Promulgated Forms Latest Update Graded A

Promulgated Forms Latest Update Graded A The title company decides the amount of earnest money required in a real estate contract. The statement is FALSE. The buyer and the seller agree to the amount of earnest money in a contract. If a contract does NOT meet the six elements of a valid real estate contract, it may become unenforceable. The statement is FALSE. Agreements that do not meet the requirements are void. Using an out-of-date version of a TREC form could be considered the unauthorized practice of law. The statement is TRUE. Earlier versions of TREC forms may not be used. In the sale and rental housing, the Fair Housing Act prohibits discrimination on the basis of race, color, national origin, religion, sex, familial status, or disability. The answer is TRUE. Protected classes under the Fair Housing Act include race, color, national origin, religion, sex, familial status, or disability. The Texas Real Estate Commission may prohibit a license holder from using a sales contract prepared by a property owner if the property owner is NOT an attorney. The statement is FALSE. The property owner does not have to be an attorney to prepare a sales contract. When using TREC-promulgated forms, a licensee may advise principals to real estate transactions to avoid costs by not employing lawyers. The statement is FALSE. A licensee may not attempt to discourage any principal from employing a lawyer. One TREC addendum must be used to detail all-cash transactions. The statement is FALSE. No special TREC addendum is needed because a transaction is all cash. A Seller's Temporary Lease must only be used if the seller is going to retain possession for more than 48 hours after closing The statement is FALSE. It allows for up to 90 days of occupancy. Fifteen contract forms are currently promulgated by TREC. The statement is FALSE. Six contract forms are currently promulgated by TREC. The One to Four Family Residential Contract requires the survey to be acceptable to whom? The statement is TITLE COMPANY. Paragraph 6(c) requires the survey to be acceptable to the title company and also to any lender. What is the last thing written on the TREC-promulgated contract form to execute the contract? The answer is DATE. After all parties have agreed on the terms, the agent then enters the executed date on the form. What does the buyer need to provide the seller in paragraph 7D(2) of the One to Four Family Residential Contract? The answer is BUYER'S REQUESTED REPAIRS. In this blank, the buyer accepts the property in its current condition if the seller will do specific repairs. An agent who receives a valid offer must The answer is PRESENT THE OFFER AS QUICKLY AS POSSIBLE. All offers should be in writing and presented to the property owner as quickly as is reasonably practical. The TREC rules call for immediate presentation. No real estate broker or salesperson has the right to withhold an offer from a property owner. Which of the following is a requirement to have a valid real property sales contract in Texas? The answer is BE SOBER. The parties must be sober and demonstrate contractual intent. The TREC One to Four Family Residential Contract can be used in the sale of condominiums. The answer is FALSE. In the sale of condominiums (not new construction), the Residential Condominium Contract should be used. Can TREC promulgate forms without the Broker-Lawyer Committee? The answer is NO. Texas statute requires promulgated forms to go through the Broker-Lawyer Committee (BLC) before they can be promulgated. Several years ago, the BLC refused to work on any forms when TREC tried to override the BLC's authority. During this period, no new forms were created. It is absolutely necessary to use the Seller Financing Addendum when a transaction uses any form of seller financing. The statement is TRUE. This addendum is needed to establish the details of the loan. In the Third Party Financing Addendum for Credit Approval, it is unacceptable to fill in the rates and terms blanks with any of the following EXCEPT The answer is SPECIFIC RATES AND TERMS. Specific numbers must be entered in the blanks. Vague or nonspecific words and term should be avoided. The purchase of a residential service contract is mandatory. The statement is FALSE. This is a buyer's right to choose. The sum entered on the first line of the sales price paragraph (3A) of TREC-promulgated contracts excludes the buyer's closing costs and prepaids. The statement is TRUE. This is the cash portion of the sales price only. How many people are on the Texas Real Estate Broker-Lawyer Committee? The answer is 13. The Texas Real Estate Broker-Lawyer Committee consists of 13 members appointed as follows: six members appointed by TREC, six members of the State Bar of Texas appointed by the president of the state bar, and one public member appointed by the governor. The reason the broker fee section is NOT part of the sales contract is The answer is BECAUSE IT IS BELOW THE SIGNATURES OF THE BUYER AND SELLER. Information below the signatures is not part of the agreement between the buyer and the seller. What is the minimum age in Texas to enter into a contract for real property? The answer is 18. To be legally competent, a party must have attained the age of majority, which in Texas is 18 years old. In the sale and rental housing, the Fair Housing Act prohibits discrimination on the basis of age, familial status, and sexual orientation. The answer is FALSE. Protected classes under the Fair Housing Act include race, color, national origin, religion, sex, familial status, or disability. The TREC Seller's Disclosure form is a promulgated form. The statement is FALSE. This is a voluntary use form from TREC. All types of financing require the use of an addendum. The statement is TRUE. The addendum is required to complete the details of the financing. Which is NOT an option for seller after they have received an offer? The answer is MAKE CHANGES AND FORCE THE BUYER TO ACCEPT. Sellers who are presented with a written offer may accept it, reject it, counter it, or do nothing—that is, ignore it. In a sale, sellers must disclose notice of lead-based paint in their homes if it was built before The statement is 1978. Federal law requires disclosure for homes built prior to 1978. An offer may be withdrawn anytime before the seller's acceptance. The statement is TRUE. The offer may also be withdrawn before the offer or receives notification of the seller's acceptance. The TREC Amendment must be added to all purchase contracts. The statement is FALSE. This is only added if needed to change terms of agreement.