aceable 5

A buyer wishes to include an addendum to the sale that they must first sell their own home/property before completion of purchase of the seller's home. Where should it be indicated that this addendum is attached?

"Agreement of Parties" section

Allen, the seller, wants to know about the impact of lender actions in relation to paragraphs D-F. Who should his agent recommend he contact for information about a buyer assuming the loan in these circumstances?

Allen's lender

What's the difference between an addendum and an amendment?

An addendum is attached to a contract to create additional terms, and an amendment changes the terms within an existing contract

Novation

An existing contract is replaced with a new, modified one with different obligations

True or False: In the case of a Seller Financing Addendum, the seller makes payments to the buyer.

False

What rights does a leasehold estate establish?

It establishes a tenant's legal right to use and occupy a property they do not own.

Which of the scenarios below BEST describes fee simple subject to condition subsequent?

Katie s conveying the title of her land to Tim on the condition that no illegal drugs are consumed on the property or she can reclaim the title

A buyer has paid for an option period in Paragraph 5 of the One to Four Family Residential Contract. He cancels the contract during the option period. Is this a breach of contract?

No, a buyer who cancels during the option period is not in breach of contract

Alex is evicted from his home. He claims that his homestead rights should prevent the eviction. Is Alex correct?

No. A lender can still foreclose on a homestead property if the owner defaults in their mortgage which Alex did

Michael owns the surface rights to 3333 ABC Drive. Oil Company B owns the mineral rights to 3333 ABC Drive. Which of the following statements is TRUE?

Oil Company B has the right to use the surface estate as much is "reasonably necessary" to access the mineral estate without Michael's permission

A broker is helping a government agency locate a building they can buy for an office. The agency has their own form they want the agent to use when they make their offer. Can the agent do that legally?

Yes, a government agency can require their own form to be used

Frank is the listing agent for a house that has had its foundation repaired. Frank believes that information could harm his seller, so Frank does not tell potential buyers about it. Frank advised the seller not to mention it on his seller's disclosure. Is Frank in danger of ending up in court?

Yes, he could be sued under DTPA

Kelly is in the process of buying a house. The seller has performed some of the required duties by the required date, but not all of them. Can Kelly discharge the contract?

Yes, partial performance is a valid reason for a party to discharge the contract

A seller had a roof repaired years ago. The roof shows no current problems. Does the seller still need to disclose the repairs?

Yes, the SDN needs to list any repairs in place

What is a lis pendens?

a notice used to inform the public when a lawsuit is filed that affects a specific piece of real estate

Which of the following is an example of an executory contract with a set end date?

a rent-to-buy lease where the tenant exercises an option to buy the property

Which of the following is an example of express acceptance?

a seller signs a sales contract

A listing agreement is a written contract between which parties? a. an owner and a broker b. a sales agent and an owner c. an owner and a buyer d. a broker and a sales agent

a. an owner and a broker

In order for a loan to be approved, the lender must approve both the buyer and the: a. property b. seller c. financing d. loan origination

a. property

In a contract for deed, when must the seller convey a valid and legal title to the buyer? a. when the buyer has paid the entire balance on the contract b. when the buyer has aid a down payment on the property c. when the buyer makes an offer on the property d. when the buyer has begun making monthly payments

a. when the buyer has paid the entire balance on the contract

If the seller intends to retain a security camera mounted in the home, under which category of "Exclusions" would that fall?

accessories

To personalize a standard contract to fit many different situations, TREC has promulgated additions that can be added to the contract when the offer is created. These additions are called:

addenda

Which of the following best describes a joint venture?

after the business goal is finished, the investors part ways instead of continuing business together

Which of the following is true regarding the statute of limitations?

all claims must be filed prior to the statutory deadline or the legal right to press a claim is barred

Without permission, Betsy's neighbor built a fence that extends onto Betsy's property. What is the fence?

an encroachment

A federal judgment lien

an involuntary, general lien.

