Real Estate Contract Forms and Addenda Exam 2 (2023/2024) 100% Pass

Real Estate Contract Forms and Addenda Exam 2 (2023/2024) 100% Pass What is Paragraph 5 in the promulgated contract address? Earnest Money What does Earnest Money Serve? As liquidated damages in the event of default Is earnest money required? NO Failure to Deliver Earnest Money in a timely manner constitutes what? Default and gives the seller the right to exercise the default remedies established by agreement of the parties in Paragraph 15. What does Paragraph 23 of the One to Four Family Residential Contract provide? A place for the buyer to pay the seller a sum of money (the option fee) and the seller to grant the buyer a number of negotiated with the unrestricted right to terminate to contract. Paid within 3 days. Option Fee: What happens if it isn't paid within 3 days If the option money is not paid within the 3rd-day contract it is still valid, but the buyer has no right to terminate. What is the intent of the option period? it allows the buyer to do their due diligence The tile policy is a contract between who? The buyer and the title company When the parties have come to an agreement on who pays the title insurance what paragraph will that be in? Paragraph 6A The agreement calls for the seller to furnish the buyer a commitment for title insurance and, at the buyer's expense, legible copies of deed restrictions (restrictive covenants) and documentation of any exception in the commitment. Which paragraph is this? And within how many days after the title company receives a copy of the contract? Paragraph 6B; 20 Days What is Restrictive Covenants? Deed restrictions that apply to a group of homes or lots in a specific development or subdivision. What can restrictive covenants include? -Setbacks (how far homes must be from streets and interior lot lines) -Easements -Fees for road maintenance or amenities -Rules regarding changing or voiding the covenants -Rules about pets and other animals -Regulations dealing with in-home businesses and home rentals -Rules that limit tree cutting -Clauses that dictate what type of fencing can be used or that forbid all types of fencing -Clauses to reduce clutter on lots, such as prohibiting owners from storing a vehicle that doesn't run within view of others, or parking a recreational vehicle on the property Which paragraph of the contract provides for three survey options? Paragraph 6C What 2 paragraphs are for getting a new survey? And at who's expense? Paragraph 6C(2) and 6C(3)- C2 Buyers Expense. C3 Seller's Expense Under Restrictions what paragraph would be an exception for an RV to park in the driveway? Paragraph 6D Every licensee is required to give written notice to every buyer, even if the buyer is getting a title policy. What are 3 ways to give notice? (1) Using any TREC-Promulgated contract form (2) Using TAR's Buyer Representation Agreement (3) Using the separate approved TREC form, Notice to Prospective Buyer What paragraph gives the buyer and the buyer's agent the right of access to the property at reasonable times and for inspections? Paragraph 7A What paragraph discusses the seller's disclosures, including the lead-based paint disclosure? Paragraph 7B and 7C Property condition is further discussed in what paragraphs? 7D, E, and F What paragraph says, "Buyer accepts the Property As Is"? And what paragraph says if there are items the buyer wants to be repaired? 7D(1); 7D(2) What paragraph confirms that neither the buyer nor the seller is obligated