Contract Forms and Addenda Module 1 TEST:Chapters 1-3, Questions And Answers

Contract Forms and Addenda Module 1 TEST:Chapters 1-3, Questions And Answers.Question 1 1.66667 out of 1.66667 points How many promulgated contracts does TREC issue? Selected Answer: Six Answers: Four Six Eigh t Nin e Question 2 1.66667 out of 1.66667 points Buyer wants to submit an offer and has already been approved for financing. How should the TREC Third Party Financing Addendum be filled out? Selected Answer: The addendum is not required since the buyer has already been approved for financing. Answers: The addendum is not required since the buyer has already been approved for financing. The contingency paragraph should be left blank. The conventional financing box should be checked. The buyer should indicate that 0 days are required to obtain financing. Question 3 1.66667 out of 1.66667 points Which paragraph of the TREC One to Four Family Residential Contract provides a breakdown of sellers’ and buyers’ expenses? Selected Answer: Paragraph 12 Answers: Paragraph 12 Paragraph 11 Paragraph 9 Paragraph 8 Question 4 1.66667 out of 1.66667 points Which of the following would NOT be considered a competent party? Selected Answer: A 30-year-old attorney under the influence of marijuana at the time she entered into an agreement Answers: A 16-year-old who was emancipated by a court of competent jurisdiction and declared an adult with contractual capacity A 20-year-old who has not completed high school. A properly appointed attorney-in-fact A 30-year-old attorney under the influence of marijuana at the time she entered into an agreement Question 5 1.66667 out of 1.66667 points When all of the parties to a contract agree to terminate it is said to be terminated by Selected Answer: mutual agreement. Answers: mutual agreement. novation. codicil. severalty. Question 6 1.66667 out of 1.66667 points A licensee representing a seller is asked by that seller, “What does paragraph 5 of this TREC promulgated contract mean to me?” What is the best answer by that agent? Selected Answer: “I’m not an attorney, but here is what it means...” Answers: “I’m not an attorney, but here is what it means...” “I’m not an attorney, so I can’t answer that.” “You are asking something I am not allowed to answer. I think you should seek out legal counsel.” “That paragraph is no big deal, so let’s just move on.” Question 7 1.66667 out of 1.66667 points Under the TREC Loan Assumption Addendum, which of the following is NOT listed in the preprinted form to establish the buyer’s creditworthiness? Selected Answer: Stocks and bonds Answers: Credit report Verification of employment, including salary Stocks and bonds Verification of funds on deposit in financial institutions Question 8 1.66667 out of 1.66667 points Which of the paragraphs in the TREC One to Four Family Residential Contract addresses the sales price? Selected Answer: Paragraph 3 Answers: Paragraph 4 Paragraph 2 Paragraph 3 Paragraph 1 Question 9 1.66667 out of 1.66667 points Once the offer has been accepted, each of the parties are to receive a(n) Selected Answer: copy of the final signed contract. Answers: congratulatory letter. escrow acceptance letter. copy of the final signed contract. demand for earnest money from the buyer. Question 10 1.66667 out of 1.66667 points Which of the following is an exception to the TREC rules on contract use? Selected Answer: When the buyer requires another form to be used Answers: When the agent is representing a family member When the buyer requires another form to be used If the buyer intends to demolish and remove the fixtures including the house All of these Question 11 1.66667 out of 1.66667 points “Time is of the essence” in real estate contracts means Selected Answer: that parties are held to exact performance of their duties within the time specified in the agreement. Answers: that the time to closing should kept to three weeks or less. that parties must pay a daily fine for delays in the performance of their duties under the contract. that parties are held to exact performance of their duties within the time specified in the agreement. none of these. Question 12 1.66667 out of 1.66667 points A licensee who completes a contract for the sale of real property is not engaged in the unauthorized practice of law if the licensee uses a form that is Selected Answer: all of these. Answers: adopted by the commission for the type of transaction for which the form is used. prepared by an attorney licensed in Texas and approved by the attorney for the type oftransaction for which the form is used. prepared by the property owner or by an attorney and required by the property owner. all of these. Question 13 1.66667 out of 1.66667 points Once presented an offer from a prospective buyer, the seller can do any of the following EXCEPT Selected Answer: accept it after making a counteroffer. Answers: accept it. reject it. make a counteroffer. accept it after making a counteroffer. Question 14 1.66667 out of 1.66667 points A licensee who drafts a contract for the sale of her client’s property is