Texas 30-Hour Promulgated Contract Forms with Flex Units
Which of the following types of death, if it occurred on the property, is a required disclosure in Texas?
A death due to a carbon monoxide leak on the property
Abegayle is meeting with her banker to discuss financing 50 acres of unimproved land. Which of the following can she expect?
A larger down payment will be required.
Chin is selling his ranch and has agreed to allow the contract to be adjusted after the effective date of the contract, based on the results of the survey, which has not yet been completed. According to the Farm and Ranch Contract, what is the amount by which the sales price may be adjusted?
A maximum of 10%
Gloria and her client, Estelle, failed to provide the correct TREC-promulgated addendum for coastal property when attempting to sell Estelle's coastal property. What might this oversight result in?
A rescission of the contract
Martina is buying five acres of unimproved land on which to build a home. The property was part of a large family farm for the last 150 years. Which of the following is true?
A substantially larger down payment will be required than if there were structures on the land.
Bill is buying Aamon's property. Should casualty loss occur on the property prior to closing, _____ must restore the property to its original state.
Aamon
What is the unauthorized practice of law in Texas?
Acting outside the scope of one's license; offering legal advice or drafting legal forms
When Dashiell received the purchase offer for his bungalow, he was surprised to see a page added to the contract requesting that an attorney review the contract. What is Dashiell looking at?
Addendum
Your client is selling property that's subject to mandatory membership in the homeowners association. What form should the buyers complete to request more information about the association rules and fees?
Addendum for Property Subject to Mandatory Membership in an Owners Association
Donald and Darlene have just made an offer on a new home. However, they can't purchase the new home until they sell their existing home. Which Texas addendum should be attached to the sales contract?
Addendum for Sale of Other Property by Buyer
The appraisal on Jean's property came in at $22,000 less than the agreed-upon sales price, so the buyer, Thomas, wants to renegotiate the terms. If they can come up with a new price that is satisfactory to both parties, what will they use to document this?
Amendment
Alex's clients want to make a change to the original contract. Which of the following will Alex use to indicate the change?
An amendment form
Where should the Texas Consumer Protection Notice be displayed, if anywhere?
At all of a broker's place(s) of business
It's recommended that the seller and buyer consult with a(n) ______ before signing a contract.
Attorney
When buyers fail to complete the required loan documents by the date specified in the contract, they're considered to ______ the contract.
Be in default of
If any expense exceeds the amount the buyer agreed to pay in the contract, the _________ must go through with the transaction if the seller agrees to pay the difference in cost.
Buyer
Who or what entity pays for the cost of mediation?
Buyer and seller split the cost equally
What are the steps in a proration?
Calculate the daily rate, then multiply rate by the number of days in the proration period.
Your client is selling a condominium. Which of the following forms is your client required to provide to the buyer?
Condominium Resale Certificate
The property section of the One to Four Family Residential Contract references the land's lot and block description. On the Residential Condominium Contract (Resale), what's referenced instead of lot and block?
Condominium unit, building, and condominium project name
Plans, specifications, change orders, and allowances are part of the ______ and should be referenced in the New Home Contract (Incomplete Construction).
Construction documents
In Texas, which of the following forms must be prominently displayed in the office of every inspector and licensed broker?
Consumer Protection Notice
Which one of the following actions constitutes the unauthorized practice of law if performed by a real estate licensee who isn't also a licensed attorney?
Drafting a legal contract using legal language
In which section of the Unimproved Property contract do buyers indicate the amount of earnest money they're putting down?
Earnest Money section
Which term describes a contract that will stand up in court?
Enforceable
Jan is selling her home, but she wants to keep the new refrigerator and the above ground pool. In order to do this, where should they be listed on the One to Four Family Residential Contract (Resale)?
Exclusions
The Graysons just closed on their new home. They move in tomorrow. What type of contract do the Graysons have?
Executed
In Texas, contracts for deed, lease-purchase agreements, and lease-option agreements are referred to as ______ contracts.
Executory
If buyers _________________, they are defaulting on the contract and could lose their earnest money deposit to the seller.
Fail to remove a contingency before closing
Luther has a buyer client who is purchasing a duplex built before 1978 and located in the heart of Texas. The buyer's purchase is contingent upon getting a mortgage loan. Which document must Luther ensure that his client receives from the seller?
Federal lead-based paint disclosure called "Protect Your Family From Lead in Your Home"
You're helping your buyer client, Bertha, complete the sales contract. Bertha would like to move into the house prior to closing if the seller is okay with that arrangement. How will you convey Bertha's request?
Help Bertha complete the Buyer's Temporary Residential Lease form and attach it to the sales contract
What is the purpose of the Addendum for Back-Up Contract?
It allows the seller to contract with two buyers, so that if the first buyer backs out, the back-up buyer moves into first position.
In instances where the buyer isn't requesting subdivision information, but the title company is, who pays to obtain the information per the Addendum for Property Subject to Mandatory Membership in a Property Owners Association?
It depends
June is buying Tom's property in Texas. Who will pay for a roof inspection if June hires an inspector (who charges $300), according to the Property Condition paragraph of the TREC One To Four Family Residential Contract (Resale)?
June
Jonathan, the listing broker, offers a buyer's agent commission to any agent who brings a buyer to his listing. When Jackie decides to buy that house, Jackie's broker will receive part of his commission from Jonathan. Because of this, Jackie will end up paying her broker ______ than she'd originally planned, because the buyer's agent commission fee Jackie originally agreed to pay her broker in their buyer representation agreement will have been partially paid by the listing broker.
Less
Martin is selling his condo to Sheila. A fire has occurred and damaged the unit. Who's responsible for making the repairs?
Martin
Which method of property description is used on the Farm and Ranch Contract?
Metes and bounds
Per the TREC One to Four Family Residential Contract (Resale), which of the following statements about lender-required repairs is true?
Neither party is obligated to pay for lender-required repairs.
Melanie is helping her clients, Steve and Monica, who are purchasing a brand new home. Steve and Monica love their home and its half-acre of property, but wish they'd had a chance to pick out the flooring. Who uses orange shag carpeting anymore? What form should Melanie use to write up Steve and Monica's offer?
New Home Contract (Completed Construction)
Which of the following Texas promulgated forms is most like the TREC New Home Contract (Completed Construction)?
New Home Contract (Incomplete Construction)
Tony has just signed an offer to purchase. The contingency period on his contract begins ______ day(s) after the day it is executed.
One
The time for performing contract contingencies begins __________ the executed date.
One day after
Because there were no deadlines specified in the contract, Myron didn't think there was a problem if he waited to apply for a loan to help purchase the property. He was therefore a little surprised and not very happy when the seller sued him for breach of contract, stating that the delay was impacting the seller's ability to purchase a new home. What did Myron fail to do?
Perform his contractual obligations within a reasonable time.
Before signing the Addendum for Coastal Area Property, which of the following should buyers take into consideration?
Property boundary changes due to moving tide lines
What was the name of the first licensing act in Texas?
Real Estate Dealers License Act
Which type of document is issued by an HOA and is provided by the seller in a transaction?
Resale certificate
Which TREC promulgated form should be used for condominium transactions?
Residential Condominium Contract (Resale)
If a buyer makes an offer that the seller finds lacking, which of the following actions is the seller most likely to take?
Respond with a written counter-offer.
If a licensee doesn't follow TREC rules relating to contract forms, what penalty could TREC enforce?
Revocation or suspension of license
Sellers who choose the ______ option allow the purchaser to make payments on the property and often require a credit report, employment verification, and other financial information, just like a traditional lender.
Seller financing
What is the correct way to list the buyer's name on the Texas sales contract?
Sheila Mae Drew, a single person
In a contract, consideration is the giving of ______.
Something of value in exchange for something of value
Which Texas law requires contracts for real property to be in writing?
Statute of frauds
Koby is a Texas seller who has a recent property survey that he would like to provide to the buyer's lender and title company. Koby swears and notarizes a statement about any changes to the property since the existing survey. What document does Koby use to provide his statement?
