TREBS Exam 5 Questions with
Complete Solutions21
If the seller backs out of a contract for a reason not covered by the contract contingencies, the
buyer has the option of:
A. Suing for specific performance
B. Charging the sellers for any fees the buyer incurred
C. Buying another home at a lower price and requiring the seller to make the down payment
D. The buyer is not allowed to sue.
Rationale: The correct answer is A. A suit for specific performance forces either party to perform
according to the terms of the contract. - ANSWERS-
If a buyer needs to receive the funds from the sale of another property, they will need to do all
of these EXCEPT:
A. Attach a "Sale of Other Property" addendum creating a contingency contract
B. Attach a Non-Realty Items addendum
C. Offer an additional earnest money amount that allows the buyer to waive the contingency
D. Place a closing date on the addendum that does not exceed the closing date in the contract
Rationale: The correct answer is B. If the buyer needs funds from a home they are selling in
order to complete a sale, they would attach a "sale of other property" addendum, offer
additional earnest money if they desire to waive the contingency, and place a closing date on
the addendum that does not exceed the closing date in the contract. - ANSWERS-
Additional disclosures that may be required in a transaction include:
A. An agent's relationship with the prospective buyers or sellers
B. Any deficiencies in the property not otherwise named on a seller's disclosure
C. The buyer's intention to resell the property at a profit
,D. All of the above
Rationale: The correct answer is D. A contract may require several disclosures. Some of those
would be disclosure of property condition, a buyer's intention to resell the property at a profit,
agent's relationship with one of the principals in the transaction, among others. - ANSWERS-
Use of the TREC promulgated One to Four Family Residential Contract (Resale):
A. Is allowed on the sale of a residential condominium
B. Can be used for a vacant residential lot
C. Covers single family, duplex, triplex, and fourplex transactions
D. All of the above
Rationale: The correct answer is C. The TREC One to Four Family Residential Contract (Resale)
covers single family, duplex, triplex, and fourplex transactions. - ANSWERS-C. Covers single
family, duplex, triplex, and fourplex transactions
Broker's fees are:
A. Included in the One to Four Family Residential Contract (Resale) between the Buyer and the
Seller
B. Determined by writing in the Information About Brokerage Services
C. Determined by writing in the Listing Agreement
D. Both B and C
Rationale: The correct answer is C. Broker fees are agreed in the listing agreement between the
Seller and the Broker. The Broker has the ability to share those fees with an agent from an
outside company who works with a buyer. - ANSWERS-
Fraud is:
A. A crime
B. A civil law violation
C. Both A and B
, D. Only B
Rationale: The correct answer is C. Fraud can be prosecuted as a crime. Fraud charges also can
go through the courts as civil law violations. - ANSWERS-
Federal Fair Housing Laws forbid discriminatory practices by parties including:
A. Owners of properties
B. Lenders
C. Real estate brokers
D. All of the above
Rationale: The correct answer is D. Discriminatory practices are NOT allowed in any transaction.
- ANSWERS-
In a real estate transaction, the legal description is NOT:
A. Lot and block
B. Metes and bounds
C. A street address
D. A description of the property from a surveyor's field notes
Rationale: The correct answer is C. The legal descriptions in Texas are: Lot and block, and metes
and bounds (sometimes also called surveyor's field notes). A street address is NOT a legal
description. - ANSWERS-
Earnest money:
A. Constitutes the consideration
B. Is used to make the offer more enticing to the seller
C. Is required in the contract
D. Always equals 1% of the sales price
Complete Solutions21
If the seller backs out of a contract for a reason not covered by the contract contingencies, the
buyer has the option of:
A. Suing for specific performance
B. Charging the sellers for any fees the buyer incurred
C. Buying another home at a lower price and requiring the seller to make the down payment
D. The buyer is not allowed to sue.
Rationale: The correct answer is A. A suit for specific performance forces either party to perform
according to the terms of the contract. - ANSWERS-
If a buyer needs to receive the funds from the sale of another property, they will need to do all
of these EXCEPT:
A. Attach a "Sale of Other Property" addendum creating a contingency contract
B. Attach a Non-Realty Items addendum
C. Offer an additional earnest money amount that allows the buyer to waive the contingency
D. Place a closing date on the addendum that does not exceed the closing date in the contract
Rationale: The correct answer is B. If the buyer needs funds from a home they are selling in
order to complete a sale, they would attach a "sale of other property" addendum, offer
additional earnest money if they desire to waive the contingency, and place a closing date on
the addendum that does not exceed the closing date in the contract. - ANSWERS-
Additional disclosures that may be required in a transaction include:
A. An agent's relationship with the prospective buyers or sellers
B. Any deficiencies in the property not otherwise named on a seller's disclosure
C. The buyer's intention to resell the property at a profit
,D. All of the above
Rationale: The correct answer is D. A contract may require several disclosures. Some of those
would be disclosure of property condition, a buyer's intention to resell the property at a profit,
agent's relationship with one of the principals in the transaction, among others. - ANSWERS-
Use of the TREC promulgated One to Four Family Residential Contract (Resale):
A. Is allowed on the sale of a residential condominium
B. Can be used for a vacant residential lot
C. Covers single family, duplex, triplex, and fourplex transactions
D. All of the above
Rationale: The correct answer is C. The TREC One to Four Family Residential Contract (Resale)
covers single family, duplex, triplex, and fourplex transactions. - ANSWERS-C. Covers single
family, duplex, triplex, and fourplex transactions
Broker's fees are:
A. Included in the One to Four Family Residential Contract (Resale) between the Buyer and the
Seller
B. Determined by writing in the Information About Brokerage Services
C. Determined by writing in the Listing Agreement
D. Both B and C
Rationale: The correct answer is C. Broker fees are agreed in the listing agreement between the
Seller and the Broker. The Broker has the ability to share those fees with an agent from an
outside company who works with a buyer. - ANSWERS-
Fraud is:
A. A crime
B. A civil law violation
C. Both A and B
, D. Only B
Rationale: The correct answer is C. Fraud can be prosecuted as a crime. Fraud charges also can
go through the courts as civil law violations. - ANSWERS-
Federal Fair Housing Laws forbid discriminatory practices by parties including:
A. Owners of properties
B. Lenders
C. Real estate brokers
D. All of the above
Rationale: The correct answer is D. Discriminatory practices are NOT allowed in any transaction.
- ANSWERS-
In a real estate transaction, the legal description is NOT:
A. Lot and block
B. Metes and bounds
C. A street address
D. A description of the property from a surveyor's field notes
Rationale: The correct answer is C. The legal descriptions in Texas are: Lot and block, and metes
and bounds (sometimes also called surveyor's field notes). A street address is NOT a legal
description. - ANSWERS-
Earnest money:
A. Constitutes the consideration
B. Is used to make the offer more enticing to the seller
C. Is required in the contract
D. Always equals 1% of the sales price
