Champions School of Real Estate: Law of Contracts|208 Questions & Answers 100% Correct 2024
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CHAMPIONS OF REAL ESTATE
Institution
CHAMPIONS OF REAL ESTATE
Texas Real Estate Commission - ANSWER-Created by the legislature in 1949 to carry out the provisions of TRELA
Unauthorized Practice of Law - ANSWER-When license holders add provisions to contracts that go beyond the factual business details they are engaging in..
Deceptive Trade practices act...
Champions School of Real Estate: Law
of Contracts|208 Questions & Answers
100% Correct!.
Texas Real Estate Commission - ANSWER-Created by the legislature in 1949 to carry
out the provisions of TRELA
Unauthorized Practice of Law - ANSWER-When license holders add provisions to
contracts that go beyond the factual business details they are engaging in..
Deceptive Trade practices act - ANSWER-
Real Estate Recovery Trust account - ANSWER-Administered by TREC, the purpose of
the account is to protect aggrieved individuals who suffer a monetary loss due to illegal
acts of license holders
Broker Lawyer Committee - ANSWER-Established by TREC to write mandatory
residential contract forms for license holders
producing cause - ANSWER-requires proof that the act or omission was a significant
factor in bringing about injury
Real Estate center - ANSWER-Created by the legislature in the 1970s to collect and
compile data about real estate in Texas
promulgated forms - ANSWER-forms that are published/made known by open
declaration
Seller's Disclosure notice - ANSWER-
Default - ANSWER-when a party to a contract fails to perform under the contract
Default is also referred to as what? - ANSWER-Breach of contract
Liquidated Damages - ANSWER-Damages that are established in the contract ex.
earnest money
Monetary Damages - ANSWER-Damages that are awarded by the court. Due to this
one never knows what they will be until the court rules
,Specific performance - ANSWER-The injured party files a court action seeking an order
of the court directing the defaulting party to perform according to the terms of the
contract. This is the only remedy that would possibly result in full executions of the
contract.
Remedies when buyer is under default - ANSWER-Liquidated damages; monetary
damages specific performance
Remedies when seller is under default - ANSWER-specific performance; monetary
damages; Refund earnest money
Types of TREC promulgated lease forms - ANSWER-Buyers & Sellers temporary
residential lease form;
buyers temporary residential lease form - ANSWER-for use when buyer occupies the
property for no more than 90 days prior to closing.
seller's Temporary Residential lease form - ANSWER-for use when the seller occupies
the property for no more than 90 days after closing
Right of first refusal - ANSWER-giving the tenant the right to purchase the leased
property by matching or bettering any offer before the property will be sold to someone
else.
lease purchase agreement - ANSWER-gives the tenant occupancy in the present time
and the right to purchase at a future date
Texas Veterans Land Board (TVLB) - ANSWER-to participate the veteran must obtain
and FHA, VA, or conventional loan. The difference is the loan is sold to the TVLB and
not to a secondary market purchaser. The benefit is the rate is often up to 1 percent
below market rates.
What are the physical characteristics of land? - ANSWER-Indestructibility & durability;
Immobility; Non-homogeneity(not same)
What are the economic characteristics of land? - ANSWER-Scarcity; Modification;
Fixity; Situs
Scarcity - ANSWER-from the theory of supply and demand
Fixity - ANSWER-the fact that the land & additions to the land, such as buildings, take a
long time to pay for themselves.
Modification - ANSWER-refers to the fact that the value is affected by man made
changes to land
, Situs - ANSWER-refers to the location of the property or land from an economic stand
point, not a geographical view point.
What are the responsibilities of agents when receiving an offer? - ANSWER-- all offers
must be presented no matter what
-agent does not have authority to dismiss any offer unless instructed
- the communication and submission of an offer must be done promptly
Title insurance policy - ANSWER-a contract between the title company and the insured.
The title insurance company agrees to compensate the insured against losses
sustained a as result in defects in title.
Abstract of title - ANSWER-a complete history of the title to the property and includes all
deeds, wills and other docs affecting title
title commitment - ANSWER-divided into sections called "schedules," and must be
delivered by the title company within 20 days of its receipt of the contract.
Title commitment Schedule A - ANSWER-includes basic information on the property
and the transaction. It would be prudent to verify that the owner of the property listed is
actually the seller who signed the contract and the legal description is correct.
Title commitment Schedule B - ANSWER-lists exceptions from coverage, including the
standard promulgated exceptions. It will list several items including easements,
extraterritorial jurisdiction issues, and building setbacks that are of interest
Title commitment Schedule C - ANSWER-lists exceptions to title. These issues range
from minor issues that can be easily resolved up to and including deal-killing problems
that cannot be resolved in a timely manner, if ever.
opinion of titles - ANSWER-The agent should never express ant opinion as to the
quality or sufficiency of title or the adequacy of a survey. Under no circumstances
should the agent attempt to dissuade a buyer/seller from seeking the advice of an
attorney
option - ANSWER-an agreements between a buyer and seller/landlord and tenant. A
seller for some form of consideration(option fee), gives the buyer the right to purchase
the property at some preset price and terms for a period.
Special provisions - ANSWER-space on a contract form where terms can be addressed
that are not covered in standard contract or addenda forms
license holders should ensure that any special provisions added to a contract are
factual statements that do not damage the legal affect of the contract.
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