Promulgated Contracts - Test Questions Review
What is one thing that differentiates TREC from the Broker-Lawyer Committee?
TREC members are appointed only by the governor, while Broker-Lawyer Committee members can be appointed by different people. All of TRECs members are appointed by the governor. The Broker-Lawyer Committee, on the other hand, has members appointed by the State Bar of Texas, TREC, and the governor.
If clients want to make an offer to the seller offering a "lease with option to buy," the buyer's agent should
Tell the client they will need an attorney to draw up the documents. You should NOT use the TREC forms or other such standard forms to create lease-purchase, lease-option contracts, or contracts for deed. Neither TREC nor any real estate trade association in Texas drafts standard forms for writing executory contracts, and a lease option to buy, will need to get in touch with an attorney to get advice and help them prepare the contract forms. The best advice the real estate agent can give the parties is not to enter into executory contracts without seeking the assistance of an attorney.
Before the Lead-Based Paint Addendum can be considered complete, which of these must happen?
The buyer, seller, and both brokers must sign it. The seller is required to disclosed any knowledge of lead-based paint used in the home and provide any available reports. Unless an owner has conducted tests
A seller is planning to convey a refrigerator through the Non-Realty Items Addendum. They financed the applianced purchase and still have a few payments left. Is this allowed? Why or why not?
No, items conveyed through the Non-Realty Items Addendum must be owned fully by the seller. The seller CANNOT convey items that are not fully paid off. The buyer should not be taking on any payments for the non-realty items.
A back-up buyer's contract is executed on September 28 with a four day option period. On October 4, the seller informed the back-up buyer that the first contract was terminated. When does the back-up buyer's option period end?
October 8, 5PM The four-day option period begins when the back-up contract becomes the primary contract, on October 4. Four days after October 4 is October 8.. Deadlines are set at 5PM, not midnight. So, the option period ends on October 8 at 5PM
Which of these materials would be considered part of a property's mineral estate?
Oil The mineral estate does NOT include water, sand, caliche, gravel, limestone, or iron.
Whice one of these is a bilateral contract?
Zelda agrees to pay Gus $250,000 for ownership of his house. A bilateral contract obligates both parties to fulfill certain terms, where one party promises to do something for another party and that party promises to do something for the first party. An example is Zelda agreeing to pay $250,000 for ownership of this house.
Which of these is NOT something that is appropriate to put in Paragraph 11 (the Special Provisions section) of a TREC-promulgated contract?
That the contract is contingent on the inspection The Special Provisions sections can be used for relevant business information (such as the names of the parties or the property description) that did not fit in the fields provided.
Who is tasked with drafting and editing Texas's promulgated contracts?
The Broker Lawyer Committee creates promulgated contracts for Texas license holders.
Who pays for an investigation of an environmental, endangered species, & Wetlands Addendum?
The Buyer any investigation of an issue related to an Environmental Assessment, Threatened or Endanger Species, & Wetland Addendum is done at the buyer's expense.
A contract contains these elements: An attached hunting lease The provision that the sales price may be adjusted due to the survey A place for Exception Documents and Surface Leases to be listed What contract is this?
The Farm and Ranch Contract
Which TREC-promulgated form allows for the sales price to be adjusted because of the survey
The Farm and Ranch Contract The Farm and Ranch Contract is the only TREC-promulgated contract that allows for the sales price to be adjusted because of the survey.
What is NOT true about TREC's One to Four Family Residential Contract?
The One to Four's section on financing is mostly concerned about buyer approval and property approval, and whether the lender will give their ultimate approval. The TREC-promulgated One to Four Family Residential Contract includes a place in Paragraph 3 to check if various financing addenda are attached to the contract: Third Party Financing Addendum, Seller Financing Addendum, Loan Assumption Addendum. It also lists the three types of financing choices in Paragraph 3; third party assumption, seller financing. Note that the Third Party Financing Addendum.
Which of these is NOT a place where commission split agreements between cooperating brokers can be determined?
The Sales Contract Commission is determined/established in the listing agreement, buyer representation agreement, or agreements between brokers (usually in MLS) True, the sales contract will contain a disclosure of fees or commission percentage that is listing broker will pay the other broker, but this is NOT where the commission fee is established. It is simply a review of what was already determined.
