Aceable Agent - Promulgated Contracts Exam with complete solutions

VOID - Answer- A contract that has no legal effect. VOIDABLE - Answer- When one or more of the parties has the authority to rescind the contract. It appears to be valid, but one party may disaffirm because they are a minor, were subject to duress, or a victim of fraud or misrepresentation. STATUTE OF FRAUDS - Answer- A law that requires real estate contracts be in writing is the ______________________? PAROLE EVIDENCE RULE - Answer- Prevents a party to a written contract from presenting additional evidence that adds to the written terms of the contract. VOID - Answer- If 2 people have a legal contract for one party to sell illegal drugs to the other party, this contract would be _______________? EARNEST MONEY - Answer- Paragraph 5 in a sales contract? OPTION MONEY - Answer- Paragraph 23 in a sales contract? DOCTRINE OF LACHES - Answer- Legal loss of a right with the thought that "if you don't use it, you lose it." EFFECTIVE DATE - Answer- A written contract has been accepted, signed, and communicated to the other party. PAROLE EVIDENCE RULE - Answer- Prevents a party to a written contract from presenting additional evidence that adds to the written PAROLE EVIDENCE RULE - Answer- Prevents a party LICENSE ACT - Answer- If a licensed agent uses an old promulgated TREC form, what is this in violation of? PARAGRAPH 2D EXCLUSIONS - Answer- If a seller does not want to leave a chandelier where should they put this information in the 1-4 Family Residential Contract? NON-REALTY ITEMS ADDENDUM - Answer- What addendum can you attach to the sales contract if your client wishes to have additional personal property to stay with the property (that is not listed in Paragraph 2B or 2C)? LTV RATIO - Answer- Loan to value ratio that represents how much of the sales price is covered by the mortgage loan. RECOURSE LOAN - Answer- Loan in which the lender is allowed to seize the collateral property and could go after the borrower's other assets if the sale of the property doesn't cover the whole amount owed to the lender. SEND A WRITTEN DEMAND TO THE TITLE CO - Answer- After a real estate transaction fails, both parties can't agree who gets the earnest money, what should a buyer's agent do? SELLER - Answer- Who should the option money be delivered to? PARAGRAPH 23 - Answer- What paragraph is used for option period? ENDORSEMENTS - Answer- Amendments to the standard coverage in a title policy. RESTRICTIVE COVENANT - Answer- Provision in a deed limiting the use of property and prohibiting certain uses. 1. STANDARD PRINTED EXCEPTION AS TO MARITAL RIGHTS 2. STANDARD PRINTED EXCEPTION FOR STANDBY FEES, TAXES, AND ASSESSMENTS 3. RESTRICTIVE COVENANTS (DEED RESTRICTIONS) COMMON TO THE PLATTED SUBDIVISION - Answer- What are examples of exceptions of the title policy? RESIDENTIAL REAL PROPERTY AFFIDAVIT - Answer- A form that is completed by the seller to assure the buyer that they haven't changed the boundaries of the property since the last survey was completed. BOTH PARTIES NEGOTIATE - Answer- According to the 1-4 Family Residential Agreement who is responsible to pay for the owner's title policy, the seller or buyer? 2ND BUSINESS DAY, CLOSE OF BUSINESS - Answer- When should an agent deposit an earnest money check with an escrow agent? DEFAULT - Answer- If the buyer fails to deposit the earnest money on time, they will be in ____________? 15 DAYS - Answer- How many days does a seller have to cure a valid objection listed by the buyer in Paragraph 6D? LIST IN PARAGRAPH 6D AS A VALID OBJECTION - Answer- If the agent isn't sure of restrictions of the property, how can an agent protect the buyer and give them an out under the contract? TRUE - Answer- T/F? If there is an active lease on the property when the property is transferred, the seller needs to supply the buyer with a copy of the lease and move-in condition form within 7 days after the effective date. EFFECTIVE DAY OF LEASE - Answer- When is rent for a Buyer's Temporary Residential Lease Agreement paid? SELLER AND BUYER - Answer- Who does escrow protect? YES - Answer- Does the contract permit sellers to continue to show properties for back up offers before contract termination period? TAXES FOR PREVIOUS YEAR - Answer- What does it mean to pay property taxes in arrears? SIX - Answer- How many promulgated forms does TREC have? NEW HOME CONTRACT (COMPLETE CONSTRUCTION) - Answer- Which contract would you use for a brand new constructed home? BUYER - Answer- If a buyer wants to buy a property that was once zoned for farming, but wants to change to residential, who is responsible for the rollback taxes charged for new zoning of property? 