ASG 2, CHAPTERS 4-6
If the escrow agent receives a demand for the earnest money from one party, the escrow agent will send a copy of the demand to the other party. If the escrow agent does not receive a written aobjection within ______ days, the escrow agent may release the earnest money to the party making the demand.
15
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
Restrictive covenants may include rules regarding
All of these
The lender notifies the buyer that approval of the purchase loan won't occur until at least three days after the contract and closing date, but that the buyer should not worry because of the closing is automatically extend it to allow for loan approval. Which of these is true in the situation?
An extension will have to be negotiated if the deal is to be preserved
Seller and the buyer enter into a contract for buyer to purchase sellers farm with an effective date of March 15 with a closing date of April 30. on April 1 the roof of their home is extensively damaged in a hailstorm the seller is an able to restore the house by closing what must seller do under paragraph 14 of the one to four family residential contract if buyer decides to except the farm and its damaged condition?
Assign insurance proceeds to buyer and credit buyer for insurance deductible at closing
Which of these is a license holder allowed to enter under special provisions on the one to four family residential contract?
Business details
Using the TREC one to four family residential contract, the buyer submits an offer to purchase the sellers 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?
Buyer is in default
What happens under paragraph 7E of the TREC One to four family residential contract if the cost of lender required repairs and treatments exceeds 5% of the sales price?
Buyer may terminate the contract and the earnest money will be refunded to buyer
The buyers agent delivers the option fee to the sleeves agent. How should the sellers agent acknowledge that the option fee was delivered to her?
By signing and dating the option fee receipt
When must the agent deliver the earnest money to the title company?
By the close of business on the second day after the effective date
What are restrictive convents?
Deed restriction
Which of the following is false regarding earnest money?
Earnest money is necessary to bind the contract.
How many exceptions to title are listed under paragraph 6A of the one to four family residential contract?
Eight
Which of the following is a license holder permitted to include in the special provisions paragraph 11?
Factual statements
16, mandatory mediation Provides a lower cost and less formal way to resolve the dispute.
Falls, Mediation is encouraged but not mandatory
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
Where in the one to four family residential contract would a license holder indicate that she is the seller in the transaction and that she has a real estate license?
Paragraph 4
If the seller furnishes the existing survey to the buyer, but it is not acceptable to the buyers lender, who will cover the cost of a new survey?
Party negotiated in the contract
Which law prohibits the seller from requiring the buyer to use the services of a particular title provider?
RESPA
Which of the following is a sellers expense under paragraph 12 of the one to four family residential contract?
Release of existing liens
Deed restrictions are also known as
Restrictive covenants
Seller has entered into a contract with a buyer to convey residential property using the TREC one to four family contract. seller wishes to enter into a mineral lease. what are the sellers rates with respect to the mineral lease?
Seller must obtain buyers written consent before entering into the lease.
Which of the following is TRUE regarding the sellers a disclosure of property condition?
The TREC sellers disclosure of property condition is an optional form.
Who fills in the final date of acceptance on page 8 of the 1 to 4 family residential contract?
The agent who communicates that the contract has been excepted to the other party or the other parties agent
The owners title policy is a contract between which two parties?
The buyer and the title company
Buyer and seller have entered in a contract for buyer to purchase residential property from seller. Buyer wants to move in early and begin remodeling so that the house will be ready to move in at closing. What are the buyers rights under the TREC Buyers temporary residential lease?
The buyer has no rights to remodel without the prior written consent of the seller
A buyer enters into a contract with a seller using the TREC one to four family residential contract. He submits a $100 earnest money check upfront, and indicates that he will deposit $500 11 days after the effective date of the contract. What happens if the buyer fails to deposit the additional earnest money?
The buyer is in default
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
Under paragraph 9 of the TREC One to four family residential contract, what happens if the seller fails to close the sale by the closing date?
The buyer may exercise a remedy under paragraph 15
Seller and buyer enter into a contract where buyer will take out a loan to purchase a home. The lender requires the roof to be replaced before it will issues a loan to the buyer. Both seller and buyer refuse to pay to replace the roof. What happens to the earnest money if buyer terminates the contract under the one to four family residential contract?
The earnest money is refunded to buyer
Whose name should be added into the licensed supervisors name of the agent is a salesperson and the sponsoring brokerage firm has orally assigned a supervisor?
The name of the broker of record
Who signs the residential real property affidavit?
The owners of the property
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
What is the purpose of the paragraph 24 of the one to four family residential contract?
The parties may add contract information of their attorneys
What should be done if the closing date needs to be changed under the TREC one to four family residential contract?
The parties must both sign the amendment form
A new paragraph 9 of the TREC One to four Family residential contract, what happens if buyers fail to close the sale by the closing date?
The seller may exercise a remedy under paragraph 15
Whose name should be added into the license supervisors name if the seller's agent is a sales person and the sponsoring broker has not assigned a supervisor?
