Texas Promulgated Forms
Which of the following is a TREC promulgated contract?
The answer is Residential Condominium Contract. The Residential Condominium Contract is one of six TREC promulgated contracts.
Which of the following would NOT be considered a competent party?
The answer is a 30-year-old attorney under the influence of marijuana at the time she entered into an agreement. A competent party is a person who is at least 18 years old, sane, and sober.
Which of the following is a TREC promulgated form?
Addendum for Sale of Other Property by Buyer. The Addendum for Sale of Other Property by Buyer is a TREC promulgated addendum; the other choices are TREC approved forms.
Which of these promulgated forms does NOT include "time is of the essence"?
Loan Assumption Addendum. The six promulgated contract forms and four addenda include "time is of the essence": Addendum for Sale of Other Property by Buyer, Addendum for Back-Up Contract, Third Party Financing Addendum, and Short Sale Addendum.
Why is the marital status of the parties required to be disclosed in the TREC One to Four Family Residential Contract?
because Texas is a community property state. Although Texas is a community property state, a married person can buy or sell separate property in Texas. Marital status is merely a disclosure in paragraph 1.
Which of the following is NOT a promulgated TREC form?
bill of sale. A bill of sale transfers personal property rights. TREC only governs real property rights.
An offer to purchase by a potential buyer is considered accepted when the
buyer is notified that the seller has accepted the offer. In today's electronic world, there may be a question as to when an acceptance, rejection, or counteroffer has been made and accepted. A standard contract may state that electronic transmissions are valid.
Who receives the earnest money if the buyer terminates the contract because of lender required repairs under the One to Four Family Residential Contract?
buyer. If there are lender-required repairs and neither party agrees to do them, the contract may be terminated by the buyer and the buyer will receive the earnest money. Previous Next Go to Summary
A contract can be discharged or terminated
by impossibility of performance. Impossibility of performance means that an act required by the contract cannot be legally accomplished. For example, suppose a contract stipulates that a buyer must be able to park his RV in the driveway of the property. After research, it is determined that deed restrictions prohibit that action.
Which of the following is NOT a TREC promulgated contract?
contract for deed. The other forms mentioned are three of the six promulgated contracts.
In Texas, the statute of limitations is four years for
contract for the sale of real estate. In Texas, the statute of limitations for filing a legal suit on a written contract is four years. Remember that the statute of frauds requires agreements affecting title to or interest in real estate in Texas to be in writing to be enforceable, so the statute of limitations on a contract for the sale of real estate is four years.
What does the Broker-Lawyer Committee do?
drafts contracts. The Broker-Lawyer Committee develops forms and recommends their adoption, but it is the TREC that promulgates the forms for mandatory use.
Which of the following is FALSE regarding earnest money?
earnest money is necessary to bind the contract. Earnest money is not necessary to bind the contract. The promise of the purchaser to buy and the promise of the seller to deliver title are adequate consideration to create a legally binding executory contract.
Why is earnest money necessary to bind the contract in Texas?
earnest money is not necessary to bind the contract. Earnest money is not necessary to bind the contract. The promise of the purchaser to buy and the promise of the seller to deliver title are adequate consideration to create a legally binding contract.
Once a sales contract is completed with all parties fulfilling their promises, the ownership changing hands, and the seller receiving the sales price amount, the sales contract is a(n)
executed contract. At closing, after the seller has conveyed the property to the buyer and the seller has received the sales price amount, the contract is considered an executed contract.
In Texas, the statute of limitations is two years for
oral contracts for a lease of less than one year. Under the statute of frauds, leases for one year or less do not have to be in writing. An oral contract for the lease of a property for one year or less has a statute of limitation of two years.
Property approval, according to paragraph B2 in the Third Party Financing Addendum, includes
ANSWER IS all of these. insurability. the appraisal. lender-required repairs.
Which of the following is required for a valid contract?
