RealEstateU- Texas Promulgated Contract Forms
If a buyer is providing a down payment of $50,000, and is obtaining a loan from a bank in the amount of $175,000, what is the purchase price of the property...?
$225,000
A buyer needs to obtain a loan to purchase a $320,000 house. If the lender is willing to loan at an 80% LTV, how much of a down payment must the buyer put down?
$64,000
How many members of the public are appointed to the Broker/Lawyers Committee by State Governor?
1
The names of the parties are included in paragraph ______ of the promulgated sales contract
1
Veterans are allowed to have how many VA loans at any given time...?
1
What is an addendum?
Additional pages of material that are added to and become part of a contract
Which of the following may be used as an alternative to novation?
Amend the existing contract
If a buyer is obtaining a conventional mortgage, they must include which of the following information on the TREC Third Party Financing Addendum?
Amount of the loan, interest rate of the loan, term of the loan
The One to Four Family Residential Contract- Resale is NOT used for which of the following properties?
Condominiums
Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or stipulating certain uses or non-uses of the property are known as...?
Covenants
A real estate brokers are allowed to give legal advice while real estate salespersons are not.
False
A real estate salesperson is allowed to provide legal advice to client if it is in the best interest of the client?
False
An earnest money deposit is required in all residential transactions
False
Which of the following are considered improvements to a property?
Fences, a shed, a garage
John Doe is an unmarried individual who is buying his first house. How should John's name be listed on the purchase contract
John Doe, An Unmarried Person
Which of the following real estate contracts does not have to be in writing?
Leases under one year
Which of the following is an example of a bilateral contract?
Listing contract, sales contract, and independent contractor agreement
In order to be considered a competent party, an individual must be of the age of the?
Majority
A promulgated form means the use of the form is?
Mandatory
Which of the following is an example of consideration?
Money, personal services, cash
If one of the parties to a contract does not voluntarily agree to the contract, this element of valid contract is violated?
Mutual agreement
A contract in which there is fraud by either commission or omission is voidable by the?
Non-fraudulent party
Which of the following refers to a right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right...?
Option
A person who receives an option is known as the?
Optionee
A person who gives an option is known as the?
Optionor
Which of the following is an example of a forbearance contract?
Options contract
Real estate professionals must use ______ of any promulgated forms?
The most current version
What does an agent first need from the seller when preparing a contract?
The name of the seller(s) as listed on the deed
Restrictive covenants are written into what document?
The property's deed
The "excluded fixtures and accessories" section of the contract is completed by which of the following parties?
The seller
When preparing a contract, where should the agent look to find the name of the seller(s)?
The sellers title policy
What is novation?
The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties
If a buyer is looking to purchase a property with the help of a Texas Veterans loan, which of the following must in included with the purchase contract?
Third Party Financing Addendum
Paragraph 6E of the One to Four Family Residential Contract- Resale describes which of the following?
Title notices
According to paragraph 6E, the seller shall provide the buyer with either an abstract of title or?
Title policy
A real estate agent cannot pay for a lawyer to act on behalf of his/her client?
True
Reverse mortgage financing is primarily used for owner-occupied residences...?
True
The title company used in a transaction must be agreed upon by both the buyer and the seller?
True
Money, or other things of value, that a real estate agent receives on behalf of the principal or any other person involved in a transaction is known as...?
Trust funds
A real estate agent who gives legal advice to a client is in violation of the?
Unauthorized practice of law
An options contract is an example of a/an?
Unilateral contract
When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it, it is referred to as a?
Unilateral contract
If a property is not located within a city, what should be included in the legal description of the property on the purchase contract?
Unincorporated
To have no force or effect is referred to as a .......... contract?
Void
That which is capable of being adjusted void, but is not unless action is taken to make it so, is referred to as a/an ............ contract?
Voidable
A contract in which one of the parties is a minor is considered a
Voidable contract
When does an offer become a valid contract?
When all essential elements of a contract are met
Who approves the contract forms drafted by the Broker/Lawyer Committee...?
TREC
If a buyer is purchasing a property involving the assumption of an existing loan, which of the following documents must be included with the purchase contract...?
TREC Loan Assumption
If a buyer is purchasing a property with the help of seller financing, what must be included with the purchase contract...?
TREC Seller Financing Addendum
If the buyer will occupy the property prior to closing, what needs to be included with the sales contract...?
