Promulgated Contract Forms final exam questions and correct solutions

Promulgated Contract Forms final exam questions and correct solutions If a Buyer wants the Seller to pay some or all of their closing costs, it should be added to the contract in: A) Paragraph #11 (Special Provisions) C) Third Part financing Addendum D) All of the above If a Buyer chooses not to be represented by an agent, the Buyer must be made aware that any information they share can be communicated to the Seller. The sales price is determined in paragraph 3 by adding the down payment (3A) and the loan amount (3B). The Seller contracts to furnish the buyer an existing survey, but neglects to furnish an "affidavit' with the time specified. The lender requests a new survey be furnished. Who pays for the new survey? A) Whoever is stated in the contract if the existing survey is rejected B) The title company can approve the existing survey and override the lender C) The buyer The Third Party Financing Condition Addendum is not used with: A) Conventional financing C) FHA Financing D) VA Financing On the Seller's default, what should happen to the earnest money? A) It belongs to the Broker C) It should be retained by the Seller D) The title company should keep it If the contract includes an option period for the buyer and the buyer does not tender the option fee to the Seller within the time limit (currently with 3 days from effective date of the contract) the Buyer no longer has an unrestricted right to terminate under the option. Fraud is: A) A crime B) A civil law violation D) Only b When a "fixture" in a property does not remain for the buyer, how do we inform the buyer of that fact and make sure the item does not convey with the property? A) List the item as not included in the listing Agreement B) List the item on the "Seller's Disclosure Notice" " D) List the item on the "Amendment" form Paragraph 23 "termination option" of the TREC 1-4 Family Residential Contract: A) Binds the seller to complete the repairs needed B) Requires option money that is refundable if the buyer does not buy D) Allows the buyer to get his option fee back if he is disqualified for the loan A suit for specific performance is: A) To force the buyer not to default on the contract B) To force the seller not to default on the contract D) Is a lawsuit against the inspection company How does the Texas Real Estate License Act define the first face-to-face meeting with required agency disclosure? A) When a licensee first meets a prospect B) When a prospect is ready to sign an agreement C) Only when a specific property is being shown Brokers fees are included in the 1-4 Family Residential Contract (resale) between the Buyer and the Seller. Standard forms of TREC must be used unless: B) A principal in the transaction requests a different form to be used C) The listing broker disagrees with certain language in the contract According to the TREC 1-4 Residential Contract (Resale), who is responsible for paying the owner policy of title insurance fee? A) The buyer B) The seller C) The title company named in the contract The Information About Brokerage Services (IBS) states the broker may represent the: A) Owner B) Buyer D) All of the above What is the status of a contract if the seller does not make the buyer aware of a property being located with a municipal utility district? B) Void C) Voidable by the seller D) Voidable by the buyer or the seller A contract is described as an agreement between two or more parties to do or not do something. Any changes to the original contract once it is finalized and receipted must be done: A) At the title company on the original contract C) On the 3rd Party Financing Addendum D) On a real estate change form A TREC promulgated (declaration)Farm and Ranch contract can include: A) Buildings B) Crops C) Equipment What must a Buyer's Representation Agreement have? A) Fair Housing disclosure B) An attachment from a mortgage company regarding buyer's qualifications for a loan D) none of the above Who is designated as responsible for promptly sending a copy of the contract to any attorneys that are named in the contract? A) The title company B) The lender D) The buyer According to the Real Estate License Act of Texas, which one of the following actions is a fair and impartial act for an Intermediary? B) Appointing subagents to work with the parties C) Agreeing to represent only the owner D) Agreeing to represent only the buyer When electing to use the option paragraph of the contract, the buyer may, within the time specified in the paragraph, do any of the following EXCEPT: B) Terminate the contract C) Do nothing and proceed to closing D) Amend the contract waiving the right to terminate A Buyer/Tenant Representation Agreement is only available through the Texas Real Estate Commission (TREC) The financing paragraph will be used to indicate: A) Third party financing B) Assumption C) Seller financing Time is of the essence means that certain items in the contract must be performed: B) As verbally agreed between buyer and seller C) As verbally agreed between the sales agents representing buyers and sellers D) None of the above