Texas Law of Contracts

What is the maximium size for homestead family in Texas?

200 acres

A Promugated form is required

A Trec approved for is optional

What is a loan origination fee

A fee the lender charges for processing loans

What is the statue of frauds?

A legal requirement that certain contracts must contain specific elements and be in writing to be enforceable.

Which TREC addendum notifies buyers of the risks of purchasing coastal property?

Addendum for property located seaward of the Gulf intracoastal waterway.

Which of the following statements about the TAR residential lease agreement's automatic renewal policy is true?

After the lease term has expired, the lease will be automatically renewed on a month to month basis.

VOCS

Air Freshners

Trustor

Borrower

If the buyer is not able to put 20% down what do the lenders require

Private mortgage insurance

Henry is a Texas real estate licensee representing Ginger, a buyer. Henry recomended Ginger obtain a professional home inspection. Ginger obtain a professional him inspection. Ginger asks Henry for a referral. What should Henry do?

Provide several names for Ginger to contact. Ultimately letting her decide who will perform the inspection.

Offer to purchase, sales agreement, contract of purchase and sale, and purchase agreement are other names for the

Sales Contract

Sondra, a buyer signs all the required mortgage documentation promising to make all the payments to her lender. Unfortunately, Sondra falls on hard times and misses multiple payments, and the bank that its going to foreclose on her. The foreclosure proceeding are more difficult for the lender because Sandra holds the title to Land.

A lien theory state

What is a conforming loan?

A loan that meets certain criteria that are accepted by Fannie Mae and Freddie Mac

The part used to pay the principal increases each month while the amount going towards interest

Decreases

With cooperatives, the residents share of mortgage interest and real estate taxes is?

Deductible on person income tax returns

The _________________ is used to transfer the title.

Deed

Robin has obtained a loan to purchase a home. Which of the following serves as a security for that loan?

Deed of Trust

In which section of TRECS one to four family resale contract is default of contract defined?

Default Section

What purpose does the promissory note seerve?

It's a promise the buyer makes to the lender that the note will be repaid in full.

Right of Survivorship

Joint Tenancy

The term "right of survivorship" is closely linked with

Joint Tenancy

Which clause allows the Texas seller to keep their property on the market after accepting an offer contingent on the sale of the purchasers current home?

Kick-Out

Charles is selling his property to Seth. Charles is financing part of the transaction for Seth, Who will make payment to Charles while Charles retains the property title.

Land contract the buyer makes the payments.

Your buyers love the 1891 Victorian they have under contract, but they want to have the water and pain tested.

Lead

Under the statue of _______________, if legal remedy is sought against a person, the pursuer must bring a court action within a specified period of time.

Limitations

Kenneth plans to shop around for his mortgage loan to be sure he's getting the best interest rate and term. What document from his lender permits him to make comparison?

Loan Estimate Form

The lender is the

Mortgagee

Rick is representing a buisness in a sales transaction. Rick owns 3% of the buisness. Is Rick required to provide a written license holder disclosure notice to the other party in the transaction?

No because Rick does not own more than 10% of the buisness

A __________________________ is the term used for an estate that conveys possession and control, but no title?

Non Free hold Estate

Per Tar's residential buyer tenant representation agreement when has the broker earned their fee?

Once Closing has occured

The two parties have met the terms of the contract

Performance

Miscelaneous charges that are adjusted to the day of closing

Proration

Deed restriction are imposed

Restrictive covenants

At the time of closing the buyer and sell close on the

Sales Agreement

In which section of the TREC residential one to four family resale contract do buyers indidcate the price they are offering for the property?

Sales Price Section

Which number will the lender use to calculate the loan to value ratio

The smaller number

Uniform Electronic Transactions Act

To identify that electronic signatures are just as binding as written signatures

The primary mortgage market operates

To originate loans

What is the purpose of the texas real estate license Act?

To protect the public

Which term is defined as a tax that applied when property changes ownership?

Transfer tax

Charolette has a lease in which the amount she owes increases in intervals. What kind of lease is this?

Variable Lease, payments increase based on the economic index.

When would a lender require a mortgage insurance premium?

When the borrower has a FHA Loan

Rulemaking authority for Texas Real Estate licensees is the responsibility of?

TREC

In Texas, what type of leasehold is characterized by possession of a property, such as a situation in which a tenant to occupy the property after the lease term has expired?

Tenancy at sufferance

In which form of co-ownership is a persons ownership inheritable

Tenancy in commom

Who is generally responsible for ordering and reviewing a survey of the property?

