AYPO Real Estate Promulgated
Contracts Final Exam Review
Which of these creates the commitment for the listing broker to pay a commission to the
buyer's broker? - CORRECT ANSWER-The Multiple Listing Service (MLS) listing
Which of these can a landlord of a facility not limited to older persons discriminate
against? - CORRECT ANSWER-Individuals who have been convicted of the illegal
manufacture or distribution of a controlled substance
"Psychological stigmas," which involve violent or catastrophic events on a property, fall
under which category of disclosure? - CORRECT ANSWER-Permitted disclosures
What factors need to be taken into consideration in determining the number of persons
allowed to live in an apartment? - CORRECT ANSWER-1. Configuration of the unit
2. Size and number of bedrooms
3. Age of the children
Contracts that are not promulgated by TREC but are used by licensees MUST be which
of the following? - CORRECT ANSWER-Created or approved by and attorney or used
at the discretion of the seller.
An assignment of rights is: - CORRECT ANSWER-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: - CORRECT ANSWER-Two years
Which of these IS NOT a potential reason for terminating a contract? - CORRECT
ANSWER-Specific performance
The Real Estate License Act was created to: - CORRECT ANSWER-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: - CORRECT ANSWER-Inserting minor handwritten notes on the contract
initialed by all parties.
The Broker-Lawyer Committee: - CORRECT ANSWER-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? - CORRECT ANSWER-20-16
What is/are the seller's options when receiving an offer? - CORRECT ANSWER-1.
Counter.
2. Accept.
3. Reject.
The offer becomes a sales contract when: - CORRECT ANSWER-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? - CORRECT ANSWER-
Who is the buyer's employer?
Identification of the buyer and seller must include: - CORRECT ANSWER-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: - CORRECT ANSWER-Through use of the addendum.
Which form of financing does the "Third Party Financing Addendum NOT cover? -
CORRECT ANSWER-Seller financing
The Promissory Note section of the Seller's Financing Addendum includes: - CORRECT
ANSWER-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: - CORRECT ANSWER-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? - CORRECT ANSWER-No earnest money is required.
For how many days is a Paragraph 23 option valid? - CORRECT ANSWER-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? -
CORRECT ANSWER-1. Seller, at Seller's expense, shall furnish a new survey to Buyer.
2. Buyer shall obtain a new survey at Buyer's expense.
Contracts Final Exam Review
Which of these creates the commitment for the listing broker to pay a commission to the
buyer's broker? - CORRECT ANSWER-The Multiple Listing Service (MLS) listing
Which of these can a landlord of a facility not limited to older persons discriminate
against? - CORRECT ANSWER-Individuals who have been convicted of the illegal
manufacture or distribution of a controlled substance
"Psychological stigmas," which involve violent or catastrophic events on a property, fall
under which category of disclosure? - CORRECT ANSWER-Permitted disclosures
What factors need to be taken into consideration in determining the number of persons
allowed to live in an apartment? - CORRECT ANSWER-1. Configuration of the unit
2. Size and number of bedrooms
3. Age of the children
Contracts that are not promulgated by TREC but are used by licensees MUST be which
of the following? - CORRECT ANSWER-Created or approved by and attorney or used
at the discretion of the seller.
An assignment of rights is: - CORRECT ANSWER-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: - CORRECT ANSWER-Two years
Which of these IS NOT a potential reason for terminating a contract? - CORRECT
ANSWER-Specific performance
The Real Estate License Act was created to: - CORRECT ANSWER-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: - CORRECT ANSWER-Inserting minor handwritten notes on the contract
initialed by all parties.
The Broker-Lawyer Committee: - CORRECT ANSWER-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? - CORRECT ANSWER-20-16
What is/are the seller's options when receiving an offer? - CORRECT ANSWER-1.
Counter.
2. Accept.
3. Reject.
The offer becomes a sales contract when: - CORRECT ANSWER-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? - CORRECT ANSWER-
Who is the buyer's employer?
Identification of the buyer and seller must include: - CORRECT ANSWER-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: - CORRECT ANSWER-Through use of the addendum.
Which form of financing does the "Third Party Financing Addendum NOT cover? -
CORRECT ANSWER-Seller financing
The Promissory Note section of the Seller's Financing Addendum includes: - CORRECT
ANSWER-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: - CORRECT ANSWER-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? - CORRECT ANSWER-No earnest money is required.
For how many days is a Paragraph 23 option valid? - CORRECT ANSWER-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? -
CORRECT ANSWER-1. Seller, at Seller's expense, shall furnish a new survey to Buyer.
2. Buyer shall obtain a new survey at Buyer's expense.