T-47 Residential Real Property Affidavit
You represent a Texas seller, Sully, and when he fills out the seller's property disclosure, you notice he says the roof is "new." You can tell the roof is at least 15 years old, if not older, and will need to be replaced soon. What's your responsibility here?
Tell Sully he must complete the disclosure as truthfully as possible, and that if he lies about the roof, you will tell potential buyers the truth (and then do it, if necessary).
What recourse do Texas buyers have under the terms of the TREC One to Four Family Residential Contract (Resale) if a seller is unable to cure the title issues within 15 days after receiving the buyer's list of objections?
Terminate the contract.
Real estate licensees in Texas need to pay attention to updates from what agency, which is responsible for enforcing Texas Fair Housing Law?
The Texas Workforce Commission Civil Rights Division
When a buyer purchases property "as is," which of the following is true?
The buyer can inspect it and still negotiate repairs and treatments.
Per the Notice of Buyer's Termination Contract, which of the following is a reason why a buyer may terminate the contract?
The buyer had the unrestricted right to terminate the contract under Paragraph 5 of the contract.
Per the Addendum for Sale of Other Property by Buyer, what happens if the buyer waives the contingency, but fails to close because of insufficient funds?
The buyer is in default.
Kim's seller just received an offer accompanied by the Texas Addendum for Sale of Other Property by Buyer. What do we know about this transaction?
The buyer may not be able to complete the transaction if their current home doesn't sell.
In Texas, a real estate contract must be for a lawful objective. What does this mean?
The contract must be written for a legal purpose.
In situations where a coastline property owner has been forced to remove their home by the state of Texas because the property is now located on public beach property, who or what entity covers the cost of removal?
The property owner is solely responsible for the cost of removal.
Assessments for rollback taxes are the responsibility of ______ under the New Home Contract (Completed Construction).
The seller
What happens when a Texas buyer who has paid the seller an option fee under the TREC One to Four Family Residential Contract (Resale) terminates the contract during the option period?
The seller keeps the option fee, and the buyer gets the earnest money back.
What is a possibility for buyers who include a lot of contingencies in their contract offer for a property?
Their offer is less likely to get accepted.
What is one major difference between condominiums and townhomes?
They each have different forms of ownership.
Your Texas seller clients, the Clarks, want to change the closing date on their executed sales contract. How can they do this?
They must use the TREC-promulgated Amendment form.
Which section of the TREC One to Four Family Residential Contract (Resale) identifies the party who will pay for title insurance and the extent of the policy coverage?
Title Policy and Survey section
What is the purpose of TAR's Release of Earnest Money form?
To disburse earnest money and release all parties from their contract liabilities
What's the purpose of the E-Sign Act?
To identify what can be used as an electronic signature
What is the correct way to use an addendum to a Texas contract?
When you want to make an addition to an existing contract
In the TREC One To Four Family Residential Contract (Resale), the Title Policy paragraph has checkboxes to indicate which of the following?
Whether the seller or the buyer will pay for the title policy
An enforceable contract is one that ______.
Will stand up in court
Sameen and Mohammed apply to rent an apartment in a six-plex in the middle of Houston. Bob, the landlord, thinks they're probably Muslim, and doesn't want to upset the other tenants, so he lies and tells the applicants that he's just filled the vacancy. Has Bob just violated the fair housing laws?
Yes, and Bob could be penalized by the Texas Workforce Commission Civil Rights Division.
The Texas Broker-Lawyer Committee contains different types of members appointed by different parties. How many lawyers does the governor appoint to this committee?
Zero
Which of the following actions is a violation of TREC rules regarding addenda?
Writing something in the Special Provisions of a TREC contract if there is a TREC addendum form that can be used
Are immigrants to the United States covered under federal fair housing laws?
Yes, regardless of immigration or resident status
Stan was unable to obtain financing from his lender for the property he was hoping to buy. Which of the following reasons should Stan check on the Notice of Buyer's Termination Contract for having to terminate the contract?