The Seller's Disclosure Notice is a requirement of
The Texas Property Code The Seller's Disclosure Notice is requirement of the Texas Property Code.
When both parties mutually agree to terminate a contract, who provides the appropriate form?
The Title Company While there is not a promulgated form for mutual termination, the title company can provide the parties with a form for each of them to sign for the release of contract that will address what will happen with the earnest money.
Which of these is an example of a time when it is acceptable NOT to use a TREC-promulgated form?
The U.S government requires a different form to be used. If the U.S government requires a different form to be used it is NOT acceptable to use a TREC promulgated form.
When is the Addendum for Sale of Other Property by Buyer used?
When the buyer needs the money from the first sale to complete the second sale. Actually, that's the Addendum for "Back-Up" Contract. The Addendum for Sale of Other Property by Buyer is typically used when the buyer needs the money from the first sale to complete the second sale. Or, it could be necessary because the new lender would not approve a loan on the new property until the debt is paid in full on the existing loan.
In Paragraph 10, of the sales contract, the parties check a box saying that possession of the property will be transferred:
Upon closing and funding OR according to a temporary residential lease agreement In Paragraph 10 of the sales contract, the parties will check a box saying that possession of the property will be transferred either upon closing and funding OR according to a temporary residential lease agreement.
In loan fraud, the lender is usually the
Victim The victim of loan fraud is usually the lender.
When should a license holder use from T-47, Residential Real Property Affidavit?
When a seller wants to use an existing survey. A Residential Real Property Affidavit (form T-47) is for when a seller wants to use an existing survey, to assure they haven't changed the boundaries since the survey was done.
With the One to Four Family contract, when is it acceptable for a seller NOT to give a buyer a seller's disclosure notice?
When the buyer has indicated in the contract it isn't necessary. If a buyer indicates they either already have or don't need the seller's disclosure (by checking box one or three in Paragraph 7B of the One to Four Family Contract) it is not okay to give them one.
The Seller's Temporary Residential Lease will only be used:
When the seller will remain on the property for no more than 90 days of closing The Seller's Temporary Residential Lease will only be used when the seller will remain on the property for no more than 90 days after closing.
Which of the following would constitute the unauthorized practice of law and or be a violation of TRELA
Adding or striking things from preprinted contract forms.
In which type of property does the buyer purchase rights to the unit and an undivided interest in the common areas?
Condominum When a buyer purchases a condominium, they are purchasing rights to the unit and an undivided interest in the common areas.
Justine and Marilyn are legally competent parties. They want to create a valid a real estate contract. What else do they need?
Consideration Consideration and legally competent parties are essential elements to a real estate contract.
According to the Lead-Based Paint Addendum, how many days does the buyer have to get the property inspected for lead-based paint?
10 The buyer has 10 days to have property inspected for lead-based paint.
According to the Lead-Based Paint Addendum, how many days does the buyer have to get the property inspected for lead-based paint?
10 The buyer has 10 days to have the property inspected for lead-based paint.
According to One of Four contract, the buyer should receive their title policy documents within how many days after the title company receives the contract?
20 days The buyer should receive the title policy documents (at the address listed in Paragraph 21 of the One to Four contract) within 20 days after the title company recieves the contract.
Buyer Ran into contract on a house in Texas. At the last minute, he is unable to obtain financing. What would he need to have in this contract to terminate it without penalty?
A Third Party Financing Addendum The possession section has to do with when the buyer actually gets possession of the home. The correct answer is the Third Party Financing Addendum. A buyer can decide to terminate by way of language in the Third Party Financing Addendum if financing is not approved within the proper time frame.
TRELA empowers TREC to require license holders to use certain contract forms. Which of these would NOT meet TREC's requirements?
A contract created by a license holder's sponsoring broker. Brokers cannot create contracts. Only lawyers, sellers, and the Broker-Lawyer Committee (the people who create TREC's promulgated contracts) may do so.
Which of these constitutes a voidable contract?
A contract made with a minor A contract made with a minor is voidable because they are not a legally competent party.