A mechanic's lien

an involuntary, specific lien.

An agent thinks that their client is accepting an offer for reasons that discriminate against a protected class. The agent should:

ask questions to determine if the actions were really discriminatory

What do you call a lease that has rent increases at fixed future dates stated in the lease agreement? a. index lease b. graduated lease c. marginal lease d. growing lease

b. graduated lease

In a lease purchase agreement:

buyers typically pay an option fee up front and then monthly rent payments to the seller

In Texas, if a lease gives the tenant the option to purchase the property at the end of the lease term, what kind of contract is that? a. execution b. executed c. executory d. expired

c. executory

Which of the following is NOT a valid reason for a party to discharge a contract? a. mutual agreement b. operation of law c. liquidated damages d. partial performance

c. liquidated damages

Section 2 asks the seller to provide information about smoke detectors. Anne, the seller, is unsure what the building code requirements are for smoke detectors. What should Anne do?

check the "unknown" box in the form or research the requirements

In a real estate transaction, Buyer Peter has paid earnest money. The point in the home-buying process in which Peter's earnest money will be applied is at

closing

tenancy in common

comes with rights of inheritance

joint tenancy

comes with rights of survivorship

When completing the form, consider furnishing the marital status of the parties along with their names, because Texas is a:

community property state

Of the below, who is most likely to purchase a contract for deed? a. a buyer who has high income b. a buyer who has a great credit history c. a buyer who could obtain traditional financing but chooses not to d. a buyer who is unable to obtain traditional financing

d. a buyer who is unable to obtain traditional financing

Who has rights and obligations under the sales contract? a. the seller b. the broker c. the buyer d. both the buyer and the seller

d. both the buyer and the seller

Which statement BEST compares digital signatures and electronic signatures?

digital signatures do the same thing as electronic signatures, but are more secure

Compare option money and earnest money.

earnest money is often refundable option money is never refundable

Michael has entered into a sales contract with the seller of 444 Ocean Avenue. What type of interest does Michael have?

equitable interest

A buyer does not pay for a property in full. This is an example of a(n):

equitable lien

Either the tenant or the landlord can end the situation at any time. A tenant is occupying a property with the landlord's knowledge and consent, but without a formal lease agreement.

estate at will

The landlord and tenant must come together and expressly agree to either renew the existing lease or create a new one. Once the lease expires, neither the landlord nor tenant needs to act to terminate it.

estate at will

When a tenant occupies a property for an unspecified period of time in the absence of a lease, where either the tenant or the landlord can end the situation at any time, including immediately, without notice, this is an

estate at will

created with an explicit verbal or written agreement

express contracts

Monica owns her house. For the duration of her lifetime, she has the right to her property (unless she sells it) and can will her property title to her children after her death. Monica has a:

fee simple estate

Besides their brokerage, where is one place that an agent can get a buyer's representation agreement and listing agreement that is legal to use?

from TAR

If no third party is named as remainderman, when a life estate owner dies, the property reverts to the:

grantor

To describe a contract as "executory" is to:

identify its stage of existence

When is the mineral estate included in the sale?

if an owner doesn't explicitly limit the transfer of ownership to "surface only"

electronic signature

image of your signature placed on a document

are created by actions and not an explicit verbal or written agreement

implied contracts

In Texas, an estate can be held:

in a trust, in severalty, or in a co-ownership

What is a characteristic of ESIGN?

it is a federal law which ensures the legal validity of electronic contracts

Radon is one of the most important factors to consider during inspection because:

it is an odorless, colorless, life-threatening gas

Actual damages are:

monetary compensation given to an injured party for losses that were a result of the actions or omissions of another party

John has an easement appurtenant that allows him to cross Sally's land. Sally is selling her property. When Sally's property sells, John will:

not have a problem as easements run with the land

When describing the property, if the legal description is not found on the MLS, where can an agent find this information?

