Module 4: Texas Promulgated Contract Forms
Which part of a sales contract most leaves an agent liable for the unauthorized practice of law?
Special Provisions
Unless specified otherwise in the New Home Contract - Incomplete Construction, the ............date should not extend beyond the closing date?
Substantial Completion
Which of the following is NOT listed in detail on a TREC promulgated form?
Broker's Fees
The title policy is a contract between the title company and the...?
Buyer
which of the following is an example of termination of a contract?
Substantial performance, partial performance, impossibility of performance
Who approves the contract forms drafted by the Broker/Lawyer Committee?
TREC
Where can one look to find the most up-to-date promulgated contract forms...?
TREC's Website
The title company used in a transaction must be agreed upon by both the buyer and seller...?
TRUE
Which of the following title notices are included in the Unimproved Property Contract but not the One to Four Family Residential Contract - Resale...?
Texas Agricultural Development District
Which of the following forms are NOT promulgated...?
Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies
The Texas Real Estate Commission was created to administer which of the following...?
Texas Real Estate License Act TRELA
Which of the following describes how a contract becomes a promulgated form...?
Texas Real Estate License Act TRELA
Which of the following appoints 6 of the members to the Broker/Lawyer Committee...?
Texas State Bar
Where can an agent search to find the legal description of a property...?
The Appraisal District's Website
Which of the following originally drafts the promulgated contract forms?
The Broker/Lawyer Committee
Who is responsible for paying any deposits for reserves required at closing by a condominium's association?
The Buyer
When a buyer takes title to a property, the name listed on the deed will match which of the following...?
The Buyer's Name As Listed In The Purchase Contract
Who is responsible for completing the Condominium Resale Certificate?
The Condominium Owner's Association
What happens to the contract if the seller cannot cure the buyer's objections, and the buyer refuses to waive their objections...?
The Contract Is Terminated And The Buyer Receives Their Earnest Money Back
The term of a Seller's Temporary Residential Lease commences on what date...?
The Date The Property Is Closed And Funded
What does an agent first need from the seller when preparing a contract...?
The Name Of The Seller(s) As Listed On The Deed
Unless otherwise stated in the Seller's Temporary Residential Lease, who shall bear the cost of all expenses for the repairs and maintenance of the property during the term of the lease...?
The Seller
When preparing a contract, where should the agent look to find the name of the seller(s)...?
The Seller's Title Policy
Who owns any submerged lands along a coastal waterfront?
The State
What should an agent do as a means of risk management practice against real estate fraud...?
Document Your Communication With The Parties Involved In The Transaction
The One to Four Family Residential Contract - Resale is used for which of the following properties...?
Duplex properties Tri-plex properties Single family homes
Which of the following is an example of a restrictive covenant...?
Easements
What must be disclosed to prospective buyers in a transaction...?
Everything The Seller Or Agent Knows About The Condition Of The Property
Which of the following contracts should NOT be used when purchasing raw land....?
Farm and Ranch ContractResidential Condominium Contract - ResaleOne to Four Family Residential Contract - Resale
The seller is responsible for paying which of the following expenses at, or prior to closing...?
Fees Associated With The Release Of Existing Liens
Ceiling fanswall-to-wall carpetingPlumbing fixtures
Fences A shed A garage
When a property is purchased and then quickly resold at a value that is artificially inflated by false appraisal or loan fraud, it is referred to as...?
Flipping
What type of deed is typically used in a residential transaction in Texas...?
General Warranty Deed
Which of the following may be considered farm and ranch accessories?
Hunting blinds Fuel tanks Game feeders
Unless specified otherwise, chandeliers are considered...?
Improvements
which of the following contracts should be used to purchase a new house currently being built?
New home contract - incomplete construction
Which of the following is a red flag for real estate fraud...?
No outstanding mortgages, free and clear property
Which of the following paragraphs in the New Home Contract - Completed Construction deviates from the One to Four Family Residential Contract - Resale...?
Paragraph 2, 7, & 13
Which of the following paragraphs of the Addendum For Property Subject to Mandatory Membership in a Property Owners Association deals with Fees...?
Paragraph C
Which of the following actions by an agent may be considered as unauthorized practice of law...?
Providing opinions as to the condition of title
Which of the following prohibits the seller from requiring a specific title company as a condition of the sale...?
RESPA
The Unimproved Property Contract should be used to purchase which of the following...?
Raw Land
The seller is responsible for paying which of the following expenses...?
Release of existing liens Preparation of deed One-half of the escrow fees
Which of the following are considered protected classes under the federal fair housing laws...?
Religion National Origin Disability
Which of the following contracts should be used when purchasing a condominium apartment...?
Residential Condominium Contract - Resale
The Texas Real Estate Commission is responsible for regulating which of the following...?
Residential service companies Real estate inspectors Real estate brokers
Which of the following is included in the legal description of a property?
Section number, lot number, block number
The purchase of a residential service contract is optional...?
True
When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it, it is referred to as a...?
Unilateral Contract
Which of the following promulgated contracts should be used for the purchase of vacant land?
Unimproved Property Contract
Which of the following is a standard exception for a title policy...?