What is an express contract?
A contract that is either oral or written and has a very specific offer and acceptance An express contract is either verbal/oral or written and outlines a very specific offer and acceptance.
It would be appropriate to use the New Home Contract (Incomplete Construction) for a client buying
A new home that is being built.
What is TRUE of a unilateral contract?
A unilateral contract is a promise exchange for performance. A unilateral contract is a promise exchange for perfomance. It is made between two or more parties in which only one of those parties makes a promise or otherwise accepts an obligation.
What is TRUE of a unilateral contract?
A unilateral contract is a promise exchanged for performance. A unilateral contract is a promise exchanged for a performance. It is made between two or more parties in which only one of those parties makes a promise or otherwise accepts an obligation.
Seller Vera agrees to allow veteran to assume her mortgage loan. Vera then wants to make sure that she can regain the amount the VA initially guaranteed her on a loan. What must be attached to the contract?
Addendum for Release of Liability on an Assumed Loan and/or Restoration of Seller's VA Entitlement. The Addendum for Release of Liability on an Assumed Loan and or Restoration of Seller's VA Entitlement can be used to make the sales contract contingent upon the seller's lender, FHA, or VA (relieving the seller from any liability on the loan that's being assumed by the buyer. The form is also used if a seller wants to apply to have their VA entitlement restored.
How can an agent help protect the earnest money of a buyer who is financing their purchase through a lending institution?
Advise the buyer to include the Third Party Financing Addendum. The Loan Assumption is used for buyers who intend to assume the seller's existing loan. The Third Party Financing Addendum, on the other hand, is issued when lenders are financing the buyer's loan. Do you see the difference? Buyers should submit a Third Party Financing Addendum with the purchase contract if they are borrowing money from a lending institution to purchase property. They are not required to do so, but it is highly advisable. The use of this form protects the buyer''s earnest money in case financing falls through.
Your buyer client has received their inspection report. In it, there are several identified items that they want the seller to fix. The seller has agreed to fix these items before closing. What will you need to include in the contract to ensure this agreement is enforced? Note that the contract has already been signed.
An amendment
Angela's buyer has decided to terminate their contract during the option period. The buyer has sent a written demand to the escrow agent to release the earnest money, but Angela wants to keep it. What penalty might she eventually face, according to the TREC contract?
Angela will have to pay back the earnest money, attorney fees, and the cost of a lawsuit. According to the TREC contract, buyer is entitled to the earnest money, attorney fees, and the cost of the suit.
George Jr. inherited the family compound after George Sr. died, The will was contested, and some family is still disgruntled. George is now selling the property. How can a buyer best protect themselves from any claims on the title?
Ask the family to sign a quitclaim deed A title search is a thorough examination of available public records in the county to determine who has rights to the property and whether any defects exist in the chain of title. A lien is a claim made by a creditor against real or personal property pledged by a borrower as collateral. A title search could reveal clouds on a title, such as someone else having a claim on the property. However, the answer choice says, "liens on the property" rather than "clouds on a title". If a title search showed that, the bank was owed money on a loan, then that is not going to help if other people might have claims to ownership one the home. A quitclaim deed transfers ownership of whatever the grantor owns, making no guarantee of ownership and no promise to defend. A general warranty deed is the most common form of security.
Which of these agent scenarios involving contracts is NOT inappropriate or in violation of TRELA?
Avery explains the meaning of factual statements or business details in the contract form. Avery explaining the meaning of factual statements or business details in the contract form is NOT in violation of TRELA. This is not the unauthorized practice of law, which Thomas, Samantha, and Dustin are all unfortunately engaging in.
To be valid and enforceable, a contract must be writing, represent a complete agreement, have acceptance communicated, and
Be signed by all parties It must be signed by all parties to be valid and enforceable.
How can a license holder ensure that any relevant addenda are officially included in the One to Four contract?
By checking the appropriate boxes of the attached addenda in Paragraph 22 (Agreement of the Parties) Actually, Paragraph 6A8 (Title Policy) is all about. Title Policy- Title Company, the title commitment. The correct answer is that a license holder ensures that any relevant addenda are officially included in the contract by checking the appropriate boxes of the attached addenda in Paragraph 22.