The answer is consideration. Consideration is something of legal value offered by one party and accepted by another as an inducement to perform or to refrain from performing some act. Anything that has been bargained for and exchanged is legally sufficient to satisfy the requirement for consideration.
How many members are on the Broker-Lawyer Committee?
13. The committee is composed of 6 Real Estate Commission appointees (who are licensed real estate brokers) and 6 lawyers, appointed by the president of the State Bar of Texas, and 1 public member, appointed by the governor. They serve staggered six-year terms.
Which of the following forms of advice can a licensee give to an unrepresented buyer?
advice on having the abstract examined by an attorney. The TRELA specifically prohibits licensees from practicing law by giving opinions or counsel regarding the validity or legal sufficiency of an instrument that addresses real property rights or as to the status of title to real estate. Throughout the act, it is clearly established that, prior to signing a purchase contract, the licensee must give a buyer written advice to have the abstract covering the property examined by an attorney of the buyer's selection or to obtain an owner's title insurance policy prior to closing. Failure to do so may result in disciplinary action by the TREC.
What law specifically prohibits licensees from practicing law?
Texas Real Estate Licensing Act (TRELA). The TRELA specifically prohibits licensees from practicing law.
Who holds the earnest money while a contract is pending under the TREC One to Four Family Residential Contract?
the escrow officer. Paragraph 5 names the escrow officer and the amount paid by the buyer for earnest money.
Using the TREC One to Four Family Residential Contract, the buyer submits an offer to purchase the seller's property and pays earnest money of $1,000 in paragraph 5. The agent forgets to deposit the earnest money with the escrow officer. The seller accepts the offer in writing by signing the contract and the acceptance is communicated to the buyer. Is there a binding contract?
yes, because the buyer promised to buy the property and the seller promised to deliver title at closing. Earnest money is not necessary to bind the contract. The promise of the purchaser to buy and the promise of the seller to deliver title are adequate consideration to create a legally binding executory contract.
Using the TREC One to Four Family Residential Contract, the buyer submits an offer to purchase the seller's property and promises to pay earnest money of $500 in paragraph 5. The seller accepts the offer in writing by signing the contract and the acceptance is communicated to the buyer. Is there a binding contract?
yes, because the buyer promised to purchase the property and the seller promised to give the buyer title at closing. Earnest money is not necessary to bind the contract. The promise of the purchaser to buy and the promise of the seller to deliver title are adequate consideration to create a legally binding executory contract.
If the offer is acceptable to the seller, the offer is signed and dated and returned to the buyer. It is now a contract for sale. If the offer is rejected, the offer is returned to the buyer marked
"rejected." The offer should be returned and marked as rejected by the seller to let the buyer know that the seller did not accept the offer.
If parties to a real estate contract in Texas are held to very strict deadlines for performance, the contract likely includes the phrase
"time is of the essence." Courts must hold the parties to exact performance within the time specified when "time is of the essence."
A buyer wishes to submit a small earnest money check up front ($100), and then deposit $500 after the 10-day option period expires. What should be inserted in paragraph 5 of the TREC One to Four Family Residential Contract?
$100 in the first blank, $500 in the fourth blank, and 11 in the blank before "days." Paragraph 5 spells out clearly the blanks to be filled in if additional earnest money is necessary.
Which of these addenda does NOT include "time is of the essence"?
Addendum for Coastal Area Property. The six promulgated contract forms and four addenda include time is of the essence: Addendum for Sale of Other Property by Buyer, Addendum for Back-Up Contract, Third Party Financing Addendum, and Short Sale Addendum.
Which of the following committees is responsible for drafting and revising contract forms?
Broker-Lawyer Committee. The Broker-Lawyer Committee drafts and revises contract forms for use by real estate licensees. The purpose is to expedite real estate transactions and reduce controversies while protecting the interests of the parties involved.
Using the One to Four Family Residential Contract, the sellers must provide which of the following documents along with the existing survey if they wish to rely on an existing survey of the property?
Residential Real Property Affidavit. If the seller wants to furnish the existing survey, the contract also calls for the seller to furnish the buyer with a Residential Real Property Affidavit.
