TEXAS PROMULGATED CONTRACTS-CHAMPIONS STUDY

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 A federal disclosure requirement for residential properties built prior to 1978 is: (a) An energy efficiency audit (b) A lead-based paint disclosure (c) A seller's disclosure of property condition (d) A water district noticeAccording to the Seller B If the Seller agrees to contribute to the Buyer's closing costs, the amount should be: (a) entered in Paragraph 11, Special Provisions (b) paid in cash to the Buyer after closing (c) entered in Paragraph 12.A(1)(b) (d) added to the sales price in Paragraph 3 C All of the TREC promulgated contracts provide that the Buyer is purchasing the property "as-is". (a) True (b) False A All written notices between the parties are effective when: (a) Mailed (b) Hand-delivered (c) Faxed or emailed (d) Any of the above D At closing the buyer should bring a: (a) personal check for the amount of closing costs and down payment (b) a promissory note for the amount of closing costs and down payment (c) cash for the amount of closing costs and down payment (d) a cashier's check or wire transfer for the amount of closing costs and down payment D TREC promulgated contracts allow the Buyer to have the property inspected: (a) by anybody selected by the buyer (b) by inspectors licensed by TREC or otherwise permitted by law (c) no more than three times (d) at any time by any person selected by their agent B If the property is currently under an agricultural exemption, and the use of the property changes, the buyer may be charged a: (a) Fine (b) Penalty (c) Rollback tax (d) d. Change of use fee C The title company is: (a) A party to the transaction (b) Not a party to the transaction (c) Liable for the performance of the parties (d) Responsible for arranging suitable financing for the buyer B When should a licensee advise a client to consult an attorney: