Promulgated Contracts Final | 2024 Questions & Answers | 100% Correct | Verified

If an Agent receives confidential information from a Client while the agency agreement is in force, that agent may: A) Share that information once the agreement expires B) Share that information if the Client authorizes the agent to share it C) Never share the information with another client D) share the information, but only to another agent - B. Share that information if the Client authorizes the agent to share it If a buyer and/or seller agree to mediate, they are giving up their right to pursue relief through the courts. T/F - FALSE **if the buyer and seller do not agree on some aspect of the contract, they can seek mediation before they sue each other. The agreement to mediate does not preclude a party from seeking relief from a court of competent jurisdiction and neither party is giving up the right to have a court review the dispute. What is the status of a contract if the seller does not make the buyer aware of a property being located with a municipal utility district? A) Voidable by the buyer B) Void C) Voidable by the seller D) Voidable by the buyer or the seller - A. Voidable by buyer **A voidable contract is binding on one party but not the other. (Unilateral contracts are voidable by the unbound party.)For example, a contract with a minor would be voidable at the option of the minor, while the legally competent party would be bound to its terms. Federal Fair Housing Laws forbids discriminatory practices by parties including: A) Owners of properties B) Lenders C) Real estate brokers D) All of the above - D. All of the above Any changes to the original contract once it is finalized and receipted must be done: A) At the title company on the original contract B) On an amendment C) On the 3rd Party Financing Addendum D) On a real estate change form - B. On an amendment Intermediary requires: A) Disclosure of who represents whom in a transaction B) Written agreement by both seller and buyer C) involvement of only one company D) All of the above - A. All of the above If the contract includes an option period for the buyer and the buyer does not tender the option fee to the Seller within the time limit (currently with 3 days from effective date of the contract) the Buyer no longer has an unrestricted right to terminate under the option. T/F - TRUE (hint: unrestricted rights?)The Condominium Resale Certificate called for in paragraph 2 of the TREC Residential Condominium Contract (Resale) must have been prepared no more than _________ before the date it is delivered to the buyer. A) 7 days B) 20 Days C) 6 months D) 3 months - D. 3 months **The buyer should receive a Condominium Resale Certificate. The certificate is from the condominium owner's association and should not be more than 3 months old Earnest money: A) Constitutes the consideration B) Is used to make the offer more enticing to the seller C) Is required in the contract D) Always equals 1% of the sales price. - B. Is used to make the offer more enticing to the seller **Earnest money does not represent consideration. Earnest money is merely an enticement to the seller to accept the offer, and a gesture of good faith. If there is an existing survey on the property, what does the seller take to the title company and the lender? A) The existing survey B) The existing survey and a notarized affidavit stating if there have been any changes in the survey since the time the existing survey was completed C) A copy of the deed and the existing survey D) The seller's appraisal and a copy of the survey - B. Existing survey and notarized affidavit stating if there have been any changes in the survey since the time the exisitng survey was completedFailure on the part of the broker/sales associate to advise the purchaser in writing to have an abstract of title examined by an attorney or obtain a title insurance policy: A) Is not a violation of the Texas Real Estate License Act B) Is the normal practice in Texas C) May be cause to have the agent's license suspended or revoked, and precludes receiving any commissions or agreed fees associated with the sale. D) Is the correct action as this is clearly a legal matter. - C. May be cause to have the agent's license suspended or revoked, and precludes receiving any commissions or agreed fees associated with the sale Brokers fees are included in the 1-4 Family Residential Contract (resale) between the Buyer and the Seller. T/F - FALSE If a Buyer chooses not to be represented by an agent, the Buyer must be made aware that any information they share can be communicated to the Seller. t/f - TRUE In Paragraph #14 of the Residential Contract (casualty loss), If a seller cannot complete the repairs within the time limit, the buyer has the option of: A) Terminating the contract B) Extending the closing C) Accepting the property in the damaged condition with an assignment of insurance proceeds D) Any of the above - D. Any of the above The Information About Brokerage Services (IBS) states the broker may represent the: A) Owner B) Buyer C) Both owner and buyer as intermediary D) All of the above - D. All of the AboveA suit for specific performance is: A) To force the buyer not to default on the contract B) To force the seller not to default on the contract C) To force either the buyer or the seller to perform on the terms of the contract D) Is a lawsuit against the inspection company - C. To force either the buyer or the seller to perform on the terms of the contract The Seller contracts to furnish the buyer an existing survey, but negle