Texas Promulgated Contract Forms Chapter 2
Promulgated form
A form which was formally made public or created and mandated by TREC and is to be used by licensees for the specific purpose intended, unless there is an exception of when you do not have to use the form.
Tell the client known facts about the property that might affect the title
All of the following actions would be considered practicing law without a license except which one?
Unilateral mistake
An error that is held by only one party.
Mutual Mistake
An error that is shared by both parties.
The seller's offer to the buyer
An initial counteroffer would be best described as what?
When all parties have signed/initialed the contracts and both parties have been notified
At what point does an offer become a contract?
Maria should advise Juan to call the title company or his favorite attorney for this type of advice
Maria, a licensed real estate professional, is working with Juan and Augustina, who are buyers. Juan wants Maria's opinion on whether or not she thinks the title is valid. What should Maria do?
Boycotting
The active elimination of a third person or group from participating in free commerce.
Boycotting
What is it called when two or more real estate companies refuse, as a group, to show and sell another real estate companies' listings?
When they are buying properties for themselves
When can an agent use their own forms in a transaction?
Modifying a 2012 TREC promulgated contract to fit the buyer's current situation Giving advice about the legal consequences of the purchase Offering a client an opinion regarding the validity of the title
What are some actions that would be considered practicing law without a license?
Keep the contract neat Fill in all blanks correctly Use full names for the buyer/seller
What are some things you can do to avoid common contract mistakes?
Suspend the agent's license
What can TREC do if a real estate agent fails to use a required contract form?
Contract is completely canceled
What is contract rescission?
Price Fixing
What is it called when two or more real estate companies work together to conspire to charge the same commission?
Real Estate License Act
What is the main law that governs the real estate industry?
Protect the public
What is the primary purpose of TREC?
1939
In what year was the TRELA written?
0
Once a contract is signed, how many days are there for automatic rescission?
Counter offer
Presenting a new offer made to the other party changing unacceptable terms contained in the original offer.
Acceptance
Receiver of contract agrees to all terms of the offer. Once accepted an offer becomes a contract.
Failure to act
Receiver of contract not making a decision at the present time.
Rejection
Receiver of the contract doesn't agree to one or more terms in the offer. Rejection frees the seller to consider other offers and it frees the buyer to consider other properties or to make another offer on the same property.
After both parties have signed/initialed the contract and all parties have been notified of such
How is the effective date of the contract determined?
13
How many total members are on the Broker-Lawyer Committee?
Rejection of the entire offer
If a seller changes one item on an offer, what does that offer become?
A provision informing the parties to the contract that commissions are negotiable
To be an acceptable listing contract, TREC requires that the listing form contains what items?
Fills in the blanks on a standardized contract
Under the Texas Real Estate License Act (TRELA), a real estate agent will not be in violation of practicing law without a license if they do what?
Contract Recission
When the contract is completely canceled and the parties restored to their position before the contract was entered into.
Contract reformation
When the written agreement is changed to reflect the parties' original understanding which is only granted if one party was not aware that the writing does not conform to the actual agreement.
Price fixing
When two or more real estate brokers conspire together to charge the same commissions.
Broker Lawyer Committee
Which group has the task to draft and revise contracts and forms for use by agents?
Residential Listing Agreement
Which of the following forms are NOT promulgated by TREC?
The form is prepared and required by the property owner
Which of the following is an exception to an agent using a TREC promulgated form?
A form that has been made public and its use mandated
Which of the following statements best defines "promulgated"?
A new home builder
Which of the following types of sellers would most likely use a contract prepared by an attorney?
Special provisions
Which paragraph in the One to Four Family Residential Contract (Resale), typically creates the potential for legal problems for an agent?
Principal to the transaction
Who authorizes a licensee to strike information from a contract?