Promulgated Contract Forms
If you understand all the facts you can:
Advise the client they have the right to receive a title policy or abstract of title.
If a buyer needs to receive the funds from the sale of another property, they will need to do all of these except:
Attach a Non-Realty Items addendum.
The information about Brokerage services (IBS) states the broker may represent the:
Owner Buyer Both owner and buyer as intermediary
If a buyer wants the seller to pay some or all of their closing costs, it should be added to the contract in:
Paragraph #12 - Seller participation in buyer's costs.
A license holder must disclose if he is a party to the transaction, or acting on behalf of a spouse, parent, child, business entity in which the license holder owns more than 10%. This is done in Paragraph _____ of the One-To-Four Family Residential Contract.
Paragraph 4
If a contract has a correct street address but an incorrect legal description, the contract is:
Voidable
What is the status of a contract if the seller does not make the buyer aware of a property being located within a municipal utility district?
Voidable by the buyer
Chapter 531 Canons of Professional Ethics and Conduct includes:
Fidelity Integrity Competency
TREC has approved and promulgated six sales contract forms:
1. One-To-Four Family Contract (Resale) 2. New Home Contract (Incomplete Construction) 3. New Home Contract (Complete Construction) 4. Unimproved Property Contract 5. Residential Condominium Contract (Resale) 6. Farm and Ranch Contract
Within _____ days after the title company receives a copy of the contract, seller shall furnish to buyer a commitment for title insurance.
20 days
In the sales contract, under Broker Information, the "Other Broker Firm" is given a choice of who they represent. The choices are:
Buyer only as Buyer's agent Seller as Listing Broker's subagent
Once a contract is finalized and receipted it:
Can be amended multiple times if all parties agree.
Use of TREC promulgated One to Four Family Residential Contract (resale):
Covers single family, duplex, triplex, and fourplex transactions.
Broker fees are:
Determined by writing in the Listing Agreement.
The Residential Condominium Contract Resale:
Does not address any parking assignments.
On the seller's default, what should happen to the earnest money?
It should be returned to the buyer.
When a "fixture" in a property does not remain for the buyer, how do we inform the buyer of that fact and make sure the item does not convey with the property?
List the item on the "Residential Contract"
Failure on the part of the broker to advise the purchaser in writing to have an abstract examined by an attorney or obtain a title policy:
May be cause for an agent to have their license suspended or revoked, and precludes the receipt of any commissions paid at the sale.
The TREC promulgated Seller Financing Addendum states that if the buyer does not furnish the required qualifying documentation within the time limit allowed:
Seller may terminate the contract and keep the earnest money.
If an agent receives confidential information from a client while the agency agreement is in force, that agent may:
Share that information if the client authorizes to share it.
A Buyer/Tenant Representation Agreement is:
Sometimes available through local Realtor Boards.
If the seller backs out of a contract for a reason not covered by the contract contingencies, the buyer has the option of:
Suing for specific performance.
In the late !960s and the early 1970s, the ______ and the _____ attempted to resolve the dispute by agreeing to several earnest money contracts that would be acceptable for real estate practitioners to use in their daily business.
Texas State Bar Association and the Texas Association of Realtors.
All changes from the original contract once it is receipted by the title company are completed on the _____.
The Amendment
Any changes to the original contract once it is finalized and receipted must be done:
The Amendment
Who is designated for promptly sending a copy of the contract to any attorneys who are named in the contract?
The Broker
Items that must be completed in Paragraph 23 are:
The dollar amount of the option money. The number of days for the option. What happens to the option money at closing.
If there is an exiting survey on the property, what does the seller take to the title company and the lender?
The existing survey and a notarized affidavit stating if there has been any changes in the survey since the time the existing survey was completed.
According to the TREC 1-4 Residential Contract (Resale), who is responsible for paying the owner policy of title insurance fee?
The party stipulated in the contract
The seller contracts to furnish the buyer an existing survey, but neglects to furnish an "affidavit" within the time specified. The lender requests a new survey to be furnished. Who pays for the new survey?
The seller
Even though a buyer and/ or seller agree to mediate:
They are not giving up their right to pursue relief through the courts.
A suit for specific performance is:
To force the seller not to default on the contract.
How does the Texas Real Estate License Act define the first face-to-face meeting which requires agency disclosure?
When substantive dialogue about a specific real property occurs.