A buyer was unable to obtain financing. How would they notify the seller that they are terminating the contract?
By sending a promulgated Notice of Buyer's Termination The Notice of Buyer's Termination allows the buyer to terminate the contract. The form requires a reason for termination of the contract. One of the reasons listed is that the buyer was unable to obtain financing approval.
Which of these is appropriate to put in the Special Provisions section of the One to Four Family Residential Contract?
Details of an adjustable rate mortgage It is a common mistake for agents to write contingencies into Special Provisions. That's a no-no because it is a violation for license holders to write language into Paragraph 11 that alters the parties' legal rights. The Special Provisions section can ONLY be used to add factual statements or business details as desired by the principals to conform the negotiations. For example if there is an adjustable rate mortgage. Paragraph 11, Special Provisions might give the details about it, including the amount of the margin, period and lifetime caps, and so on; These items are factual statements and or business details.
Which of these must be delivered to the escrow agent within the three days of a contract's effective date?
Earnest Money Earnest money must be delivered to the escrow within three days of a contract's effective date.
What should an agent do if asked to violate anti-discrimination laws by a client?
Educate the seller about anti-discrimination laws and say they cannot honor the request. The agent should educate the seller about anti-discrimination laws and inform the seller they cannot make that promise.
Which of these is the name of a TREC-promulgated contract?
Farm-Ranch Contract
Zak is selling his plot of land. He sold 50% of the mineral interest in the land three years ago to Maisha and is now transferring part of the remaining mineral interest to Ed. Zak wants to keep 50% of his mineral interest and transfer 50% to Ed. What would Zak need to do in order for this to happen?
Fill out and attach the Addendum for Reservation of Oil, Gas, and Other Minerals. The Addendum for Reservation of Oil, Gas, and other Other Minerals outlines if and how much of a mineral estate will be transferred in a real estate transaction. Paragraph B defines what percentage of the mineral estate the seller is retaining. If the seller does not own all of the mineral estate, they can only transfer a percentage of the portion that they themselves own.
In Texas, what is the statute of limitations concerning fraud?
Four years In Texas, there is a four year limitation period for debt, fraud, breach of fiduciary duty, penalty or damages on the penal clause of a bond to convey real property, and specific performance of a contract for the conveyance of real property.
In Texas, what is the statute of limitations concerning fraud?
Four years In Texas, there is a four-year limitation period for debt, fraud, breach of fiduciary duty, penalty, or damages on the penal clause of a bond to convey real property, and specific performance of a contract for the conveyance of real property.
If nothing is added in Paragraph 7D, the agreement says that the buyer is accepting the property:
In its present condition 7D specifies the buyer will accept the property in its present condition
The date in the Third Party Financing Addendum provides a deadline to buyers for:
Informing a seller they didn't get their financing approved The date in the Third Party Financing Addendum provides a deadline to buyers for informing a seller they didn't get their financing approved. If the buyer fails to notify the seller within that termination time period that they did not receive buyer approval, the buyer forfeits their right to earnest money.
The date in the Third Party Financing Addendum provides a deadline to buyers for:
Informing a seller they didn't get their financing approved The date in the Third Party Financing approved. If the buyer fails to notify the seller within that termination time period that they did not receive buyer approval, the buyer forfeits their right to earnest money.
What is the purpose of TREC form OP-C Notice to Prospective Buyer?
It advises the buyer that they must have the abstract examined by an attorney or obtain a policy of title insurance. This form advises the buyer that they must have the abstract examined by an attorney or obtain a policy of title insurance. This form complies with TRELA Section 1101.555
What is special about the earnest option money section in the TREC promulgated sales contract?
It contains "time is of the essence" language License holders should NEVER take initiative and write "time is of the essence" in their contracts. If your client wants to add the language, you need to tell them that they should consult an attorney first. Those words are not just a gentle push for expediency. They change legal rights under the contract in a very real way. The correct answer is that earnest money and option sections contain "time is of the essence" language in promulgated TREC contracts
What is the purpose of the Texas Real Estate Consumer Notice Concerning Hazards of Deficiencies?
