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Promulgated Contracts Exam|44 questions with 100% Accurate Answers
Promulgated Contracts Exam|44 questions with 100% Accurate Answers
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Promulgated Contracts Exam|44questions with 100% Accurate Answers
Accessories in the real estate contract - definition, features, disposition - -
PARAGRAPH 2.(C) Describes accessories, which, while not necessarily
permanently installed or built-in, are commonly conveyed to the buyer in the
sale
Window air conditioning units, stove, fireplace screen, curtains and rods,
blinds, window shades, door keys, mailbox keys, above ground pool,
swimming pool equipment and maintenance accessories, artificial fireplace
logs, and controls: garage door, entry gates, and other accessories and
improvements
-Items to be retained by the Seller as specified in the contract - -Paragraph
2.D EXCLUSIONS: The following improvements and accessories will be
retained by the seller and must be removed prior to delivery of possession
______________________
-Paragraph 3.B. - contents - -The sum of all financing from all sources. Insert
only the amount actually being financed.
-Paragraph 4 - disclosure of agency coupled with an interest and family
relationships - -LICENSE HOLDER DISCLOSURE: Texas law requires a real
estate license holder who is a party to a transaction or acting on behalf of a
spouse, parent, child, business entity in which the license holder owns more
than 10%, or a trust for which the license holder acts as trustee or of which
the license holder or the license holder's spouse, parent or child is a
beneficiary, to notify the other party in writing before entering into a
contract of sale. Disclose if applicable: .
-Paragraph 5 - features - -PARAGRAPH 5. EARNEST MONEY: Earnest money
is a "deposit" paid upfront by Buyer to show that he or she is serious in his or
her intent. There is no standard for the dollar amount of earnest money, but
it is often in the range of 1% of the purchase price. Insert the amount of
earnest money and the name and address of the title company. If additional
earnest money is required, enter the amount and the number of days. Time
is of the essence for this paragraph
-The purpose and use of Paragraph 6 - -Title policy, (title) commitment, and
endorsements
https://www.hoodhomesblog.com/contracts/title-policy-and-survey/
, -Number of days for the title company to deliver the title commitment - -
PARAGRAPH 6.B. COMMITMENT: The title company has 20 days from the
date that they receive the contract to furnish a commitment to the buyer for
title insurance. This paragraph also provides for an automatic extension of
the delivery period for up to 15 days or 3 days prior to closing if the
commitment cannot be delivered within the 20 days allowed
-TREC rules regarding the buyer's use of inspectors - -Property condition is
one of the more important considerations when purchasing residential real
estate. All TREC-promulgated contracts stipulate that the buyer is purchasing
the property "as is."
Paragraph 7A.
ACCESS, INSPECTIONS AND UTILITIES: Seller shall permit Buyer and Buyer's
agents access to the Property at reasonable times. Buyer may have the
Property inspected by inspectors selected by Buyer and licensed by TREC or
otherwise permitted by law to make inspections. Any hydrostatic testing
must be separately authorized by Seller in writing. Seller at Seller's expense
shall immediately cause existing utilities to be turned on and shall keep the
utilities on during the time this contract is in effect.
-What are good funds? - -PARAGRAPH 9.B.(2) Buyer is to bring "good funds"
to closing. Good funds is described as a cashier's check or wire transfer. Title
companies may accept a small personal check from a buyer. Check with the
title company for their policy
-Lender required repairs as addressed in the sales contract - -PARAGRAPH
7.E.
LENDER REQUIRED REPAIRS AND TREATMENTS: Lender required repairs, if
any, are a negotiated expense item between the parties. If the lender repairs
exceed 5% of the sales price, the buyer may terminate the contract and
receive a refund of earnest money. Seller must complete all agreed to
repairs prior to closing, or the closing date may be extended up to 5 days to
complete repairs.
-Closing costs or settlement expenses - -12. SETTLEMENT AND OTHER
EXPENSES:
A. The following expenses must be paid at or prior to closing: (1) Expenses
payable by Seller (Seller's Expenses): (a) Releases of existing liens, including
prepayment penalties and recording fees; release of Seller's loan liability; tax
statements or certificates; preparation of deed; one-half of escrow fee; and
other expenses payable by Seller under this contract. (b) Seller shall also pay
an amount not to exceed $ to be applied in the following order: Buyer's
Expenses which Buyer is prohibited from paying by FHA, VA, Texas Veterans
Land Board or other governmental loan programs, and then to other Buyer's
Expenses as allowed by the lender. Initialed for identification by Buyer and
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