Promulgated Contracts Practice Test Exam Questions And Answers

Promulgated Contracts Practice Test Exam Questions And Answers Agent Aaron was drawing up a contract, and opted to use his brokerage's (lawyer-created) Seller's Disclosure Notice instead of TREC's. Is this allowed? Why or why not? - answerYes Because the Seller Disclosure Notice is not is a promulgated by TREC. The agent can use either, because the TREC form is not promulgated Which of these is NOT something that is appropriate to put in Paragraph 11 (the Special Provisions section) of a TREC promulgated contract? - answerThat the contract is contingent on the inspection What can the Special Provisions section of a TREC promulgated contract use on paragraph 11? - answercan be used for relevant business information such as the names of the parties or the property description. What information does the Disclosure of Relationship with Residential Service Company form convey? - answerIt is a violation of RESPA for a license holder to receive a referral fee for simply passing on a name to a service provider. Why does the option to terminate require an extra consideration in the form of option money? - answerBecause it is another contract with overall contract and valid contracts require consideration. As outlined in the TREC promulgated sales contracts, what obligations does the seller have regarding the property condition at the time of sale? - answera seller's obligations regarding are a matter of negotiation with the buyer. What is one thing that differentiates TREC from the Broker-Lawyer Committee? - answerTREC members are appointed by the governor only and Broker-Lawyer Committee can be appointed by different people. If legal action is required regarding a TREC sales contract, what will the non-prevailing party be responsible for? - answerWill be required to cover the prevailing party's reasonable attorney fees and court costs. Which of the following is TRUE regarding a contract to transfer real estate which contains no earnest money? - answerThe contract is valid.