TX 30 Hour Promulgated Contract Forms
Sarah hasn't been able to get a loan to finance the unimproved property she wants to buy. However, the seller has agreed to loan her the money to purchase the property. Which addendum should be attached to the contract?
Seller Financing Addendum
Who is responsible for filling in the effective date on the sales contract?
The licensee
When preparing a sales contract, where can a licensee look for the legal description of a property that's located in a city?
The lot, block, and subdivision information is part of a recorded plat.
If a party to a contract lacks legal capacity but enters into a contract anyway, which party may void the contract?
The party lacking legal capacity
Kimmy's buyer clients want the seller to leave behind the workbench that is in the basement—something that was not originally identified as an inclusion in the original Texas sales contract. Which of the following will Kimmy use to indicate the change?
A TREC-promulgated addendum form
Johanna, a seller, was under contract when her property was flooded due to the heavy rain. This is what's known as ______________.
A casualty loss
Chin is selling his ranch and has agreed to allow the contract to be adjusted after the effective date of the contract, based on the results of the survey, which has not yet been completed. According to the Farm and Ranch Contract, what is the amount by which the sales price may be adjusted?
A maximum of 10%
Your buyer clients Nina and Peter are interested in purchasing a ranch. As their agent, what should you tell them about this type of transaction?
Additional considerations may apply, including equipment, surface leases, and royalties.
The addenda that are part of the TREC residential resale contract are listed in the ______ paragraph.
Agreement of Parties
Where in the Texas sales contract should you indicate that addenda are being attached?
Agreement of parties
The parties are moving the closing date back by four days, so instead of occurring on March 24, the closing will occur on March 28. What form must be completed and signed?
Amendment to Contract
What is a title commitment?
An agreement by a title insurer to issue the final title insurance policy on the property
Ryan is a buyer who would like to make his offer attractive to the seller. Which of the following would show his sincere intention to purchase the property?
An earnest money deposit
What type of information do resale certificates provide to prospective buyers?
Anticipated fees and rules of governance
When a real estate transaction involving a governmental agency takes place, the forms used in the transaction will need to be provided by that agency. This is what is known as an ______ to TREC's rule.
Exception
Which of the following is a financing option listed on the Third Party Financing addendum?
FHA-insured
Which of these scenarios is an example of a seller defaulting on a contract?
Failing to provide documentation proving that a leaky faucet was fixed in accordance with the contract terms
Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He uses a cane to help with his mobility. When his application is rejected, he feels it's due to his disability. He is protected under what federal law?
Fair Housing Amendments Act of 1988
Which of the following statements about waiving the contingency and the Addendum for Sale of Other Property by Buyer is true?
Buyers can waive the contingency, but they have to notify the seller and make an additional deposit.
Brad, a Texas license holder, is acting on behalf of his brother, Ben, who's selling his home. Is Brad required to provide a written license holder disclosure notice to the other party in the transaction that he's acting on his brother's behalf?
No, because license holder disclosure is not required when acting on behalf of siblings.
You have a signed contract in your hand, but it's missing the effective date. Is this a binding contract?
No, the contract isn't binding because the effective date hasn't been filled in.
Mary is selling her condominium. She wants to take the new kitchen stove and custom draperies she had installed in the living room. Which of the following is true?
She must list them as exclusions on the contract.
Consuela is selling the family farm, but she has a significant investment in the cotton crop she has already planted. Which of the following is a true statement?
She needs the buyer's permission to harvest the crop after closing.
Simone is a trustee for her children's trust fund. Simone is also a broker. When she buys or sells investment property on behalf of that trust, which of the following is required by Texas law?
Simone must disclose in writing to the other party that she holds a real estate license.
Reginald Barker and Stacey Lee are married and purchasing a property together. Which of the following is the best way to identify them as parties on a sales contract?
Stacey Lee and husband Reginald Barker
Per the TREC One to Four Family Residential Contract (Resale), which of the following statements about lender-required repairs is true?
Neither party is obligated to pay for lender-required repairs.
Real estate licensees in Texas need to pay attention to updates from what agency, which is responsible for enforcing Texas Fair Housing Law?
The Texas Workforce Commission Civil Rights Division
When a casualty loss occurs in a condominium unit after an offer to purchase has been made and accepted, which of the following is true?
The seller must return the unit to its previous condition as soon as possible, and before the closing.
What is a representation, according to the sales contract?
The statements included throughout the sales contract
Which of the following statements about the title commitment is true?
The title commitment is the title insurance company's promise to issue a title insurance policy.
Which of the following is a true statement about the sales contract form in Texas?
There is no one standard form in Texas for the sales contract.
Kathy and Glen are considering two properties. If they purchase the townhome, which of the following is a true statement?
They will have fee simple ownership of the land beneath their unit.
Which information is required in the Deed of Trust paragraph in the Texas Seller Financing Addendum?
Whether or not consent to property transfer is required
How many lawyers does the governor appoint to the Broker-Lawyer Committee?
Zero
How many days does the Texas seller have to deliver a "commitment for title insurance" to the buyer under the terms of the TREC One To Four Family Residential Contract (Resale)?
