CHAMPIONS PRINCIPLES OF REAL ESTATE 1. QUESTIONS WITH 100% CORRECT ANSWERS.

Exceptions to the requirement for completion of a Seller's Disclosure Notice, including sales: 1. Pursuant to a court order or foreclosure sale 2. By a bankruptcy trustee 3. To a lienholder by the owner of a property 4. By a mortgagee (lender) who has acquired the property through a foreclosure or a deed in lieu of foreclosure 5. By a fiduciary (e.g., an executor, trustee or guardian) in the course of administration of a decedent's estate, guardianship, conservatorship or trust 6. From one co-owner to one or more other co-owners 7. To a spouse or a person in the lineal line of consanguinity (e.g., parents, grandparents, children) of one or more of the transferors 8. Between spouses resulting from a divorce decree or a property settlement agreement incident to a divorce decree 9. To or from any governmental entity 10. Of a new residence which has not previously been occupied for residential purposes 11. Where the value of the dwelling does not exceed five percent of the value of the property Broker Lawyer Committee Texas Real Estate Commission (TREC) established the (?) to write residential contract forms that, with few exceptions, are mandatory for license holders. These forms are known as promulgated forms. Valid Contract one that meets all of the requirements of law. Void Contract invalid from the beginning and does not affect on the parties. A contract to perform an illegal act is a (?) contract. Voidable Contract cannot be enforced against one or more of the parties. Most contracts entered into with minors are (?) at the option of the minor. Unenforceable Contract cannot be enforced due to some flaw in the contract, passage of time, or other issues that make enforcement impossible. In the event of default by the buyer, the seller has several options, which include: -Liquidated Damages -Monetary Damages -Specific Performance Liquidated Damages The seller can choose to accept the buyer's earnest money as (?), releasing all parties from any further obligation under the contract Monetary Damages injured party may "seek such other relief as may be provided by law." Other relief would be an award of (?) by the court. Because the court awards (?), one never knows what they will be until the court rules. Specific Performance an order of the court directing the defaulting party to perform according to the terms of the contract. Assignment of a contract transfers all of the rights related to the contract to another party known as the assignee. The assignee assumes primary liability for performance under the contract, and the assignor, unless released, remains secondarily liable. Novation The substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated.