PROMULGATED CONTRACTS QUESTIONS AND
ANSWERS
Buyer Sarah is purchasing a residential property. She plans to live in the home and
operate a daycare business in the home as well. Having mentioned this to her agent,
the agent should:
(a) write a paragraph describing the business in Paragraph 11, Special Provisions
(b) disclose the daycare using a TREC Special Use addendum
(c) specify the use as a daycare in Paragraph 6: Objections
(d) not mention the daycare because the future use of a property is not an issue -
Answers-(c) specify the use as a daycare in Paragraph 6: Objections
A state government entity created to encourage agricultural development in Texas is
the: - Answers-Texas Agricultural Development District
If a seller wants to continue to occupy the property for two days after the closing and the
buyer agrees: - Answers-The Seller's Temporary Residential Lease form should be used
A federal disclosure requirement for residential properties built prior to 1978 is:
(a) An energy efficiency audit
(b) A lead-based paint disclosure
(c) A seller's disclosure of property condition
(d) A water district noticeAccording to the Seller - Answers-(b) A lead-based paint
disclosure
When a seller wishes to retain certain fixtures or accessories, these items are called: -
Answers-Exclusions
Exclusions to the sale must be removed
(a) Prior to delivery of possession
(b) At the convenience of the seller
(c) When the offer becomes a binding contract
(d) Two days prior to closing - Answers-(a) Prior to delivery of possession
, Any material changes to subdivision information require the ________________ to give
notice of said changes promptly.
(a) Buyer
(b) Listing Agent
(c) Seller
(d) Broker - Answers-(c) Seller
The sales price in 3.C. is always:
(a) The loan amount plus the cash portion
(b) 3.A. + 3.B.
(c) The amount borrowed plus the down payment
(d) All of the above - Answers-(b) 3.A. + 3.B.
In Texas, the statute of limitations is _________________ for an oral agreement.
(a) Four years
(b) Two years
(c) Eight years
(d) Six Years - Answers-(b) Two years
__________ occurs when a property is refinanced or resold immediately after purchase
for an artificially inflated value - Answers-Property flipping
In the Farm and Ranch contract, if the Sales Price is adjusted based upon a survey,
either party may terminate the contract if the Sales Price varies by more than:
(a) the amount entered in 3.C of the contract
(b) 5%
(c) 10%
(d) the amount entered in 3.A of the contract - Answers-(c) 10%
ANSWERS
Buyer Sarah is purchasing a residential property. She plans to live in the home and
operate a daycare business in the home as well. Having mentioned this to her agent,
the agent should:
(a) write a paragraph describing the business in Paragraph 11, Special Provisions
(b) disclose the daycare using a TREC Special Use addendum
(c) specify the use as a daycare in Paragraph 6: Objections
(d) not mention the daycare because the future use of a property is not an issue -
Answers-(c) specify the use as a daycare in Paragraph 6: Objections
A state government entity created to encourage agricultural development in Texas is
the: - Answers-Texas Agricultural Development District
If a seller wants to continue to occupy the property for two days after the closing and the
buyer agrees: - Answers-The Seller's Temporary Residential Lease form should be used
A federal disclosure requirement for residential properties built prior to 1978 is:
(a) An energy efficiency audit
(b) A lead-based paint disclosure
(c) A seller's disclosure of property condition
(d) A water district noticeAccording to the Seller - Answers-(b) A lead-based paint
disclosure
When a seller wishes to retain certain fixtures or accessories, these items are called: -
Answers-Exclusions
Exclusions to the sale must be removed
(a) Prior to delivery of possession
(b) At the convenience of the seller
(c) When the offer becomes a binding contract
(d) Two days prior to closing - Answers-(a) Prior to delivery of possession
, Any material changes to subdivision information require the ________________ to give
notice of said changes promptly.
(a) Buyer
(b) Listing Agent
(c) Seller
(d) Broker - Answers-(c) Seller
The sales price in 3.C. is always:
(a) The loan amount plus the cash portion
(b) 3.A. + 3.B.
(c) The amount borrowed plus the down payment
(d) All of the above - Answers-(b) 3.A. + 3.B.
In Texas, the statute of limitations is _________________ for an oral agreement.
(a) Four years
(b) Two years
(c) Eight years
(d) Six Years - Answers-(b) Two years
__________ occurs when a property is refinanced or resold immediately after purchase
for an artificially inflated value - Answers-Property flipping
In the Farm and Ranch contract, if the Sales Price is adjusted based upon a survey,
either party may terminate the contract if the Sales Price varies by more than:
(a) the amount entered in 3.C of the contract
(b) 5%
(c) 10%
(d) the amount entered in 3.A of the contract - Answers-(c) 10%