"Buyer cannot obtain Buyer Approval in accordance with the Third Party Financing Addendum to the contract."
Ahmed is selling his three-bedroom home to Ruth. Under the terms of their agreement, he must replace the roof, which was damaged in a severe thunderstorm. At the walk-through just before closing, Ruth learns he hasn't yet done this. She loves the house, though, and isn't interested in "making him pay"—she just wants the roof replaced. In this case, which of the following remedies could Ruth pursue?
Sue him for specific performance.
Kimmy's buyer clients want the seller to leave behind the workbench that is in the basement—something that was not originally identified as an inclusion in the original Texas sales contract. Which of the following will Kimmy use to indicate the change?
A TREC-promulgated addendum form
What's an addendum in Texas?
A document that describes additions to the scope (or the terms) of a contract
Texas residents Eli and Carol are buying a home built in 1964. What addendum is required by federal law?
Addendum for Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards
Ryan is a buyer who would like to make his offer attractive to the seller. Which of the following would show his sincere intention to purchase the property?
An earnest money deposit
If the sellers don't reserve all of their interest in the mineral estate, the sellers have ______ days after the effective date of the contract to provide the buyer with the contact information of any existing mineral lessee known to the seller.
Seven
Archie is behind in his mortgage payments. He wants to sell his house and get out from under the loan. You agree to help Archie list his property. Which TREC addendum will you and Archie need to complete and attach to the sales contract?
Short Sale Addendum
You represent Sue, who is making an offer on a new home, and she tells you that she must sell her current home before she'll have enough funds to purchase the new home. Besides the TREC One To Four Family Residential Contract (Resale), which form should she complete?
Addendum for Sale of Other Property by Buyer
Valerie is selling her home, which was built in 1947. Which Texas addendum is she required to provide to all prospective buyers?
Addendum for Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards
Which of the following is a financing option listed on the Third Party Financing addendum?
FHA-insured
The New Home Contract (Completed Construction) doesn't contain ______ in the property section, which is a key difference between this contract and the One to Four Family Residential Contract.
Improvements, accessories, or exclusions
Allison is helping her buyer complete a Seller Financing Addendum to a Texas sales contract. Where should she put that the buyer needs a $40,000 loan at a 6% fixed rate from the seller to be paid back in 120 monthly payments?
In the Promissory Note paragraph
Maura is representing three buyer clients and there is only room enough in the Parties section of the TREC One To Four Family Residential Contract (Resale) to list two of the three names. Where should she note the name of the third buyer?
In the Special Provisions section
The statute of frauds requires any contract for real property to be ______.
In writing
A legally competent party means that an individual has the capacity, legally and ______, to enter into a contract.
Mentally
Jerimiah and his wife Camille are expecting their third child. They're shopping around the Austin area for a two-bedroom, two-bathroom apartment. Are there any occupancy regulations in Texas that would prohibit this from happening?
No, Jerimiah and Camille are within the occupancy standards established under Texas law.
What's the purpose of the Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners Association form?
To provide information about the property owners association fees, rules of governance, issues, and finances
Vanessa just received two offers for a Texas listing. One is $15,000 below the asking price, and one is for the asking price. Vanessa's client, Nevaeh, has asked her in writing to not present offers that are more than $10,000 below the asking price. What should Vanessa do?
Vanessa should submit only the offer that meets Nevaeh's request.
You discover that there's a registered sex offender in the neighborhood and decide to disclose this information to your client. Are you breaking the law?
No, revealing this information isn't prohibited, but neither is it required. You should follow your brokerage's policy on the matter.
When the parties couldn't mutually decide how to disperse the earnest money after a contract terminated, buyer Kevin sent the escrow agent a written request to return the earnest money to him. What should the escrow agent do next?
Send a copy of Kevin's request to the seller
Lloyd thinks he has purchased an investment property, but the seller refuses to deliver the title to him. Lloyd has met all of his obligations per the written contract that he and the seller signed. He decides to take the seller to court in an effort to force her to hand over the title. Of what is this an example?
Suing for specific performance