Which of the following is NOT a TREC promulgated addendum?
Reverse Mortgage Financing Addendum. The Reverse Mortgage Financing Addendum is not a TREC promulgated addendum; it was approved for voluntary use for a time but no longer exists.
If a seller gave a letter to the listing agent with instructions not to deliver any offers for less than $250,000 and the listing agent receives an offer for $249,500, should he deliver it?
TREC allows the listing agent to reject this offer because the seller has given written approval. The TREC permits licensees to reject an offer if they have instructions in writing from the client, but it might be wise for listing agents to present all offers to limit their liability.
When a contract contains all of the essential elements that make it legally sufficient or enforceable and is binding in a court of law, it is
The answer is valid. A valid contract meets all of the required essential elements (i.e., offer and acceptance, consideration, legal purpose, consent, and legal capacity).
What is the intent of the option period under paragraph 23 of the TREC One to Four Family Residential Contract?
To allow the buyers to do their due diligence. Buyers can get inspections, insurance, and anything else they need to verify within the negotiated option days. If they want to sell an existing house, they should use the addendum for sale of other property.
The statute of limitations is four years for which of the following?
a contract for the sale of real estate. In Texas, the statute of limitations for filing a legal suit on a written contract is four years. Remember that the statute of frauds requires agreements affecting title to or interest in real estate in Texas to be in writing to be enforceable, so the statute of limitations on a contract for the sale of real estate is four years. Under the statute of frauds, leases for one year or less do not have to be in writing. An oral contract for the lease of a property for one year or less has a statute of limitation of two years.
Using the TREC One to Four Family Residential Contract, buyer and seller agree that buyer will purchase seller's property and seller will pay to have the fuse box replaced. Who may do the repair work?
a licensed electrician. Under the TREC contract, repairs and treatments must be performed by persons who are licensed to provide such repairs or treatments or, if no license is required by law, are commercially engaged in the trade of providing such repairs or treatments.
The Statutory Tax District Notice in paragraph 6 of the One to Four Family Residential Contract applies to which of the following?
a utility district that provides water services. The statutory tax district notice in paragraph 6E(3) provides as follows: if the property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 49, Texas Water Code, requires seller to deliver and buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to final execution of this contract.
Once presented an offer from a prospective buyer, the seller can do any of the following EXCEPT
accept it after making a counteroffer. A counteroffer is a rejection of the initial offer. The initial offer no longer exists; therefore, it can no longer be accepted.
An offer or counteroffer may be withdrawn at any time before it has been
accepted. This is often a point of confusion when either the buyer or seller has made a counteroffer that has not been accepted and the offering party wishes to withdraw the counter.
An addendum is
additional information given in the offer. An addendum is any additional material that is part of the original agreement. If an addendum is needed, it is ideal to have it added to the original contract form during the offer stage.
According to the Texas Real Estate License Act, which of the following requires that a licensee be a practicing attorney?
advising a person regarding the validity of title to real property. TRELA Section 1101.654 states that "The commission shall suspend or revoke the license or certificate of registration of a license or certificate holder who is not a licensed attorney in this state and who, for consideration, a reward, or in a pecuniary benefit, present or anticipated, direct or indirect, or in connection with the person's employment, agency, or fiduciary relationship as a license or certificate holder...advises a person regarding the validity or legal sufficiency of an instrument or the validity of title to real property."
A contract is classified as bilateral if
all parties to the contract exchange binding promises. A contract is said to be bilateral if both parties to the agreement make promises to each other to do something (promise for a promise).
A contract is said to be bilateral if
all parties to the contract exchange binding promises. Bilateral mean that each of the parties agrees to give something (i.e., buyer and seller, seller and listing broker, landlord and tenant).
Buyer must object not later than the closing date or within how many days after receiving the commitment, exception documents, and the survey?
an agreed-upon number.