The sponsoring brokers name
How many days does the buyer have to terminate the contract under paragraph 23 of the one to four family residential contract?
The time period is negotiated by the buyer and seller
Under the TREC one to four family residential contract, how long does the seller have to complete required repairs?
Three days before closing
Who is allowed to insert legal rights or remedies in the special provisions paragraph of the one to four family residential contract?
party
Under paragraph 5 of the TREC One to four family residential contract, what happens if the buyer fails to timely deposit the earnest money?
The buyer is in default
Which of the following is NOT an appropriate use for paragraph 11, special provisions, of the one to four family residential contract?
The contract is in a second or back-up position
Under the TREC One to four family residential contract, who is responsible for payment of appraisal fees?
Buyer
Who receives the earnest money if the buyer terminates the contract because of lender required repairs under the one to four family residential contracts?
Buyer
Under the TREC one to four family residential contract, what are the buyers option if seller fails to provide the sellers disclosure notice under paragraph 7B(2)?
Buyer may terminate the contract at any time prior to the closing
Under the TREC one to four family residential contract, what are the buyers option if seller timely provides the sellers disclosure notice under paragraph 7B(2)?
Buyer may terminate the contract within seven days after buyer receives notice
Under paragraph 13 of the one to four family residential contract, what happens if taxes are not paid at or prior to closing?
Buyer shall pay taxes for the current year
Which of the following is TRUE under paragraph 7D of the One to four family residential contract?
Buyers agreement to accept the property as is under paragraph 7D(1) or (2) does not preclude buyer from inspecting the property under paragraph 7A.
Buyer and seller enter into a contract from a buyer to purchase sellers property using the one to four family residential contract. Buyer purchase a 14-day option to terminate the contract. What happens to the earnest money if buyer terminates on the 14th day?
It is refunded to the buyer
Which of the following may be included in paragraph 11, special provisions, of the one to four family residential contracts?
Multiple sellers if the the blanks in paragraph 1 are insufficient
On the day of the closing, the seller is told apartment as to which he is moving will not be available for two more weeks. The buyer agrees to delay possession for that. But requires a written agreement to protect all parties. The agents
Musta use the TREC- promulgated Sellers temporary residential lease form if the parties or their attorneys don't prepare a lease
Buyer and seller enter into a contract for buyer to purchase sellers property using the 1 to 4 family residential contract. The effective date is a Thursday. Buyer pays for a 10 day option to terminate the contract on the following Monday. Does the buyer have an option to terminate?
No, the deadline was Sunday
Buyer and seller enter into a contract for buyer to purchase sellers property using the 1 to 4 family residential contract. Buyer purchase is a 14 day option to terminate the contract. What happens if buyer fails to pay for the option within three days?
Option paragraph is not part of the contract
The local charity run is allowed to use the parking lot of the property under contract on a yearly basis at no charge to stage the van. There is no contractual obligation to provide the space, but merely a tradition that has developed over the years. The seller wants to be sure the buyer is aware of this and will encourage the buyer to continue to practice. This information should go in?
Paragraph 11, special provisions
According to the one to four family residential contract (resale), the title policy cost is the responsibility of the
Party that agreed to pay the cost In the contract.
Buyer and seller enter into a contract where buyer intents to take out a loan to purchase a home. The lender requires terminate treatment before it will issue a loan to the buyer. What are the buyers options under the one to four family residential contract?
The buyer may refuse to pay for the termite treatment
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 buyers options under the one to four family residential contract?
The buyer may terminate the contract and the earnest money is refunded to buyer
The buyer agrees to purchase a home as is with an option period of 10 days using the one to four family residential contract. What are the buyers a choices during the option period?
The buyer may terminate the contract.
Under the TREC Buyers temporary residential lease, what happens if buyer fails to close on the closing date in the contract and wants to remain in the property longer than the term provides in the lease?
The buyer must pay an additional daily holdover 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 12- day option to terminate. What happens if the buyer pays half of the fee up front and half four days after execution?
The buyer will not have the unrestricted right to terminate the contract.
Who holds the earnest money while a contract is pending under the TREC One to Four family residential contract?
The escrow officer
What happens to the option fee if the buyer terminated within the option period under paragraph 23 of the TREC One to four residential contract?
The option fee is not refunded to the buyer.
A buyer purchase property as is under the one to four family residential contract. As is means which of the following?
The present condition of the property with any and all defects, and without warranty except for the warranties of title and the warranties in the contract
Which of the following is not a required to be provided to a tenant under paragraph 9 of the TREC one to four family residential contract if the property is subject to a lease?
The security deposit
The buyers home inspector needs access to the house to conduct an inspection. Under the TREC one to four family residential contract, who is responsible for ensuring that the doors to the house are unlocked for access?
The seller
A buyer purchases a home from seller that is currently occupied by a tenant. What happens to the security deposit at closing under the TREC One to four family residential contract?
