fee splits are agreement between the?
Broker to Broker
The Texas Real Estate Commission (promulgates an addendum to be used in a short sale. This Short Sale Addendum is to be signed by:
Buyer and seller
Once a contract is finalized and receipted it:
Can be amended multiple times if all parties agree
The disclosure of relationship with a residential service company requires disclosure of:
Compensation to the Broker
A party who has legal capacity to enter into a binding contract.
Competent Party
Your buyers have signed a contract to buy a new home. The contract is subject to the sale of their present home. This is called a:
Contingency
In a contract to purchase real property, what is the name of the clause that states that the buyer will NOT be held responsible to complete the purchase if the buyer cannot obtain sufficient financing?
Contingency clause
Which form must be displayed in the residential brokers office?
Equal Housing Opportunity Poster
For a Broker to act as Intermediary in a transaction, it requires written consent from only one of the parties.
FALSE
Paragraph 4 (Financing) in the 1-4 Family Residential Contract is also used for cash transactions.
FALSE
Per Paragraph #16 of the Residential Contract (Mediation), If a buyer and/or seller agrees to mediate, they are giving up their right to pursue relief through the courts.
FALSE
There are no promulgated forms for a lease for temporary occupancy for a buyer prior to closing.
FALSE
On the Seller's default, what should happen to the earnest money?
It should be returned to the Buyer
When a 'fixture' in a property does not remain for the buyer, how do we inform the buyer of that fact and make sure the item does not convey with the property?
List the item on the 'Residential Contract'
Failure on the part of the broker/sales associate to advise the purchaser in writing to have an abstract of title examined by an attorney or obtain a title insurance policy:
May be cause to have the agent's license suspended or revoked, and precludes receiving any commissions or agreed fees associated with the sale.
If a bonus is offered by an owner or an owner's agent, Buyer's broker:
May retain the additional compensation
Can a party accept earnest money as liquidated damages and also sue the third party for specific performance?
No
What form is used if the buyer wants the seller to leave the refrigerator with the home after closing?
Non-Reality Items addendum
The biggest majority of lawsuits come from the issue of:
Non-disclosure
If a buyer elects 8-B (No Intermediary Status), in the Residential Buyer/Tenant Representation Agreement, the client will:
Not be shown any of the broker's listings
Which form is used for the owner to tell the buyer about known problems with the property?
Sellers disclosure of property condition
The law that requires the contract to be in writing and signed by the parties is the:
Statute of Frauds
Brokers fees are mentioined in the 1-4 Family Residential Contract (resale) between the Buyer and the Seller.
TRUE
If a Buyer checks item 7D(2) under Property Condition, the buyer can only ask for specific repairs, and cannot use general terms such as subject to inspection.
TRUE
The Residential Condominium Contract allows a limit to the amount a Buyer will pay for Association transfer fees.
TRUE
The TREC promulgated Seller Financing Addendum states that if the buyer does not furnish the required qualifying documentation with the time limit allowed, Seller may terminate the contract and keep the earnest money.
TRUE
When completing the finance portion of the contract, the number of days you select to get the buyer's loan approved should not exceed:
The closing date
If there is an existing survey on the property, what does the seller take to the title company and the lender?
The existing survey and a notarized affidavit stating if there have been any changes in the survey since the time the existing survey was completed
According to the TREC 1-4 Residential Contract (Resale), who is responsible for paying the owner policy of title insurance fee?
The party stipulated in the contract
If the seller is financing the sale, the mortgagees Title policy will protect:
The seller
The Seller contracts to furnish the buyer an existing survey, but neglects to furnish an 'affidavit' with the time specified. The lender requests a new survey be furnished. Who pays for the new survey?
The seller
A suit for specific performance is:
To force either the buyer or the seller to perform on the terms of the contract
An agent is required by law to cover the agency relationships described in the Information About Brokerage Services.
True
Brokers fees are mentioined in the 1-4 Family Residential Contract (resale) between the Buyer and the Seller.
True
During the option period in the 1-4 Family Residential Contract (resale), the Buyer has the unrestricted right to terminate the contract if they find a different house they would like to buy.
True
FHA loans are government insured. VA loans are guaranteed by the government.
True
How does the Texas Real Estate License Act define the first face-to-face meeting with required agency disclosure?
When a substantive dialogue about a specific real property occurs
The 'effective date' of the contract is:
When the last person signs and initials all changes
If there is no time limit specified in an offer, then the time will expire:
Within a reasonable time