Unit 7 - Promulgated Addenda, Notices and Other Forms (Questions)
When must the Information About Brokerage Services be provided to a consumer? A) Before a listing agreement is signed B) At the first substantive discussion C) Before closing D) At first contact
At the first substantive discussion
Parties are not held to exact performance of dates under the Addendum for Sale of Other Property by Buyer. True False
False
The Addendum for Coastal Area Property and the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway contain the notices required by the A) Texas Real Estate License Act. B) One to Four Family Residential Contract. C) Texas Real Estate Commission. D) Texas Natural Resources Code.
Texas Natural Resources Code.
TREC promulgates a form to address mutual termination of a contract. True False
False
Under the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, who is required to pay for the subdivision information? A) It is negotiated B) Buyer C) Title company D) Seller
It is negotiated
The Addendum for Sale of Other Property by Buyer is the form to use if the buyers will be unable to buy the new property unless their existing property is sold and closed. True False
True
The Information About Brokerage Services form is an optional use form. True False
True
The Addendum for Property Located Seaward of the Gulf Intracoastal Waterway provides a disclosure regarding A) federal laws on beach protection. B) public beach easements. C) State of Texas submerged lands. D) federal laws regarding on oil well placement.
public beach easements.
When should the Addendum for Reservation of Oil, Gas, and Other Minerals be used? A) When seller reserves all or a portion of the mineral estate B) When seller is aware of other mineral estate owners C) Only when an attorney is involved in the transaction D) When seller conveys all of the mineral estate
When seller reserves all or a portion of the mineral estate
Which of the following addenda contains the words time is of the essence? A) Addendum for Coastal Area Property B) Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement C) Addendum for Reservation of Oil, Gas, and Other Minerals D) Addendum for Sale of Other Property by Buyer
Addendum for Sale of Other Property by Buyer
How many back-ups does the TREC Addendum for Back-Up Contract allow? A) Two B) One C) Three D) May be negotiated by the seller
One
Which TREC form should be used if buyer wishes to terminate the contract because buyer cannot obtain approval? A) Amendment to Contract B) Seller Financing Addendum C) Mutual Termination of Contract D) Notice of Buyer's Termination of Contract
Notice of Buyer's Termination of Contract
If the back-up buyer (buyer 2) has an option to terminate, when does the option period start? A) On the amended effective date B) On the effective date of the first contract with buyer 1 C) On the date seller gives notice to buyer 2 D) On the original effective date of the back-up contract
On the original effective date of the back-up contract
According to the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway, where can a person find erosion rates for all Texas Gulf property subject to the Open Beaches Act? A) Any city office of the city in which the property is located B) The Texas Real Estate Commission C) The Texas General Land Office D) Any coastal county clerk's office
The Texas General Land Office
The Addendum for Property Subject to Mandatory Membership in an Owner's Association serves as a notice to the buyer that the property is subject to mandatory membership in an owner's association. True False
False
The TREC addendum (Addendum for Back-Up Contract) allows for two back-up buyers. True False
False
To exercise the unrestricted right to terminate (as is provided in paragraph 23 of the promulgated contract form), the buyer must communicate this in writing to his agent prior to the closing date. True False
False
Under paragraph B of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, when is seller required to provide information to buyer regarding material changes to the subdivision information? A) As soon as possible B) Promptly C) Timely D) Immediately
Promptly
Which of the following is considered part of the mineral estate in the TREC mineral rights addendum? A) Sand B) Water C) Oil D) Gravel
Oil
According to the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway, the costs of removing a structure from the public beach and any other economic loss incurred because of a removal order would be the responsibility of the property owner. True False
True
According to the Short Sale Addendum, time is of the essence. True False
True
If a seller fails to provide the Notice to Purchaser or Grantee of Coastal Area Property to the buyer, the buyer can terminate the agreement. True False
True
A buyer wishes to sell her existing home before buying a new home. Which TREC form should be used? A) Addendum for Sale of Other Property by Seller B) Addendum for Sale of Other Property by Buyer C) Amendment to Contract D) Addendum for Back-Up Contract
Addendum for Sale of Other Property by Buyer
Who completes the promulgated resale certificate? A) Listing agent B) Homeowners association C) Buyer D) Seller
Homeowners association