Which of the following is TRUE regarding amendments and addenda?
an amendment is completed after a contract has been executed, but addenda are completed at the same time as the sales contract. An amendment is a change or modification to the existing content of a contract, and an addendum contains additional information that is part of the original contract/agreement.
If the property is located outside the limits of a municipality, which notice in paragraph 6 of the One to Four Family Residential Contract provides notice about the extraterritorial jurisdiction of the municipality?
annexation. The remaining answers apply to other issues or are not an identified notice under paragraph 6E.
A buyer and seller enter into a contract for the sale of a four-bedroom home. If either party defaults under the contract, the other party has how much time to file a lawsuit for damages?
four years. In Texas, the statute of limitations for filing a legal suit on a written contract is four years. Remember that the statute of frauds requires agreements affecting title to or interest in real estate in Texas to be in writing to be enforceable, so the statute of limitations on a contract for the sale of real estate is four years.
The statute of limitations for a written contract for the sale of real estate in Texas is
four years. In Texas, the statute of limitations for filing a legal suit on a written contract is four years. Remember that the statute of frauds requires agreements affecting title to or interest in real estate in Texas to be in writing to be enforceable, so the statute of limitations on a contract for the sale of real estate is four years.
In the Earnest Money paragraph, the One to Four Family Residential Contract
gives the parties the option to negotiate for the buyer to pay the earnest money in two installments. In the Earnest Money paragraph, the blanks calling for additional earnest money can be used when the buyer is unable to make the full desired deposit at the time of signing the agreement.
A buyer enters into a contract with a seller using the TREC One to Four Family Residential Contract. He submits a small earnest money check upfront ($100), and wants to submit more earnest money when his certificate of deposit matures in five days. What should he do?
indicate that he will deposit $100 upon execution of the contract and $1,000 five days after the effective date of the contract. While it might take five days to work out the terms, the seller may accept the terms immediately and the buyer will need to come up with $1,100 immediately.
The main difference between an amendment and an addendum is that an amendment
is a change to the existing content in the contract. The use of an amendment and an addendum are often confused. An amendment is a change to what is in the original contract; an addendum is material being added to the contract. In either case, the other party must sign off on the change or addition for the contract to remain in full force.
What is the purpose of earnest money?
it serves as liquidated damages in the event of default. Earnest money serves as liquidated damages in the event of default, as addressed in the identified remedies listed in paragraph 15. It is not consideration to bind the contract.
A valid legal contract must have
legally competent parties. The parties must be of legal age and have enough mental capacity to understand the nature or consequences of their actions in the contract.
Using the One to Four Family Residential Contract, who pays for a new survey if the survey is not acceptable to the title company?
negotiated between the parties. If the title company finds that the survey is not acceptable, the contract provides a blank for the parties to negotiate who pays for it.
A contract may be discharged under substantial performance when
one party does not complete all the details exactly as the contract requires but has to a large extent performed on the contract, which may be enough to force payment. An example of this is a newly constructed addition to a home that is finished except for polishing the brass door knobs, in which case the contractor may be entitled to the final payment and the contract is discharged.
Which paragraph of the TREC One to Four Family Residential Contract provides a breakdown of sellers' and buyers' expenses?
paragraph 12. Paragraph 12 addresses the amount of money that seller is willing to contribute towards buyers' expenses. Paragraph 11 includes a blank space for business details or special provisions. Paragraph 9 addresses the closing and possession date. Paragraph 8 addresses the brokers' fees.
Where in the One to Four Family Residential Contract would a licensee indicate that she is the seller in the transaction and that she has a real estate license?
paragraph 4. Paragraph 4 provides a place for disclosure if the real estate license holder is a party to the transaction or if the real estate license holder is acting on behalf of a spouse, parent, child, or business entity, in which the license holder owns more than 10% or if the real estate license holder is a trustee for a trust where the beneficiary is the license holder's spouse, parent, or child.
