Promulgated Contracts Exam 2023 (Answered)
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...
Promulgated Contracts Exam 2023 (Answered)
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 Seller TREC NO. 20-14 Contract Concerning Page 6 of 10 2-12-18 (Address
of Property)
(2) Expenses payable by Buyer (Buyer's Expenses): Appraisal fees; loan application
fees; origination charges; credit reports; preparation of loan documents; interest on the
notes from date of disbursement to one month prior to dates of first monthly payments;
recording fees; copies of easements and restrictions; loan title policy with endorsements
required by lender; loan-related inspection fees; photos; amortization schedules;
onehalf of escrow fee; all prepaid items, including required premiums for flood and
hazard insurance, reserve deposits for insurance, ad valorem taxes and special
governmental assessments; final compliance inspection; courier fee; repair inspection;
underwriting fee; wire transfer fee; expenses incident to any loan; Private Mortgage
Insurance Premium (PMI), VA Loan Funding Fee, or FHA Mortgage Insurance Premium
(MIP) as required by the lender; and other expenses payable by Buyer under this
contract. B. If any expense exceeds an amount expressly stated in this contract for such
expense to be paid by a party, that party may terminate this contract unless the other
party agrees to pay such excess. Buyer may not pay charges and fees expressly
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