Texas Promulgated Forms

Texas Promulgated Forms Which of these promulgated forms does NOT include "time is of the essence"? Loan Assumption Addendum A couple starts celebrating the sale of their home after their listing agent calls them with the news that they've received an acceptable offer. The listing agent says he is coming over to get their acceptance and signatures. However, by the time the agent arrives the sellers are completely inebriated. The agent has them sign the contract and then takes it to the title company. This contract is voidable Which of the following is TRUE for the statute of limitations for contracts for the sale of real estate and oral contracts for leases of less than one year? The statute of limitations is four years for the sale and two years for the lease. TREC promulgates the Loan Assumption Addendum. In a transaction where a buyer is assuming a seller's loan TREC's Loan Assumption Addendum is required. If a seller gave a letter to the listing agent with instructions not to deliver any offers for less than $250,000 and the listing agent receives an offer for $249,500, should he deliver it? The TREC allows the listing agent to reject this offer because the seller has given written approval How many promulgated contracts does TREC issue? 6 Title policy information is in paragraph __ 6 The addenda included in the agreement are in paragraph __ 22 The closing date is in paragraph __ 9 The legal description of the property is in paragraph __ 2 Earnest money is addressed in paragraph __ 5 The names of the sellers and buyers, including marital status, are in paragraph __ 1 License holder disclosure is addressed in paragraph __ 4 The amount of the cash down payment is in paragraph __ 3 The Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement allows ___ the parties to negotiate the time to complete their duties under the agreement The buyer wishes to make an offer to buy a house for $185,000, with 70% financed through a first loan, 10% financed through a second loan, and a 20% cash down payment. How much is the down payment? $37,000. Twenty percent of $185,000 is $37,000. The first loan will be for $129,500 and the second loan will be for $18,500. If the buyer wants to be sure the fireplace screen stays with the property, the buyer's agent should do nothing; it is already in the contract. A buyer wishes to get a USDA guaranteed loan. Which form should the agent use to address that type of financing? Third Party Financing Addendum The earnest money paragraph addresses all of the following EXCEPT Title policy company Which law requires that a contract have a proper legal description? The Statute of Frauds Which paragraph of the One to Four Family Residential Contract indicates if the buyer has received the seller's disclosure notice? Paragraph 7 What should a licensee do if the seller wishes to retain an item not specifically listed as an improvement or accessory in paragraph 2 of the TREC One to Four Family Residential Contract? List the item as an exclusion in paragraph 2D. Which of the following is included in paragraph 2 of the TREC One to Four Family Residential Contract? Excluded fixtures and accessories Which of the following is not included in paragraph 7 of the TREC One to Four Family Residential Contract? Who will pay for the title policy If the buyer wants to be sure the fireplace screen stays with the property, the buyer's agent should do nothing; it is already in the contract The sellers purchased the home 20 years ago and had the property surveyed. They made no changes to the property. Using the One to Four Family Residential Contract, what should the listing agent tell the sellers to do about a survey? Use the Residential Real Property Affidavit and the existing survey Which of the following is/are considered adequate consideration to create a legally binding contract? The promise of the buyer to buy and the promise of the seller to deliver title The owner's title policy is a contract between which two parties? The buyer and the title company What happens if no dollar amount is inserted in paragraph 23 of the TREC One to Four Family Residential Contract but the time period is filled in as 10 days? The paragraph is not part of the contract. Buyer must object not later than the closing date or within how many days after receiving the commitment, exception documents, and the survey? An agreed-upon number Which of the following is NOT a reason for providing earnest money? It serves as consideration for the contract. Which of the following promise exchanges is considered adequate consideration to create a legally binding contract? The buyer's promise to buy and the seller's promise to deliver title. Under the TREC One to Four Family Residential Contract, how long does the seller have to provide the seller's disclosure notice to the buyer? The time period is negotiated between the parties What can happen if a buyer fails to pay for an option fee within three days of execution of a contract under paragraph 23 of the TREC One to Four Family Residential Contract? The paragraph will not be a part of the contract. If the property is located outside the limits of a municipality, which notice in paragraph 6 of the One to Four Family Residential Contract provides notice about the extraterritorial jurisdiction of the municipality? Annexation Which of the following is TRUE under paragraph 7D of the One to Four Family Residential Contract? Buyer's agreement to accept the property as is under paragraph 7D(1) or (2) precludes buyer from inspecting the property under paragraph 7A. A buyer promises to pay an option fee of $500 within three days of execution under paragraph 23 of the TREC One to Four Family Residential Contract to purchase a 15-day option to terminate. What happens if the buyer pays the fee four days after execution? The buyer will not have the unrestricted right to terminate the contract. The buyer wants to use her favorite title company to handle the purchase of an investment property. The seller's agent always uses a different title company. Who selects the title company? It is negotiated by the parties Provided the seller will not incur any expense, how many days after their receipt does the seller have to cure the timely objections of the buyer or any third-party lender? 15 A buyer and seller agree that buyer will buy the seller's home for $475,000 with no option to terminate using the TREC One to Four Family Residential Contract. The lender requires the roof to be replaced, the perimeter to be treated for termites, and the stucco on the back of the house to be repaired. The roof will cost $10,000, the termite treatment will cost $1,800, and the stucco repair is estimated to cost $8,000. Seller agrees to pay for everything. What are the buyer's options? The buyer may not terminate the contract. A buyer promises to pay an option fee of $500 within three days of execution under paragraph 23 of the TREC One to Four Family Residential Contract to purchase a 12-day option to terminate. What happens if the buyer pays half of the fee up front and half four days after execution? The buyer will not have the unrestricted right to terminate the contract. The Statutory Tax District Notice in paragraph 6 of the One to Four Family Residential Contract applies to which of the following? A utility district that provides water services Which of the following is not a notice under paragraph 6 of the One to Four Family Residential Contract? The seller's disclosure notice The buyer will receive a copy of the restrictive covenants at the _____________ expense, according to the contract. buyer's When the seller remains in the property after closing, the Seller's Temporary Residential Lease is used, and the new owners are the___. landlords ___ is checked to indicate that the buyer has received the seller's disclosure. 7B1 Who issues the receipt for the earnest money under the One to Four Family Residential Contract? The escrow agent Buyer and seller enter into a contract for buyer to purchase seller's property using the One to Four Family Residential Contract. Seller wants to reference and attach the seller's disclosure notice to the contract. What should the seller's agent advise the seller? Do not attach the notice to the contract What are unallowables under the TREC One to Four Family Residential Contract? Lender fees that the borrower is prohibited from paying so the seller pays them How are smoke alarms dealt with in the TREC temporary lease forms? Tenant expressly waives landlord's duties to inspect and repair smoke alarms. Buyer and seller enter into a contract for buyer to purchase seller's house using the One to Four Family Residential Contract. Buyer wishes to purchase a 10-day option to terminate the contract. How long does the buyer have to pay the option fee? Three days What is the purpose of paragraph 24 of the One to Four Family Residential Contract? The parties may add contact information of their attorneys. Which type of loans have unallowable fees that a buyer is prohibited from paying under the TREC One to Four Family Residential Contract? FHA loans Which of the following is NOT an appropriate use for paragraph 11, Special Provisions, of the One to Four Family Residential Contract? The contract is in a second or back-up position. Which of the following may be included in paragraph 11, Special Provisions, of the One to Four Family Residential Contract? The seller is unavailable by phone Tuesdays and Thursdays from 1:00 to 4:00 pm. ___ is different in each contract, describing the type of property that is covered. Paragraph 2 ___ is only different in the Farm and Ranch Contract because the sales price can be adjusted by the survey. Paragraph 3