Texas RE Promulgated Contract Forms, Exams of Contract Law

Download Texas RE Promulgated Contract Forms and more Exams Contract Law in PDF only on Docsity! DO NOT COPY Texas RE Promulgated Contract Forms - Champions 2023- 2024 Graded A+ TREC contract forms & their uses - pg 35 - correct answer ✅The contract form: is the One to Four Family Residential Contract (Resale). One to four means that it can be used for single- family properties, duplexes, triplex properties, and four-unit buildings. A building with five or more living units would be considered to be a commercial transaction. It is also used for resales only. A new home contract would be used on new home sales. This form is not to be used for a condominium, but may be used for the sale of a townhouse. TREC contract forms & their uses - pg 24 - correct answer ✅TREC has promulgated sales contract forms for most residential properties, including: One-to-Four Family Contract (Resale) New Home Contract (Incomplete Construction) New Home Contract (Completed Construction) Unimproved Property Contract Residential Condominium Contract (Resale) Farm and Ranch Contract TREC rules regarding the buyers use of inspectors - pg 61 - correct answer ✅Buyer may have the Property inspected by inspectors selected by Buyer and licensed by TREC or otherwise permitted by law to make inspections. Any hydrostatic testing must be separately authorized by Seller in writing. When does an offer become a contract? - pg 28 - correct answer ✅ P a g e 1 | 7 Paragraph 24 - use and timing - pg 87 - correct answer ✅ paragraph 4 - disclosures of agency coupled with an interest and family relationships - pg 100- 101 - correct answer ✅ Lead paint - disclosures, dates, timing, buyers right's, seller's responsibilities - pg 68 - correct answer ✅ TREC forms RSC-2 - Purpose and use requirements - pg 70 - correct answer ✅ Fair housing terminology & prohibited acts - pg 209 - correct answer ✅ The T-47 Affidavit - purpose & use - pg 59 - correct answer ✅ Loan Assumption - features and requirements - pg 59 - correct answer ✅ promulgated loan forms & their uses - pg 44 - correct answer ✅ Features of the Lead based paint disclosure form - pg 68 - correct answer ✅ Paragraph 20 - Federal Tax Requirements - pg 85 - correct answer ✅ Broker/seller commission agreements - pg 208 - correct answer ✅ P a g e 2 | 7 Possible response or action upon the reciept of an offer - pg 27 - correct answer ✅ Types of contracts & their features - valid, void, voidable, unenforceable - pg 11 - correct answer ✅ Features of the option fee VS. the earnest money deposit - pg 86 - correct answer ✅ Common amendments to the original contract - pg 14 - correct answer ✅ Number of days for the title company to deliver the title commitment - pg 55 - correct answer ✅ IABS - required uses - pg 199 - correct answer ✅ Purpose of the notice to prospective buyer form - pg 60 - correct answer ✅ Default - definition - pg 82 - correct answer ✅ provisions of an addendum VS. the original contract - which prevails? - pg 15 - correct answer ✅ Broker-lawyer committee duties & purpose - pg 24 - correct answer ✅ What are good funds? - pg 75 - correct answer ✅ P a g e 5 | 7 The purpose & use of Paragraph 6 - pg 56 - correct answer ✅PARAGRAPH 6.D. OBJECTIONS: Buyer may object to any matters that might prohibit a certain use or activity of the property, such as the installation of a satellite dish, operating a business out of the home, or parking of an RV within view of the street. Whatever the intended use of the property, it must be listed here. If the buyer is using the property for a residence only, many license holders insert the words "residential use" in this paragraph. The parties to the contract specifically as noted in paragraph 18.A - pg 84 - correct answer ✅ESCROW: The escrow agent is not (i) a party to this contract and does not have liability for the performance or nonperformance of any party to this contract, (ii) liable for interest on the earnest money and (iii) liable for the loss of any earnest money caused by the failure of any financial institution in which the earnest money has been deposited unless the financial institution is acting as escrow agent. Stigmatized properties - causes and/or features - pg 212 - correct answer ✅A property where there has been a murder or alleged haunting is stigmatized. A property can be considered stigmatized if it is in the vicinity of the residence of a known sexual offender. Megan's Law is a federal law requiring all states to release information to the public about known convicted sex offenders, when necessary, to protect the public's safety. Megan Kanka was a 7-year-old girl who was murdered on July 29, 1994, in New Jersey. The law was created in response to her death. The unlawful practice of law - specific examples - pg 24 - correct answer ✅inserting "time is of the essence" in Paragraph 11 changes the legal effect of the contract and could be interpreted as the unlawful practice of law by the license holder. License holders must not insert provisions into the contract that are addressed by using a TREC-promulgated addenda form. P a g e 6 | 7 Items to be retained by the seller as specified in the contract - pg 36 - correct answer ✅ Paragraph 5 - Features - Pg 53 - correct answer ✅ Requirements for buyer approval according to the TREC Third Party Financing addendum - pg 39 - correct answer ✅ Closing costs or settlement expenses - pg 81 - correct answer ✅ Items typically prorated/ the proration process - pg 82 - correct answer ✅ Required use of the TREC forms & exceptions to required use - pg 24 - correct answer ✅ Types of contracts - valid, void, voidable, executory, executed - pg 13 - correct answer ✅ Use of the Third Party Financing Addendum - pg 38 - correct answer ✅ Requirements of a valid contract - pg 11 - correct answer ✅ P a g e 7 | 7