Temporary Lease
Which of the following is responsible for issuing real estate licenses in Texas?
Texas Real Estate Commission
The Texas Real Estate Commission was created to administer which of the following?
Texas Real Estate License Act
Which of the following describes how a contract becomes a promulgated form?
Texas Real Estate License Act
Which of the following appoints 6 of the members to the Broker/Lawyer Committee?
Texas State Bar
Which part of a sales contract most leaves an agent liable for the unauthorized practice of law?
Special Provisions
Which of the following addenda must a veteran complete when purchasing a new home with a VA loan when they already have an outstanding VA loan...?
Addendum For Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement
Broker Lawyer Committee is comprised of ______ members?
13
The Texas Real Estate Commission was created in what year?
1949
Improvements and accessories that the seller would like to retain should be listed in paragraph ______ of the One to Four Family Residential Contract- Resale?
2D
The buyer loses their right to a termination option if they fail to provide the options money within how many days of the effective date of the contract...?
3
Reverse mortgage financing is typically reserved for borrowers over the age of...?
62
The title policy for a property is discussed in paragraph ........of the One to Four Family Residential Contract - Resale
6A
A buyers objections to defects or encumbrances to title are described in which paragraph?
6D
What is an amendment?
A change in a legal document made by adding, altering, or omitting a certain part or term
What is the Statue of Limitations?
A law establishing the time period within which certain lawsuits may be brought
A prospective buyer decides to rescind their offer before the seller responds, the prospective buyer should submit which of the following?
A termination
What is an assingment?
A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract
What is Breach of Contract?
A violation of any of the terms or conditions of a contract without legal reason.
ABC Corporation is purchasing a residential property in Houston. How should the corporation's name appear on the purchase contract?
ABC Corporation, a Texas Corporation
A summary or digest of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title is known as a?
Abstract of title
When filling out a pre-printed form, a real estate agent cannot do which of the following?
Add sections to the form, strike-out sections of the form, sign on behalf of the principal
A ________ is submitted by a prospective buyer who wants the right of first refusal is the event the current buyer backs our of the contract during the options period?
Back-up offer
A contract in which each party promises to do something is referred to as a
Bilateral contract
A real estate agent should advise their client that any contract they sign is?
Binding
A valid contract must be ______ and enforceable?
Binding
Since a title policy is a contract, it is?
Binding and enforceable
A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the?
Statute of Frauds
A down payment made by a purchaser of real estate as evidence of good faith is referred to as...?
Earnest money
Which of the following acts as liquidated damages if the buyer defaults on the purchase contract...?
Earnest money
Who pays for the title policy stated in the purchase contract?
Either the buyer or seller, whatever is agreed upon
A buyer has _____ during the options period?
Equitable title to the property
An assignment can occur when a contract is?
Executory
According to TREC, an offer received by an agent must be presented to the the pricipal?
Immediately
The loan amount in reverse mortgage ____ over time?
Increase
Any changes to a contract must be?
Initialed by all parties
Which of the following is an example of a termination of a contract...?Substantial performance
Substantial performance, Partial performance, Impossibility of performance
Marcus has entered into a contract to purchase a new house. What will Marcus do during the options period to ensure the property is in the proper condition?
Perform his due diligence
The execution of a contract by which the contracting parties are automatically discharged of their obligations under it is known as...?
Performance
According to TREC, a real estate licensee may not do which of the following?
Practice law, give legal advice, discourage a client from hiring a lawyer
Paragraph 7 of the One to Four Family Residential Contract Resale describes which of the following?
Property Condition
Which of the following prohibits the seller from requiring a specific title company as a condition of the sale?
RESPA
A home warranty is also known as a?
Residential Service Contract
The Texas Real Estate Commission is responsible for regulating which of the following?
Residential service companies, real estate inspectors, real estate brokers
Rules regarding pets in a subdivision are included under which of the following?
Restrictive Covenants
Which of the following would not fall under the unauthorized practice of law?
Revealing material facts about the property
According to TRELA, a salesperson's license may be suspended or ________ for the unauthorized practice of law?
Revoked
Which of the following is included in the legal description of a property?
Section number, lot number, block number
Where can an agent search to find the legal description of a property?
The appraisal district's website
If the seller does not specify improvements and accessories to be excluded from the sale of the property, which of the following will claim ownership of the these items?
The buyer