Law & Contracts
Whats the purpose of the Condominium resale certificate
To provide information about the condominium owners association fees, issues, and finances.
If a licensee Diane represents the seller of a home built in 1972 what does she need to provide to potential buyers?
Lead safety pamphlet
Janet and Hank are buying a condominium from Shirley who is responsible for the transfer fees charged by the association up to the amount specified in the contract
Janet and Hank
Justin Time is a business name for a Texas general partnership between Justin Leung and Anne Claren. how should a licensee identify their general partnership as a party to a sales contract
Justin Time, a Texas Parnership
Who or what enity prepares the resale certificate that is provided to a prospective buyer of a subdivision property or condominium
The owners association
Although Cami's clien'ts property is already under contract, the seller continues to recieve numerous back up contracts. How many can Cami's client enter into.
Unlimited
In contract law, undue influences differs from duress in that duress includes
Use or threat of force
Rollback taxes are assessed whenever an on agricultural property's ___________ changes.
Uses
When is the Addendum for Back Up contract used
When the seller wants to negotiate with a second buyer in the event the first buyer's transaction fails
Brad a Texas license holder is acting on behalf of his brother. Is Brad required to provide a written license holder disclosure notice to the other party
No because it is his sibling parents or children is not required by Texas Law
The parties were scheduled to close January 15, but now wish to close January 10, What Texas form must be completed and signed
No form is needed as long as the parties agree and have met all of their contractual obligations
Your seller client Tommy's late husband George died on the front lawn of their home. Is she required to dsiclose this to the buyer now that she is selling her house
No, because the death was not related to the property conditions
You have a signed contract in your hand, but is is missing the effecctive date. Is this a binding contract
No, the contract is not binding because the effective date hasn't been filled in
A seller has signed an addendum for a back up contract and likes the second offer better than the first. May the seller terminate the original offer.
No, the seller may not unilatterally terminate
If a buyer has concerns about the conditions of any part of the property that the homeowners association is required to repair, what should the buyer do?
Not sign the contract unless the buyer is satisfied that the homeowners association will make the desired repairs
Per the Short Sale Addendum when does the time for giving notice of termination begin if the buyer has the unrestricted right to terminate the contract
On the effective date of the contract
Which of the following statements regarding contracts is true?
Once the sales contract is fully executed by all parties it can no longer be changed
What happens if a buyer wnats to terminate the contract but fails to deliver the notice of buyer termination contract to the seller prior to the expiration of the option period
The buyer must close the transaction in accordance with the term of the contract
There are four requirements before the sales contract can be considered an executed contract. Which of the following is one of these requirements
The contract must be accepted by both parties and that acceptance must be communicated to both parties or their agents
What happens when a Texas buyer who has paid seller on option fee under the TREC residential one to four family resale contract terminates the contract after the option period expires
The seller keep the option fee and may get to keep the buyers earnest money
What information is required to complete the Promissory note paragraph in the seller financing addendum to the sales contract
The terms for repayment of the loan
IF a checkbox is not properly filled out what can happen to the transaction
The transaction can bee delayed
If the sellers's broker offers a buyer agent commission, this amount will be applied to any fee a buyer has already agreed to pay
There for Jackie will pay her broker less of the total commission fee
Johanna, a seller was under contract when her property was flooded due to the heavy rain. This is whats know is
casualty loss
Per the Addendum for back up contract when does the time for giving notice of termination begin if the buyer has the unrestricted right to terminate the contract
on the effective date of the Back up contract
What happens to any excess earnest money when property closes
It is refunded to the buyer
Your seller client, William had multiple offers to consider, He decided to move forward with Ryans offer and reject the offer from Kevin. What should your client do with the offer from Kevin?
Write "REJECTED" on Kevin's offer
Buyers of newly constructed homes must follow the procedures establiished in chapter 27 of the Texas property code in order to do what
Recover damages for construction defects
Which licenseee is exempt from liability under the 2011 amendment to the DTPA
Samuel, who accidently advised his client to do something that was incorrect
According to the Source of Commission section in the TAR residential buyer/tenant representation agreement from whom will the broker first seek to obtain payment of the commission
Seller, landlord or their agents
Stan was unable to obtain financing from his lender for the property he was hoping to buy. Which of the following reasons should Stan check on the Notice of Buyers Termination Contract for having to terminate the contract?
So he will check off in the contract, Buyer cannot obtain Buyer Approval in accordance with the Third Party Financing Addendum to the contract
If a buyer will move in before closing or seller will remain after closing, what form must be prepared
Temporary Lease
Which section of the TREC unimproved property contract is used to indicate with addena are attached
Agreement to the parties
Which act requires multifamily housing, commercial, and public buildings to be accessible to indiviuals with disabilities
Americans with disabilities act
Under the terms of the TREC one to four family residential contract resale what recourse do buyers have if a sell is unable to deliver the title commitment and exception document to the buyer within the alloteed time due to factors beyond the sellers control
Buyers can terminate the contract and their earnest money back
Thee seller, Bob received an offer on his home that was contingent on the buyers selling their home first While waiting for the buyers Bob received a back up offer without a contingency. What can Bob Do
Bob can ask the buyer on the first Trec one to four family residential contract resale to waive the contingency within an agreed upon time frame or terminate the contract.