20
Connie is helping the Morrisons fill out the Sales Price paragraph of the TREC One to Four Family Residential Contract (Resale). What amount will they put in these spaces?
Cash Price, Sum of all financing and Sales price
Which of the following qualifies as an example of a buyer default?
Failing to remove one or more contingencies by the agreed-upon date
When Jan sells her house, she'll leave behind the draperies, shades, window air conditioner, and garage door opener, which are considered ______________.
Accessories
Sheila is looking for a document that describes additions to the scope or terms of her offer to purchase. Where might she find this information?
Addendum
Chapter 27 of the Texas Property Code specifies that, in order to recover damages for a construction defect, buyers must notify the contractor ______ days before the date they file suit to recover damages.
60
When his contract to buy a hip downtown penthouse condo fell through, buyer Kevin submitted a request to the escrow agent to release the earnest money to him. If seller Anita doesn't feel Kevin's request is warranted, she has ______ days to formally object.
15
Gloria and her client, Estelle, failed to provide the correct TREC-promulgated addendum for coastal property when attempting to sell Estelle's coastal property. What might this oversight result in?
A rescission of the contract
Texas buyer Lydia has opted to have the seller reimburse her for insurance that protects her if something goes wrong with any of the home's major systems or appliances. ______ provides this type of insurance.
A residential service contract
Mary agreed to buy her mother's house when her mother planned to move to a senior living community. They signed a purchase agreement, but when Mary had to move because of work, she signed her rights in the contract over to her sister, Tina. Mary may still owe money if Tina can't come up with the agreed-upon funds. What's happening in this scenario?
Assignment
Any parties who prevail in a legal proceeding regarding the TREC One To Four Family Residential Contract (Resale) are entitled to recover their ______ as well as the costs of the legal proceeding.
Attorney's fees
All third-party financing in Texas is subject to property approval and may or may not be subject to ______.
Buyer approval
Which of the following describes how to list a nonprofit as a party on a TREC-promulgated form?
NAME, NAME, and NAME, trustees for and on behalf of nonprofit NAME
Myron has made an offer on a condominium and is waiting to find out more about the condominium owners association and any associated fees. He wants this information for budgeting purposes. Which promulgated form will the seller provide Myron from the owners association?
Condominium Resale Certificate
Plans, specifications, change orders, and allowances are part of the ______ and should be referenced in the New Home Contract (Incomplete Construction).
Construction documents
In Texas, which of the following forms must be prominently displayed in the office of every inspector and licensed broker?
Consumer Protection Notice
When a buyer or seller defaults on the contract, the other party is entitled to liquid damages, also known as the _______________.
Earnest money
What type of contract do you have once the seller has accepted the buyer's offer in writing and the buyer has been notified of the acceptance?
Enforceable
Chandra is a Texas seller who is considering financing a loan for a buyer. According to the TREC-promulgated Seller Financing Addendum, the buyer agreed to deliver credit documentation within five days of the effective date of the contract. That time has passed, and Chandra has not received the credit documentation, so she decides to terminate the contract. What must Chandra do next?
Give notice to the buyer that the contract is terminated within seven days of the expiration of the delivery date.
On which type of real estate transaction would the buyer's lender most often disallow certain expenses related to closing?
Government
Which of the following pieces of information would you find in the Special Provisions section of the sales contract?
Information about the buyer's agreement to take over care of a group of local feral cats after closing and in perpetuity
The Federal Trade Commission requires that information about the ______ in new homes be included in or attached to the New Home Contract (Incomplete Construction).
Insulation installed
Which of the following is true regarding the 2011 amendment to the DTPA?
It helps prevent frivolous lawsuits against real estate licensees.
Which of the following is true regarding the earnest money check in Texas?
It must be written to the escrow agent or title company and held by the buyers' broker until the contract is finalized.
Which of the following is a true statement about a residential service contract in Texas?
It's typically for one year of coverage.
Kelly is selling his property and has accepted an offer from a buyer, but there's a contingency that the buyer must sell an existing home first in order to fund the purchase. Which of the following is a true statement?
Kelly can accept another offer without a contingency.
If your clients purchased a home built in 1968, what disclosure or disclosures would be needed for this home, but would not be needed for a home built in 1988?
Lead-based paint and Lead-Based Paint Hazards Addendum
Which of the following elements does the Statute of Frauds require as part of a valid real estate contract in Texas?
Legal description
Which of the following type of form is not promulgated by TREC?
Loan origination forms
Manuel Gutierrez's farm hasn't been doing well. The housing market in the area is booming, however, and Manuel's brother, who is a contractor, has convinced him to build three houses on five acres of the farm. The houses aren't even finished, and Manuel already has three buyers lined up to buy them. Which of the following is true?
Manuel will be responsible for the rollback taxes.
JoEllen is buying Magdalena's property in Oak Brook. They are set to close on the property today. Last night, Magdalena's home was robbed and vandalized. The 75-inch flat screen television was ripped from the wall, as were the crystal chandeliers in the dining room and kitchen. In addition, considerable damage was done to the walls and ceilings. Is JoEllen responsible for replacing these items and making the needed repairs before the closing today?
