351 PROMULGATED CONTRACT FORMS Q&A 2023

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 VA release of liability is for the benefit of the seller. (T/F) - True If the seller wants to have his VA entitlement reinstated in full, he must find a veteran who has sufficient eligibility to purchase the seller's home and is willing to substitute his eligibility for the seller. (T/F) - True If an agent is a principal in a transaction or has at least a 50% interest in the property, he must disclose this in paragraph # 4 of the contract. (T/F) - True The sales price in the contracts includes the down payment, the loan, and the private mortgage insurance if the loan is greater than 80%. (T/F) - False In the One-to-Four Residential Contract, "property" includes the land, improvements, and accessories. (T/F) - True