Promulgated Contracts Exam(real estate exam 6)Already Graded A+

Promulgated Contracts Exam(real estate exam 6)Already Graded A+ When would it be appropriate to use the New Home Contract (Incomplete Construction)? for a client buying a new home that is being built A buyer needs more option period time. They have asked the seller, who agreed, and signed TREC's Amendment to Contract. What else must they do to make the extension official? pay an additional option fee In TREC promulgated contracts, what does Paragraph 21: Notices provide information about? where to send official notices about the contract If a seller wants to reserve part of their mineral rights after selling, where on the Reservation of Oil, Gas and Other Minerals Addendum would they note what percentage they're keeping? Paragraph B2 If an agent makes a change to Paragraph 6A8 in a TREC promulgated contract, which of these is most likely to be the result? The title policy will be amended to read "shortage in area" rather than the standard exception. In Paragraph 9 of the One to Four Family (Resale) contract, what must happen "on or before" the specified date? Closing Rollback taxes are addressed in all of the following EXCEPT: Residential Service Contract What are brokers required to do regarding Consumer Protection Notice TREC No. CN 1-2? post it in each office Agent Ted advises his client that the title to the property he is buying is clear — no need to do a further title search. Why is this inappropriate? It may constitute unauthorized practice of law under TRELA. To be valid and enforceable, a contract must be in writing, represent a complete agreement, have acceptance communicated, and: be signed by all parties Because many things in the contract depend on these two items, it is important that the agent finalizing the acceptance of the contract fill in which of the following dates for their broker: effective and executed date Seller Xavier's home is in a special statutory tax district. According to the Texas Water Code, what does Xavier have to do before going into contract with a buyer? have them sign a notice informing them of the extra taxes Which of these is NOT something that is appropriate to put in Paragraph 11 (the Special Provisions section) of a TREC promulgated contract? that the contract is contingent on the inspection The Special Provisions section can be used for relevant business information (such as the names of the parties or the property description) that did not fit in the fields provided. Which of the following laws protect people based on race only? Civil Rights Act of 1866 According to Paragraph 10B, Possessions, what is a seller prohibited from doing after the effective date? execute a lease without the buyer's permission Which of these is a technique license holders can employ to avoid mortgage fraud? disclose everything to the lender If the seller is providing an existing survey during a real estate transaction, what must the license holder give to the buyer? the T-47 Residential Real Property Affidavit A contract which courts cannot compel the parties to perform is: unenforceable Which of these materials would be considered part of a property's mineral estate? oil The mineral estate does NOT include water, sand, caliche, gravel, limestone, or iron. A seller is renting back a property from a buyer using the Seller's Temporary Residential Lease. The seller damages the property while they are staying there. Who is responsible for the cost of the repairs? the seller/tenant Which of these is NOT true about a Seller's Temporary Residential Lease? the buyer/landlord has no recourse if the seller/tenant overstays In TREC promulgated contracts, what does paragraph 6E(8) say about private transfer fees? that if they exist, the seller must notify the buyer What is TRUE of a unilateral contract? A unilateral contract is a promise exchanged for performance. Which of these is NOT something TREC has the power to do? licensing developers and builders If a seller is still accepting counteroffers, what is true about their property? it is not yet officially in contract The cancellation of offers and counter offers must take place before the other party accepts the offer. License holders need to make buyers aware that while they are countering, the property is still available and the seller is free to sell it to someone else. Which of the following is TRUE regarding a contract to transfer real estate which contains no earnest money? It is valid What does paragraph 7A of the One to Four Family Residential Contract grant every buyer the right to do? have the property inspected Which of these is an example of an illegal buyer rebate? an agent gives their buyer client half of their commission without disclosing it on the settlement statement Buyer Jeremy gave Seller Anthony $800 in earnest money and an additional $200 in option money. During the option period, Jeremy decided to terminate the contract. Anthony gave him back $800. Is this correct? Why or why not? Yes, because option money is never refundable. Option money is not refundable. Jeremy should only have gotten his $800 in earnest money back. Paragraph D of the Short Sale Addendum contains a date by which the seller must get approval from their lender for the sale. What happens if the lender does not give approval by the date? The contract will terminate and the earnest money will be refunded to the buyer. How can an agent change a contract after it has been signed by both parties? adding an amendment to contract Which of these is NOT true about the residential service contract? the seller can prevent the buyer from purchasing it It is the buyer's responsibility to review and choose the coverage of the residential service contract. Which TREC promulgated contract are all the other contracts based on? One to Four Family Residential Contract By what time is the seller required to furnish a new survey? The seller must furnish the buyer a new survey no later than 3 days prior to closing How can a license holder ensure that any relevant addenda or notices are officially included in a contract? by checking the appropriate boxes in Paragraph 22 According to the promulgated contracts, rollback taxes assessed because the buyer changed the usage after closing will be settled how? The buyer will be obligated to pay the rollback taxes. What is the statute of limitations to claim fraud or misrepresentation against a license holder? four years from discovery Emily and Josh signed a real estate contract with each other. The contract is now fully executed. What does that mean that Josh and Emily have done? fulfilled the material terms of the contract According to TREC rules, which of these must be delivered to the seller within three days of a contract's effective date? earnest money Paragraph C2 on the Lead Based Paint Disclosure states that: the buyer has 10 days to have the property inspected for lead-based paint Which is the purpose of the Information About Brokerage Services form? to inform clients how a license holder can represent a party in a real estate transaction Which of these is an example of a unilateral contract? Mike signs a listing agreement with Broker Amy, agreeing to pay a 6% commission if she sells his house. Which of the following bodies appoints the public member on the Broker-Lawyer Committee?