Bobbie is a licensee preparing the contract for her buyer client, who is purchasing a new home that is not yet complete. It will be complete at the time of closing. Which of the following is true
Bobbie should not use the New home contract (Complete Construction)
If any expense exceeds the amout the buyer agreed to pay in the contract, the ____________ must go through with the transactions if the seller agrees to pay the difference in cost.
Buyer
What type of contract do you have once the seller has accepted the buyers offer in writing and the seller has accepted the buyers offer in writing and the buyer has been notified of the acceptance
Enforceable
What are the documents that the title company provides to the buyer along with a title Commitment
Evidence of exceptions in the title commitment
In Texas contracts for deed lease purchase agreements and lease option agreements are referred to as ____________ contract
Executory
Rachel is buying a condominium from Mark and Stacey. The condominium association has the right of first refusal. How does this effect Rachell's purchase
Rachel can only purchase the condo unit if the condo association does't want to
Allison is helping her buyer complete a seller financing addendum to a sales contract. Where should she put that the buyer needs a 40,000 loan at a 6% FIXED RATE FROM THE SELLER TO BE PAID BACK IN 120 MONTHLY PAYMENTS.
In the Promisory Note paragraph
Maura is representing three buyer clients and there is only room enough in the parties section of the TREC one to four family contract to list two of the three names. Where should she note the name of the third buyer?
In the Special Provisions Section
Mary has a contract to buy her mother's house when her mother is finally ready to move to a senior living community. This way the house stays in the family. After her mother finds a suitable senior apartment and move Mary writes a check for the agreed upon amount and her mother transfers the deed to marry... What is happening in this senario?
Performance
Gary the seller has a list of repairs from the buyer that he has agreed to make. Per the TrEC one to four family residential contract resale when must Gary have the repairs completed
Prior to closing
Where int he contract can you put the right for access to the property inspection
Property Condition
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
Reginal Broker and Stacey Lee are married purchasing a property together. Which of the following is the best way to identify them as parties on a sale contract
Stacey Lee and husband Reginald Broker
Which of the following requires that a legal description of the property be included in a real estate contract in Texas
Statue Fraud
Which of the following is a true statement about how Texas contracts must be used
The Residential condominium contracts resale can't be used for townhomes
Elisa is a property manager at Oakwood Luxury Apartments in San Antonio. A family of seven recently inquired about renting a three bedroom unit. what law can guide Elisha in her decision.
The Texas Landlord and Tenant Act
Before Texas established its own occupancy standards law, the federal policy would have likely been considered. how does the Texas law differ from the federal law?
The Texas law allows for more adults per a bedroom than the federal occupancy
Per the notice of Buyers Termination Contract, which of the following is a reason why a buyer may terminate the contract?
The buyer had the unrestricted right to terminate the contract under Paragraph 23 of the contract
What is one major difference between condominiums and town homes
They each have different forms of ownership
Nancy is expalaining the termination option to her buyer client. How would she explain that time is of the esence?
This means that the deadline for depositing the option fee and the time frame for the option period will be strictly enforced. You don't want to miss these dead lines.
How many people per bedroom is/ are allowed under the Texas Property Code?
Three
What is the purpose of the Addendum for Coastal Area property
To disclose that the owners of coastal property may gain or lose portiions of their property because of changes in the boundries
Are immigrants covered under fair housing laws?
Yes regardless of immigration or resident status
Jenna a license holder is acting on behalf of her spouse Dan. Is Jenna required to provide a written licnse holder disclosure to the other party in the transaction?
Yes, because Jenna is acting on behalf of her spouse.
Chip is your developer client who is about to sell several lots in his new subdivision. he asks you what disclosure requirements are? How do you answer him?
You must disclose all known defects and issues that would impact a buyers decision to buy
In the loan Assumption Addendum when does the buyer agree to pay the initial payment toward the loan?
The first payment due after closing
Teri is concerned that nearby wetlands will affect how she able to use the property on which she making an offer. which Texas addendum should be attached to the contract
The enviormental assesment, Thereatened or endangerd species and wet lands Addendum
Veronica is completing her third party financing addendum with her agents help. Although she is applying for a conventional loan she is able to got through with the sell and has cash to pay if the loan fails What box will check on the contract
Check the box on the addendum that makes the contract not subject to buy obtaining buyer approval
Plans specificantions change order and allowances are part of the _________ and should be feferenced in the New home contract (incomplet Construction).
Construction document
Which of the following qualities as an example of a buyer default
Failing to remove one or more contingencies bby the agreed upon date
Your client submits an application to rent a condo unit. He has excellent credit and been in the job for a long time. He uses a cane to help him with mobility. When his application is rejected, he feels it is due to his disability. He is proteccted under the
Fair Housing Amendments of 1988
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 benifited from it can bee held liable for actual damages
Fraud in Real Estate and Stock Transaction
In what way does good consideration differ from valuable consideration.
Good consideration is a gift
Under the TREC rules relating to contract forms, what must a licensee do?
Inform the parties to a real estate transacction that thee contract they are about to sign is legally binding to them
What options does the Addendum for the Release of liability on assumed loan and/or restoration of sellers VA entitlement give the seller if the restoration of the VA entitlement is not approved by closing
To terminate the contract or not delay the closing
