Final Exam Study - Promulgated Forms QUESTIONS AND ANSWER S 1. The effective date - who, what, and when? - --Between the buyer and the sell er, The date on which the communication was made. The date of initialing and signing of the parties. The last party to initial/Sign fills in the day. 2. What is the legal proceedings brought by party to a contract against another party to compel action call forth in the agreement? - --Breach of a contract, one -party defaults, sues for specific performance, seek other relief - arbitration, mediation, injunction to sue for compensatory Damages. 3. If the seller fails to provide the buyer with the sellers di sclosure of property condition as required by Section 5.008 of the Texas property code what is the status of the purchase contract? - --Voidable - The buyer may terminate the contract anytime prior to closing and the earnest money will be refunded to the b uyer. 4. Which of the following is not addressed by TRAC - promulgated contracts. - --Lease purchase new Condocontract 1. Transactions with the licensee is functioning Soley as the principal, not as an agent. 2. Transactions in which an agency of the Un ited States government requires a different form to be used. 3. Transactions for which a contract form has been prepared by property owner or prepared by an attorney and required by the property owner. 4. Transactions for which most standard contract form has been promulgated by the Texas real estate commission, and the licensee uses a form prepared by the attorney at law licensed by this state and approved by the attorney for a particular kind of transaction involved or prepared by the Texas real estate Br oker - lawyer committee and made available for trial use By licensees with the consent of the commission. 5. When is a financing addendum not required? - --When the buyer pays in cash. Wiave third financing addendum 6. Items that are preprinted in paragr aphs 1 and 2 of the contract include all the following except? - --
Exclusions 7. When will the third party financing addendum credit approval not be used? - --1. Buyer pays cash. 2. Seller financing., 8. Which addenda will the Purchaser use when purchasi ng a property for cash? - --None - no addendum will be used. 9. Which addendum is commonly used in a transaction involving a 90 percent fixed rate loan with PMI? - --Third party financing addendum. 10. What form is used if the buyer wants the seller to leave the refrigerator with the home after closing? - --Non -- Reality items addendum 11. In Third party financing addendum for credit approval, what should the On interest rates? - --
MARKET RATE ----- Should be on what the buyer and lender have agreed on and it should not exceed that amount. 12. Federal law dictates that an addendum addressing the possible presence of lead -based paint and lead based paint hazard be attached to the purchase agreement wh en the house is being so that was built before? - --Prior to 1978. 13. Earnest money is to be deposited? - --By the end of the 2nd business day after the effective date. days of the effective date of the contract. 14. If the seller furnishes the existing survey to the buyer, but it is not acceptable to the buyers lender, the cost of the new survey may be at whose expense? - --The buyer. - 6c-1 15. Which form is used for the owner to tell the buyer about known problems with the property? - --
Sellers disclo sure of property condition.
Exclusions 7. When will the third party financing addendum credit approval not be used? - --1. Buyer pays cash. 2. Seller financing., 8. Which addenda will the Purchaser use when purchasi ng a property for cash? - --None - no addendum will be used. 9. Which addendum is commonly used in a transaction involving a 90 percent fixed rate loan with PMI? - --Third party financing addendum. 10. What form is used if the buyer wants the seller to leave the refrigerator with the home after closing? - --Non -- Reality items addendum 11. In Third party financing addendum for credit approval, what should the On interest rates? - --
MARKET RATE ----- Should be on what the buyer and lender have agreed on and it should not exceed that amount. 12. Federal law dictates that an addendum addressing the possible presence of lead -based paint and lead based paint hazard be attached to the purchase agreement wh en the house is being so that was built before? - --Prior to 1978. 13. Earnest money is to be deposited? - --By the end of the 2nd business day after the effective date. days of the effective date of the contract. 14. If the seller furnishes the existing survey to the buyer, but it is not acceptable to the buyers lender, the cost of the new survey may be at whose expense? - --The buyer. - 6c-1 15. Which form is used for the owner to tell the buyer about known problems with the property? - --
Sellers disclo sure of property condition.