No. Because closing has not yet occurred, Magdalena is responsible.
Items of personal property included in a Texas sale are considered ______ and can be negotiated in an addendum of the same name.
Non-realty items
Mary contracted to buy her mother's house when her mother moves to a senior living community, but now Mary has to move because of work and no longer wants to buy the house. With their mother's agreement, Mary's sister, Tina, steps in, releasing Mary from her obligation. They write up a new contract, with the only change being that Tina is now the party to the contract rather than Mary. What's happened here?
Novation
What is the key difference between assignment and novation of a contract?
Novation releases the original party from all obligations, while assignment does not.
What's included as a mineral right?
Oil
Per the Addendum for "Back-Up" Contract, when does the time for giving notice of termination begin if the buyer has the unrestricted right to terminate the contract?
On the effective date of the "Back-Up" contract
Which of the following statements regarding sales contracts is true?
Once the sales contract is fully executed by all parties, it can no longer be changed.
Jill and Jackie want to rent an apartment with their three children. Under the occupancy standards established in the Texas Landlord and Tenant Act, which of the following is the smallest unit they can rent?
One bedroom
Because there were no deadlines specified in the contract, Myron didn't think there was a problem with his waiting to apply for a loan to help purchase the property. He was therefore a little surprised and not very happy when the seller sued him for breach of contract, stating that the delay was impacting the seller's ability to purchase a new home. What did Myron fail to do?
Perform his contractual obligations within a reasonable time.
Buyers of newly-constructed homes must follow the procedures established in Chapter 27 of the Texas Property Code so they can do what?
Recover damages for construction defects
You are ready to sit down with your client, Ella, and write up an offer to purchase a condominium. Which contract should you use?
Residential Condominium Contract (Resale)
________________ are assessed when an agricultural property's use changes.
Rollback taxes
In Texas buyer representation agreements, from whom will the broker first seek to obtain payment of the commission?
Seller, landlord, or their agents
When the parties couldn't mutually decide how to disperse the earnest money after a contract terminated, buyer Kevin sent the escrow agent a written request to return the earnest money to him. What should the escrow agent do next?
Send a copy of Kevin's request to the seller
What is the purpose of TREC's Consumer Protection Notice?
Tells consumers how to submit a complaint against a license holder
The Addendum for Coastal Area Property and the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway include notices required by the ______.
Texas Natural Resources Code
Your buyer client, Millicent, is closing on a property on January 3, but she has a February 15 date of possession. Which of the following is likely true about this situation?
The seller is paying rent.
Which of the following statements about a buyer accepting a property in "as-is" condition is true?
The buyer retains the right to have the property inspected.
What determines the effective date of a contract?
The date on which it's executed
For purposes of performance, what is the effective date of the "Back-Up" contract based upon?
The date the buyer received notice of the termination of the first contract
In situations where a coastline property owner has been forced to remove their home by the state of Texas because the property is now located on public beach property, who or what entity covers the cost of removal?
The property owner is solely responsible for the cost of removal.
Craig is selling his condominium. What document must he provide to the buyer that contains information on HOA financials, frequency and amount of assessments, and any pending lawsuits?
The resale certificate
Although who pays for the title policy can be negotiated, in Texas, it's customary for the ________ to pay for the title policy that the seller furnishes to the buyer.
The seller
Under the New Home Contract (Incomplete Construction), assessments for rollback taxes are the responsibility of ______.
The seller
How many people per bedroom is/are allowed under The Texas Property Code?
Three
The resale certificate provided by the condominium association to a prospective buyer must have been prepared within the past _______.
Three months
What's the purpose of the Special Provisions paragraph of the One To Four Family Residential Contract (Resale)?
To clarify facts found in the contract
What is the purpose of TAR's Release of Earnest Money form?
To disburse earnest money and release all parties from their contract liabilities
What is the purpose of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association?
To give buyers the opportunity to request subdivision information
Carole and Frank Bellacera are purchasing a two-story house with five bedrooms for $350,000. To whom should they write out their earnest money check of $10,000?
To the All American Escrow Company
What type of lawsuit could a seller client bring against you for failing to present an offer in a timely manner?
Tortious interference
Although Cami's client's property is already under contract, the seller continues to receive numerous back-up offers. How many back-up contracts can Cami's client enter into?
Unlimited
Which of the following types of consideration can be an exchange of money for a promise, an exchange of an item of value for money, or an agreement between the parties to do or not do something?
Valuable
Which of the following transactions requires the use of a promulgated form?
When negotiating a contract for the sale of interest in real property
Jenna, a license holder, is acting on behalf of her spouse, Dan, who's making an offer on a property. Is Jenna required to provide a written license holder disclosure notice to the other party in the transaction?
Yes, because Jenna is acting on behalf of her spouse.
Is there a designated area for the broker information in the TREC One to Four Family Residential Contract (Resale)?
Yes, this information is required on page ten of this contract.