Who is required to execute the notice of termination of contract? A) Only the buyer B) The buyer, the seller, and both agents C) Both the buyer and the seller D) Only the seller
Only the buyer
Who fills out the Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners Association? A) A representative of the property owners association B) The buyer C) The listing agent D) The seller
A representative of the property owners association
The Short Sale Addendum is an optional use form. True False
False
Seller and buyer enter into an agreement for buyer to purchase seller's property and seller reserves all of the mineral estate that he owns using the Addendum for Reservation of Oil, Gas, and Other Minerals. Seller elects not to retain any implied right of ingress or egress and reasonable use of the property. How does this election affect the surface rights of other owners of the mineral estate? A) Their rights are similarly not retained B) They forfeit all mineral rights C) It has no effect D) It only affects mineral lessees
It has no effect
Under the TREC Short Sale Addendum, when must the option fee be paid? A) Only after the lienholder gives consent and agreement B) As provided in the contract C) At the end of the option period D) At the beginning of the option period
As provided in the contract
Under the Addendum for Reservation of Oil, Gas, and Other Minerals, what information must seller provide to the buyer if seller conveys all of seller's interest in the mineral estate? A) Contact information of any existing mineral lessee B) Contact information for all landmen who have contacted seller C) Copies of all royalty conveyance contracts in seller's possession D) Copies of all existing mineral leases
Contact information of any existing mineral lessee
A buyer decides to exercise her right to terminate under the option period. What is the proper process? A) Deliver the Notice of Buyer's Termination of Contract to the seller according to the instructions in paragraph 21 of the contract B) Deliver the Notice of Buyer's Termination of Contract to the title company C) Execute a Notice of Buyer's Termination of Contract and deliver it to the seller according to the instructions in paragraph 21 of the contract. D) Execute a Notice of Buyer's Termination of Contract
Execute a Notice of Buyer's Termination of Contract and deliver it to the seller according to the instructions in paragraph 21 of the contract.
A back-up contract enables the buyer to negotiate with multiple sellers and have a back-up property lined up in case the first transaction terminates. True False
False
If the Addendum for Reservation of Oil, Gas, and Other Minerals is used, there is no need for the parties to consult their attorneys for advice regarding oil, gas, and mineral rights. True False
False
Buyer 1 wishes to sell her existing home before buying a new home. Buyer 1 enters into a contract with seller and attaches the Addendum for Sale of Other Property by Buyer. The seller accepts a back-up offer with the Addendum for Back-Up Contract attached from buyer 2 and notifies buyer 1 that she must waive the contingency. Buyer 1 timely waives the contingency. What happens to the back-up contract? A) It terminates if the first contract does not terminate by the date agreed upon in the addendum. B) It remains in place until terminated by buyer 2. C) It remains in place until terminated by the seller. D) It remains in place until the first contract closes.
It terminates if the first contract does not terminate by the date agreed upon in the addendum.
Capital expenditures are included in the Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners Association. True False
True
Subdivision information includes the restrictions that apply to the subdivision. True False
True
The Addendum for Reservation of Oil, Gas, and Other Minerals allows options for a seller to retain all rights to the mineral estate or just a portion of the rights. True False
True
The buyer wants to purchase the antique buffet in the dining room to be included in the contract. How should the agent handle it? A) Note the buffet in paragraph 7 B) Use the Non-Realty Items Addendum C) Note the buffet in paragraph 11 D) Ask the seller to give the buffet to the buyer at no cost
Use the Non-Realty Items Addendum
Under the Addendum for Sale of Other Property by Buyer what happens if the seller accepts a back-up offer from buyer 2 and buyer 1 timely waives the contingency but fails to sell his existing house and is unable to close on the new house? A) Buyer 2 will be in default. B) Buyer 2 may waive the contingency on the back-up offer. C) Buyer 1 may terminate but forfeit the earnest money. D) Buyer 1 will be in default.
Buyer 1 will be in default.
Which of the following is NOT included in the TREC Notice of Buyer's Termination of Contract? A) The Property does not satisfy the lenders' underwriting requirements for the loan under Paragraph 4A(1) of the contract. B) The unrestricted right of buyer to terminate the contract under paragraph 23 of the contract. C) Buyer elects to terminate under Paragraph 7B(2) of the contract relating to the Seller's Disclosure Notice. D) Buyer elects to terminate due to alleged seller fraud.
Buyer elects to terminate due to alleged seller fraud.
