Real Estate Contract Terms and Concepts, Exams of Nursing

Download Real Estate Contract Terms and Concepts and more Exams Nursing in PDF only on Docsity! Champions Promulgated Forms exam 2023 mutual consent - correct answers meeting of the minds. consideration - correct answers something given in exchange for a promise option - correct answers an agreement between a buyer and seller giving the buyer the right to purchase a property at a present price for a given period of time void contract - correct answers invalid from the beginning and has no effect on the parties. contract to perform illegal act is a void contract voidable contract - correct answers cannot be enforced against one or more of the parties. most contracts entered into with minors are voidable at the option of the minor. valid and enforceable contract - correct answers competent parties, mutual consent (offer and acceptance), legal purpose, in writing (when required by law), consideration executory contract - correct answers defined as a contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed (from effective date to closing, the contract is executory) Champions Promulgated Forms exam 2023 "time is of the essence" - correct answers time for performance is literally interpreted, and must be performed by the day stipulated amendments - correct answers ___________ to the original contract may be needed. common amendments: changes to closing date, sales price, down payment and or amount financed, repairs that the seller agrees to perform, removal or waiver of contingencies addenda - correct answers _______ to a contract is an attachment that adds or further describes the rights and duties of a party. (ex. Financing _______ to obtain acceptable financing) if _____addendum contradicts the main body of a contract, the provision in the ________ prevails assignment - correct answers _____ of a contract transfers all the rights related to the contract to another party known as the assignee. assignee assumes primary liability for performance under the contracts, and the assignor, unless released, remains secondarily liable novation - correct answers new contract is substituted for an existing one statute of limitations - correct answers limitation of time in which an individual may file suit in court for damages because a party breached a contract. 2 years for oral agreement, 4 years for written Champions Promulgated Forms exam 2023 lease-purchase agreement - correct answers gives the tenant occupancy in the present time and the right to purchase at a future date(no promulgated form by TREC) imputed notice - correct answers offer is presumed to have been delivered to the principal when it is delivered to agent when a seller receives an offer, "_______________?" is the first question asked - correct answers what is the bottom line offer must meet certain legal requirements: - correct answers communicated to a specific offeree, intended to be a serious offer, definite and certain communication is referred to as ________ - correct answers notification net sheet - correct answers an estimate of the net proceeds to the seller, and should be prepared based upon the offer being considered seller contribution - correct answers reduce the amount of cash needs by the buyer at closing paragraph 1 - correct answers parties-- buyer and seller Champions Promulgated Forms exam 2023 paragraph 2A - correct answers property--land (legal description and address) paragraph 2B - correct answers property--improvements (all man-made additions to the land including the house, garage and other permanently installed and built in items) paragraph 2C - correct answers property--accessories (not necessarily permanently installed or built in, are commonly converted to the buyer in the sale) paragraph 2D - correct answers property--exclusions (ex. dining room chandelier not included in sale and with adequate name and location) paragraph 3 - correct answers sales price paragraph 3A - correct answers down payment is always the different between the ales price and the sum of all financing paragraph 3B - correct answers sum of all financing from all sources paragraph 3C - correct answers sale price is the sum of 3A and 3B Champions Promulgated Forms exam 2023 paragraph 4 - correct answers license holder disclosure (license holder who has familial relationship with a party to the transaction must disclose this info to other parties before entering contract) 3rd party financing: - correct answers Government loans and conventional loans 1. government loans: often either FHA or VA loans 2. conventional financing: first mortgage financing, second mortgage financing or both USDA guaranteed loans - correct answers 30 years, with a 0% down payment and is only made available in rural areas non-realty items addendum - correct answers then personal property is to be included in a sale In order for a buyer to purchase a property using VA Guaranteed financing, then buyer must receive a(n)________, which established the value of the property - correct answers Certificate of Reasonable Value (CRV-->appraisal done on VA loan) earnest money - correct answers "deposit" made up front by buyer to show that he or she is serious in his or her intent Champions Promulgated Forms exam 2023 endorsement - correct answers a change made to a standard insurance policy mediation - correct answers processes of resolving contractual disagreements between parties escrow - correct answers [Par 12] funds held by third party until performance of contract option period - correct answers [Par 23] the time allowed for buyer- specified inspections prorations - correct answers [Par 13] expenses divided between parties at closing --may be for taxes, maintenance fees and rents, etc. "good funds" - correct answers cashiers check or wire transfere closing different than funding, funding is where: - correct answers money exchanges hands Paragraph 10 Possession - correct answers --seller delivers property in present condition with ordinary wear and tear Champions Promulgated Forms exam 2023 --funding does not necessarily follow closing --if seller is to remain after closing Sellers Temporary Residential Lease form should be completed (90 days) --Buyers temporary release form (90 days) is for when a buyer moves in prior to closing Paragraph 11 Special Provisions - correct answers only for factual business details or statements not addressed in the contract form and for which there is no TREC-promulgated addendum, less or other mandatory form [Par 12] Expenses payable by Seller - correct answers releases of existing liens, including prepayable penalties and recording feeds; release of sellers loan liability; tax statements or certificates; preparation of deed; one-half of escrow fee; and other expenses payable by seller under this contract [Par 12] Expenses payable by Buyer - correct answers appraisal feeds, loan application feeds and adjusted origination charges. Also would include PMI, MIP, or VA funding fee all oral negotiations are ______ and do not become binding until committed to __________ - correct answers voluntary;writing Champions Promulgated Forms exam 2023 when the sale is closed, we say that the contract has been __________ - correct answers fully executed when buyer defaults, the seller has several options: - correct answers 1. specific performance: file court action to get defaulting party to perform according to contract 2. Monetary damages: award of monetary damages by court 3. Liquidated damages: seller can choose to accept buyers earnest money which releases both parties from contract When seller defaults, buyer can: - correct answers 1.1. specific performance: file court action to get defaulting party to perform according to contract 2. Monetary damages: award of monetary damages by court 3. refund of earnest money "survive closing" - correct answers both parties remain liable beyond closing escrow agent - correct answers --not a party to the contract and has no liability for the performance of either party --something of value(deed, more or written instrument) put into the custody of 3rd person to be retain until performance of contract Champions Promulgated Forms exam 2023 new home contract - correct answers contains provisions for various concerns regarding new construction agricultural use exemption - correct answers method for evaluating tax burden of properties used for agriculture unimproved property contract - correct answers used for the sale of properties with no existing structures In a farm and ranch sale, the buyer receives all of the following: - correct answers windmills tanks pens (NOT trucks etc) Which statement about earnest money is wrong: a. no standard amount prescribed, but is often 1% of sale b. in texas, earnest money is set at 6% of sales price c. not a legal requirement of a contract d. deposit paid up from by the buyer to show seriousness of intent - correct answers B IS WRONG Champions Promulgated Forms exam 2023 __________ are implemented when property operating under an exemption has its usage changed. - correct answers rollback taxes buyers termination form - correct answers used to notify the seller of a buyer-initiated contract termination non-realty items addendum - correct answers used when personal property is to be included in a sale short sale addendum - correct answers used when a seller is unable to sell at or above what is owed on a property consumer information form - correct answers should be prominently displayed in a brokers office condominium resale certificate - correct answers prepared by management of a condo project Buyer's Termination From - correct answers used to notify the seller of a buyer-initiated contract termination Champions Promulgated Forms exam 2023 non-realty items addendum - correct answers used when personal property is to be included in a sale short sale addendum - correct answers used when a seller is unable to sell at or above what is owed on a property consumer information form - correct answers should be prominently displayed in a broker's office condo resale certificate - correct answers prepared by management of a condo project addendum for sale of other property by buyer - correct answers contract by buyer and seller that says the contact is subject to the sale and funding of another property currently owned by buyer addendum for back up contact - correct answers used when a property is already under contact addendum for reservation of oil, gas and other minerals - correct answers real property can be divided into 3 separate estates: surface, air rights and subsurface rights --mineral interests can be converted from one owner to another w a mineral deed, by will or inheritance