Promulgated contract forms

A license holder might be guilty of the unlawful practice of law if he or she: (a) wrote a will for a client (b) advised the buyer regarding title issues (c) drafted a lengthy and complex provision in special provisions (d) All of these actions could result in a real estate license being suspended or revoked by TREC

D

According to the Third Party Financing Addendum of a VA loan, if the purchase price or cost exceeds the reasonable value of the property as determined by the Department of Veterans Affairs, the Buyer: (a) can terminate the transaction without penalty (b) can pay the excess amount in cash from a source which Buyer agrees to disclose to the VA (c) can negotiate with the seller to have the seller lower the sales price to an amount equal to the VA reasonable value (d) The buyer has all of these options

D

All written notices between the parties are effective when: (a) mailed (b) hand-delivered (c) faxed or emailed (d) any of these are correct

D

In the Farm and Ranch contract, the Sales Price may be adjusted based upon a survey. If the sales price is adjusted, _____________. a) the cash portion can be adjusted (b) the amount financed can be adjusted (c) the cash portion and amount financed can be adjusted proportionately (d) any of the above are possible

D

The closing date: (a) is negotiated by the buyer and the seller (b) is an "on or before" date (c) may be extended in some cases (d) all of the above

D

The sales price in 3.C. is always: (a) The loan amount plus the cash portion (b) 3.A. + 3.B. (c) The amount borrowed plus the down payment (d) All of these are correct

D

According to the ___________, a broker who is acting as intermediary must obtain written consent from each party of the transaction.

Information about Brokerage Services Form

When one party defaults under a contract, the other party is known as the:

Injured party

__________ occurs when a property is refinanced or resold immediately after purchase for an artificially inflated value.

Property flipping

A(n) __________ property is one where a particular event has affected the desirability of said property.

Stigmatized

Which of the following statements regarding surveys is correct?

Surveys are not applicable to condominium sales

Reservations of oil, gas and other minerals will generally be inserted in:

TREC Addenda form

The TREC promulgated contract forms:

are drafted by the Broker-Lawyer Committee

The Third Party Financing Addendum cannot be used for:

seller financing

Buyer Sarah is purchasing a residential property. She plans to live in the home and operate a daycare business in the home as well. Having mentioned this to her agent, the agent should:

specify the use as a daycare in Paragraph 6: Objections

If a seller wants to continue to occupy the property for two days after the closing and the buyer agrees:

the Seller's Temporary Residential Lease form should be used

If an overage is incurred on new home construction due to a change order, the excess is paid by:

the buyer

The Third Party Financing Addendum can be used when:

the buyer is obtaining any kind of third party financing

A short sale is a transaction wherein:

the lender has agreed to accept less than the outstanding loan balance at closing

The number of days allowed for objections to title or survey is:

the number of days entered in paragraph 6.

If a buyer makes an offer without having received the Seller's Disclosure Notice, how many days does the seller have to provide the notice?

the number of days negotiated in the contract

In the Farm and Ranch contract, the Seller generally has the right to harvest crops:

until delivery of possession

A Seller's Disclosure Notice is not required:

when the property being sold is a previously unoccupied new home

Damage or destruction of a property under contract prior to closing:

Can result in termination of the contract

In the Farm and Ranch contract, if the Sales Price is adjusted based upon a survey, either party may terminate the contract if the Sales Price varies by more than:

10%

The term for USDA loans is ________, with 0% down.

30

3. A federal disclosure requirement for residential properties built prior to 1978 is

A lead-based paint disclosure

The sales contract identifies the agency relationships between the broker(s) and parties:

In the Broker Information section

If a property is under contract to a buyer, another buyer may use the to enter into a contract for the property if the first contract fails to close.

Addendum for Back-up Contract

All of the TREC-promulgated contracts provide that the buyer is purchasing the property ___________.

As is

Federal law provides that when selling a home built before 1978:

Buyer must be provided with the pamphlet "Protect Your Family From Lead in Your Home"

________ not a requirement of a valid contract

Earnest money

When a seller wishes to retain certain fixtures or accessories, these items are called:

Exclusions

If in Paragraph B,(2) is checked, and 50% entered in the Addendum for Reservation of Oil, Gas, and Other Minerals, ________________

Seller reserves 50% of whatever mineral estate seller owns as of the closing date

No advertisement may contain an explicit reference to a preferred gender of the renter or tenant, with the exception of those advertisements for ___________.

Shared living spaces

A state government entity created to encourage agricultural development in Texas is the:

Texas Agricultural Development District

Which of the following statements regarding loan assumption is correct?

The original borrower on a note is not necessarily released from on-going liability for repayment on a mortgage when a purchaser assumes the mortgage

Land, improvements and accessories are collectively referred to as:

The property

In Texas, the statute of limitations is for an oral agreement.

Two years

If not using a temporary lease, the buyer is entitled to possession of the property:

Upon closing and funding

At closing the buyer should bring a:

a cashier's check or wire transfer for the amount of closing costs and down payment

Rollback taxes would most likely be imposed when:

a property that has been under an agricultural exemption is developed into a subdivision

A purchaser of property seaward of the Gulf Intracoastal Waterway must be given a disclosure notice that:

beach erosion and movement of the vegetation line could cause an owner to lose the property

When should a license holder advise a client to consult an attorney:

before signing the contract if the client does not understand the effect of signing the sales contract or the terms or conditions in the agreement

TREC promulgated contracts allow the Buyer to have the property inspected:

by inspectors licensed by TREC or otherwise permitted by law

Usual expenses of the seller as stated in the contract include:

release of the existing lien

TREC has promulgated forms for:

residential transactions

Any material changes to subdivision information require the __________ to give notice of said changes promptly.

seller

If a license holder is receiving compensation from a residential service company, the compensation must be:

disclosed to the parties using the appropriate TREC form

If the Seller agrees to contribute to the Buyer's closing costs, the amount should be:

entered in Paragraph 12.A(1)(b)

During the time between execution and closing/funding, a contract is a(n):

executory contract

An exception to a license holder using a TREC-promulgated contract form would be:

if an attorney-prepared form is used

When a party fails to perform according to the terms of a contract, that party is said to be:

in default

A Buyer wishes to make an offer on a property, but is concerned that the rare and endangered Fluted-Tree Scorpion occupies the land. In preparing the offer, the agent should:

include the TREC Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum

Usual expenses of the buyer as stated in the contract include:

loan application fees

According to the Seller Financing Addendum, the interest rate is:

negotiated between the parties

The title company is:

not a party to the transaction

Another name for blockbusting is____________.

panic peddling

Exclusions to the sale must be removed:

prior to delivery of possession

The process of dividing ongoing expenses such as taxes and POA fees between the buyer and seller at closing is called:

prorating