AYPO Real Estate Promulgated contracts actual exam questions with correct answers

"Psychological stigmas," which involve violent or catastrophic events on a property, fall under which category of disclosure? a. Required disclosures b. Prohibited disclosures c. Permitted disclosures d. None of these - Answer- c. Permitted disclosures If there is a field in a promulgated form for which you have no information to include, your safest option is which of the following? a. Run a line through it b. Place "N/A" (not applicable) so it is clear that the buyer/buyer's agent is aware that the section exists and was not just overlooked c. Any of these d. Just leave it blank - Answer- b. Place "N/A" (not applicable) so it is clear that the buyer/buyer's agent is aware that the section exists and was not just overlooked Which of these is an exemption to the "legal capacity" requirement to form a contract? a. A contract for a life necessity b. The other party had no knowledge of the party's lack of legal capacity c. Both of these are correct d. Neither of these are correct - Answer- a. A contract for a life necessity An amendment must always include reference to all of these, except: a. The title report b. The original contract c. Parties d. Date of ratification - Answer- a. The title report What category of disclosure do "psychological stigmas" fall into in Texas? a. Prohibited b. Required c. Permitted d. None of these - Answer- c. Permitted Promulgated contracts for TRELA generally are developed by which of the following? a. TREC b. National Association of Realtors c. Texas Bar Association d. The Broker-Lawyer Committee - Answer- d. The Broker-Lawyer Committee If the seller has misled or misrepresented something, the signature at closing: a. Terminates any obligation to the buyer b. Neither of these c. Either of these d. Does not release them from those promises - Answer- d. Does not release them from those promises Restrictive covenants are regulations which can include which of the following? a. Dictating minimum residence size b. Nuber of homes per lot c. Types of construction allowed and not allowed d. All of these - Answer- d. All of these Before leasing the property back to a seller or leasing it ahead of closing to a buyer, both parties need to pay attention to the effect that leasing will have on which of the following? a. Their insurance coverage b. The Seller's disclosure c. The title commitment d. The title policy - Answer- a. Their insurance coverage HUD's primary concern is to ensure that any occupancy standards are not so strict as: a. To discriminate against single residents b. To undo protections of families with children c. To create a safety hazard d. None of these - Answer- b. To undo protections of families with children Which of these is a part of the Seller Financing Agreement a. Promissory Note b. Deed of Trust c. Buyer's Credit Approval d. All of these - Answer- d. All of these Which of these DOES NOT mean that a contract might not or will not likely stand up in court? a. Valid b. Voidable c. Unenforceable d. Void - Answer- a. Valid TRELA states unequivocally that it is illegal for a licensee to draw, i.e. create or develop which of the following on their own? a. A deed of trust b. A deed c. All of these d. A will - Answer- c. All of these Which of the New Home Contracts includes the Page 8 construction defect language? a. Neither of them b. Both of them c. New Home Contract (incomplete) d. New Home Contract (completed) - Answer- b. Both of them Which Paragraph of the TREC 1-4 contract already includes a "time is of the essence" clause? a. 23 b. 18 c. 6 d. 5 - Answer- d. 5 How many multiple back-up offers can be in line at one time? a. No more than two b. Texas law only allows for one back-up offer at a time c. There is no limit to the number of backup offers d. No more than three - Answer- b. Texas law only allows for one back-up offer at a time Which of these forms is for general consumer client information, and not directly related to a sale? a. Consumer Information Form b. Both of these c. Information About Brokerage Services d. Neither of these - Answer- b. Both of these A person is not engaged in a real estate brokerage, regardless of whether the person is licensed under this chapter, based solely on engaging in which of the following activities? a. Any of these. b. Entering into an obligation to pay another person that is secured by an interest in real property c. Sponsoring, promoting, or managing, or otherwise participating as a principal, partner, or financial manager of, an investment in real estate d. Constructing, remodeling, or repairing a home or other building - Answer- a. Any of these. To receive a daily rate of $40 in a buyer's or seller's lease, the monthly rate would have to be set at which of these monthly rates? a. $900 b. $1,400 c. $1,200 d. $1,000 - Answer- c. $1,200 According to TREC a "reasonable time" within which to deposit the escrow check is: a. By end of the day following signing b. Within 72 hours c. By the end of the second business following formation of the contract d. By the end of the day of signing - Answer- c. By the end of the second business following formation of the contract A "release clause" in a mortgage agreement would allow which of the following additional lender approval? a. To obligate the lessee/owner to an irrevocable option to buy b. To replace an existing contract with a new contract c. To section off a portion of the property, the equivalent value of which has been paid off, and sell off that portion if desired d. To transfer rights or duties under a contract from a current party to a contract to another party - Answer- c. To section off a portion of the property, the equivalent value of which has been paid off, and sell off that portion if desired The DTPA only applies to real estate transactions in situations involving: a. An express misrepresentation of a material fact that cannot be characterized as advice, judgement, or opinion b. An unconscionable action or course of action that cannot be characterized as advice, judgement, or opinion. c. A failure to disclose information known by the licensee at the time of the transaction if the non-disclosure was intended to induce the consumer into a transaction they would not have entered if they were aware of the undisclosed information d. Any of these - Answer- d. Any of these