Promulgated Contracts Exam 2023

a contract for life necessity - Answer- Which of these is an exemption to the "legal capacity" requirement to form a contract? voidable - Answer- A contract for non-life necessities with a person lacking legal capacity is executory contract - Answer- a contract for deed is a classic example of a unilateral - Answer- an option is a form of which kind of conrtact by the end of the second day following formation of the contract - Answer- According to TREC a "reasonable time" within which to deposit the escrow check is addendum - Answer- an attachment added to the end of a contract and incorporated in the contract terms is called an A transfer of rights or duties under a contract from a current party to a contract to another party - Answer- an assignment of rights is two years - Answer- an oral contract for the lease of a property for one year or less has a statute of limitation of specific performance - Answer- which of these is not a potential reason for terminating a contract? an option fee - Answer- When a buyer makes a "backup offer" on a pending property, they must submit which of these? 4 years - Answer- In Texas, the statute of limitations on filing a lawsuit on a written contract is which of the following their stages of fufillment - Answer- Executed and Executory contracts are differentiated by The date of ratification, the parties involved, reference to the original contract - Answer- An amendment to a contract must always be include which of the following? title insurance, buyer credit, credit terms - Answer- The "Seller Financing Addendum" covers all of these (3): that time is of the essence - Answer- If the timing of an agreement being executed is crucial to the agreement, the contract should state: Use the Addendum for Sale of Other Property by Buyer form - Answer- What is the best method to note that the sale is contingent on the successful sale of buyers current home? The client loses the option fee, but is refunded her earnest deposit - Answer- What happens to the client's fee and escrow deposit if her contingency sale is completed, but she terminates this purchase within the option period for other reasons? once it has been communicated to the first signing party that the second party has accepted and signed - Answer- When is the contract considered "executed" Develops forms for TREC to adopt and promulgate at their discretion - Answer- The Broker-Lawyer Committee 20-16 - Answer- The current One to Four Family Residential Contract (Resale) is form number it is accepted, signed by the seller, and acceptance communicated to the buyer or buyers agent - Answer- The offer becomes a sales contract when present it to the owner as quickly as possible - Answer- When a licensee receives an oral offer on a property, they should do which of the following? 1955 - Answer- TRELA the primary real estate law in Texas today, was established in which of the following years? If they are prepared by the owner, or by an attorney and required by the property owner - Answer- TREC allows the use of forms that are not promulgated under which of these circumstances? (1) The escrow company provides the parties with accounting for where the money goes, e.g., title fees, prorated taxes, rents, or other divisible obligations, as well as proceeds to the seller (2) Use of the escrow process avoids a number of problems, such as multiple parties writing checks for fees, title policies, and property taxes - Answer- How do I benefit from the escrow process? (1)Rules for changing or removing covenants, rules about pets and other animals, regulations on in-home businesses and renting (2)fees for road maintenance or amenities, rules on landscaping suck as that limit tree height or cutting, (3) Setbacks (how far homes must be from streets, alleys, and lot lines); easements - Answer- What kind of information will I get on a title commitment? survey - Answer- A sketch or a map of a property showing its boundaries and other physical features like easements and property setbacks Full name and marital status of all parties - Answer- Identification of the buyer and seller must include Through the use of the addendum - Answer- For items for which a promulgated addendum is provided the proper way to include the item is Seller financing - Answer- Which form of financing does the "Third Party financing addendum" not cover? 1.5% per month or highest lawful rate, whichever is lower, for mature unpaid amounts 5% penalty on installment payments paid more than 10 days past their due date Prepayment without penalty (all of these) - Answer- The Promissory Note section of the Seller's Financing Addendum includes Buyer has sufficient unused VA entitlement remaining Buyer is a veteran Buyer is otherwise qualified (all of these) - Answer- VA will not restore Seller's VA entitlement except under which of these conditions? factual statements and business details applicable to the sale - Answer- The use of paragraph 11 (Special Provisions) of the One to Four Family Residential Contract is restricted to Are handled in a separate agreements - Answer- The TREC 1-4 states that Brokers Fees are which of the following? They are not liable for interest on earnest money They are not a party to the contract They are not liable for any losses of escrow money attributable to the failure of a financial institution unless the financial institution is acting as escrow agent (they have all of these protections) - Answer- Which of the following statements regarding the escrow officer in a One to Four Family Residential sale is accurate? Whoever is specified - Answer- According to the One to Four Family Residential Contract, who pays for the title policy? Their marital status, if applicable - Answer- When filling out the One to Four Family Residential Contract, the names of the parties should be accompanied by which of the following? The contract will terminate - Answer- If a contracted buyer and seller cannot agree to a resolution a repair costs which of the following occurs? No earnest money is required - Answer- How much earnest money does Texas state law require to validate a real estate sale contract The length of the option period is set by the contracting parties - Answer- How many days is a Paragraph 23 option valid? - Answer- A title endorsement is a Seller, at Sellers expense, shall furnish a new survey to Buyer Buyer shall obtain a new survey at Buyers expense Seller furnishes to Buyer and Title Company Sellers existing survey of the Property and a Residential Real Property Affidavit promulgated by the Texas Department of Insurance (T-47 affidavit) (all of these) - Answer- TREC 1-4 Paragraph 6C lists what options for providing the survery to buyer within a number of days after the effective date of this contract set by the parties agreement? Names and boundaries of local school districts - Answer- Which of these in not a subject of the Paragraph 6E Title Notices to identify specific repairs evident to buyer that buyer requires as a condition to purchase - Answer- Property Conditions (D)(2) of the TREC 1-4 contract should be used Psychological stigmas e.g. a violent death on the property - Answer- Which of these is NOT included in the Sellers Disclosure? Wetlands Environmental hazards