Texas Promulgated Contracts - Champions Exam Questions With 100% Correct Answers

Texas Promulgated Contracts - Champions Exam Questions With 100% Correct Answers. The elements of a valid contract are, competent parties, consideration, legal subject matter, in writing, and . (a) Default (b) Mutual consent (c) Property condition (d) Recording B A(n) contract is defined as a contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed. (a) Executory (b) Executed (c) Bilateral (d) Void A In the business of real estate, is defined as something given in exchange for a promise. (a) Consideration (b) Mutual assent (c) A bribe (d) Legal subject matter A (a) Are for optional use by real estate licensees (b) Are drafted by the Broker-Lawyer Committee The TREC-promulgated contract forms: Texas Promulgated Contracts-CHAMPIONS Exam 100% Correct Answers (c) Are promulgated by the legislature (d) Are used in both commercial and residential transactions B Texas Promulgated Contracts-CHAMPIONS Exam 100% Correct Answers In a lease with a "right of first refusal" provision: (a) The price is set when the lease agreement is negotiated (b) The tenant has promised to buy the property (c) The TREC promulgated form must be used (d) The tenant has the right to match or better any offer the landlord receives to prevent the property from being sold to someone else D TREC has promulgated forms for: (a) lease purchase transactions (b) cooperatives (c) right of first refusal (d) residential transactions D An offer can be communicated by . (a) Phone (b) Hand delivery (c) E-mail (d) All of the above B The Third Party Financing Addendum For Credit Approval is used when: (a) The buyer is obtaining FHA financing (b) Paragraph 4.A(2)(a) is checked in the contract Texas Promulgated Contracts-CHAMPIONS Exam 100% Correct Answers (c) The buyer is obtaining VA financing (d) The buyer is obtaining any kind of financing B Texas Promulgated Contracts-CHAMPIONS Exam 100% Correct Answers In the Third Party Financing Addendum for Credit Approval: (a) The buyer has no incentive to obtain financial approval (b) The buyer has a definite time to notify seller of the inability to obtain financing approval (c) The buyer's earnest money will not be returned if the buyer does not obtain financing (d) The option period is explained C The Third Party Financing Addendum for Credit Approval cannot be used for: (a) VA guaranteed loans (b) FHA insured loans (c) Seller Financing (d) Texas Veterans Loans B According to the Seller Financing Addendum, the interest rate is: (a) Set at 6% (b) Negotiated between the parties (c) Set by TREC (d) Determined at closing A occurs when a buyer assumes and agrees to pay the seller's existing mortgage. (a) Loan assumption Texas Promulgated Contracts-CHAMPIONS Exam 100% Correct Answers (b) Seller liability (c) Seller lien (d) Credit approval Texas Promulgated Contracts-CHAMPIONS Exam 100% Correct Answers A Land, improvements and accessories are collectively referred to as: (a) The estate (b) The property (c) The listing (d) The homestead B According to the TREC contract, accessories include: (a) Refrigerators (b) Stoves (c) Washing machines (d) Gas dryers A Exclusions to the sale must be removed (a) Prior to delivery of possession (b) At the convenience of the seller (c) When the offer becomes a binding contract (d) Two days prior to closing A The loan amount in Paragraph 3.B. of the sales contract includes: (a) The amount of the mortgage insurance (b) The loan plus origination fees Texas Promulgated Contracts-CHAMPIONS Exam 100% Correct Answers (c) Only the amount borrowed by the buyer (d) The loan amount minus the earnest money C Texas Promulgated Contracts-CHAMPIONS Exam 100% Correct Answers The sales price in 3.C. is always: (a) The loan amount plus the cash portion (b) 3.A. + 3.B. (c) The amount borrowed plus the down payment (d) All of the above D The earnest money is: (a) Always 5% of the purchase price (b) Set by TREC (c) Negotiated between the parties (d) Paid at closing D The T-47 Residential Real Property Affidavit is not completed until , in most cases. (a) Funding (b) Inspection (c) Closing (d) The listing is taken B The ensures compliance with TRELA, which requires that license holders advise buyers to have an abstract of title examined or to obtain title insurance. (a) Title commitment (b) Notice to Prospective Buyer