Texas Promulgated, Law of Agency, National Real Estate Exam, TX: Real Estate Test Practice - NON MC
The Buyer and Seller Temporary Residential Lease forms are good for any period up to:
90 days
Using TREC 16-5 "Buyer's Temporary Residential Lease", a buyer can lease a property up to ______ prior to closing.
90 days
A federal disclosure requirement for residential properties built prior to 1978 is:
A lead-based paint disclosure
What should a licensee keep on hand to help with environmental issues that may arise before closing?
A list of environmental specialists
Under TREC 16-5 "Buyer's Temporary Residential Lease", what would be considered a breech of contract?
Failure to comply with any laws or rules in the subdivision where the home is located.
A new survey is always required for all transactions: (T/F)
False
Earnest money is consideration for the contract. (T/F)
False
The title company is:
Not a party to the transaction
What happens to the status of a back-up contract if the first contract is modified?
Nothing changes.
The Third Party Financing Addendum For Credit Approval is used when:
Paragraph 4.A(2)(a) is checked in the contract
What paragraph on Form 23-12 allows space to write buyers names?
Parties
IRS statutes require a buyer to:
Withhold 10% of the sale proceeds in excess of $300,000 when a foreign person has no social security card or green card
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A home built prior to what year triggers the disclosure of lead based paint?
1978
Properties built before _______ seller must disclose lead based paint
1978
For sellers who are carrying notes for buyers, TREC 26-6 requires a late payment fee of _________ for any payment made more than 10 days late.
5%
What type of inspector is required according to the TREC OP-L form?
A certified inspector
Which of the following items is on Form 20-11 and not on Form 9-10?
Accessories
On TREC 28-2 "Environmental Assessment, Threatened or Endangered Species, and Wetland Addendum", which box is most often checked?
All boxes are usually checked.
The special provisions paragraph of the contract allows licensees to insert:
All of the above
On Form 9-10, what are the first two descriptions that are asked for regarding the location of the property?
Lot and Block
A "Seller's Disclosure Notice" is not required
When the property being sold is a previously unoccupied new home
A void contract has the same legal status as
a contract that never existed.
The closing date:
all of the above
To verify and clarify the boundaries of a coastal property, a seller should
hire a surveyor.
Home warranty or residential service contract is paid by
seller
The Third Party Financing Addendum For Credit Approval can be used when:
the buyer is obtaining any kind of third party financing
Paragraph 2 of TREC 38-4 allows a buyer to terminate an agreement due to
the buyer's failure to gain credit approval for a mortgage loan.
The sale price should equal
the down payment and the loan amount.
The number of days allowed for objections to title or survey is:
the number of days entered in paragraph 6.
How should a licensee communicate acceptance of a contract?
All means possible and available
Seller Steve sold his home to Buyer Bill and closing is set for November 1. It is October 26 and Steve has been unable to find a new home because his daughter was seriously ill. Buyer Bill has agreed to wait until November 15. What should Steve's agent do?
Steve's agent should send an Amendment to Contract 39-7 with the new closing date to Bill's agent.
A(n) property is one where a particular event has affected the desirability of said property.
Stigmatized
According to the TREC contract, accessories include:
Stoves
The deed of trust securing seller financing is always assumable by a future buyer without approval: (T/F)
False
What form should an agent use if a buyer needs to sell his or her current home before closing on the new home?
TREC 10-6 Addendum for Sale of Other Property by Buyer
A state government entity created to encourage agricultural development in Texas is the:
Texas Agricultural Development District
Who is to fill in the effective date of the contract?
The Broker
The Johnsons received an offer on their home contingent on the buyers, the Raleighs, selling their home. While waiting for the Raleighs, the Johnsons receive a back-up offer without a contingency. What can the Johnsons do?
The Johnsons can ask the Raleighs to waive their contingency within an agreed upon timeframe or terminate the contract.
Which of the following could be written in paragraph 11?
Listing associate is close friend of sellers.
The "Third Party Financing Addendum for Credit Approval" cannot be used for:
Seller Financing
When a seller is contemplating a loan assumption, the seller must respond to the buyer within how many days or it is assumed that the seller has given his or her approval?
Seven days
What should be done with the TREC OP-H in relation to the Multiple Listing Service?
It should be uploaded to the system if possible.
What is a possible outcome if erosion causes a structure to be on a public beach?
The State of Texas can sue the owner to move it at the owner's expense
On Form 9-10, in what paragraph would you find information regarding property liens?
Title Policy and Survey
How does a buyer determine if property is located in a flood plain?
Check a FEMA Flood Map.
How should the rental rate be calculated for a Seller's Temporary Residential Lease?
Daily rate
Which of the following is not mentioned as a possible effect of lead poisoning on the TREC OP-L form?
Death
If a license holder is receiving compensation from a residential service company, the compensation is:
Disclosed to the parties using the appropriate TREC form
Which of the following would NOT be noted in the 2B(1) farm and ranch improvements paragraph on Form 25-9?
House
In which paragraph on Form 20-11 and Form 9-10 would you find information on dispute resolution?
Mediation
Who should sign the TREC OP-I form?
Neither the buyer nor seller
On Form 9-10, in what paragraph would you find information regarding environmental matters?
