Promulgated contracts practice exam 2023 Already Passed!!

Promulgated contracts practice exam 2023 Already Passed!! Which of these forms is least likely to be involved in the sale of unimproved property? The Unimproved Property Contract would not be involved in the sale of a condo. A buyer and seller have been in negotiations. They have everything in writing, have agreed to all terms, the contract is signed and changes initialed. Today, the written acceptance of the final agreement has been communicated to the other party. What is today called? the effective date How many lawyers are on the Broker-Lawyer Committee? six According to the NAR Code of Ethics, unless the agent has written instructions stating otherwise, they must present all offers until: the closing Buyer Javier sends a formal offer to Seller Joy: $250,000 and the appliances stay. Joy counters: $250,000, no appliances. She then reconsiders and accepts the first offer. Is Javier obligated to buy the home? Why or why not? No, because the first offer was dead when Joy countered. 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 which of these scenarios would it be correct to use the Residential Condominium Contract (Resale)? A client is buying a property where the land is not owned individually and the common areas are shared equally among the community's owners. What is special about the earnest money section (paragraph five) and the option money section (paragraph 23) in the TREC promulgated sales contract? they contain "time is of the essence" language When seller financing is being used, the seller becomes: the lender A potential buyer's current home is under contract. He has found a home he would like to make an offer on, but does not want to take a chance on being obligated to buy if his current home does not close. What form can help this buyer? Addendum for Sale of Other Property by Buyer Which of these is NOT necessary for a contract to be binding and effective? For an offer to become a contract, it must be in writing, it has to be signed by all parties with changes initialed, acceptance must be completed, and acceptance of the contract must be communicated to the other party. There is not a faxing or delivery requirement. Which of these is NOT a protected class of people, according to Fair Lending Laws? sexuality Why are there multiple promulgated contracts for use in Texas? because different types of properties have different specific contract needs A murder/suicide took place in a property. The crime was widely publicized. What is the disclosure requirement for this crime? It must be disclosed forever. A contract that is fully performed is referred to as: executed 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 In loan fraud, the lender is usually the . victim What is the statute of limitations to claim fraud or misrepresentation against a license holder? The statute of limitations to claim fraud or misrepresentation against a license holder is 4 years from discovery. Per Paragraph 7D, what is it called when a buyer accepts the property, "with any and all defects and without warranty"? accepting it in "as is" condition What should an agent do if asked to violate anti-discrimination laws by a client? educate the seller about anti-discrimination laws and say they cannot honor the request 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 Paragraph 7D(2) of the contract indicates: repairs that must be completed by the seller before closing If legal action is required regarding a TREC sales contract, what will the non-prevailing party be responsible for? the prevailing party's reasonable attorney fees and court costs What does paragraph 7A of the One to Four Family Residential Contract grant every buyer the right to do? have the property inspected As outlined in the TREC promulgated sales contracts, what obligations does the seller have regarding the property condition at the time of sale? Seller's obligations are a matter of negotiation with the buyer. Agent Ralph has a buyer client that wants the seller to leave them the refrigerator, built-in microwave, and vent hood. Ralph notes this expectation in the Special Provisions section. What is wrong with this scenario? It should be written in a Non-Realty Items Addendum, not in the Special Provisions section. Which of these is a possible result of when zoning is changed and a property no longer qualifies for a previous exemption? Rollback taxes can be assessed when zoning is changing and the property no longer qualifies for a previous exemption. In Paragraph 9 of the One to Four Family (Resale) contract, what must happen "on or before" the specified date? closing Laura is in contract for a home. Her contract contains a Sale of Other Property by Buyer Addendum. The seller has just accepted a back-up contract for the property that doesn't have this contingency. What happens to Laura and her contract? Laura can waive the addendum by a date she and the seller agree on, otherwise her contract terminates. 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 Which of these is NOT something TREC has the power to do? licensing developers and builders 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. Additions to the standard coverage in a title policy can be purchased via: endorsements According to TREC rules, which of these must be delivered to the seller within three days of a contract's effective date? earnest money What is the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway for? warns buyers that if their property become located on the beach area by erosion, they can be required to remove the structure at their own expense 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 When all parties have agreed to all terms of an offer, have signed the offer, and have initialed any changes that took place during negotiations, what happens to the offer? An offer becomes a contract when all parties have agreed to all terms of the offer, have signed the offer, and have initialed any changes that took place during negotiations. How can an agent help protect the earnest money of a buyer who is financing their purchase? by submitting a Third Party Financing Addendum Which of these agent scenarios involving contracts is NOT inappropriate or in violation of TRELA? Avery explains the meaning of factual statements or business details in the contract form. The Seller's Temporary Residential Lease will only be used: when the seller will remain on the property for no more than 90 days after closing What is an express contract? a contract that has a very specific offer and acceptance 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?