351 PROMULGATED CONTRACT FORMS QUESTIONS AND ANSWERS 100% PASS

351 PROMULGATED CONTRACT FORMS QUESTIONS AND ANSWERS 100% PASS If there is no time limit specified in an offer, then the time limit will expire: Within a reasonable time The clause in a contract stating that "time is of the essence" would indicate: Strict performance of certain acts within the time stated in the contract. A bilateral contract is: A promise in exchange for a promise Essential elements of a contract include: Competent parties, Offer and acceptance, Consideration A unilateral contract only binds one party to perform.(T/F) False A real estate broker or salesperson, while acting as an agent for another, is a(n) _____________. fiduciary The Joint Broker-Lawyer Committee consists of _______________ members. 13 The Texas Real Estate Commission is a nine-member commission appointed by _____________. the governer The three Canons of Professional Ethics are ____________, ___________, and ______________. fidelity / integrity / competency The One-to-Four Family Residential Contract spells out the ______________________________________ of each party to successfully complete a transaction. financial obligations, duties Texas real estate license holders are _______________ to use forms promulgated by TREC when negotiating contacts for the sale of real property. required There are two places to find the seller's name to fill in the contract. The name can be found in the ____________________ or in the ______________________. MLS printout / tax records If the agent is a _________________________, he/she must disclose that fact. party to the contract For proper naming of the parties in the contract, you should ask the buyer (if you are representing them) their ___________________________. full and legal name It is absolutely essential to have a __________________________ to make the contract binding and legally enforceable. correct legal description Paragraph 3 A represents the ______________________ in the transaction. down payment When personal property is included in the sale, you will want to use the ____________________ addendum. non-realty items The standard FHA loan used with most residential transactions is the FHA _________ program. 203b With an FHA or VA loan, the buyer is not obligated to purchase the property if the house does not ____________. appraise Under conventional financing, the buyer will normally get a 30-year amortized loan although 15-year and bi-monthly payment loans are available. (T/F) True As long as any exclusion is on the Seller's Disclosure, it is not necessary to put in the contract itself. (T/F) False The Seller Financing Addendum is much more common than the Loan Assumption Addendum. (T/F) True On the Loan Assumption Addendum, if the tax and insurance escrow is deficient, the buyer must pay the deficiency. (T/F) False The