TREC EXAM QUESTIONS AND ANSWERS

What happens when two parties to a sale of a house have not established a fixed time for the transaction to close? Answer Choices: The sale will not be legal The time will then fall under the UCC Both parties are not bound to the transaction within 30 days The seller can continue to accept other offers - Answer- In Texas this is usually one month and it falls under the UCC. Why make the "time is of the essence" clause clearly labeled? Answer Choices: To avoid confusion To make certain there are no delays To stall for a better lending rate To make the seller reduce the price of the property - Answer- Avoiding confusion helps all parties perform to the agreed contract. Who must fulfill their contractual obligation involving a minor? Answer Choices: The incompetent The minor The competent party The minor once they come of legal age - Answer- The minor can always back out of a contract because it's voidable, but you're the competent party in the transaction you are bound to the terms. Fran and her realtor submitted an offer with a list of repairs the seller must make by closing. The seller agreed to this offer in writing. The papers were sent to escrow. On the day of the stated scheduled closing Fran drove by the property and discovered at least three of the written repairs listed on the agreement were not completed. What does this mean for Fran? Answer Choices: Fran may have grounds to back out of the transaction for breach of contract Regardless, Fran is bound to the purchase Fran has no recourse Fran needs to sue the owner and call off the purchase - Answer- Not performing items in a contract can be viewed as a breach of contract. Statutes of Limitations are laws that set time limits on how long the party has to file a_______ lawsuit once they have discovered an injury. Answer Choices: Civil statue violation injury civil