Texas Promulgated Contract Forms - Chapter 4

Earnest money - correct answer A down payment made by a purchaser of real estate as evidence of good faith is referred to as...? Buy-down money Earnest money Discount money Origination deposit Trust funds - correct answer Money, or other things of value, that a real estate agent receives on behalf of the principal or any other person involved in a transaction is known as...? Earnest funds Agent fees Deposit funds Trust funds Earnest money - correct answer Which of the following acts as liquidated damages if the buyer defaults on the purchase contract...? Earnest money Buy-down money Discount money Origination deposit F (False) - correct answer An earnest money deposit is required in all residential transactions...? T (True) F (False) Option - correct answer Which of the following refers to a right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right...? Exclusive agreement Earnest agreement Open agreement Option Optionee - correct answer A person who receives an option is known as the...? Optionee Optionor Trustee Trustor Optionor - correct answer A person who gives an option is known as the...? Optionee Optionor Trustee Trustor Equitable title to the property - correct answer A buyer has ............ during the options period? Legal title to the property Full title to the property Equitable title to the property Interim title to the property Perform his due diligence - correct answer Marcus has entered into a contract to purchase a new house. What will Marcus do during the options period to ensure the property is in the proper condition...? Perform his due diligence Obtain title insurance Obtain a certificate of occupancy for the property All of the above 3 - correct answer The buyer loses their right to a termination option if they fail to provide the options money within how many days of the effective date of the contract...? 1 3 7 30 6A - correct answer The title policy for a property is discussed in paragraph ........of the One to Four Family Residential Contract - Resale? 1 3A 5 6A Either the buyer or seller, whatever is agreed upon - correct answer Who pays for the title policy as stated in the purchase contract...? The seller only The buyer only Either the buyer or seller, whatever is agreed upon The escrow company RESPA - correct answer Which of the following prohibits the seller from requiring a specific title company as a condition of the sale...? HUD TREC NAR RESPA T (True) - correct answer The title company used in a transaction must be agreed upon by both the buyer and seller...? T (True) F (False) Binding and enforceable - correct answer Since a title policy is a contract, it is...? Binding and enforceable Unenforceable Acknowledged and recorded Void Covenants - correct answer Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or stipulating certain uses or non-uses of the property are known as...? Covenants Surveys Commitments Endorsements Restrictive covenants - correct answer Rules regarding pets in a subdivision are included under which of the following...? Commitments Endorsements Title policy Restrictive covenants The property's deed - correct answer Restrictive covenants are written into what document...? The mortgage commitment letter The property's deed The Certificate of Occupancy The building permit 6D - correct answer A buyer's objections to defects or encumbrances to title are described in which paragraph...? 2