The seller must transfer it to the buyer
Buyers are buying a new home from a builder. How should the builder reply to the buyers offer where the seller would be required to provide the sellers disclosure notice within seven days of execution of the contract under paragraph 7 of the one to four family residential contract?
The seller should counter by indicating that she is not required to provide the notice
Under the TREC One to four family residential contract, how long does the seller have to provide the sellers disclosure notice to the buyer?
The time period is negotiated between the parties
How should I change to the One to Four family residential contract be made after the contract is executed?
Using the amendment to contract form
Under the one to four family residential contract, what should the buyer do if she wants to build a swimming pool in the backyard of the home she wants to purchase and is concerned about existing easements?
List the pool as an objection under paragraph 6D
How is earnest money disbursed at funding?
It is applied to the sales price
What happens to the earnest money at funding?
It is applied to the sales price
What is the purpose of the final page of the one to four family residential contract?
It is for information only
Using the one to four family residential contract, who pays for the title policy?
It is negotiated between the parties
The buyer wants to use her favorite title company to handle the purchase of an investment property. The sellers agent always uses a different title company. Who selects the title company?
It is negotiated by the parties
Under paragraph 23 of the window for family residential contract, what happened to the option fee if buyer time we terminate the contract within the option period?
It is not refunded to the buyer
Which of the following is a license holder permitted to place in paragraph 11, special provisions?
None of the provisions are appropriate for paragraph 11
Which of the following is an appropriate use for paragraph 11, special provisions, of the one to four family residential contracts?
None of these are correct
Using the TREC One to four family residential contact, the closing of the sale is set for September 30. Buyer timely object based on defects disclosed in the surevey under paragraph 6D, and the defects are finally cured on September 28. What is the latest date for closing?
October 5
In the TREC one to four family residential contract, which paragraph addresses possessions?
Paragraph 10
A few days after contracting to sell the ranch, your client received an offer from an oil gas exploration company to lease the mineral rights for five years, which will include a 5500 signing bonus. Cautioning the client that you are not giving Leggo Way Buyers and he should talk with his lawyer, you know that.
Paragraph 10 of the contract from home is a mineral lease after the contract is signed without the buyers written consent
According to the property code, which of the following are not required to furnish a sellers disclosure notice?
Single family new residences
Which form should not be attached to the 1 to 4 family residential contract?
TAR's notification of intermediary relationship form
How many different notices are in paragraph 6E of the one to four family residential contract?
Ten
Under paragraph nine of the track 1245 rows into contract, seller wants to stay in the property for one month after closing. What kind of Tenancy is formed if there is no written lease allowing the seller to stay?
Tenancy at sufferance
Under paragraph 14 of the TREC Buyers temporary residential lease, who bears the cost of maintaining the property?
Tenant
Who pays for utilities under the TREC buyers temporary residential lease?
Tenant
Under the TREC One to Four family residential contract, if closing takes place on Monday and the seller wishes to stay in the property for three more days, how should the arrangement be negotiated in the contract
Are the party should check the box indicating that the parties have negotiate a temporary lease
Using the TREC one to four family residential contract, the buyer submits an offer to purchase the sellers 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.
How are the earnest money and option fee typically paid under the one to four family residential contract?
A check to the title company and a check to the seller
Provides the seller will not incur any expensive, how many days after their receipt does the seller have to cure the timely objections of the buyer or any third-party lender?
15
Why is earnest money necessary to bind the contract in Texas?
Earnest money is not necessary to bind the contract.
Under the contract form, if a party says the demand for release of earnest money to the escrow agent, with a copy to the other party, if not objection is received by the escrow agent after _______, The agent may release the funds to the party making the demand.
15 days
Using the TREC one to four family residential contract, buyer and seller agree that buyer will purchase sellers property and seller will pay to have the fuse box replaced. Who may do the repair work?
A licensed electrician
Seller and buyer enter into a contract for buyer to purchase sellers home with an effective date of November 22, with. Closing date of December 31. On November 28, the home is damaged by fire. The fire was too extensive and seller is unable to restore the house by closing. What is NOT a buyers option under paragraph 14 of the one to four family residential contract?
Enforce the specific performance to restore the property to its previous condition
Buyer seller into into a contract for bio to purchase sellers property using the 1 to 4 family residential contract. By your purchases a seven day option to terminate the contract and buyer delivers the option fee to the sellers agent on the third day of the effective date. How should the buyers agent document the delivery?
Have the sellers agent sign and date the option of the receipt
In which of the following situations is a seller required to provide the sellers 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
The buyer agrees to purchase a home as is in part relying on an existing inspection report. The buyer uses the one to four family residential contract with an option period of 14 days. What are the buyers choices during the option period?
The buyer may have the property inspected again.
A license holder represents a buyer in a transaction that is not using a TREC-promulgated contract form. To provide to the buyer the notice included in paragraph 6E1 of the promulgated contract forms, the license holder should
Use the TREC form, Notice to prospective buyer