Promulgated Contract Forms Exam Questions with Complete Solutions

When earnest money is deposited with an escrow agent, the escrow agent: - Answer-A) Is not responsible for the performance of any signatory B) Has the right to secure written release of all signatories C) Is not liable for interest on the money How does the Texas Real Estate License Act define the first face-to-face meeting with required agency disclosure? - Answer-When a substantive dialogue about a specific real property occurs If a property was built before 1978, what specific addendum is required? - Answer-Disclosure of Lead-Base Paint Addendum The Buyer's Agency Agreement allows an agent to show the same properties to competing clients - Answer-true The Third Party Financing Condition Addendum is not used with - Answer-Seller financing The Texas Real Estate Commission (TREC) promulgates an addendum to be used in a short sale. This Short Sale Addendum is to be signed by: - Answer-Buyer and seller In Paragraph #14 of the Residential Contract (casualty loss), If a seller cannot complete the repairs within the time limit, the buyer has the option of: - Answer-Terminating the contract In Paragraph 3B of the sales contract, the "sum of all financing" - Answer-Excludes any loan funding fee or mortgage insurance premium The TREC promulgated 1-4 Family Residential Contract (resale) states that if the cost of lender required repairs and treatment exceed _______% of the sales price, buyer may terminate the contract and the earnest money will be refunded to the buyer. - Answer-5% The financing paragraph will be used to indicate: - Answer-A) Third party financing B) Assumption C) Seller financing If a Seller is to remain in the property after closing: - Answer-D) A Seller's Temporary Lease Form promulgated by TREC should be completed and signed by buyer and seller and attached to the contract. - Your buyers have signed a contract to buy a new home. The contract is subject to the sale of their present home. This is called a: - Answer-Contingency