on the deed that is recorded at the county courthouse

One of the four categories of ways a lease can be discharged is:

operation of law or special statutory rights

Townhouses

own both the structure itself AND the land it is on

a month-to-month lease The lease is automatically renewed at the end of each lease period until the landlord or tenant acts to terminate it.

periodic estate

there must be a notification to terminate the agreement, and the lease will end at the next renewal period rather than ending immediately

periodic estate

Bob is making an offer on a property, but he wants the offer to be contingent upon his current home closing. What should be added to his contract?

sale of other property addendum

What type of contingency is meant to protect buyers from owning two homes at once?

sale of other property contingency

When used, to what document should the Third Party Financing Addendum be attached?

sales contract

digital signature

secure way to verify the person who is signing the document is the person you sent it to

What do cooperative members own?

shares of the corporation that owns the building(s)

A mortgage is an example of a:

specific, voluntary lien

What is a trait of option periods?

strict and timely performance is required

What should a buyer's agent recommend they do before the buyer submits an offer?

submit loan application paperwork to mortgage company on time

If a contract has been breached, and the non-breaching party wants to force the breaching party to do what it says in the contract, what can the non-breaching party do?

sue for specific performance

A tenant remains in possession of the property beyond their lease's terms, without the consent of the landlord. The landlord is passively allowing the tenant to stay in the property until eviction can occur.

tenancy at sufferance

If the seller does not provide the buyer with a completed Seller's Disclosure Notice before signing the contract, the buyer has a legal right to:

terminate the contract within 7 days of receiving the notice

Single-family home owners own:

the building and the lot on which it stands

The full sales price is based on what two totals?

the cash portion and the financed portion

If both buyer and seller refuse to pay for repairs required by a lender, what is the potential result?

the contract can terminate

In real estate, interest is defined as a right or legal share in a property. The type of interest you have depends on:

the extent of your share in the property

A condo owner owns:

the interior of their unit

Who initiates the foreclosure on an 80-10-10 loan?

the mortgage company

What does the "rule of capture" refer to?

the right of a surface estate owner to use all groundwater that they can bring to their surface

A couple renting a home have a leasehold estate, which means they have:

the right of possession

The major difference between tenancy in common and joint tenancy is:

the right of survivorship

There is a deficiency in the seller's tax and insurance escrow account. Who is responsible for making up for this deficiency?

the seller

Which of the following scenarios may cause a loan balance to differ from as it is listed at the time of contract signing?

the seller has made a mortgage payment since the contract was signed

If a seller rescinds a contract:

the seller must return all payments the buyer has made

A broker tells her license holders that if anyone brings in over a certain amount of business in six months, they will be entitled to a bonus. This is a(n):

unilateral contract

Describe an important distinction between unilateral and bilateral contracts.

unilateral contracts offer to pay for accomplished performance. Bilateral contracts offer to pay for the promise of performance

What do general partners assume in a partnership?

unlimited personal liability

An estate at will allows the tenant to occupy the property:

until either the tenant or the landlord decides tenancy should end

A conveyance is the:

voluntary transfer of an interest and rights in real property

Doug granted Betsy a life estate for a property he owned and named his son as the remainderman. When will his son become the owner of the property?

when Betsy dies

In a leasehold estate, when does the tenant's right of possession end?

when their lease has expired

A concurrent estate is any type of estate:

where multiple parties co-own it

How many days after the title company receives a copy of the contract must the buyer be furnished with a title commitment?

20 days

In Texas, an urban homestead cannot exceed:

10 acres

Assignment

A party to a contract withdraws from the contract without terminating it and transfers their duties to a third party

Which of the following agreements is enforceable in a Texas court?

A seller and buyer sign a One to Four Family Residential Contract

Janeesha is selling her home and decides the potential buyer, Marcus, does not have acceptable credit, and therefore, she terminates the contract. In this case, what would happen with the earnest money?

Marcus would get the earnest money back