Texas Promulgated Contract Forms (4)
TREC was established in:
1949
How long after receiving an Addendum for Property Subject to Mandatory Membership in an Owner's Association does a buyer have to terminate the contract?
3 days
If the buyer receives the Seller's disclosure notice after signing the contract, the buyer may terminate the contract within _________ days of receiving the sellers disclosure notice?
7
ABC Corporation is purchasing a residential property in Houston. How should the corporation's name appear on the contract?
ABC Corporation, a texas corporation
Which type of TREC promulgated contract form(s) gives disclosure about the type of insulation in the property?
Both New Home Contracts
Option money is _______?
Never refundable
A temporary lease is used when?
The buyer moves into the property prior to closing
Before the Lead Based Paint Addendum can be considered complete, which of these must happen?
The buyer, seller, and both brokers must sign it
Which of the following promulgated contracts should be used for the purchase of vacant land...?
Unimproved property contract
The Residential Condominium Contract - Resale differs from the One to Four Family Residential Contract - Resale in which of the following paragraphs...?
Paragraph 2
The words "time is of the essence" are in:
Paragraph 23 of the One to Four Family Contract
If somebody is unable to obtain third-party financing, where would the buyer place that he or she would like to utilize the seller financing option?
Paragraph 3
Which paragraph must a buyer put serious intention using earnest money note?
Paragraph 5
If a seller wants to reserve part of their mineral rights after selling, where on the Reservation of Oil, Gas and Other Minerals Addendum would they note what percentage they're keeping?
Paragraph B2
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.
Because many things in the contract depend on these two items, it is important that the agent finalizing the acceptance of the contract fill in which of the following dates for their broker:
effective and executed date
In a TREC promulgated contract, what is the Third Party Financing Addendum concerned with?
financing contingencies
Emily and Josh signed a real estate contract with each other. The contract is now fully executed. What does that mean that Josh and Emily have done?
fulfilled the material terms of the contract
What does paragraph 7A of the One to Four Family Residential Contract grant every buyer the right to do?
have the property inspected
If nothing is added in Paragraph 7D, the agreement says that the buyer is accepting the property:
in its present condition
Which party is required to pay for lender required repairs and treatments?
neither party is required to pay
The buyer typically provides money for which of the following after signing a purchase contract?
options money
A stand-alone refrigerator would be considered ______ .
personal property that will not transfer. will not transfer in a sale unless otherwise noted on the contract. If the refrigerator is built-in it is considered real property and will transfer in the sale.
What is the purpose of TREC form OP-C Notice to Prospective Buyer?
provides a notice to buyers using their own contract to obtain an abstract of title
the "termination option" in a contract
requires a fee for a specified time period
After signing a purchase contract, the seller typically receives money from the buyer for what?
termination option
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 fields provided.
Which of these does NOT create housing occupancy standards?
the Federal Housing Administration
The Seller's Disclosure Notice is a requirement of
the Texas Property Code
Why does the Notice of Buyer's Termination of Contract only have to be signed by the buyer?
the buyer's termination rights are in the contract. The seller does not need to approve.
If a property is occupied solely by people over the age of 62 and qualifies as senior housing it is exempt from:
the familial status portion of the fair housing act.
Which of these is appropriate to put in the Special Provisions section of the One to Four Family Residential Contract?
the names of seller that wouldn't fit in Paragraph 1
According to Paragraph 10B, Possessions, what is a seller prohibited from doing after the effective date?
the seller cannot execute any lease without the buyer's permission.
What is the purpose of the "Listing Broker's fee" section at the bottom of Page 9 of the One to Four Family Residential contract?
to reflect a previously agreed-upon commission
What is the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway for?
warns buyers that, if their property comes to be located on the beach area because of storms or erosion of the soil, the state can require them to remove the structure at their own expense.
When should a license holder use form T-47, Residential Real Property Affidavit?
when a seller wants to use an existing survey
Reggie made Betty an offer on her house. She countered, but Reggie has not yet accepted. Then along comes Archie with a better offer. Before accepting Archie's offer, what must Betty do?
withdraw her counter to reggie
Paragraph 5 of the one to four family residential contract - resale primarily deals with?
Earnest Money
Third Party financing addendum protects what?
