Promulgated Forms Unit 2
Which of the following is a TREC promulgated form?
Addendum for Sale of Other Property by Buyer
Which of the following forms of advice can a license holder give to an unrepresented buyer?
Advice on having the abstract examined by an attorney
Which of the following persons would be eligible for appointment to the Broker-Lawyer Committee?
All of these
What is the make-up of the Broker-Lawyer Committee?
Six brokers, six lawyers, and one member of the general public
What law specifically prohibits license holders from practicing law?
Texas Real Estate License Act (TRELA)
Promulgated Contracts
1. Addendum for Coastal Area Property 2. Seller Financing Addendum 3. Addendum for Reservation of Oil, Gas, and Other Minerals 4. Buyer's Temporary Residential Lease 5. Loan Assumption Addendum 6. Addendum for Back-Up Contract 7. Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement
Approved Contracts
1. Lead-Based Paint Addendum 2. Non-Realty Items Addendum
Unauthorized Law Practice
1. You fill out forms for a client to evict a tenant from the client's property so it can be prepared for sale. 2. You tell your client, "I'll be glad to check the title to make sure you are in fact the owner of the property." 3. You tell your client, "With my experience in real estate, I will act as an informal arbitrator to settle the dispute with your neighbor over the existence of an easement, or not, across his property." 4. You tell your client, 'Let's just draw up a quick agreement that confirms that the neighbor does not have an easement across your property. It will make the listing agreement and sales contract much easier."
Authorized Law Practice
1. You tell your client, "I know for a fact that the neighbor has allowed you and everyone else in town to use that road across the back of his property for the last 20 years." 2. You tell your client, "I'll add a note in the Special Provisions paragraph that says you will not be available to close on any legal holidays."
How many resale certificate forms are promulgated by TREC?
2
Which of these describes the Non-Realty Items Addendum?
Approved addendum
Which of the following committees is responsible for drafting and revising contract forms?
Broker-Lawyer Committee
Which of the following is NOT an exception to the rule requiring use of promulgated contract forms in Texas?
Custom form prepared by licensed broker with a minimum of five years' experience
A Texas license holder is selling his own custom-built home. Due to the complexity of the contract, he has elected to prepare his own contract to be sure all of the inclusions and exclusions are properly identified. Promulgated forms exist that would adequately document the deal. Does he run the risk of penalties from TREC as a result of not using a promulgated form?
No, because he is acting as a principal in the transaction and not as an agent.
The seller reviews and signs the offer at 6:00 pm Saturday. She texts her acceptance to her broker. The broker does not read the text until 7:00 am Sunday, and then immediately forwards it to the buyer's broker. Meanwhile, the buyer changes her mind and texts a withdrawal of the offer directly to the seller. A few minutes later, the seller's broker texts the original notice of acceptance to the seller. Is there a binding contract?
No, because the withdrawal of the offer was made and communicated to the seller before the buyer was notified of the acceptance.
All of these are approved or recommended forms except the
One to Four Family Residential Contract.
As the buyer and her agent are In the process of completing the promulgated form to make an offer on the property, the buyer gives the agent a list of furniture, light fixtures, window coverings, and artwork that she wants included. Fearful of having the offer rejected if these items are included, the agent assures the buyer that "that sort of stuff is always included anyway; let's not make this any more complex than we have to" and convinces her to omit this list. Is the agent practicing law or just giving the client a better chance to have the offer accepted?
Practicing Law
If a seller gave a letter to the listing agent with instructions not to deliver any offers for less than $250,000 and the listing agent receives an offer for $249,500, should he deliver it?
The TREC allows the listing agent to reject this offer because the seller has given written approval
A real estate broker modifies a 1992 TREC promulgated contract form and updates it to fit a particular transaction. Which of the following could happen?
The broker could have his license suspended or revoked for practicing law.
A seller wants to close using a contract for deed. Which of the following is MOST correct?
The listing agent could continue helping the seller, but this type of contract must be drafted by an attorney.
The buyer's broker has given you an offer that is $10,000 lower than the minimum offer your client told you to entertain. You have decided not to even tell her about it. Which of these is TRUE in this instance?
This is okay as long as you have your client's instructions in writing.
Which of the following is an exception to using a TREC promulgated contract form?
Transactions in which a United States government agency requires a different form to be used
A license holder who completes a contract for the sale of real property is not engaged in the unauthorized practice of law if the license holder uses a form that is
all of these.
The forms drafted and revised by the Broker-Lawyer Committee are to be
capable of being standardized.
When faced with a client who is in a hurry to have the contract drafted and signed and who wants the agent to do the drafting and get the deal underway, the agent should
complete the promulgated form insofar as possible and have the client take the other issues to her attorney.
Once the offer has been accepted, each of the parties are to receive a(n)
copy of the final signed contract.
TREC may NOT prohibit a license holder from using a contract form
that is prepared by the property owner.
