AYPO REAL ESTATE PROMULGATED CONTRACTS
FINAL EXAM REVIEW
Which of these is an exemption to the "legal capacity" requirement to form a contract? -
Answers-A contract for a life necessity.
A contract for non-life necessities with a person lacking legal capacity is: - Answers-
Voidable
A contract for deed is a classic example of a(n): - Answers-Executory contract
An option is a form of which kind of contract? - Answers-Unilateral
According to TREC a "reasonable time" within which to deposit the escrow check is: -
Answers-By the end of the second business day following formation of the contract.
An attachment added to the end of a contract and incorporated in the contract terms is
called an: - Answers-Addendum
An assignment of rights is: - Answers-A transfer of rights or duties under a contract from
a current party to a contract to another party.
An oral contract for the lease of a property for one year or less has a statute of limitation
of: - Answers-Two years
Which of these IS NOT a potential reason for terminating a contract? - Answers-Specific
performance
The Real Estate License Act was created to: - Answers-1. Maintain high standards in
the real estate profession.
2. Protect licensed brokers and salespersons from unfair or improper competition.
3. Protect the public interests from dishonest or incompetent brokers or salespersons.
The unauthorized practice of law would include all of these actions by a licensee,
except: - Answers-Inserting minor handwritten notes on the contract initialed by all
parties.
The Broker-Lawyer Committee: - Answers-Develops forms for TREC to adopt and
promulgate at their discretion.
The current One to Four Family Residential Contract (Resale) is which of these form
numbers? - Answers-20-16
What is/are the seller's options when receiving an offer? - Answers-1. Counter.
2. Accept.
, 3. Reject.
The offer becomes a sales contract when: - Answers-It is accepted, signed by the seller,
and acceptance communicated to the buyer or buyer's agent.
Which of these IS NOT in the information requested above? - Answers-Who is the
buyer's employer?
Identification of the buyer and seller must include: - Answers-Full name and marital
status of all parties.
For items for which a promulgated addendum is provided the proper way to include the
item is: - Answers-Through use of the addendum.
Which form of financing does the "Third Party Financing Addendum NOT cover? -
Answers-Seller financing
The Promissory Note section of the Seller's Financing Addendum includes: - Answers-1.
5% penalty on installment payments paid more than 10 days past their due date.
2. 1.5% per month or highest lawful rate, whichever is lower, for mature unpaid
amounts.
3. Prepayment without penalty.
VA will not restore Seller's VA entitlement unless Buyer: - Answers-1. Has sufficient
unused VA entitlement remaining.
2. Is a veteran.
3. Is otherwise qualified.
How much earnest money does Texas state law require to validate a real estate sale
contract? - Answers-No earnest money is required.
For how many days is a Paragraph 23 option valid? - Answers-The length of the option
period is set by the contracting parties.
TREC 1-4 Paragraph 6C lists what options for providing the survey to buyer within a
number of days after the effective date of this contract set by the parties' agreement? -
Answers-1. Seller, at Seller's expense, shall furnish a new survey to Buyer.
2. Buyer shall obtain a new survey at Buyer's expense.
3. Seller furnishes to Buyer and Title Company Seller's existing survey of the Property
and a Residential Real Property Affidavit promulgated by the Texas Department of
Insurance (T-47 Affidavit).
Which of these is not a subject of the Paragraph 6E Title Notices? - Answers-Names
and boundaries of local school districts
FINAL EXAM REVIEW
Which of these is an exemption to the "legal capacity" requirement to form a contract? -
Answers-A contract for a life necessity.
A contract for non-life necessities with a person lacking legal capacity is: - Answers-
Voidable
A contract for deed is a classic example of a(n): - Answers-Executory contract
An option is a form of which kind of contract? - Answers-Unilateral
According to TREC a "reasonable time" within which to deposit the escrow check is: -
Answers-By the end of the second business day following formation of the contract.
An attachment added to the end of a contract and incorporated in the contract terms is
called an: - Answers-Addendum
An assignment of rights is: - Answers-A transfer of rights or duties under a contract from
a current party to a contract to another party.
An oral contract for the lease of a property for one year or less has a statute of limitation
of: - Answers-Two years
Which of these IS NOT a potential reason for terminating a contract? - Answers-Specific
performance
The Real Estate License Act was created to: - Answers-1. Maintain high standards in
the real estate profession.
2. Protect licensed brokers and salespersons from unfair or improper competition.
3. Protect the public interests from dishonest or incompetent brokers or salespersons.
The unauthorized practice of law would include all of these actions by a licensee,
except: - Answers-Inserting minor handwritten notes on the contract initialed by all
parties.
The Broker-Lawyer Committee: - Answers-Develops forms for TREC to adopt and
promulgate at their discretion.
The current One to Four Family Residential Contract (Resale) is which of these form
numbers? - Answers-20-16
What is/are the seller's options when receiving an offer? - Answers-1. Counter.
2. Accept.
, 3. Reject.
The offer becomes a sales contract when: - Answers-It is accepted, signed by the seller,
and acceptance communicated to the buyer or buyer's agent.
Which of these IS NOT in the information requested above? - Answers-Who is the
buyer's employer?
Identification of the buyer and seller must include: - Answers-Full name and marital
status of all parties.
For items for which a promulgated addendum is provided the proper way to include the
item is: - Answers-Through use of the addendum.
Which form of financing does the "Third Party Financing Addendum NOT cover? -
Answers-Seller financing
The Promissory Note section of the Seller's Financing Addendum includes: - Answers-1.
5% penalty on installment payments paid more than 10 days past their due date.
2. 1.5% per month or highest lawful rate, whichever is lower, for mature unpaid
amounts.
3. Prepayment without penalty.
VA will not restore Seller's VA entitlement unless Buyer: - Answers-1. Has sufficient
unused VA entitlement remaining.
2. Is a veteran.
3. Is otherwise qualified.
How much earnest money does Texas state law require to validate a real estate sale
contract? - Answers-No earnest money is required.
For how many days is a Paragraph 23 option valid? - Answers-The length of the option
period is set by the contracting parties.
TREC 1-4 Paragraph 6C lists what options for providing the survey to buyer within a
number of days after the effective date of this contract set by the parties' agreement? -
Answers-1. Seller, at Seller's expense, shall furnish a new survey to Buyer.
2. Buyer shall obtain a new survey at Buyer's expense.
3. Seller furnishes to Buyer and Title Company Seller's existing survey of the Property
and a Residential Real Property Affidavit promulgated by the Texas Department of
Insurance (T-47 Affidavit).
Which of these is not a subject of the Paragraph 6E Title Notices? - Answers-Names
and boundaries of local school districts