10% - Answer- If a new survey is completed on a farm or ranch, at what percentage of the sales price INCREASE OR DECREASE of the property can either party of the contract terminate due to the price change? UNIMPROVED PROPERTY CONTRACT - Answer- The seller of unimproved property provides a disclosure in the _____________________? UNIMPROVED PROPERTY CONTRACT - Answer- Which contract should not be used for transactions that include land used for ranching or farming, and where surface leases and mineral estates may exist. UNIMPROVED PROPERTY CONTRACT - Answer- Which contract could be used for commercially zoned land in urban areas or smaller rural tracts? PROPERTY DESCRIPTION - Answer- Paragraph 2 is always used for what? FARM AND RANCH - Answer- Which contract has a place for Exception Documents and Surface Leases? ONE TO FOUR FAMILY RESIDENTIAL CONTRACT - Answer- Which contract would an agent use to sell a Townhouse? CONTINGENCY ADDENDUM / ADDENDUM FOR SALE OF OTHER PROPERTY BY BUYER - Answer- What addendum do you attach to the 1-4 Family Residential contract if your seller client wants to buy a home before they close on their own home? TRUE - Answer- T/F? If a buyer has a new offer and had an option to terminate, the right to terminate continues from the original effective date through the # of days starting from the new effective amended date. NO - Answer- Do Mineral Estates include grave, limestone, and sand? BUYER - Answer- Who signs the Notice of Termination Contract? 10 DAYS - Answer- How long could it take for a buyer to get their earnest money refunded? 3 DAYS - Answer- How many days does a buyer have to terminate a contract after receiving Subdivision/ HOA information? ON 2ND BUSINESS DAY AFTER ORIGINAL EFFECTIVE DATE - Answer- In a Short Sale, when does the Earnest money need to be delivered to the Title co? WITHIN 3 DAYS OF THE ORIGINAL EFFECTIVE DATE - Answer- In a Short Sale, when does the Option money need to be delivered to the Seller or Seller's Agent? ON ORIGINAL EFFECTIVE DATE - Answer- When does the right to terminate begin in a Short Sale Addendum? NOTICE OF BUYERS TERMINATION CONTRACT - Answer- If a buyer is exercising the unrestricted right to terminate the contract under Paragraph 23 of the contract, they are using what contract? HOMEOWNERS ASSOCIATION - Answer- Who is meant to complete the Subdivision information? SHORT SALE ADDENDUM - Answer- Which addendum is used when the transaction is contingent upon the approval of the seller's lender? OIL AND GAS ATTORNEY - Answer- If there are questions about mineral rights, who should be asked the questions? NO / BUYER - Answer- Does the Notice of Buyer's Termination Contract address Earnest Money? Who signs this contract? ADDENDUM FOR BACK-UP CONTRACT - Answer- Which addendum allows a seller to simultaneously negotiate with a second buyer in case the first one falls through? YES - Answer- Are a landlord's rules against smoking on a property legal? LOCAL LAWS & HOUSING PROVIDERS - Answer- Who creates occupancy standards? NO, ONLY SUGGESTED GUIDELINES - Answer- Does HUD create official rules for occupancy standards? # OF PETS - Answer- What is not considered when HUD reviews fair housing complaints? 7D(2) - Answer- Which paragraph indicates repairs that must be completed by the seller before closing? 6B - Answer- Which paragraph indicates that any restrictive covenants along with the title policy documents must be provided to the buyer? FAMILIAL STATUS - Answer- If a property is occupied solely by people over the age of 62 and qualifies as senior housing, they are exempt from what? WITHIN 7 DAYS OF EFFECTIVE DATE - Answer- If a seller is selling a property that is under lease, how long does the seller have to provide a copy of the signed lease to the buyer? CONDOMINIUM RESALE CERTIFICATE - Answer- The name of the document prepared by a condo association to outline fees and rules? 6E(1) - Answer- What paragraph advises a buyer to get a lawyer to review the abstract of title? QUITCLAIM DEED - Answer- A house is being sold by someone who inherited it, but there are others who contest to the will. What kind of deed is the best for a buyer to best protect themselves from any potential claims on a title? EXPRESS - Answer- What type of contract has a specific type of offer and acceptance? UNIT NUMBER - Answer- What does a Residential Condominium Contract require in the legal description of the property? EARNEST AND OPTION MONEY - Answer- What two sections of TREC's promulgated contracts contain "time is of the essence" language? TITLE COMPANY - Answer- There is no mutual termination form for both parties, so who can provide each party with a form to sign that will go over earnest money. TRUE - Answer- T/F? Once an offer is countered, it's considered rejected and dead. LEAD BASED PAINT ADDENDUM - Answer- What must the broker keep a copy of for three years after a sale? YES - Answer- Do changes to a contract have to be initialed? 7D - Answer- What paragraph covers a buyer accepting a property "with any and all defects and without warranty"? Or an "as is" condition? "SHORTAGE IN AREA" - Answer- What does paragraph 6A8 refer to? YES - Answer- Is "receipt of public income" a protected class according to Fair Lending Laws? THREE DAYS - Answer- How many days does earnest money have to be delivered by?