It gives examples of certain problems in the home (for example, malfunctioning smoke alarms) that licensed inspectors must report. The Texas Real Estate Consumer Notice Concerning Hazard of Deficiencies educates buyers on the purpose of property inspections. Specifically, it gives examples of certain hazards in the home (malfunctioning electrical circuits, lack of fire safety features like smoke alarms, improperly installed appliances that can be avoided.
What is the purpose of the Notice to Prospective Buyer?
It is an alternative method of giving the required notice to the buyer that they need a title policy. The Notice to Prospect Buyer is an alternative method of giving the required notice to the buyer regarding the need for a title policy. This notice is also in Paragraph 6E (1) of the sales contract. The agent could use the Notice to Prospective Buyer when using something other than a TREC contract form.
Which of the following is TRUE regarding a contract to transfer real estate that contains no requirement of earnest money?
It is valid. A voidable contract appears to be valid, party may disaffirm because they are a minor, were subject to duress, "forceable contract threat" or were a victim of fraud or misrepresentation. Voidable contract are those entered into with one party not competent to make a contract. That's not what's happening here, though. Earnest money is not a requirement for a valid contract, buy earnest money given at the beginning of a transaction is not the consideration. The promise of the entire of the consideration. Earnest money simply shows how sincere the buyer is about purchasing the property. A contract with no earnest money requirement is still valid (assuming it contains all the necessary requirements: mutual assent, legally competent parties, consideration, lawful objective and in writing.
What is the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway for?
It warns buyers that if their property becomes located on the beach area by erosion, they can be required to remove the structure at their own expense. The Addendum for Property Located Seaward of the Gulf Intracoastal Waterway warns buyers that if their property comes to be located on the beach area because of storms or soil erosion, the state can require them to remove the structure at their own expense,
Jim signed a contract with his 17 year old cousin to sell him his car. That contract is voidable - why?
It was a made with a minor. A contract with a minor is voidable.
Which of these must broker maintain a copy of for three years following a sale?
Lead-Based Paint Addendum The broker must maintain a copy of the signed Lead-Based Paint Addendum for at lease THREE (3) years following the sale. This differs from another major record-keeping requirement: A broker in Texas must maintain disclosure notice, listing agreements, buyer rep agreement, contracts, addenda, receipts, and disbursements, CMAs, BPOs, appraisals, and sponsorship agreements, for at least FOUR years.
According to the Short Sale Addendum, the effective date of the contract is amended to the date the Seller notifies the Buyer that the
Lender has approved the short sale The contract's effective date is the day the lender has approved the short sale.
Housing occupancy standards are created by
Local Laws No, HUD has published some guidelines about occupancy standards, but they don't impose any rules on this subject. Housing occupancy standards are created by local laws and some housing providers.
Seller Ben wants to make sure that their agent offers a cooperating broker a commission. Ben believes this will drive better traffic to the listing. How can Ben BEST make sure this is a part of the transaction?
Make sure it appears in the listing agreement that Ben signs with the broker
Seller Ben wants to make sure that their agent offers a cooperating broker a commission. Ben believes this will drive better traffic to the listing. How can Ben BEST make sure this is a part of the transaction?
Make sure it appears in the listing agreement that Ben signs with the broker Brokerage Fees are determined by the broker and the principle in the seller's listing agreement and are not included in the sales contract. Ben should include the commission split in the listing agreement.
Seller Ben wants to make sure that their agent offers a cooperating broker a commission. Ben believes this will drive better traffic to the listing. How can Ben BEST make sure this is a part of the transaction?
Make sure it appears in the listing agreement that Ben signs with the broker.
Which element of the TREC-promulgated contract is the same across all contract forms?
Paragraph 1 identifies the parties of the contract
A buyer needs more option period time. They have asked the seller, who agreed, and signed TRECs Amendment to Contract. What else must they do to make the extension official?
Pay an additional option fee The buyer can get more option time by paying an additional option fee and signing a mutual amendment agreeing to the additional option time.
