PROMULGATED CONTRACTS 256
QUESTIONS AND ANSWERS
Any investigation of an issue related to an Environmental Assessment,
Threatened or Endangered Species, & Wetlands Addendum is ____. -
Correct Answer ✔️✔️done at the buyer's expense
Residential Service Contract: - Correct Answer ✔️✔️Also
known as a Home Warranty; an agreement by a company to maintain,
repair, or replace applicable components of a home for a specified
period of time
Whose responsibility is it to review and choose the coverage of the
residential service contract? - Correct Answer ✔️✔️the
buyer
Which of the following is NOT true about title insurance? - Correct
Answer ✔️✔️The title policy protects the buyer from losses
considered "acts of God."
,The decision of which title company to use should be left to _____. -
Correct Answer ✔️✔️the parties to the contract
According to Paragraph 5 of the One to Four Family Residential
Contract, if the buyer fails to deposit the earnest money as agreed,
the buyer will be _____. - Correct Answer ✔️✔️in default
How much time does a seller have to cure a valid objection listed by
the buyer in Paragraph 6D of the One to Four Family Residential
Contract? - Correct Answer ✔️✔️15 days
A buyer is making an offer on a property but wants to be sure they
will be able to have their four dogs in that property. The agent is not
sure of the restrictions regarding pets. How can the agent protect the
buyer and give them an out under the contract if they cannot keep
their dogs there? - Correct Answer ✔️✔️List it in Paragraph
6D as a valid objection.
,The buyer must make valid objections not later than the closing date
or within _____ after receiving the Commitment, Exception
Documents, and the survey. - Correct Answer ✔️✔️the
number of days agreed to by the parties
According to the One to Four Family Residential Contract, the title
policy cost is the responsibility of the: - Correct Answer ✔️✔
️party that agreed to pay
If a property being sold is subject to a residential lease, which of these
would the seller need to transfer to the buyer upon closing? -
Correct Answer ✔️✔️the security deposit
After the effective date, _____________. - Correct Answer ✔
️✔️the seller cannot execute any lease without the buyer's
permission
Factual statements and business details are __________ of something
in the contract. - Correct Answer ✔️✔️clarifications
, Which of the following could be included in the Special Provisions
section? - Correct Answer ✔️✔️business details desired by
the principals
If no temporary residential lease is required on a property, when is
the seller required to deliver possession to the buyer? - Correct
Answer ✔️✔️upon closing and funding
When a seller remains in the property after closing, the seller now
becomes the landlord and the buyer becomes the tenant. - Correct
Answer ✔️✔️FALSE
(Explanation: When a seller remains in the property after closing, the
buyer now becomes the landlord and the seller becomes the tenant.)
The seller's children broke the picture window with a baseball while
they were in the property under a TREC Seller's Temporary Lease
Agreement. Who is responsible for replacing the window? -
Correct Answer ✔️✔️tenant
QUESTIONS AND ANSWERS
Any investigation of an issue related to an Environmental Assessment,
Threatened or Endangered Species, & Wetlands Addendum is ____. -
Correct Answer ✔️✔️done at the buyer's expense
Residential Service Contract: - Correct Answer ✔️✔️Also
known as a Home Warranty; an agreement by a company to maintain,
repair, or replace applicable components of a home for a specified
period of time
Whose responsibility is it to review and choose the coverage of the
residential service contract? - Correct Answer ✔️✔️the
buyer
Which of the following is NOT true about title insurance? - Correct
Answer ✔️✔️The title policy protects the buyer from losses
considered "acts of God."
,The decision of which title company to use should be left to _____. -
Correct Answer ✔️✔️the parties to the contract
According to Paragraph 5 of the One to Four Family Residential
Contract, if the buyer fails to deposit the earnest money as agreed,
the buyer will be _____. - Correct Answer ✔️✔️in default
How much time does a seller have to cure a valid objection listed by
the buyer in Paragraph 6D of the One to Four Family Residential
Contract? - Correct Answer ✔️✔️15 days
A buyer is making an offer on a property but wants to be sure they
will be able to have their four dogs in that property. The agent is not
sure of the restrictions regarding pets. How can the agent protect the
buyer and give them an out under the contract if they cannot keep
their dogs there? - Correct Answer ✔️✔️List it in Paragraph
6D as a valid objection.
,The buyer must make valid objections not later than the closing date
or within _____ after receiving the Commitment, Exception
Documents, and the survey. - Correct Answer ✔️✔️the
number of days agreed to by the parties
According to the One to Four Family Residential Contract, the title
policy cost is the responsibility of the: - Correct Answer ✔️✔
️party that agreed to pay
If a property being sold is subject to a residential lease, which of these
would the seller need to transfer to the buyer upon closing? -
Correct Answer ✔️✔️the security deposit
After the effective date, _____________. - Correct Answer ✔
️✔️the seller cannot execute any lease without the buyer's
permission
Factual statements and business details are __________ of something
in the contract. - Correct Answer ✔️✔️clarifications
, Which of the following could be included in the Special Provisions
section? - Correct Answer ✔️✔️business details desired by
the principals
If no temporary residential lease is required on a property, when is
the seller required to deliver possession to the buyer? - Correct
Answer ✔️✔️upon closing and funding
When a seller remains in the property after closing, the seller now
becomes the landlord and the buyer becomes the tenant. - Correct
Answer ✔️✔️FALSE
(Explanation: When a seller remains in the property after closing, the
buyer now becomes the landlord and the seller becomes the tenant.)
The seller's children broke the picture window with a baseball while
they were in the property under a TREC Seller's Temporary Lease
Agreement. Who is responsible for replacing the window? -
Correct Answer ✔️✔️tenant
