PROMULGATED CONTRACTS PRACTICE TEST Exam Questions And Answers 100% Verified

PROMULGATED CONTRACTS PRACTICE TEST Exam Questions And Answers 100% Verified Agent Kara signed a buyer's representation agreement with her client that set her commission at 3%. The listing broker of the home her client chose offered 3.5% to the buyer's broker. What percentage of the sale price of the home will Kara's commission be? - answer3.5% What does Paragraph A of the Addendum for Back-Up Contract specify a back-up contract holder do when they execute the contract?* - answerdeposit the earnest and option money agreed to in the contract What part of the Third Party Financing Addendum for Credit Approval specifically pertains to people getting VA loans? - answerParagraph D According to the NAR Code of Ethics, unless the agent has written instructions stating otherwise, they must present all offers until:* - answerthe closing Agents are required to give all buyers a written copy of the title notice. Aside from Paragraph 6E(1) of the One to Four Family Residential contract, where else can this notice be found?* - answerthe Notice to Prospective Buyer A buyer was unable to obtain financing. How would they notify the seller that they are terminating the contract? - answerby sending a promulgated Notice of Buyer's Termination When a property is purchased and then quickly resells at a higher value it is called: - answerflipping A back-up buyer's contract is executed on September 28 with a four-day option period. On October 4, the seller informed the back-up buyer that the first contract was terminated. When does the back-up buyer's option period end? - answerOctober 8, 5 pm Agent Larry has a client applying for a mortgage to purchase a home. His client is planning to claim some income they didn't actually make in an effort to qualify for a larger mortgage. They've disclosed this to Larry. What should he do in this situation to avoid committing mortgage fraud? - answerwithdraw from the transaction Laura is in contract for a home. Her contract contains a Sale of Other Property by Buyer Addendum. The seller has just accepted a back-up contract for the property that doesn't have this contingency. What happens to Laura and her contract? - answerLaura can waive the addendum by a date she and the seller agree on, otherwise her contract terminates What is the name of the document prepared by a condo association (or HOA) to outline the fees and rules of the condo for a prospective buyer? - answerthe Condominium Resale Certificate Which one of these is a bilateral contract? - answerZelda agrees to pay Gus $250,000 for ownership of his house. Agent Kara's buyer's representation agreement with her client says she will be paid a 3% commission. In the MLS listing of the home her client has chosen to buy, the listing broker offered only 2%. Where does the other 1% of her commission come from? - answerthe buyer pays it What should an agent do if asked to violate anti-discrimination laws by a client? - answereducate the seller about anti-discrimination laws and say they cannot honor the request A contract which courts cannot compel the parties to perform is: - answerunenforceable What information does the Disclosure of Relationship with Residential Service Company form convey?* - answerthat it is a violation of RESPA for a license holder to receive a referral fee for passing on a name to a service provider According to Paragraph 10B, Possessions, what is a seller prohibited from doing after the effective date? - answerexecute a lease without the buyer's permission Reggie made Betty an offer on her house. She countered, but Reggie has not yet accepted. Then along comes Archie with a better offer. Before accepting Archie's offer, what must Betty do? - answerwithdraw her counter to Reggie What are two real estate governing bodies that were formed as a result of TRELA? - answerTREC and the Broker-Lawyer Committee Which of these is an example of a unilateral contract?* - answerMike signs a listing agreement with Broker Amy, agreeing to pay a 6% commission if she sells his house. If an agent makes a change to Paragraph 6A8 in a TREC promulgated contract, which of these is most likely to be the result? - answerThe title policy will be amended to read "shortage in area" rather than the standard exception. Which of these is NOT a place where commission split agreements between cooperating brokers can be determined? - answerthe sales contract Anthony changed the use of his land from farm land to residential before he sold it. According to TREC rules, who is responsible for any rollback taxes he might owe?* - answerAnthony Who pays for an investigation of an environmental, endangered species, or wetlands issue, according to the Environmental Assessment, Threatened or Endangered Species, & Wetlands Addendum? - answerthe buyer Paragraph C2 on the Lead Based Paint Disclosure states that:* - answerthe buyer has 10 days to have the property inspected for lead based paint When a contract has been fully executed, what has happened to it? - answerit has been terminated Which of these is NOT true about the residential service contract? - answerthe seller can prevent the buyer from purchasing it Which of the following is TRUE regarding a contract to transfer real estate which contains no earnest money?* - answerIt is valid. Which of these agent scenarios involving contracts is NOT inappropriate or in violation of TRELA? - answerAvery explains the meaning of factual statements or business details in the contract form. According to the Addendum for Back-Up Contract, if a first contract is terminated and the seller notifies the back-up buyer of the termination, what happens? - answerthat date becomes the effective date of the back-up contract Which of these is NOT necessary for a contract to be binding and effective? - answerthe contract must be hand delivered to the title company A landlord may have to make adjustments for a tenant with a disability to be able to live in a dwelling. Those adjustments do not include: - answerpermitting a tenant to use illegal drugs What is an express contract?* - answera contract that has a very specific offer and acceptance Agent Sarah knows her client wants to make the sales contract contingent on appraisal, so she adds a notation to that effect in the Special Provisions section of the contract. Why is that wrong? - answerit could be considered the unauthorized practice of law The Seller's Temporary Residential Lease will only be used: - answerwhen the seller will remain on the property for no more than 90 days after closing Which of these is NOT a TREC promulgated form? - answerCondo Addendum The words "time is of the essence" are in: - answerParagraph 23 of the One to Four Family Contract Which of these is a possible result of when zoning is changed and a property no longer qualifies for a previous exemption? - answerthe property's owner charged rollback taxes