A stand-along refrigerator would be considered
Personal Property that will not transfer Personal property is any unattached, movable asset on the property not considered real estate. Real property, on other hand, and is land from the surface to the center of the earth and upward into space, all attachment, and the bundle of legal rights of ownership. A stand along refrigerator is considered personal property and will not transfer in a sale unless otherwise noted on the contract. If the refrigerator is built in, however, it is considered real property and will transfer in the sale.
Which of these is something TREC is empowered to do by TRELA?
Require license holders to use contract forms for certain transactions According to TRELA, Texas Real Estate Commission has the power to require license holders to use contract for certain transactions.
Alex is a licensed sales agent. Her client is selling her single-family home. In order not to violate TRELA contract law and run afoul of TREC, how should she create the contract?
She should use TREC's promulgated One to Four Family Residential Contract. License holders may only use promulgated contracts, contracts created by lawyers licensed in Texas, or contracts created by property owners. A broker license does not give brokers permission to create real estate contracts.
A buyer who discovers a defect that they believe was misrepresented has a certain time after discovery to make a claim for damages. This is known as the:
Statue of Limitations
Which of these is NOT something that is appropriate to put in Paragraph 11 (the Special Provisions section) of a TREC- promulgated contract?
That the contract is contingent on the inspection The Special Provisions section can be used for relevant business information (such as the names of the parties or the property description) that did not fit in the field provided
Who pays for an investigation of an environmental, endangered species, or wetlands issue, according to the Environmental Assessment, Threatened or Endangered Species, & Wetlands Addendum?
The buyer Any investigation of an issue related to an Environmental Assessment, Threatened or Endangered Species & Wetland Addendum is done at the buyer's expense.
The amount of the earnest money the buyer will pay the seller is set by
The buyer and seller, who agree upon the amount As found in Paragraph 5 of the sales contract, the buyer and the seller agree upon the amount of earnest money that will be paid.
Title policy can be amended, at additional cost, to include coverage for "shortages in area" by checking box 6A (8) of the One to Four Contact. What does this mean?
The buyer is now covered for discrepancies, conflicts in boundary lines, and any encroachments, protrusions, or overlapping of improvements.
Who is required to sign the Buyer's Notice of Termination of Contract?
The buyer only The Notice of Buyer's Termination of Contract needs to be signed only be the buyer. That is because the buyer has been given termination rights in the contract, so it is not necessary to get seller's approval. The buyer is simply giving notice to the seller.
A seller is renting back a property from a buyer using the Seller's Temporary Residential Lease. The seller damages the property while they are staying there. Who is responsible for the cost of the repairs?
The seller/tenant The seller/tenant is responsible for repairs during the time they are renting back the property
Paragraph D of the Short Sale Addendum contains a date by which the seller must get approval from their lender for the sale. What happens if the lender does not give approval by the date?
The contract will terminate and the earnest money will be refunded to the buyer. Paragraph D of the Short Sale Addendum contains a date by which the seller must get approval form their lender for the sale. If they do not get approval form the lender by that date, the contract will terminate and the earnest money will be refunded to the buyer.
When seller financing is being used, the seller becomes:
The lender
Commission is determined in
The listing agreement, buyer representation agreement, or agreements between brokers (usually in MLS)
After agreement by both parties, one of their agents filled in the blanks in Paragraph 9 of the One to Four Family (Resale) contract so that it read: "The closing of the sale will be on or before May 7, 2023"
The parties can close on or before May 7, 2023 (but not after) One element is that they agree to "on or before" closing date. This just means that they can close before this date but not after. If they need more time, the agents will need to help them complete and execute an Amendment of Contract.
A murder took place on a property. The crime was featured on a podcast, which made the property notorious. Should the seller disclose this crime?
The seller is required to disclose this crime. Anything that has made the property notorious, must be disclosed.
Paragraph 12 of the One to Four Family Residential Contract is also known as the "Settlement and Expenses" paragraph. What's an example of something that could be noted in this paragraph?
The seller plans to pay some of the buyer's closing costs. Sellers and buyers will each have their own expenses associated with the property sale that need to be processed and paid at closing. Paragraph 12 in the One to Four Family Residential Contract delineates each party's financial responsibilities and provides for the negotiation of the seller paying some of the buyer's closing costs.
