Real Estate Contracts: Promulgated Contract Forms Final Exam, Exams of Nursing

Download Real Estate Contracts: Promulgated Contract Forms Final Exam and more Exams Nursing in PDF only on Docsity! Promulgated Contract Forms final exam Promulgated Contract Forms Final Exam Review Questions and Answers 2024- 2025. If a Buyer wants the Seller to pay some or all of their closing costs, it should be added to the contract in: A) Paragraph #11 (Special Provisions) B) Paragraph #12 - Seller participation in the Buyer's costs 1 | P a g e Promulgated Contract Forms final exam C) Third Part financing Addendum D) All of the above - Answer: B) Paragraph #12- Seller participation in the Buyer's costs If a Buyer chooses not to be represented by an agent, the Buyer must be made aware that any information they share can be communicated to the Seller. A) True B) False - Answer: A) True The sales price is determined in paragraph 3 by adding the down payment (3A) and the loan amount (3B). A) True B) False - Answer: A) True The Seller contracts to furnish the buyer an existing survey, but neglects to furnish an "affidavit' with the time specified. The lender requests a new survey be furnished. Who pays for the new survey? A) Whoever is stated in the contract if the existing survey is rejected B) The title company can approve the existing survey and override the lender C) The buyer D) The seller - Answer: D) The seller 2 | P a g e Promulgated Contract Forms final exam C) To force either the buyer or the seller to perform on the terms of the contract D) Is a lawsuit against the inspection company - Answer: C) To force either the buyer or the seller to perform on the terms of the contract How does the Texas Real Estate License Act define the first face-to-face meeting with required agency disclosure? A) When a licensee first meets a prospect B) When a prospect is ready to sign an agreement C) Only when a specific property is being shown D) When a substantive dialogue about a specific real property occurs - Answer: D) When a substantive dialogue about a specific real property occurs Brokers fees are included in the 1-4 Family Residential Contract (resale) between the Buyer and the Seller. A) True B) False - Answer: B) False Standard forms of TREC must be used unless: A) A broker or salesperson wishes to use a different form B) A principal in the transaction requests a different form to be used C) The listing broker disagrees with certain language in the contract 5 | P a g e Promulgated Contract Forms final exam D) A lender requires a different form to be used - Answer: Wrong A) A broker or salesperson wishes to use a different form wrong D) A lender requires a different form to be used According to the TREC 1-4 Residential Contract (Resale), who is responsible for paying the owner policy of title insurance fee? A) The buyer B) The seller C) The title company named in the contract D) The party stipulated in the contract - Answer: D) The party stipulated in the contract The Information About Brokerage Services (IBS) states the broker may represent the: A) Owner B) Buyer C) Both owner and buyer as intermediary D) All of the above - Answer: Wrong C) Both owner and buyer as intermediary What is the status of a contract if the seller does not make the buyer aware of a property being located with a municipal utility district? A) Voidable by the buyer 6 | P a g e Promulgated Contract Forms final exam B) Void C) Voidable by the seller D) Voidable by the buyer or the seller - Answer: A) Voidable by the buyer A contract is described as an agreement between two or more parties to do or not do something. A) True B) False - Answer: A) True Any changes to the original contract once it is finalized and receipted must be done: A) At the title company on the original contract B) On an amendment C) On the 3rd Party Financing Addendum D) On a real estate change form - Answer: B) On an amendment A TREC promulgated (declaration)Farm and Ranch contract can include: A) Buildings B) Crops C) Equipment D) All of the above - Answer: D) All of the above 7 | P a g e Promulgated Contract Forms final exam A) As specified in the contract B) As verbally agreed between buyer and seller C) As verbally agreed between the sales agents representing buyers and sellers D) None of the above - Answer: A) As specified in the contract The Seller as well as the Buyer has the unrestricted right to terminate the contract under the option period. A) True B) False - Answer: B) False A voluntary dispute resolution is called litigation A) True B) False - Answer: B) False Steering is illegal and is described as channeling a minority to or away from an area to change the character of the neighborhood. A) True B) False - Answer: A) True Federal Fair Housing Laws forbids discriminatory practices by parties including: A) Owners of properties 10 | P a g e Promulgated Contract Forms final exam B) Lenders C) Real estate brokers D) All of the above - Answer: D) All of the above Intermediary requires: A) Disclosure of who represents whom in a transaction B) Written agreement by both seller and buyer C) involvement of only one company D) All of the above - Answer: D) All of the above Use of the TREC promulgated (declaration)One to Four Family Residential Contract (resale) is allowed on the sale of a residential condominium. A) True B) False - Answer: B) False If there is an existing survey on the property, what does the seller take to the title company and the lender? A) The existing survey B) The existing survey and a notarized affidavit stating if there have been any changes in the survey since the time the existing survey was completed C) A copy of the deed and the existing survey 11 | P a g e Promulgated Contract Forms final exam D) The seller's appraisal and a copy of the survey - Answer: B) The existing survey and a notarized affidavit stating if there have been any changes in the survey since the time the existing survey was completed When earnest money is deposited with an escrow agent, the escrow agent 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 D) All of the above - Answer: D) All of the above There are no TREC promulgated(declaration) contracts for new construction. All builders use their own contracts. A) True B) False - Answer: B) False In the event of buyer's default, the seller may: A) Terminate the contract B) Receive the earnest money as liquidated damages C) Enforce specific performance D) Any one of the above - Answer: D) Any one of the above 12 | P a g e Promulgated Contract Forms final exam C) Never share the information with another client D) share the information, but only to another agent - Answer: B) Share that information if the Client authorizes the agent to share it If a buyer and/or seller agree to mediate, they are giving up their right to pursue relief through the courts. A) True B) False - Answer: B) False 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. A) 7% B) 1% C) 5% D) 20% - Answer: C) 5% In Paragraph 3B of the sales contract, the "sum of all financing" A) Includes the earnest money deposited at the time the contract is executed B) Includes the closing costs C) Excludes any loan funding fee or mortgage insurance premium 15 | P a g e Promulgated Contract Forms final exam D) All of the above - Answer: C) Excludes any loan funding fee or mortgage insurance premium If a property has a "Sale of Other Property" contingency contract on it, Seller: A) Cannot accept another offer B) Must take the property of the market C) Can ask the original buyer to remove the contingency if the Seller has accepted another offer as a back -up D) None of the above - Answer: C) Can ask the original buyer to remove the contingency if the Seller has accepted another offer as a back -up Per Paragraph #16 of the Residential Contract (Mediation), If a buyer and/or seller agrees to mediate, they are giving up their right to pursue relief through the courts. A) True B) False - Answer: B) False The Condominium Resale Certificate called for in paragraph 2 of the TREC Residential Condominium Contract (Resale) must have been prepared no more than _________ before the date it is delivered to the buyer. A) 7 days B) 20 Days 16 | P a g e Promulgated Contract Forms final exam C) 6 months D) 3 months - Answer: D) 3 months If a property was built before 1978, what specific addendum is required? A) Walk Through and Acceptance addendum B) Addendum for asbestos inspection C) Disclosure of Lead-Base Paint Addendum D) Addendum for Inspection with Right to Terminate - Answer: C) Disclosure of Lead-Base Paint Addendum If the Buyer does not give notice to the Seller that he/she cannot obtain credit approval with the number of days stated in the contract, the contract will no longer be subject to the buyer's credit approval. A) True B) False - Answer: A) True Within ____ days after the title company receives a copy of the contract, Seller shall furnish to Buyer a Commitment for title insurance. A) 10 B) 5 C) 20 D) 30 - Answer: C) 20 17 | P a g e