TX Promulgated Contracts

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"

Real estate professionals handle many documents related to real estate transactions. Which one of the items listed below is one of the most important in detecting mortgage fraud?

The original sales agreement and any addenda

Your seller client, William, had multiple offers to consider. He decided to move forward with Ryan's offer, and reject the offer from Kevin. What should your client do with the offer from Kevin?

write "rejected" on kevin's offer

If a buyer requests subdivision information using the Addendum for Property Subject to Mandatory Membership in a Property Owners Association form, who pays to obtain the information and have it delivered?

it depends

Which of the following elements does the Statute of Frauds require as part of a valid real estate contract in Texas?

legal description

The _______________ method of property description is used for the Farm and Ranch Contract.

metes and bounds

How many "back-up" offers can be submitted on one Addendum for "Back-Up" Contract form?

one

Familial status includes families with children under age 18 living with parents or a legal custodian, people securing the custody of children, and what other group of people?

pregnant women are covered under familial status protected class

If the Texas buyer does not need any financing, then in the TREC residential resale contract, the Cash Portion of the Sales Price will be the same as the ______.

sales price

Which Texas law requires contracts for real property to be in writing?

statute of frauds (not limitations)

Per the Addendum for Property Subject to Mandatory Membership in a Property Owners Association form, who pays any deposits for reserves that might be required by the property owners association?

the buyer

Anything that's being hidden from ______ that relates to seller concessions, property condition, buyer qualification, or sales price is considered fraud.

the lender

Who is responsible for filling in the effective date on the sales contract?

the licensee

According to the Unimproved Property Contract, who's responsible for paying rollback taxes, if applicable?

the person who changes the use of the land

You're helping your client Scot with the purchase of a ranch home. Scot wants to bring his cattle over, so he's asked for early possession. The transaction is scheduled to close on July 15, and Scot needs to move his cattle in on February 1. What form should you help Scot complete?

there's no form for this

What is the purpose of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association?

to give buyers the opportunity to request subdivision info (not To provide buyers with information about the homeowners association)

What options does the Addendum for the Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement give the seller if the restoration of VA entitlement is not approved by closing?

to terminate the contract or not delay the closing

What are the documents that the title company provides to the buyer along with a title commitment?

Evidence of exceptions in the title commitment

Which of the following is a financing option listed on the Third Party Financing addendum?

FHA-insured (The Third Party Financing addendum includes options for conventional, Texas veterans, FHA-insured, VA-guaranteed, USDA-guaranteed, and reverse mortgage financing.)

An offer to purchase is executed on February 10. There's a 10-day deadline by which the sellers must remove their hunting blind and camper from the property. In order to avoid a breach of contract, what is the last day the sellers can do this?

Feb 20th

What does a condominium resale certificate provide?

Financial and legal information about the condominium association

Rescission, suit for specific performance, liquidated damages, and acceptance of partial performance are all examples of what?

Options a wronged party has to remedy a breach of contract

The Butlers have countered an offer from Conner, but then they receive an even better offer from Audrey. What should the Butlers do before accepting Audrey's offer?

Withdraw their counter-offer to Conner.

In what section of the TREC One To Four Family Residential Contract (Resale) does the seller agree to permit the buyer and buyer's agent access to the property at reasonable times?

property condition

Valid real estate contracts must be in writing and signed by parties, contain a legal description, consideration, a lawful objective, mutual agreement, and ______.

competent parties

When Max entered into a contract to purchase a condo unit, the first right of refusal period was marked as 10 days. On day seven, the condo association called the seller's agent to let them know that they wouldn't be buying the property. What happens to Max's contract?

It is terminated, unless the condo association provides proper certification that it's waiving the right of first refusal within that 10-day period.

Which of the following statements about waiving the contingency and the Addendum for Sale of Other Property by Buyer is true?

Buyers can waive the contingency, but they have to notify the seller and make an additional deposit.

Texas buyer Javita has entered into a TREC One To Four Family Residential Contract (Resale) with a seller. The effective date of the sales contract was three days ago, which means Javita must pay the option fee to the seller by what time?

11:59 pm tomorrow (The effective date on the contract between Javita and the seller was three days ago and today is the second day after the effective contract date. Javita must pay the option fee to the seller by 11:59 pm tomorrow, or the option period is no longer valid.)

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

Which of the following must be included in a seller's disclosure of a home built in 1983?

A recent permitted remodel - Any remodels or alterations done in the seller's ownership should be disclosed, as should any material defects. A lead-based paint disclosure is required for properties built before 1978.

Texas buyer Lydia has opted to have the seller reimburse her for insurance that protects her if something goes wrong with any of the home's major systems or appliances. ______ provides this type of insurance.

A residential service contract (also known as a homeowners warranty)

Roseanne is a seller who agrees to allow the buyer to assume her VA loan. What addendum will she need if she wants to indicate that she does not want the closing to be delayed if restoration of her VA entitlement is not approved by the closing date?

Addendum for the Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement

Approval for financing as described in the Third Party Financing Addendum will be deemed to have been obtained when ______ are obtained.

Buyer approval and property approval

Hector signs a contract to buy a home belonging to Sadie. Before closing, it's discovered that Hector is only 17 years old. Since he's a minor, he's not considered legally competent to enter into a contract. Which of the following parties is allowed to void the contract?

Hector

If Alex, a seller, approves of the buyer's credit documentation, which the buyer delivered on time according to the terms of their Seller Financing Addendum, what must Alex do to show his approval of the seller financing?

Nothing; the buyer's credit is deemed approved if the seller does not terminate the contract within seven days of the date of delivery of the credit documentation.

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 (not shoreline erosion rates?)

The notice that advises the buyer to have the abstract or title policy examined by an attorney is required by which of the following pieces of legislation?

TRELA

By signing the Non-Realty Items Addendum, what is the seller representing or warranting?

That they own the property and it's free and clear of all encumbrances

What happens if the seller is unable to furnish the buyer with the commitment and exception documents within 20 days after the title company has received a signed copy of the TREC One to Four Family Residential Contract (Resale) ?

The deadline for delivery is automatically extended.

When a seller has an accepted offer from a buyer with a contingency that the buyer must sell an existing home first in order to fund the purchase, which of the following is a true statement?

The seller can accept another offer. (Sellers can continue to market the property and negotiate with other buyers when this type of contingency exists, but they must notify the original buyer if they accept another offer.)

What's the purpose of the Addendum for Back-Up Contract?

To allow a buyer to place a back-up offer on a property that's already under contract

What's the purpose of the Residential Real Property Affidavit T-47?

To help the lender and title company decide whether to accept the seller's existing survey or to request a new survey

Why do government loans limit the amount of fees a buyer pays?

To make buyer qualification easier (by limiting loan costs, more buyers can afford to buy)

Which of the following sellers is required by Texas Property Code to provide a seller's disclosure form to prospective buyers?

a married couple selling community property

According to the Property Condition section (Paragrah 7) of the TREC One To Four Family Residential Contract (Resale), at whose expense are any property inspections conducted?

buyer

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

Which of the following states that the person who committed the fraud, as well as anyone who knew about the fraud, failed to disclose it, and benefited from it, can be held liable for actual damages?

fraud in real estate and stock transactions