CHAMPIONS PROMULGATED CONTRACT FORMS
TEST EXAM WITH VERIFIED QUESTIONS AND
ANSWERS | GRADED A+ | NEW AND UPDATED
VERSION
Requirements of a valid contract-
Consideration, Offer and Acceptance, Legal Purpose, In writing,
Competent parties
When does an offer become a contract?
When it is accepted and the acceptance is communicated.
PARAGRAPH 8.A
is closure of agency coupled with an interest and family relationships - TX
law requires a RE broker or sales agent who is a party to a transaction or
acting on behalf of a spouse, parent, child, business entity in which the
broker or sales agent owns more than 10%, or if acting as a trustee to a
trust, or beneficiary, to notify the other party in writing before entering
into a contract of sale.
Paragraph 23- use and timing
Option period with a negotiable length of time. The buyer can walk away
for any reason within this time.
Lead Paint - disclosures, dates, timing, buyer's rights, seller's
responsibilities
If the property was built prior to 1978, the required Lead-Based Paint
Addendum must accompany the contract. The seller must disclose this
info, the buyer has the right to decline inspection.
TREC Form RSC-2
, this disclosure form is required to be provided if a license holder receives
any form of compensation from a residential service company. That
compensation can not be contingent upon a party to the real estate
transaction purchasing a contract or services from the residential service
company. The compensation is the fee for the services that Listing Broker
or Other Broker, either directly or through an agent, provides to the
company.
Fair Housing and Prohibited Acts
Prohibits Discrimination based on race, color, religion, national origin, Sex
(added in 1974), familial status, and disability. Prohibits steering, and
blockbusting.
The T-47 affidavit
a document from a notary who saw the owner of the property sign this
document. The owner is making a sworn statement.
When using the seller's existing survey, the seller is given a number of
days to deliver the survey and a _________________ to the Buyer and the
title company.
Loan Assumption
When the buyer assumes and agrees to pay the seller's existing mortgage.
A addendum is required to be filled out.
Promulgated Loan Forms
A Third Party Addendum to state what type of financing the buyer will
use. Conventional or govt loan. If loan approval is not done, then contract
will terminate and earnest money will be refunded to buyer.
Features of the Lead Based Paint disclosure form
Seller's disclosure of the presence of this, records and reports available to
seller, the buyer's rights to waive the inspection or get an inspection, and
buyer's acknowledgement.
Paragraph 20 - Federal Tax Requirements
TEST EXAM WITH VERIFIED QUESTIONS AND
ANSWERS | GRADED A+ | NEW AND UPDATED
VERSION
Requirements of a valid contract-
Consideration, Offer and Acceptance, Legal Purpose, In writing,
Competent parties
When does an offer become a contract?
When it is accepted and the acceptance is communicated.
PARAGRAPH 8.A
is closure of agency coupled with an interest and family relationships - TX
law requires a RE broker or sales agent who is a party to a transaction or
acting on behalf of a spouse, parent, child, business entity in which the
broker or sales agent owns more than 10%, or if acting as a trustee to a
trust, or beneficiary, to notify the other party in writing before entering
into a contract of sale.
Paragraph 23- use and timing
Option period with a negotiable length of time. The buyer can walk away
for any reason within this time.
Lead Paint - disclosures, dates, timing, buyer's rights, seller's
responsibilities
If the property was built prior to 1978, the required Lead-Based Paint
Addendum must accompany the contract. The seller must disclose this
info, the buyer has the right to decline inspection.
TREC Form RSC-2
, this disclosure form is required to be provided if a license holder receives
any form of compensation from a residential service company. That
compensation can not be contingent upon a party to the real estate
transaction purchasing a contract or services from the residential service
company. The compensation is the fee for the services that Listing Broker
or Other Broker, either directly or through an agent, provides to the
company.
Fair Housing and Prohibited Acts
Prohibits Discrimination based on race, color, religion, national origin, Sex
(added in 1974), familial status, and disability. Prohibits steering, and
blockbusting.
The T-47 affidavit
a document from a notary who saw the owner of the property sign this
document. The owner is making a sworn statement.
When using the seller's existing survey, the seller is given a number of
days to deliver the survey and a _________________ to the Buyer and the
title company.
Loan Assumption
When the buyer assumes and agrees to pay the seller's existing mortgage.
A addendum is required to be filled out.
Promulgated Loan Forms
A Third Party Addendum to state what type of financing the buyer will
use. Conventional or govt loan. If loan approval is not done, then contract
will terminate and earnest money will be refunded to buyer.
Features of the Lead Based Paint disclosure form
Seller's disclosure of the presence of this, records and reports available to
seller, the buyer's rights to waive the inspection or get an inspection, and
buyer's acknowledgement.
Paragraph 20 - Federal Tax Requirements