Property Condition
Which of the following activities is specifically prohibited under the Civil Rights Act of 1968?
Refusing to sell, or rent to, deal or negotiate with any person
If the property is currently under an agricultural exemption, and the use of the property changes, the buyer may be charged a:
Rollback tax
In the Third Party Financing Addendum for Credit Approval:
The buyer's earnest money will not be returned if the buyer does not obtain financing
For purposes of performance, what is the effective date of a back-up contract?
The date the buyer is notified that the first contract terminated.
Under which of these circumstances could a licensee be exempt from using a TREC promulgated form?Secretary of State
When the licensee is functioning solely as a principal, not as an agent
When should the TREC OP-M form be used?
When the seller agrees to leave certain personal items
On TREC 44-1, parties are advised to
consult an attorney before signing if there are any concerns.
If a buyer terminates a Buyer's Temporary Residential Lease prior to the closing date, the security deposit
is refunded, less any itemized deductions
If an agent fails to list an addendum on a contract
the parties' intentions could be in jeopardy and the agent could be held responsible.
If a contract is terminated using TREC 38-4, _______________ determine(s) if the buyer's earnest money will be refunded.
the terms of the original contract
One reason that a survey may not be required is because
they are time-consuming and tedious.
The primary focus of TREC 34-4 is
to inform the buyer of the possibility that erosion can cause a structure to end up on a public beach.
What does the sales price in paragraph 3D deal with on Form 25-9?
Sale price based on calculated acreage
Any material changes to subdivision information require the ________________ to give notice of said changes promptly.
Seller
What agreement is typically made when a buyer moves in before the actual close?
Temporary lease
What can the buyer do if the seller delays delivery of the seller's disclosure?
Terminate the contract
What should a buyer do if he or she wants to submit an offer on a home that already has a contract on it?
The buyer should have his or her licensee submit an offer with TREC 11-7 Addendum for Back-up Contract attached.
Using the TREC OP-I form, who is required to remedy the conditions found on a property?
The form does not make this specification.
The T-47 "Residential Real Property Affidavit" is not completed until ________________, in most cases.
The listing is taken
Which of the following is not information requested on the Subdivision Information TREC 37-4 form?
The number of current residents in the development
When can a tenant keep pets in a home under TREC 15-5 Seller's Temporary Residential Lease?
The seller can only have pets in the home if the buyer approves.
Why are home owners' associations formed?
To enforce deed restrictions
If the buyer is allowed to select certain items in the new home that is under construction, the builder (seller) may reject a selection if it adversely affects the market value of the home. (T/F)
True
Rollback taxes would most likely be imposed when:
a property that has been under an agricultural exemption is developed into a subdivision
TREC 26-6 Seller Financing Addendum is used when
a seller is carrying the note for all or a portion of the sales price for the buyer.
The only addendum that broker(s), seller(s) & buyer(s) have to sign
addendum for lead based paint
Form 9-10 has paragraph 6.E.8 which you will not find on Form 20-11. This paragraph deals with
agricultural development districts.
A licensee might be guilty of the unlawful practice of law if he or she:
any of the above
In the Farm and Ranch contract, the Sales Price may be adjusted based upon a survey. If the sales price is adjusted, _____________.
any of the above are possible
For a short sale to go through, the _____________ must give approval
bank holding the mortgage
TREC promulgated contracts allow the Buyer to have the property inspected:
by inspectors licensed by TREC or otherwise permitted by law
If, during the loan assumption process, it becomes known that the lender will be charging an interest rate that is higher than the buyer would like to pay
the buyer can terminate the contract and receive a refund of his or her earnest money.
Due to _________________ property purchased along the coastline can change.
erosion *the Realignment Act of 2011 land disputes the lasting effects of Hurricane Katrina
When a seller wishes to retain certain fixtures or accessories, these items are called:
exclusions
To increase the amount of land they have, some coastal landowners
fill in some of the area with top soil.
A sale form completed by a buyer and delivered to a seller
is an offer.
By signing the RSC 1 form, a buyer
is only acknowledging that the licensee disclosed his or her relationship with the RSC to the buyer.
Compliance for the TREC 10-6 Addendum for Sale of Other Property by Buyer
is strict because time is of the essence.
All oil, gas, and other minerals in or under a property, including any royalties, production and drilling rights, lease payments and all related benefits are known as a seller's
mineral estate.
Some HOA's for high-end developments may
require a one-time membership fee which could be over $1,000.
On TREC 45-1, what is defined as the sales price less seller's expenses?
seller's net proceeds
In many communities across Texas, property owners in subdivisions have been _____________ the right to obtain the minerals, oil, and gas that are under their yards.
severed from
Buyer Sarah is purchasing a residential property. She plans to live in the home and operate a daycare business in the home as well. Having mentioned this to her agent, the agent should:
specify the use as a daycare in Paragraph 6: Objections
Per Paragraph E of TREC 45-1, the residential contract will ______________ if the lender does not give approval.
terminate
If a situation arises and both the seller and buyer agree to change a signed Residential Contract
the Amendment to Contract TREC 39-7 must be completed.
The Texas Real Estate License Act was formerly known as
the Real Estate Dealer's License Act.
An example of information a broker would provide to an RSC is
the brand and serial number of the air conditioning compressor.