Under the TREC Short Sale Addendum, what happens if the lienholder refuses or withdraws its consent and agreement prior to closing and funding? A) The contract will terminate and the earnest money will be refunded to buyer. B) The contract will terminate and the seller must pay three times the earnest money to buyer. C) The contract will terminate and the earnest money will be paid to seller. D) The contract will terminate and the earnest money will be held by title company.
The contract will terminate and the earnest money will be refunded to buyer.
Under the Addendum for Sale of Other Property by Buyer, what happens if the seller accepts a back-up offer? A) Buyer 2 may waive the contingency before the effective date. B) Seller may waive the contingency before the agreed upon date. C) Buyer 1 must terminate the back-up contract. D) Buyer 1 may waive the contingency before the agreed upon date.
Buyer 1 may waive the contingency before the agreed upon date.
Which of these are included in the Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies? A) Lack of bonding on gas piping, including corrugated stainless steel tubing (CSST) B) Lack of electrical bonding and grounding C) Improperly installed or defective safety devices D) All of these
All of these
Which of these are included in the Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies? A) Malfunctioning carbon monoxide alarms B) Malfunctioning or lack of fire safety features, such as smoke alarms C) Excessive spacing between balusters on stairways and porches D) All of these
All of these
Buyer and seller enter into an agreement for buyer to purchase seller's property which is located in a property owners association (POA). Buyer wants additional information about the POA and asks the seller to provide and pay for the subdivision information. What is the buyer's option if seller timely provides it as required by paragraph A(1) of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association? A) Buyer may terminate and receive three times the earnest money. B) Buyer may renegotiate the sales price. C) Buyer may terminate and forfeit the earnest money. D) Buyer may terminate within three days and receive the earnest money.
Buyer may terminate within three days and receive the earnest money.
What should a licensee advise a seller to do if the seller wants to keep a TV projector that is installed in the theater room? A) Do not list the projector as an exclusion in paragraph 2D B) Put a note on the projector to indicate that the seller wishes to withhold the projector C) List the item as an exclusion in paragraph 2D D) Use the Non-Realty Items Addendum to keep the projector
List the item as an exclusion in paragraph 2D
Which of the following is required of an intermediary? A) May disclose that the buyer will pay a price greater than the price submitted in a written offer B) May disclose any confidential information C) Must treat all parties honestly D) May disclose that the owner will accept a price less that the asking price
Must treat all parties honestly
Which of the following is NOT assumed in a short sale using the TREC Short Sale Addendum? A) Seller's net proceeds at closing will be insufficient to pay the balance of seller's mortgage loan. B) Seller requires the consent of the lienholder to sell the property. C) The lienholder agrees to accept seller's net proceeds in full satisfaction of seller's liability under the mortgage loan. D) Seller's net proceeds at closing will be sufficient to pay the balance of seller's mortgage loan.
Seller's net proceeds at closing will be sufficient to pay the balance of seller's mortgage loan.
What right does a buyer have if a seller of gulf coastal property fails to timely provide the notice in the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway? A) The contract automatically terminates and the earnest money is deposited in the Open Beaches Recovery Fund. B) The buyer may terminate the contract and forfeit the earnest money. C) The buyer may only extend the closing date. D) The buyer may terminate the contract and receive the earnest money.
The buyer may terminate the contract and receive the earnest money.
What is the amended effective date under the TREC Short Sale Addendum? A) The date lienholder provides seller notice of the lienholder's consent and agreement. B) The date buyer inserts after seller provides the lienholder's consent and agreement C) The date seller provides buyer notice of the lienholder's consent and agreement. D) The date seller obtains notice of the lienholder's consent and agreement.
The date seller provides buyer notice of the lienholder's consent and agreement.
According to the Addendum for Property Subject to Mandatory Membership in a Property Owners Association, who may act on behalf of the parties to obtain the subdivision information? A) The lender B) The title company C) The seller's agent D) The buyer's agent
The title company
A back-up contract allows A) the seller to negotiate with a second buyer on terms that will be used if the first buyer's transaction falls through. B) an unlimited number of back-up buyers. C) the seller to terminate the first buyer's agreement if the seller prefers the terms of a back-up buyer. D) the seller to move up the closing date by up to five days without notifying the buyer.
the seller to negotiate with a second buyer on terms that will be used if the first buyer's transaction falls through.