Earnest money
What is an example of a restrictive covenant?
Easements
Which TREC promulgated form allows for the sales price to be adjusted because of the survey?
Farm and ranch contract
Seller's Temporary Residential Lease
For use when the seller occupies the property for no more than 90 days after closing. Rent is due at closing. Seller remains responsible for utilities
Which of the following laws protect people based on race only?
Civil rights act of 1866
How can a buyer ensure they pay the least possible amount of pre-paid interest to the mortgage company?
Close near the end of the month to avoid paying extra prepaid interest to the mortgage company. This means that scheduling an appointment to close with the title company late in the month is difficult.
Which of these forms is least likely to be involved in the sale of unimproved property?
Condominium resale certificate
The one to Four family residential contract - resale is NOT used for which type of property?
Condominiums
Agent Kara signed a buyer's representation agreement with her client that set her commission at 3%. The listing broker of the home her client chose offered 3.5% to the buyer's broker. What percentage of the sale price of the home will Kara's commission be?
3.5%
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 Paragraph 6B: Commitments in the promulgated One to Four Family Residential Contract, what must be provided to the buyer along with the title policy documents?
Any restrictive covenants. You would not include comments about the material condition of the property in Paragraph 6B.
A married couple is buying a property. Which is the BEST way to write their names in the contract?
Georgianna Serif and spouse Bryan Serif. It's best to use full names and specify any relation
The seller of an unimproved property would provide a disclosure about the property in what location?
In paragraph 7E of TREC Unimproved Property Contract
When a contract has been fully executed, what has happened to it?
It is terminated
Agent Ted advises his client that the title to the property he is buying is clear — no need to do a further title search. Why is this inappropriate?
It may constitute unauthorized practice of law under TRELA
John Doe is an unmarried individual who is buying his first house. How should his name show up on the purchase contract?
John Doe, An Unmarried Person
A contract has an effective date of July 21st, with a seven day option period. What is the latest that contract can be terminated without penalty?
July 28 at 5 PM. Thanks to "day zero"
What is often the most expensive means of resolving a dispute?
Litigation
Mary has a rental property with a two year lease on it. She collected a $500 security deposit at the beginning of the lease. Now she is selling the property. What will happen to the security deposit?
Mary will transfer the security deposit to the buyer at closing
Which of these is an example of a unilateral contract?
Mike signs a listing agreement with Broker Amy, agreeing to pay a 6% commission if she sells his house
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. Items must be fully paid off.
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, 5 PM
Which paragraph of the one-to-four family residential contract deals with the parties to the contract?
Paragraph 1
If both parties sign the Notice of Buyer's termination of contract, what still remains to be done?
Seller needs to release the buyer's earnest money
short sale addendum: sales price -seller's full closing costs = _______?
Seller's net proceeds
Which of these is NOT a protected class of people, according to Fair Lending Laws?
Sexuality
If a buyer is purchasing a property involving the assumption of an existing loan, which of the following documents must be included with the purchase contract?
TREC Loan Assumption Addendum
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
James is purchasing a farm outside of Dallas. If the sales price needs to be adjusted by more than 10% after reviewing the survey, James may do which of the following...?
Terminate the contract
According to the Addendum for Back-Up Contract, if a first contract is terminated and the seller notifies the back-up buyer of the termination, what happens?
The effective date changes to date the new buyer was notified of the termination of the first contract.
A condominium's owners association is responsible for delivering which of the following documents...?
The resale certificate
Laura is in contract for a home. Her contract contains a Sale of Other Property by Buyer Addendum. The seller has just accepted a back-up contract for the property that doesn't have this contingency. What happens to Laura and her contract?
The seller can accept the back-up offer and notify Laura that she may waive the contingency by an agreed upon date or Laura's contract terminates.
If an agent makes a change to Paragraph 6A8 in a TREC promulgated contract, which of these is most likely to be the result?
The title policy will be amended to read "shortage in area" rather than the standard exception.
If a property is not located within a city, what should be included in the legal description?
Unincorporated
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 themself from any claims on the title?
ask the family to sign a quitclaim deed. A quitclaim deed will ensure no family later tries to make a claim on the property.
When do brokers determine how the commission from a sale will be split?
before closing.