Which paragraph in the TREC One to Four Family Residential Contract deals with title issues?
paragraph 6. Information required to complete paragraph 6 includes who will pay for the title policy, what company will issue the title policy, whether a new or existing survey will be provided, who will pay for the survey, who will furnish the survey, the number of days to furnish the survey, objections to title, and whether the property is subject to an HOA.
Using the TREC One to Four Family Residential Contract, buyers wish to make the purchase of the home contingent on the outcome of a home inspection. What should they do?
pay an option fee for the unrestricted right to terminate under paragraph 23. The option to terminate within a specified period under paragraph 23 is there to provide time for buyers to do their due diligence such as conducting inspections within the time period. If necessary, they can terminate within the time period if the outcome of the inspection is not good.
Who appoints the lawyers to the Broker-Lawyer Committee?
president of the state bar. According to Section 1101.252, the six lawyers on the Broker-Lawyer Committee are appointed by the president of the state bar.
One party cancelling or terminating a contract as though it had never been made is
rescission. Rescission returns the parties to their original positions before the contract, so any monies exchanged must be returned. Rescission is normally a contractual remedy for a breach.
In which of the following situations is a seller required to provide the seller's disclosure notice referenced in the Property Condition paragraph of the One to Four Family Residential Contract?
sale by an investor who never lived in the house. Section 5.008 of the Texas Property Code identifies the situations in which a seller is not required to provide a seller's disclosure notice. Contrary to popular belief, investors and relocation companies are required to provide the notice.
Under the TREC One to Four Family Residential Contract, who is responsible for ensuring that utilities are turned on for inspections?
seller at seller's expense. Under the TREC contract, the seller at seller's expense is responsible for making sure that utilities are on for inspections.
A buyer wishes to make an offer on a house but wants to ensure that she has time to ensure that the foundation is sound. What should she do using the TREC One to Four Family Residential Contract?
she should purchase an option to terminate under paragraph 23. Buyers can get inspections, insurance, and anything else they need to verify within the negotiated option days.
Which of the following is TRUE for the statute of limitations for contracts for the sale of real estate and oral contracts for leases of less than one year?
statute of limitations is four years for the sale and two years for the lease. In Texas, the statute of limitations for filing a legal suit on a written contract is four years. Remember that the statute of frauds requires agreements affecting title to or interest in real estate in Texas to be in writing to be enforceable, so the statute of limitations on a contract for the sale of real estate is four years. Under the statute of frauds, leases for one year or less do not have to be in writing. An oral contract for the lease of a property for one year or less has a statute of limitation of two years.
Which of the following is TRUE?
the Broker-Lawyer Committee develops forms and recommends their adoption, but it is the TREC that promulgates the forms for mandatory use. The Broker-Lawyer Committee drafts and revises contract forms for use by real estate licensees. This Broker-Lawyer Committee does not promulgate, or publish, forms for mandatory use by licensees.
A seller wants to use her own contract. What are the agent's legal options?
the agent can use the contract because it is an exception. According to Section 537.11(a)(3), transactions for which a contract form has been prepared by a principal to the transaction are an exception to the rule that TREC promulgated forms must be used.
Under paragraph 5 of the TREC One to Four Family Residential Contract, what happens if the buyer fails to deposit the earnest money?
the buyer is in default. According to paragraph 5, the buyer is in default of the contract. The seller may exercise remedies under paragraph 15.
Using the TREC One to Four Family Residential Contract, the buyer submits an offer to purchase the seller's property but fails to pay earnest money as required by paragraph 5. The seller accepts the offer in writing by signing the contract and the acceptance is communicated to the buyer. What happens to the contract?
the buyer is in default. According to paragraph 5, the buyer is in default of the contract. Under paragraph 15, the seller may exercise remedies.
Which of the following is/are considered adequate consideration to create a legally binding contract?
the promise of the buyer to buy and the promise of the seller to deliver title. Earnest money is not necessary to bind the contract. The promise of the purchaser to buy and the promise of the seller to deliver title are adequate consideration to create a legally binding executory contract.
