Texas Promulgated Contracts-CHAMPIONS STUDY GUIDE WITH COMPLETE SOLUTIONS!

Texas Promulgated Contracts-CHAMPIONS STUDY GUIDE WITH COMPLETE SOLUTIONS! The elements of a valid contract are, competent parties, consideration, legal subject matter, in writing, and ___________. (a) Default (c) Property condition (d) Recording A(n) __________________ contract is defined as a contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed. (b) Executed (c) Bilateral (d) Void In the business of real estate, ___________ is defined as something given in exchange for a promise. (b) Mutual assent (c) A bribe (d) Legal subject matter The TREC-promulgated contract forms: (a) Are for optional use by real estate licensees (c) Are promulgated by the legislature (d) Are used in both commercial and residential transactions In a lease with a "right of first refusal" provision: (a) The price is set when the lease agreement is negotiated (b) The tenant has promised to buy the property (c) The TREC promulgated form must be used TREC has promulgated forms for: (a) lease purchase transactions (b) cooperatives (c) right of first refusal ( An offer can be communicated by ___________________. (a) Phone (b) Hand delivery (c) E-mail The Third Party Financing Addendum For Credit Approval is used when: (a) The buyer is obtaining FHA financing (b) Paragraph 4.A(2)(a) is checked in the contract (c) The buyer is obtaining VA financing In the Third Party Financing Addendum for Credit Approval: (a) The buyer has no incentive to obtain financial approval (c) The buyer's earnest money will not be returned if the buyer does not obtain financing (d) The option period is explained The Third Party Financing Addendum for Credit Approval cannot be used for: (a) VA guaranteed loans (b) FHA insured loans According to the Seller Financing Addendum, the interest rate is: (a) Set at 6% (c) Set by TREC (d) Determined at closing ___________________ occurs when a buyer assumes and agrees to pay the seller's existing mortgage. (b) Seller liability (c) Seller lien (d) Credit approval Land, improvements and accessories are collectively referred to as: (a) The estate (c) The listing (d) The homestead According to the TREC contract, accessories include: (a) Refrigerators (c) Washing machines (d) Gas dryers Exclusions to the sale must be removed (b) At the convenience of the seller (c) When the offer becomes a binding contract (d) Two days prior to closing The loan amount in Paragraph 3.B. of the sales contract includes: (a) The amount of the mortgage insurance (b) The loan plus origination fees (d) The loan amount minus the earnest money The sales price in 3.C. is always: (a) The loan amount plus the cash portion (b) 3.A. + 3.B. (c) The amount borrowed plus the down payment The earnest money is: (a) Always 5% of the purchase price (b) Set by TREC (d) Paid at closing