promulgated contracts final exam qs Questions with complete solutions

promulgated contracts final exam qs Questions with complete solutions Under TRELA, a licensee will not be in violation of practicing law without a license if she writes a real estate contract. fills in the blanks on a standardized contract. offers professional advice on Texas real estate law. revises promulgated contracts. fills in the blanks on a standardized contract. At what point does an offer become a contract? After the licensee fills in all the blanks After the buyer signs it After the seller accepts the buyer's offer After the seller's acceptance is communicated back to the buyer After the seller's acceptance is communicated back to the buyer According to the Texas Real Estate Commission (TREC) a listing contract must contain a notice that it was prepared by an attorney licensed in the state of Texas. disclosure about representation of clients. a disclaimer saying that the form was not promulgated by Texas. a provision informing the parties to the contract that real estate commissions are negotiable. a notice that it was prepared by an attorney licensed in the state of Texas. All of the following actions would be considered practicing law without a license except which one? Modify a 1997 TREC promulgated contract to fit the buyer's current scenario to purchase a property. Tell the client known facts about the property that might affect the title. Give advice about the legal consequences of the purchase. Offer a client an opinion regarding the validity of the title. Tell the client known facts about the property that might affect the title. What group has the task to draft and revise contracts and forms for use by licensees? Texas Association of REALTORS Broker-Lawyer Committee Texas Real Estate Commission Texas Association of Brokers-Lawyers Broker-Lawyer Committee What is the effective date of the contract? The date the buyer's option terminates if no additional contingencies exist. The date the offer was originally written. Upon the seller's acceptance and communication of that acceptance to the buyer. The date the contract closes and funds. Upon the seller's acceptance and communication of that acceptance to the buyer. What are the four basic elements of a bilateral contract? Mutual assent, Competent parties, Consideration and Legal objective Offer, Counter offer, Agreement and Close Agreement, Earnest money, Must be at least 18 years of age and the purpose of the contract must be legal Must be in writing, Cannot violate a law, Legal consideration and a Meeting of the minds must occur Mutual assent, Competent parties, Consideration and Legal objective What is it called when all terms in a contract are agreed to by all the parties of the contract? A firm deal A concurrence An accord Mutual Assent Mutual Assent What term describes the status of a sales contract from the time of the contract's signing to the day of closing? Executory Executed Valid Breached Executory If a party feels he has been wronged, what law sets the deadline for initiating legal proceedings? Statute of Limitations Statute of Frauds The Deceptive Trade Practices Act The Real Estate Settlement Procedures Act Statute of Limitations Which of the following contract terms is designed to create an action? Open Straight Working Performance Performance Consideration is also known as earnest money. something in exchange for something else. option money. lis pendens. something in exchange for something else. Novation occurs when a current contract is substituted with a new contract. something in a contract still needs to be executed. a buyer transfers his or her rights to a contract to another. two contracts are valid simultaneously. a current contract is substituted with a new contract. Seller Brittany has agreed to a contract term that allows the buyer to purchase her property within two months at an agreed upon price. Which contract feature has Brittany agreed to? Habendum clause The right of first refusal An option These types of agreements are unenforceable in the state of Texas An option What is the probably best action a seller can take if he or she wants to take a fixture prior to closing? Mark the item with a tag that states that the item does not convey. List the item in the remarks section of the MLS as not conveying. Place a notice on the inside of the front door telling any potential buyers that the item does not convey. Remove the item prior to any showings. Remove the item prior to any showings. In completing a sales contract, the sale price should equal the market price. the down payment added to any loans. .the appraised value. the loan amount and closing costs. the down payment added to any loans. When a transfer fee is enforced, who receives the payment? The owner of the property The state of Texas The homeowners association The original creator of the covenant The original creator of the covenant What agreement is typically made when a buyer moves in before the actual close? Short-term lease agreement Buyer's Temporary Lease Seller's Temporary Lease The TREC promulgated purchase agreement addresses this and no further documentation is needed. Buyer's Temporary Lease Which of the following statements best defines "promulgate"? To disperse To define a code of conduct To officially publish rules To disseminate To officially publish rules What happens to the penalty funds collected from transfer fee violators? They are placed in the general revenue fund of the State. They are placed in the HUD general revenue fund. They are placed in the Real Estate Recovery Fund. They are placed in a holding account to distribute to the victims. They are placed in the general revenue fund of the State. In which of the following situations would a temporary lease be inappropriate? When the seller stays in the property for three days after closing. When the buyer moves in the week prior to the closing date. When the seller needs the weekend after closing to finish moving. When the buyer moves in six months prior to the closing. When the seller needs the weekend after closing to finish moving. On the TREC promulgated Unimproved Property Contract, in what paragraph would you find information regarding potential annexation? Casualty Loss Title Policy and Survey Property Condition Default Title Policy and Survey Which of the following transactions would use Form 9-10, Unimproved Property Contract? The sale of a condominium The sale of a spec home The sale of land with no utilities The sale of an office building The sale of a spec home Form 9-10 Unimproved Property Contract differs from Form 20-11 Residential Contract in that Form 9-10 covers condominiums. Form 9-10 calls for possession on the date of closing. Form 9-10 has no section to specify repairs to the property. brokers fees are listed on Form 9-10. Form 9-10 calls for possession on the date of closing. To write a legal description for a large ranch, the licensee would want to use the triangular survey method. want to use the metes and bounds survey method. want to use the lot, block subdivision survey method. probably have to attach an addendum to completely describe the property. probably have to attach an addendum to completely describe the property. One reason that a survey may not be required in a conventional transaction is because they are very expensive. they require final approval by the Texas Commission of Land Grants. they are based on dated land grant maps and abstracts that use varas and leagues. they are extremely inaccurate. they are very expensive. What is added to Form 25-9 (Farm and Ranch Contract) in paragraph 3 that does not appear on Form 20-11 (Residential Contract)? Cash portion of Sales Price Sales price adjustment Sales price Sum of all financing Cash portion of Sales Price On Form 24-12 (New Home Contract Completed Construction), what two amounts equal the sales price? The difference between the current loan amount and the offer price The first lien and the second lien The cash the buyer is putting up plus the sum of all of the financing It depends upon the ratios set by the lender The cash the buyer is putting up plus the sum of all of the financing