PROMULGATED CONTRACTS UPDATED EVALUATION
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Buyer Javier sends a formal offer to Seller Joy: $250,000 and the appliances stay.
Joy counters: $250,000, no appliances. She then reconsiders and accepts the first offer.
Is Javier obligated to buy the home? Why or why not? - ✔✔No, because the first offer
was dead when Joy countered.
✔✔The words "time is of the essence" are in: - ✔✔Paragraph 23 of the One to Four
Family Contract
✔✔A buyer was unable to obtain financing. How would they notify the seller that they
are terminating the contract? - ✔✔by sending a promulgated Notice of Buyer's
Termination
✔✔Why does the Option to Terminate require an extra consideration in the form of
option money? - ✔✔because it is another contract within the overall contract
✔✔A contract which courts cannot compel the parties to perform is: - ✔✔unenforceable
✔✔Which of the following bodies appoints the public member on the Broker-Lawyer
Committee? - ✔✔the governor
✔✔According to Paragraph 9B, what happens when someone buys a property that
currently under a lease? - ✔✔the buyer must honor the lease, and the seller transfers
them the security deposit
✔✔When a property is purchased and then quickly resells at a higher value it is called: -
✔✔Flipping is quickly reselling a home for a higher value.
✔✔Which of these is an example of something that could go in Paragraph 12 of the
One to Four Family Residential Contract? - ✔✔the seller plans to pay some of the
buyer's closing costs
✔✔A Residential Real Property Affidavit Promulgated by the Texas Department of
Insurance (T-47 Affidavit) must be furnished to the buyer _______________________. -
✔✔When the seller provides the existing survey
✔✔If a seller wants to reserve part of their mineral rights after selling, where on the
Reservation of Oil, Gas and Other Minerals Addendum would they note what
percentage they're keeping? - ✔✔Paragraph B2
, ✔✔In Paragraph 9 of the One to Four Family (Resale) contract, what must happen "on
or before" the specified date? - ✔✔closing
✔✔What is special about the earnest money section (paragraph five) and the option
money section (paragraph 23) in the TREC promulgated sales contract? - ✔✔they
contain "time is of the essence" language
✔✔Paragraph 7D(2) of the contract indicates: - ✔✔repairs that must be completed by
the seller before closing
✔✔Why does the Notice of Buyer's Termination of Contract only have to be signed by
the buyer? - ✔✔the buyer's termination rights are outlined in the contract
✔✔When all parties have agreed to all terms of an offer, have signed the offer, and
have initialed any changes that took place during negotiations, what happens to the
offer? - ✔✔it becomes a contract.
✔✔If clients want to make an offer to the seller offering a "lease with option to buy," the
buyer's agent should: - ✔✔Tell the client they will need an attorney to draw up the
documents
✔✔Alex is a licensed sales agent. Her client is selling her single-family home. In order
not to violate TRELA contract law and run afoul of TREC, how should she create the
contract? - ✔✔Using TREC's promulgated One to Four Family Residential Contract
✔✔When a contract has been fully executed, what has happened to it? - ✔✔it has been
terminated
✔✔Buyer Raz goes into contract on a house in Texas. At the last minute, he is unable
to obtain financing. What would he need to have in his contract to terminate it without
penalty? - ✔✔a Third Party Financing Addendum
✔✔In which of these scenarios would it be correct to use the Residential Condominium
Contract (Resale)? - ✔✔A client is buying a property where the land is not owned
individually and the common areas are shared equally among the community's owners.
✔✔What determines which New Home Contract a license holder should use? -
✔✔whether or not the building has been completed
✔✔The amount of the earnest money the buyer is contractually obligated to pay the
seller is set by: - ✔✔the parties
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Buyer Javier sends a formal offer to Seller Joy: $250,000 and the appliances stay.
Joy counters: $250,000, no appliances. She then reconsiders and accepts the first offer.
Is Javier obligated to buy the home? Why or why not? - ✔✔No, because the first offer
was dead when Joy countered.
✔✔The words "time is of the essence" are in: - ✔✔Paragraph 23 of the One to Four
Family Contract
✔✔A buyer was unable to obtain financing. How would they notify the seller that they
are terminating the contract? - ✔✔by sending a promulgated Notice of Buyer's
Termination
✔✔Why does the Option to Terminate require an extra consideration in the form of
option money? - ✔✔because it is another contract within the overall contract
✔✔A contract which courts cannot compel the parties to perform is: - ✔✔unenforceable
✔✔Which of the following bodies appoints the public member on the Broker-Lawyer
Committee? - ✔✔the governor
✔✔According to Paragraph 9B, what happens when someone buys a property that
currently under a lease? - ✔✔the buyer must honor the lease, and the seller transfers
them the security deposit
✔✔When a property is purchased and then quickly resells at a higher value it is called: -
✔✔Flipping is quickly reselling a home for a higher value.
✔✔Which of these is an example of something that could go in Paragraph 12 of the
One to Four Family Residential Contract? - ✔✔the seller plans to pay some of the
buyer's closing costs
✔✔A Residential Real Property Affidavit Promulgated by the Texas Department of
Insurance (T-47 Affidavit) must be furnished to the buyer _______________________. -
✔✔When the seller provides the existing survey
✔✔If a seller wants to reserve part of their mineral rights after selling, where on the
Reservation of Oil, Gas and Other Minerals Addendum would they note what
percentage they're keeping? - ✔✔Paragraph B2
, ✔✔In Paragraph 9 of the One to Four Family (Resale) contract, what must happen "on
or before" the specified date? - ✔✔closing
✔✔What is special about the earnest money section (paragraph five) and the option
money section (paragraph 23) in the TREC promulgated sales contract? - ✔✔they
contain "time is of the essence" language
✔✔Paragraph 7D(2) of the contract indicates: - ✔✔repairs that must be completed by
the seller before closing
✔✔Why does the Notice of Buyer's Termination of Contract only have to be signed by
the buyer? - ✔✔the buyer's termination rights are outlined in the contract
✔✔When all parties have agreed to all terms of an offer, have signed the offer, and
have initialed any changes that took place during negotiations, what happens to the
offer? - ✔✔it becomes a contract.
✔✔If clients want to make an offer to the seller offering a "lease with option to buy," the
buyer's agent should: - ✔✔Tell the client they will need an attorney to draw up the
documents
✔✔Alex is a licensed sales agent. Her client is selling her single-family home. In order
not to violate TRELA contract law and run afoul of TREC, how should she create the
contract? - ✔✔Using TREC's promulgated One to Four Family Residential Contract
✔✔When a contract has been fully executed, what has happened to it? - ✔✔it has been
terminated
✔✔Buyer Raz goes into contract on a house in Texas. At the last minute, he is unable
to obtain financing. What would he need to have in his contract to terminate it without
penalty? - ✔✔a Third Party Financing Addendum
✔✔In which of these scenarios would it be correct to use the Residential Condominium
Contract (Resale)? - ✔✔A client is buying a property where the land is not owned
individually and the common areas are shared equally among the community's owners.
✔✔What determines which New Home Contract a license holder should use? -
✔✔whether or not the building has been completed
✔✔The amount of the earnest money the buyer is contractually obligated to pay the
seller is set by: - ✔✔the parties