Utility easementsMarital rights Mortgage liens
Which of the following is included in paragraph 7 of the New Home Contract - Completed construction, which is NOT included in the One to Four Family Residential Contract - Resale?
Warranties
When filling out a pre-printed form, a real estate agent cannot do which of the following...?
Add sections to the formStrike-out sections of the formSign on behalf of the principal
Which of the following addenda is pursuant to Section 33.135 of the Texas Natural Resources Code...?
Addendum For Coastal Area Property
Which of the following addenda must a veteran complete when purchasing a new home with a VA loan when they already have an outstanding VA loan...?
Addendum For Release Of Liability On Assumed Loan And/Or Restoration Of Seller's VA Entitlement
Which of the following forms should be used if the buyer needs to sell their existing property prior to closing on a new property...?
Addendum for sale of other property by buyer
When does an offer become a valid contract...?
When All Essential Elements Of A Contract Are Met
Which of the following is considered an accessory to a condominium unit?
Window air conditioning unit, stove, door keys
Veterans are allowed to have how many VA loans at any given time...?
1
What is the maximum number of Addendum For "Back-Up" Contracts a seller can have a one time...?
1
The Texas Real Estate Commission was created in what year...?
1949
Which of the following is a reasonable standard according to HUD?
2 persons per bedroom
The title policy for a property is discussed in paragraph ........of the One to Four Family Residential Contract - Resale?
6A
Which of the following sub-paragraphs of the New Home Contract - Completed Construction describes Acceptance of Property Condition?
7B
Which of the following sub-paragraphs of the New Home Contract - Completed Construction describes Insulation?
7D
Which of the following paragraphs of the One to Four Family Residential Contract - Resale deals with closing?
9
Which of the following paragraphs of the Addendum For Property Subject to Mandatory Membership in a Property Owners Association deals with Subdivision Information...?
A
which of the following is an example of a termination of a contract by operation of law?
A Buyer Has Entered Into A Contract To Purchase A Commercial Property But The City Has Now Rezoned The Property As Residential
The use of a temporary lease may lead to which of the following occurring...?
A Temporary Gap In Insurance Coverage
The resolution of disputes by various means including, but not limited to negotiation, mediation, and arbitration, is known as...?
Alternative Dispute Resolution
Which of the following may be used as an alternative to novation?
Amend the existing contract
Which of the following paragraphs of the Addendum For Property Subject to Mandatory Membership in a Property Owners Association deals with Material Changes...?
B
Which of the following actions violates the federal fair housing laws...?
Blockbusting
What happens if the seller defaults on the contract and the buyer elects to rescind his/her earnest money...?
Both Parties Are Released From The Contract
The Residential Condominium Contract - Resale differs from the One to Four Family Residential Contract - Resale in which of the following paragraphs...?
Paragraph 2
Which of the following are considered improvements within a condominium unit...?
Ceiling fans wall-to-wall carpeting Plumbing fixtures
which of the following is considered a non-contract form?
Condominium resale certificate
Which of the following is added in paragraph 7 of the New Home Contract - Incomplete Construction, which is NOT included in the One to Four Family Residential Contract - Resale...?
Construction Documents Buyer's Selections Cost Adjustments
TREC has promulgated which of the following types of forms...?
Consumer Disclosures Addenda Real estate sales contracts
Which of the following deals with consumer protection...?
DTPA
Which of the following forms describes a broker's minimum required duties by law...?
Information About Brokerage Services Form
which of the following items should be included in the Non-realty items addendum?
Items of personal property to be included with the sale of the property.
This refers to a contract between an owner and tenant, setting forth conditions upon which the tenant may occupy and use the property and the term of the occupancy...?
Lease
Which of the following contracts are not promulgated by TREC...?
Listing agreementsAgreements between brokerBuyer representation agreements
Which of the following is an example of a bilateral contract?
Listing contract Sales contract Independent contractor agreement
Which of the following is often the most expensive means of resolving a dispute?
Litigation
Which of the following paragraphs in the Unimproved Property Contract deviates from the One to Four Family Residential Contract - Resale...?
Paragraph 2
What form should be used if a buyer would like to back out of a contract after the seller refuses to fix any repairs noted during the inspection period...?
Notice of Buyer's Termination of Contract
The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties is known as...?
Novation
The sale of a property within a subdivision, which includes a small house on it will use which of the following contracts...?
One To Four Family Residential Contract - Resale
Which of the following refers to a right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right...?
Option
Which of the following is an example of a forbearance contract?
Options Contract
Which of the following documents should a buyer read prior to signing the Residential Condominium Contract - Resale...?
The declaration of the condominiumThe rules of the condominium associationThe condominium bylaws
Which of the following are required attachments to the Condominium Resale Certificate...?
The operating budgetThe insurance summaryThe balance sheet
Which of the following acts is considered a violation of fair housing laws...?
blockbusting, steering, redlining
Which of the following acts as liquidated damages if the buyer defaults on the purchase contract...?
earnest money
Which of the following acts is considered fraud...?
flipping
which of the following is an example of consideration?
money, personal services, cash
To have no force or effect is referred to as a .......... contract?
void
Which of the following are considered farm and ranch improvements...?
windmills barns sheds