promulgated contracts practic exam questions with complete solutions

promulgated contracts practic exam questions with complete solutions The lender holding the note on a property must approve a short sale or the contract will be a) terminated. b) amended to the amount owed. c) transferred to another lender. d) counteroffered. terminated. If a payment is made 10 or more days after the due date, what late fees are charged under the Seller Financing Addendum TREC 26-6? a) 1% of the sales price b) 2% of the payment amount c) 5% of the payment amount d) A $100 flat fee 5% of the payment amount The _______________ means that a judge's interpretation of a disputed contract clause is influenced by the document as a whole. a) Four Corners Doctrine b) Four Squared Rule c) Civil Due Process Doctrine d) Fourth Promulgation Rule Four Corners Doctrine When should a buyer be notified that his contract has been accepted by the seller? a) After the 3 day waiting period. b) Within five business days of acceptance. c) Within five business days of the listing expiring. d) Immediately as waiting even an hour could cause a buyer to move on. Immediately as waiting even an hour could cause a buyer to move on. How does a licensee indicate she is representing a buyer on the TREC OP-K Information about Brokerage Services form? a) By checking the applicable box b) By writing the seller's name in the blank provided c) By having the buyer sign it d) No indication is required as the form is used for informational purposes No indication is required as the form is used for informational purposes What may an HOA for a high-end development require for membership? a) A background check b) Three year's tax returns c) Two year's HOA in advance d) A $1,000 one-time membership fee A $1,000 one-time membership fee When signing TREC 44-1 Addendum for Reservation of Oil, Gas and Other Minerals the parties are advised to a) ask the seller's licensee for advice before signing. b) ask the EPA for guidance after signing. c) sign the form quickly. d) consult an attorney before signing if there are any concerns. consult an attorney before signing if there are any concerns. Common areas in condominium complexes are owned by a) the condominium association. b) the homeowners association. c) all the tenants as tenants-in-common. d) the condominium developer. all the tenants as tenants-in-common. Seller Sherri Martinez received an offer on her home contingent on the buyers, the Ackermans, selling their home. While waiting for the Ackermans, Sherri receives a back-up offer without a contingency. What can Sherri do? a) Sherri can ask the Ackermans to waive their contingency within an agreed upon timeframe or terminate the contract. b) Sherri can accept both contracts and see who is able to close first. c) Sherri cannot accept any offers until the deadline to sell has passed on the Ackerman's contract. d) Sherri can terminate the Ackerman's contract with no notice or explanation. Sherri can ask the Ackermans to waive their contingency within an agreed upon timeframe or terminate the contract. Who is responsible for ensuring any needed utilities are turned on for a home inspection? a) The seller b) The buyer c) The broker d) The home inspection company The seller When all terms of a contract are agreed to by all parties, there is a) mutual assent. b) mutual consent. c) mutual duress. d) mutual influence. mutual assent. A licensee could be exempt from using a TREC promulgated form when a) the licensee is able to use a form approved by NAR. b) the broker has solicited an attorney to draft a form. c) the licensee is functioning solely as a principal, not as an agent. d) the licensee has received permission from the Texas Secretary of State. the licensee is functioning solely as a principal, not as an agent. Which of the following situations would allow a licensee to practice law? a) The licensee takes a course on the basics of real estate law at the local community college. b) The licensee is also an attorney. c) The licensee specializes in commercial development. d) Texas law prohibits licensees from practicing law. The licensee is also an attorney. Who is required to remedy deficient conditions under TREC OP-I Consumer Notice Regarding Hazards or Deficiencies? a) The seller and buyer b) Only the seller c) Only the buyer d) The form does not specify The form does not specify A buyer can withdraw an offer a) anytime prior to the seller's acceptance. b) only after the seller has responded. c) anytime prior to closing. d) if the buyer cannot get a loan at the lowest interest rate. anytime prior to the seller's acceptance When the seller pays for the buyer's title insurance policy a) the buyer still retains the right to pick the title company. b) the buyer provides a list of acceptable title companies and the seller chooses one. c) the seller chooses which title company to use. d) the buyer and seller must negotiate and pick a title company together. the buyer still retains the right to pick the title company. What should a licensee do to ensure that she receives a commission if her client decides to purchase a new construction home from a builder? a) There is nothing special the licensee needs to do. b) The licensee should contact an attorney. c) The licensee should register the interaction with the TREC in the event the builder does not want to pay. d) The licensee should register her client with the home builder before showing one of the model homes. The licensee should register her client with the home builder before showing one of the model homes. Seller Bridget sold her home to Buyer Sarah and closing is set for March 30. It is March 22 and Bridget has not purchased a new home because of complications with her mortgage company. Buyer Sarah has agreed to wait until April 30 to close. What should Bridget's agent do? a) Bridget's agent should send a counteroffer with the new date to Sarah's agent. b) Bridget's agent should strike through the closing date and write in the new one and send the contract to Sarah's agent. c) Bridget's agent should send an Amendment to Contract 39-7 with the new closing date to Sarah's agent. d) As long as Sarah agrees to the new date, no further action is necessary by Bridget's agent. Bridget's agent should send an Amendment to Contract 39-7 with the new closing date to Sarah's agent.