Texas Promulgated Contracts Homework (2023/2024) Graded A

Texas Promulgated Contracts Homework (2023/2024) Graded A The TREC PROMULGATED CONTRACT FORMS ARE DRAFTED BY THE BROKER-LAWYER COMMITTEE IN A LEASE WITH A RIGHT OF FIRST REFUSAL PROVISION THE TENANT HAS THE RIGHT TO MATCH OR BETTER ANY OFFER THE LANDLORD RECEIVES TO PREVENT THE PROPERTY FROM BEING SOLD TREC promulgated contract forms provide for third party financing, assumption seller finance a lender can withdraw the approval of a property at any time prior to closing the third party financing addendum for credit approval is used when the buyer is obtaining any kind of financing a new survey is always required for all transactions false the number of days allowed for objections to title or survey is the number of days entered in paragraph 6 trec has promulgated forms for residential transactions TREC promulgated contracts allow the buyer to have the property inspected by inspectors licensed by trec or otherwise permitted by law when a buyer defaults on a contract and the seller choses to retain the buyer's earnest money, the seller has agreed to liquidated damages when one party defaults under a contract, the other party is known as injured party earnest money is first applied to the buyer's down payment the escrow agent is not a party to the transaction for a valid option to exist the option fee must be paid directly to the seller or listing broker all blanks in paragraph 23 must be filled the fee must be paid within two days of the effective date of the contract buyers and sellers in the contract should be identified by their legal names land, improvements and accessories are collectively referred to as the property according to the TREC contract, accessories include stoves exclusions to the sale must be removed prior to delivery of possession the loan amount in paragraph 3B of the sales contract includes only the amount borrowed by the buyer the sales price in 3C is always the loan amount plus the cash portion 3A+3B the amount borrowed plus the down payment the earnest money is negotiated between the parties how long does a buyer have to object to defects, exceptions and encumbrances to title disclosed in the survey and the title commitment the negotiated days stated in contract being within the extraterritorial jurisdiction of a municipality is an indication the property will possibly be annexed in the future if the buyer is allowed to select certain items in the new home that is under construction, the builder (seller) may reject a selection if it adversely affects the market value of the home true if an overage is incurred due to a change order, the excess is paid by the buyer a seller's disclosure notice is not required when the property being sold is a previously unoccupied new home at the closing the buyer should bring a cashier's check or wire transfer for the closing costs and down payment if not using a temporary residential lease, the buyer is entitled to possession of the property upon the closing and funding the buyer and seller temporary residential lease forms are good for any period up to 90 days the special provisions paragraph of the contract allows licensees to insert factual business details statements not addressed in the contract info where is not trec promulgated addendum, lease or mandatory form usual expenses of the seller as stated in the contract include release of existing lien the process of dividing ongoing expenses between the buyer and seller at closing is called prorating damage or destruction of a property under contract prior to closing can result in termination of the contract in a farm and ranch sale, the buyer will receive everything but trucks the seller generally has the right to harvest crops until delivery of possession reservations of oil, gas and other mineral rights will be inserted in trec addenda form the sales price may be adjusted based upon a survey. if the sales price is adjusted - the cash portion can be adjusted - the amount financed can be adjusted - the cash portion and the amount financed can be adjusted proportionately if the sales price is adjusted based upon a survey, either party may terminate the contract if the sales price varies by more than 10% if the property is currently under an agricultural exemption, and the use of the property changes, the buyers may be charged a rollback tax the buyer may terminate the contract and receive a refund of earnest money if lener required repairs exceed 5% of the sales price if a seller wants to continue to occupy the property for two days after the closing and the buyer agrees the seller's temporary residential lease form should be used the State of Texas encourages the parties to resolve all conflicts and disputes through alternative dispute resolution procedures such as mediation IRS statutes require a buyer to withhold 10% of the sales proceeds in excess of $300,000. when a foreign person has no Social Security card or green card all written notices between the parties are effective when - mailed - hand delivered - faxed or e mailed the condominium resale certificate must have been prepared within the previous 3 months the lead based paint disclosure is a federal requirement for residential property built prior to 1978 if a buyer makes an offer without having received the Seller's disclosure notice, how many days does the seller have to provide the notice the number of days negotiated in the contract when should a licensee advise a party to a contract to consult an attorney? before signing the contract if the client doesn't understand the effect of signing the sales contract or the terms or conditions in the agreement who is responsible for filling in the effective day in the contract the broker the sales contract identifies the agency relationships between the broker(s) and the parties in broker information section in the third party financing addendum for credit approval the buyer has a definite time to notify seller of the inability to obtain financing approval the third party financing addendum for credit approval cannot be used for seller's financing according to seller financing, the interest rate is negotiated between the parties the deed of trust securing seller financing is always assumable by a future buyer without the approval false by default, trec promulgated contract forms convey all of the mineral estate owned by the seller if in paragraph b2 is checked, and 50% entered in the addendum for reservation of oil, gas and other minerals seller reserves 50% of whatever mineral estate the seller owns as of the closing date if a buyer is concerned about the presence of endangered species, toxic substances or wetlands on a property, the agent should add the environmental assessment addendum to the contract if a home is to be sold, with lender's consent, at a price less than the ustanding balance on a mortgage, the sale is known as short sale a purchaser of property seaward of the gulf intracoastal waterway must be given a disclosure notice that beach erosion and movement of the vegetation line could cause an owner to lose the property if a licensee is receiving compensation from a residential service company, the compensation is disclosed to the parties using the appropriate trec form