The seller and buyer negotiate that the buyer will purchase a home "as is" with specific repairs listed and with an option period of 14 days using the One to Four Family Residential Contract. What are the buyer's choices during the option period?
the buyer may negotiate additional repairs by amending the contract. The contract specifically provides that the buyer's agreement to accept the property as is under paragraph 7D(1) or (2) does not preclude buyer from inspecting the property under paragraph 7A, from negotiating repairs or treatments in a subsequent amendment, or from terminating this contract during the option period, if any.
A buyer and seller agree that buyer will buy the seller's home for $475,000 with no option to terminate using the TREC One to Four Family Residential Contract. The lender requires the roof to be replaced, the perimeter to be treated for termites, and the stucco on the back of the house to be repaired. The roof will cost $10,000, the termite treatment will cost $1,800, and the stucco repair is estimated to cost $8,000. Seller agrees to pay for everything. What are the buyer's options?
the buyer may not terminate the contract. Even though the seller may agree to pay for lender required repairs, the buyer may terminate if repairs are more than 5% of the sales price. In this case, the lender required repairs are less than 5% of the sales price.
Buyer and seller enter into a contract where buyer intends to take out a loan to purchase a home. The lender requires termite treatment before it will issue a loan to the buyer. What are the buyer's options under the One to Four Family Residential Contract?
the buyer may refuse to pay for the termite treatment. If there are lender-required repairs and neither party agrees to do them, the contract may be terminated by the buyer and the buyer will receive the earnest money.
Seller and buyer enter into a contract where buyer will take out a loan to purchase a home. The lender requires that the house be re-stuccoed before it will issue a loan to the buyer. Both seller and buyer refuse to pay for the stucco. What are the buyer's options under the One to Four Family Residential Contract?
the buyer may terminate the contract and the earnest money is refunded to buyer. If there are lender-required repairs, and neither party agrees to do them, the contract may be terminated by the buyer and the buyer will receive the earnest money.
What happens if a buyer fails to pay to the seller an option fee she promises to pay within three days of execution of the contract under paragraph 23 of the TREC One to Four Family Residential Contract?
the buyer will not have the right to terminate the contract. Time is of the essence under paragraph 23. This means that timing is critical, and the buyer will no longer have the ability to terminate the contract if she fails to timely pay the option fee.
A buyer promises to pay an option fee of $500 within three days of execution under paragraph 23 of the TREC One to Four Family Residential Contract to purchase a 15-day option to terminate. What happens if the buyer pays the fee four days after execution?
the buyer will not have the unrestricted right to terminate the contract. Paragraph 23 clearly states that " if Buyer fails to pay the Option Fee to Seller within the time prescribed, this paragraph will not be a part of this contract and Buyer shall not have the unrestricted right to terminate this contract."
A buyer promises to pay an option fee of $100 within three days of execution under paragraph 23 of the TREC One to Four Family Residential Contract to purchase a 10-day option to terminate. What happens if the buyer fails to pay the fee?
the buyer will not have the unrestricted right to terminate the contract. Paragraph 23 clearly states that "if Buyer fails to pay the Option Fee to Seller within the time prescribed, this paragraph will not be a part of this contract and Buyer shall not have the unrestricted right to terminate this contract."
Which of the following promise exchanges is considered adequate consideration to create a legally binding contract?
the buyer's promise to buy and the seller's promise to deliver title. Earnest money is not necessary to bind the contract. The promise of the purchaser to buy and the promise of the seller to deliver title are adequate consideration to create a legally binding executory contract.
Under the One to Four Family Residential Contract, a buyer wishes to offer to buy the property as is with no repairs. How should the buyer's agent advise the buyers to fill in paragraph 7D?
the buyers should check the box under 7D(1). If the buyers wish to make an offer with no repairs, the buyers should check the box under 7D(1).
to the earnest money if the buyer terminates within the option period under paragraph 23 of the TREC One to Four Family Residential Contract?
the earnest money is refunded to the buyer. Paragraph 23 states as follows: If Buyer gives notice of termination within the time prescribed, the Option Fee will not be refunded; however, any earnest money will be refunded to Buyer.