The Buyer

Ureha Farmaldehyde

is a health hazard because it contains farmaldyhde

A amendment to a contract is defined as a

modification

Lack of capacity has made the contract nonbinding

so the contract is voidable

with a land contract who retains the title to the property

The seller retains the title due to buyer will be making payments on the land but does not retain the title.

Margo is the potential buyer of the property in an option contract

the buyer is the Optionee

Can be owned by multiple parties at one time

Bundle of rights

Mortgage document is used to secure a home loan?

Deed of Trust

The phase of an environmental site assesment is only conducted when necessary. If a problem is found during the investigation phase, this phase is put into action next?

Testing

Which section of the TREC resedential one to four family resale contract explains how the deposit money is handled if either party defaults?

The default section

The effective date

is the day after the contract is signed

Relection/ Alluvion

is the gradual receding of water that uncovers land

What is a annual percentage rate

A standardized measure for interest rates other costs of the loan

The ______________Provides a summary of the title history?

Abstract of title

Alluvion Describes new deposits of land that are the result of what natural process?

Accretion

When a contract does not cover the terms needd y the parties which the following action is a licensee allowed to take

Add a standard addendum using standard language

In the intent of a 1031 Exchange what must the sellers agent do?

Add an addendum to the contract

Which of the following acts protects Texas consumers against real estate licensees who fail to use false misleading or deceptive trade practices?

DTPA

Easement through long term tresspassing?

Easement by prescription

Through which method of involuntary alienation may the govenment take private land for public use

Eminent Domain

As the Texas sellers agent you are notified that the buyer wishes to do a 1031 exchange?

Ensure that the disclosure is made in the special provisions section of the contract.

Martin and Dean have a contract have yet to be met

Executory

There are a few exceptions to the property conditions disclosure?

If the property is in new construction

Joseph gave a _____________contract when he said he would leave her the tea set.

Implied Contract

Land value can be affected by the changes made to it

Improvements

Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. After Oliver died how did Rhonda own the building?

In Severalty

Harrison is representing both the sell and the buyer in a single sales transaction?

Seller and buyer as a intermediary

What is the term length for a member of the texas real estate commission?

Six Years

Why are lenders required to provide the loan estimate and closing disclosure forms to loan applicants and borrowers?

So borrowers can compare loans and make decisions regarding the affordability of loans offered.

1031 Exchange

Special provisions

The Trustor is

The borrower

Purchase money mortgage,

The buyer retains the title

To effect a transfer of title by deed in Texas

The grantor must deliver the deed to the grantee and the grantee must except it

What is the minimum number of business day prior to closing that lenders have to provide borrowers with the closing disclosure form?

Three

Ellen and Isach have a timeshare near the Grand Canyon, they will be able to use in for eight years every two weeks.

Timeshare Use

A CLO allows the borrower to compare loans

and apply for loans electronically

What is the final step to a successful closing?

change in ownership must be recorded.

How many members does TREC appoint to the Broker Lawyer Comitteee

6

A Deed of trust

Allows the lender to direct the trustee to sell the property in the case of buyer default.

What must be obtained by a seller from a buyer when the property is subject to a condiominium or homeowners association?

Appproval of homeowners and condominium association documents.

Prior to signing the closing documents, the parties should have already

Assured themselves that the conditions and contingenciies of the purchase agreement have been met.

What type of CLO system is used through an intermediary, such as a real estate or mortgage professional?

Closed CLO

The Goverments power to take private property?

Condemnation

After Bill's one-year lease expired, he continued to rent from his landlord for several months. If he decides to leave, he will be required to give a month's notice. What type of tenancy is this?

Month to Month

The lender required repairs

Neither party is required to pay for lender required repairs

Stan tells her she can keep anything above that number that the property sells for

Net listing

How are accrued real estate taxes that have been assessed but not yet due handled in a real estate transaction?

The tax bill will b e prorated to the day of closing

Which of the following statements about the length of term of TAR''S resifdential real estate listing agreement exclusive Right to sell contract is trued?

The term has a specified start and end date

If a checkbox isn't properly filled out, what can happen to the transaction?

The transaction can be delayed

Which of the following statements about limited liability companies LLC and LLPs is true

They Are a taxed partnership

Which of the following statements is true regarding timeshare estates?

Timeshare estates cna be sold or passed down to heirs.

Of the following which is considered a typical accrued adjustment?

Unpaid Real Estate Taxes

Because Mario failed to get the earnest money in time she no longer has the

Unrestricted right to terminate the contract

A Texas sales contract is leagally binding

Written contract between a potential buyer of property and the seller of the property.