The T-47 Residential Real Property Affidavit is only required when
The seller provides the existing survey The T-47 Residential Real Property Affidavit is only required when the seller is providing an EXISTING survey during the real estate transaction. This is the Paragraph 6C (1) option listed in the One to Four. Paragraphs 6C (2) and 6C (3) in the One to Four Family Residential Contract are both used when obtaining a NEW survey. The only difference between these options is that in C (2), the survey is done at the buyer's expense, and in C (3) it is at the seller's expense.
According to Paragraph 9B, what happens when someone buys a property that is currently under a lease?
The seller transfer the security deposit to the buyer The seller shall transfer over the security deposit to the buyer if the property is subject to a residential lease, and the buyer must honor the lease.
If a buyer is sent an Addendum for Property Subject to Mandatory Membership in an Owner's Association and they don't like the terms, what remedy do they have?
They can terminate the contract within the first three days. The Addendum for Property Subject to Mandatory Membership in an Owner's Association notifies the buyer of the HOA and gives them three days to terminate the contract.
If a buyer is using VA financing, what will be part of the contract?
Third Party Financing Addendum If a buyer is using VA financing, the Third Party Financing Addendum will be part of the contract.
In the One to Four Family Residential contract, what does Paragraph 21: Notices provide information about?
This states the parties' contract information for delivery of notices. Paragraph 21, is where the parties input their contact information for notice delivery. It states that all notices from one party to the other must be in writing and are effective when transmitted to the parties' address, phone number, email, or fax.
In Paragraph 6C of the One to Four Contract, the parties negotiate the number of days the seller has to give the buyer an existing survey and the T-47 form. However, if the seller fails to furnish the existing survey or T-47 within that agreed-upon number of days, the buyer will obtain a new survey at the seller's expense. This occurs no later than how many days prior to closing?
Three In Paragraph 6C of the One to Four contract, the parties negotiate the number of days the seller has to give the buyer an existing survey and the T-47 form. However, if the seller fails to furnish the existing survey or T-47 within that agreed-upon number of days, the buyer will obtain a new survey at the seller's expense. No later than THREE days prior to closing.
According to the Addendum for Property Subject to Mandatory Membership in an Owner's Association, how long does a buyer have to terminate the contract after receiving the Subdivision Information?
Three Days The Addendum for Property Subject to Mandatory Membership in an Owner's Association gives the buyer three days to terminate the contract after receiving the Subdivision Information if they decide they don't want to move forward or if the information is not provided in the specified amount of time.
Buyer Jeremy gave the escrow agent $800 in earnest money and paid an additional $200 in option money. During the option period, Jeremy decided to terminate the contract. Jeremy was refunded $800. Is this correct? Why or Why Not?
Yes, because option money is never refundable. Option money is not refundable. Jeremy should only have gotten his $800 in earnest money back.
Which one of these is a bilateral contract?
Zelda agrees to pay Gus $250,000 for ownership of his house. A bilateral contract obligates both parties to fulfill certain terms, where one party promises to do something for another party, and that party promises to do something for the first party. An example is Zelda agreeing to pay Gus $250,000 for ownership of his house.
Which of the following would constitute the unauthorized practice of law and be a violation of TRELA?
adding or striking things from preprinted contract forms Adding or striking things from preprinted contract forms without instruction from the principals to the transaction is considered the unauthorized practice of law and is a violation of the Texas Real Estate License Act.
To be valid and enforceable, a contract must be in writing, represent a complete agreement, have acceptance communicated, and:
be signed by all parties It must be signed by all parties to be valid and enforceable.
Who is required to sign the Buyer's Notice of Termination of Contract?
the buyer only The Notice of Buyer's Termination of Contract needs to be signed only by the buyer. That is because the buyer has been given termination rights in the contract, so it's not necessary to get the seller's approval. The buyer is simply giving notice to the seller.
According to the NAR Code of Ethics, unless the agent has written instructions stating otherwise, they must present all offers until
the closing The National Association of Realtors Code of Ethics requires agents to submit all offers to the seller until closing. The agent is relieved of this duty ONLY if the seller agrees in the listing agreement that the agent does not have to present offers after an offer to purchase has been accepted.