A licensee is purchasing property for himself. A TREC promulgated contract is appropriate for this purchase, but the licensee decides to be creative and draft his own contract from what he has learned in his real estate classes. Which of the following is most likely to be TRUE?
the licensee has the right to draft his own contract. TREC promulgated forms are not required in transactions in which the licensee is functioning solely as a principal, not as an agent.
What happens to the option fee if the buyer terminates within the option period under paragraph 23 of the TREC One to Four Residential Contract?
the option fee is not refunded to the buyer. Paragraph 23 states as follows: If the buyer gives notice of termination within the time prescribed, the option fee will not be refunded; however, any earnest money will be refunded to buyer.
What happens if no dollar amount is inserted in paragraph 23 of the TREC One to Four Family Residential Contract but the time period is filled in as 10 days?
the paragraph is not part of the contract. Paragraph 23 clearly states that "If no dollar amount is stated as the Option Fee or if Buyer fails to pay the Option Fee to Seller within the time prescribed, this paragraph will not be a part of this contract and Buyer shall not have the unrestricted right to terminate this contract."
Which of the following is TRUE regarding properties with the same sales price?
the premium cost to insure the title of the property is the same at all title companies in the state. For properties with the same sales price, the premium cost to insure the title of the property is the same at all title companies in the state.
Buyers are buying property from a trustee in bankruptcy sale. How should the seller trustee reply to the buyers' offer where the seller would be required to provide the seller's disclosure notice within five days of execution of the contract under paragraph 7 of the One to Four Family Residential Contract?
the seller should counter by indicating that he is not required to provide the notice. There are several exceptions to providing the seller's disclosure notice under section 5.008 of the property code, including the sale by a trustee in bankruptcy.
Which of the following is an exception to using a TREC promulgated contract form?
transactions in which a United States government agency requires a different form to be used. When a United States government agency requires a specific form to be used, a TREC promulgated form does not need to be used.
In Texas, the statute of limitations for an oral contract for a lease of less than one year is
two years. Under the statute of frauds, leases for one year or less do not have to be in writing. An oral contract for the lease of a property for one year or less has a statute of limitation of two years.
Under the TREC One to Four Family Residential Contract, how long does the seller have to complete required repairs?
until closing. The TREC contract provides that the seller must complete required repairs by closing unless otherwise agreed in writing.
The sellers purchased the home 20 years ago and had the property surveyed. They made no changes to the property. Using the One to Four Family Residential Contract, what should the listing agent tell the sellers to do about a survey?
use the Residential Real Property Affidavit and the existing survey. If the title company, however, finds that the survey is not acceptable, the contract provides a blank for the parties to negotiate who pays for it.
Which if the following is NOT a way for licensees to give notice to buyers regarding a title policy?
using MLS. The law requires licenseholders to provide a written notice to prospective buyers. MLS does not provide such notice to prospective buyers.
An agreement entered into involuntarily by a party is
void. This agreement lacks mutual agreement, which means that the parties must enter the contract freely and voluntarily. Without mutual agreement, the agreement is void. Previous Next Go to Summary
When a contract appears to be valid but may be rescinded or disaffirmed by one or both parties based on some legal principle it is
voidable. A contract with a minor, for example, is voidable. However, a voidable contract is considered by the courts to be valid if the party who has the option to disaffirm the agreement does not do so within a period of time.
Which of the following is an exception to the TREC rules on contract use?
when the buyer requires another form to be used. According to Section 537.11(a)(3), transactions for which a contract form has been prepared by a principal to the transaction are an exception to the rule that TREC promulgated forms must be used.
Which of the following is an exception to using TREC promulgated contract forms?
when the licensee is acting as a principal and not as an agent. One of the exceptions for when a licensee must use a TREC promulgated contract form is in transactions in which the licensee is functioning solely as a principal, not as an agent.