Exam (elaborations)
PROMULGATED CONTRACTS EXAM QUESTIONS AND ASWERS
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PROMULGATED CONTRACTS EXAM QUESTIONS AND ASWERS
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PROMULGATED CONTRACTS EXAM QUESTIONS ANDASWERS
In Texas, what are the two entities that promulgate contracts?
FDIC and NAR
FHA and TREC
Fannie Mae and REMICs
TREC and TAR - Answers-TREC and TAR
A license holder should:
disclose all material facts to the client
employ a lawyer for the client
practice law
give legal advice - Answers-disclose all material facts to the client
The essential elements of a valid contract include mutual, written agreement; competent
parties; lawful objective; and:
earnest money
trust money
consideration
verbal agreement - Answers-consideration
A law that requires real estate contracts to be in writing is the:
statute of limitations
statue of real estate
statute of frauds
statute of written contracts - Answers-statute of frauds
If two people have a contract for one to sell illegal drugs to the other, the contract would
be:
valid
unenforceable
voidable
void - Answers-void
The statute of ?? generally requires certain types of contracts to be set out in writing
and written contracts to be signed by all the parties bound by the contract.
The statute of ?? establishes a time limit for civil suits. All claims must be filed before
the deadline. For example, in Texas, claims on a misdemeanor bad check (for an
amount less than $1,500) must be made within two years. - Answers-The statute of
frauds generally requires certain types of contracts to be set out in writing and written
contracts to be signed by all the parties bound by the contract.
The statute of limitations establishes a time limit for civil suits. All claims must be filed
before the deadline. For example, in Texas, claims on a misdemeanor bad check (for an
amount less than $1,500) must be made within two years.
,A contract that is "pending" is:
bilateral
executed
executory
extended - Answers-executory
Which of the following are bilateral contracts?
Ron signs an option-to-purchase contract with Phil.
Fran leases an apartment unit to Sylvia.
Juan signs a buyer's representation agreement with Melvin.
Broker Jessi offers a $1,000 bonus for closing three houses this month.
Greg signs a listing agreement with Aliki. - Answers-Fran leases an apartment unit to
Sylvia.
By whom should the language "time of the essence" be added?
the buyer
the license holder
the seller
an attorney - Answers-an attorney
Where does "time is of the essence" appear in the TREC promulgated sales contract?
the legal description section
the closing and possession section
the purchase price section
the earnest money and option section - Answers-the earnest money and option section
When filling out the nine checkable box options on the Amendment to Contract form,
more than one box can be checked.
FALSE
TRUE - Answers-true
In which situation would an amendment go into effect?
No party terminates the contract.
The parties sign the amendment.
No party refuses to accept the amendment within 3 days.
One of the parties give verbal agreement. - Answers-The parties sign the amendment.
Obligations often times must be completed within a certain number of days of:
the closing date
the effective date
the possession date
none of these - Answers-the effective date
If one of the parties defaults and the non-defaulting party accepts the earnest money as
damages, they may also:
, Do nothing more, as the contract is terminated.
Sue for both specific and other damages.
Sue for specific damages.
Sue for other damages. - Answers-Do nothing more, as the contract is terminated.
To transfer contract obligations without necessarily relieving the original party from
obligations, you need a(n):
contract transfer
trade
novation
assignment - Answers-assignment
*An assignment transfers contract obligations to another party, but does not necessarily
release the original parties' obligations.
Paragraph 5 gives the buyer the unrestricted right to terminate the contract if:
the seller does not fill out a disclosure notice
the buyer cannot get approved for financing
the buyer finds a major issue during the inspection
the buyer purchases the right to terminate - Answers-the buyer purchases the right to
terminate
A license holder may:
offer legal advice
explain the meaning of the factual statements
practice law
give advice concerning the status of title to real estate - Answers-explain the meaning of
the factual statements
Does the Broker-Lawyer Committee approve (promulgate) the forms?
No, the Texas Real Estate Commission approves and promulgates the forms.
No, the Texas Real Estate Commission approves the forms.
No, the Contract Department approves the forms.
Yes, it is their responsibility. - Answers-No, the Texas Real Estate Commission approves
and promulgates the forms.
What is TRUE about the Broker-Lawyer Committee and TREC? - Answers-Both
members of TREC and members of the Broker-Lawyer Committee have six-year terms.
Both TREC and the Broker-Lawyer Committee were created in response to TRELA.
All of the Broker-Lawyer Committee's members are appointed by the governor, while
TREC has members appointed by different people.
The Broker-Lawyer Committee creates and revises the contracts, but TREC actually
promulgates the contracts.
Who appoints which members of the Broker-Lawyer Committee? - Answers-Six licensed
real estate brokers are appointed by TREC.
Six lawyers are appointed by the president of the State Bar of Texas .
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