Promulgated Contracts-Level 10 Questions and Answers 100% Correct | Latest Update 2024, Exams of Advanced Education

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Promulgated Contracts-Level 10 Questions and Answers 100% Correct | Latest Update 2024 Addendum for Sale of Other Property by Buyer ADDS - Correct Answer-contingency to sale (buyer's existing property is sold and closed) Presented by the buyer, the addendum offers protection of the buyer's earnest money Becuase the sale of the other property has to happen within a hard deadline, Addendum for Sale of Other Property has hard deadline-AKA - Correct Answer-time is of the essence buyer's existing property is already under contract (pending), and they are just concerned about closing and funding-WHICH addendum? - Correct Answer-Addendum for Sale of Other Property Paragraph 19 of the One to Four Family Contract says that the seller can continue to market the property for back-up offers pg. 1 professoraxe l AND - Correct Answer-and receive, negotiate, and accept a back-up offer Seller must then give original buyer (Addendum for Sale of Other Property notice 1st buyer w Addendum may choose to WAIVE addendum and go ahead with purchase OR terminate Addendum for Back up Offer states that seller CAN - Correct Answer-accept back-up offers AFTER they've already secured a contract and the sale is pending Time is of the Essence Back up Buyer's Termination Rights - Correct Answer-Back up buyer may continue to look for other homes IF they have signed OPTION TO TERMINATE they have the freedom to terminate their back-up contract at any time (receive earnest $ but not option $) pg. 2 professoraxe l of the total minerals and the new purchaser will own 25%. Sam still owns the other 50%. What IS included in a Mineral Estate? - Correct Answer-1. oil, gas, and other minerals in and under the property 2. royalty under any existing or future mineral lease covering any part of the property 3. executive rights (including the right to sign a mineral lease covering any part of the property), 4. implied rights of ingress and egress, exploration and 4. development rights, production and drilling rights, mineral lease payments, and all related rights and benefits. WHat is NOT included in a MIneral Estate? - Correct Answer- water, sand, gravel, limestone, building stone, caliche, surface shale, near-surface lignite Items NOT included in a MIneral Estate may be USED for: - Correct Answer-for mining, drilling, exploring, operating, developing, or removing the oil, gas, and other minerals from the property pg. 5 professoraxe l Rights of BUYER to terminate using Notice of Buyer's Termination of Contract - Correct Answer-1. unrestricted right of the buyer to terminate the contract under Paragraph 23 (OPTION) 2. buyer cannot obtain buyer approval in accordance with the Third Party Financing Addendum 3. property does not satisfy property approval of lender (insurablity, appraisal, repairs) 4. Buyer elects to terminate under Paragraph A of the Addendum for Property Subject to Mandatory Membership in a Property Owners' Association (3 days to do so) 5. Paragraph 7B(2) of the contract relating to the Seller's Disclosure Notice *up to 7 days AFTER receipt or ANYTIME if NEVER RECEIVED Notice of Buyer's Termination of Contract does NOT address - Correct Answer-release of earnest money (b/c title company can't release w/o seller's permission pg. 6 professoraxe l and it only needs to be signed by the BUYER (buyer has these RIGHTS already according to contract and does NOT need seller's approval) There is NOT a TREC PROMULGATED form for MUTUAL TERMINATION OF CONTRACT - Correct Answer-title company can provide the parties with a form for each of them to sign for the release of contract that will address what will happen with the earnest money public has a right to use the beach area, and the State of Texas protects that right found in - Correct Answer-Addendum for Property Located Seaward of the Gulf Intracoastal Waterway If the property at some point comes to be located on the beach area because of storms and erosion of the soil, the state can require - Correct Answer-the owner to remove the structure at their own expense Addendum for Coastal Area Property is used with contracts on properties that - Correct Answer-share a boundary with the submerged lands of the state pg. 7 professoraxe l WHO completes the Subdivision Information and Resale Certificate? - Correct Answer-HOA purpose of HOA fees is to help maintain the quality of life for that community's residents and - Correct Answer-protect property values for all owners BUT buyer has objection period of THREE DAYS Consumer Protection Notice TREC No. CN 1-2 needs to be posted - Correct Answer-in all real estate offices *where/how to file complaint *how to contract TREC *real estate recovery fund Consumer Notice Concerning Hazards or Deficiencies is an approved form (not promulgated or required) that can be given to buyers to - Correct Answer-educate them on the purpose of property inspections DO NOT HAVE TO SIGN (since not required) pg. 10 professoraxe l any decision to correct any property deficiencies is left - Correct Answer-to the decision of the parties and is not a requirement Addendum for Property in a Propane Gas System Service Area provides the buyer - Correct Answer-with information about EXTRA costs that may be required for propane gas service provide the parties to a contract a place to negotiate the transfer of any non-real estate items that may be purchased separately from the property - Correct Answer-Non-Realty Items Addendum the seller should only be conveying items (in Non-Realty Items Addendum) that are - Correct Answer-fully paid for and owned outright Information About Brokerage Services notice is a - Correct Answer-shortcut to explaining real estate representation and broker duties to a consumer pg. 11 professoraxe l Texas law requires two agency disclosures: - Correct Answer- real estate professional must tell everyone (agents and customers) at first contact whom they are representing (IF ANYONE) real estate professional must provide the written agency disclosure (Information About Brokerage Services) to an unrepresented consumer when the consumer and the agent begin a conversation regarding specific real property Disclosure of Relationship with Residential Service Company was created by TREC to remind agents - Correct Answer-that it is a violation of the Real Estate Settlement Procedures Act (RESPA) for a license holder to receive a referral for simply passing on a name to a service provider RESPA's goal is to keep cost - Correct Answer-lower for consumers of real estate agents can only take money for actual services rendered-this is found in - Correct Answer-Disclosure of Relationship with Residential Service Company pg. 12 professoraxe l