Chapter 7 - Promulgated Addenda, Notices and Other Forms

Condominium Resale Certificate

Prepared by management of a condo- minimum project

The management of a condominium project does not prepare promulgated resale certificates.

false

Consumer Information Form

Should be prominently displayed in a broker's office

Lando , a buyer, needs to terminate a contract because of his inability to obtain credit approval. This can be accomplished by using a TREC-promulgated form.

Third party financing addendum 40-7

Addenda are forms used to...

expand the scope of a TREC - promulgated contract, and are used when the circumstances of a transaction require it.

House Bill 2352 amends the Utilities Code to establish standards for oil and gas distribution system retailers.

false

Non-Realty Addendum is used when Seller is unable to sell property at or above what Seller owes the lender.

false

The Addendum For Back-up Contract is used when Buyer and Seller agree to make a contract subject to the sale and funding of another property currently owned by Buyer.

false

The Addendum For Sale of Other Property By Buyer is used when a property is already under contract to a buyer, and another buyer wants to enter into a contract that would become effective if the first contract fails to close.

false

Which of the following is NOT part of the mineral estate? a. oil b. gas c. limestone d. salt

limestone

Seller Rey needs to sell property at a price that is less than her existing mortgage balance. In order to accomplish this, she will need a TREC-promulgated form.

short sale addendum 45-1

If the seller receives and accepts an offer during the contingency period, and Corina declines to waive the contingency:

The contract will terminate and her earnest money will be refunded

Corina is selling her home and would like to purchase another home to move into as soon as her current home sells. When she finds a home she would like to purchase, her buyer's agent submits an offer on her behalf. To make the contract subject to the sale and funding of Corina's current residence, he also submits an Addendum for Sale of Other Property. What will happen if Corina's home does not sell?

The contract will terminate automatically and the earnest money will be refunded to Corina

Buyer's Termination Form

Used to notify the seller of a buyer-initiated contract termination

Short Sale Addendum

Used when a seller is unable to sell at or above what is owed on a property

Non-Realty Items Addendum

Used when personal property is to be included in a sale

According to the Addendum for Back-Up Contract, an amendment to the first contract: a. Waives all contingencies b. Gives the seller the right to keep the earnest money c. Constitutes a termination of contract d. Does not constitute a termination of the first contract

d. Does not constitute a termination of the first contract

Which of the following statements regarding the Addendum for Back-Up Contract is FALSE? a. An amendment to the first contract automatically constitutes a termination of the first contract b. The previous contract is known as the "First Contract" c. The intent of a back-up contract is that it is to be contingent on the failure of an existing contract to close. d. All of these statements are false

An amendment to the first contract automatically constitutes a termination of the first contract

If Corina waives the contingency and then fails to close and fund due to non-receipt of proceeds from the sale of her home, which of the following remedies are NOT available to the seller?

Filing a DTPA lawsuit against Corina

Steve, a license holder in Texas, is dealing with his current buyer Peggy. She wants to write a contract on a property that is already under contract to another buyer. She wants to ensure that she will have a valid contract in place if the existing contract fails. Being the buyer's agent, Steve will use a TREC-promulgated form.

addendum for back up contract 11-7

Han is a license holder in Texas. He is preparing an unimproved property contract. He knows that the seller is going to reserve all of the minerals in the sale. This can be accomplished by using a TREC-promulgated form.

addendum for reservation of oils, gas and other minerals TREC NO 44-2

Luke, a buyer, wants to make an offer on a property. The contract is subject to the sale of the buyer's existing property. This can be accomplished by using a TREC-promulgated form.

addendum for sale of other property b Buyer TREC no. 10-6

Addendum for Property Located Seaward of the Gulf Intracoastal Waterway is actually a disclosure notice for purchasers of property in the affected area.

true

Ownership of real property can be divided among three separate estates: surface, air rights, and subsurface rights.

true

The Addendum For Coastal Area Property is used when a property abuts any tidally influenced waters of Texas.

true

The Subdivision Information Form is completed by the property owners association or the management company representing the association.

true

When property is sold, the Seller often reserves some if not all of the mineral estate.

true