Final Exam Study - Promulgated Forms (Law of Contracts II) Questions & Answers 100% Correct

1. The effective date- who, what, and when? - ANSWER-Between the buyer and the seller, The date on which the communication was made. The date of initialing and signing of the parties. The last party to initial/Sign fills in the day. 2. What is the legal proceedings brought by party to a contract against another party to compel action call forth in the agreement? - ANSWER-Breach of a contract, one-party defaults, sues for specific performance, seek other relief - arbitration, mediation, injunction to sue for compensatory Damages. 3. If the seller fails to provide the buyer with the sellers disclosure of property condition as required by Section 5.008 of the Texas property code what is the status of the purchase contract? - ANSWER-Voidable - The buyer may terminate the contract anytime prior to closing and the earnest money will be refunded to the buyer. 4. Which of the following is not addressed by TRAC - promulgated contracts. - ANSWER-Lease purchase new Condocontract 1. Transactions with the licensee is functioning Soley as the principal, not as an agent. 2. Transactions in which an agency of the United States government requires a different form to be used. 3. Transactions for which a contract form has been prepared by property owner or prepared by an attorney and required by the property owner. 4. Transactions for which most standard contract form has been promulgated by the Texas real estate commission, and the licensee uses a form prepared by the attorney at law licensed by this state and approved by the attorney for a particular kind of transaction involved or prepared by the Texas real estate Broker - lawyer committee and made available for trial use By licensees with the consent of the commission. 5. When is a financing addendum not required? - ANSWER-When the buyer pays in cash. Wiave third financing addendum 6. Items that are preprinted in paragraphs 1 and 2 of the contract include all the following except? - ANSWER-Exclusions 7. When will the third party financing addendum credit approval not be used? - ANSWER-1. Buyer pays cash. 2. Seller financing., 8. Which addenda will the Purchaser use when purchasing a property for cash? - ANSWER-None- no addendum will be used.