Download Texas Promulgated Contracts-CHAMPIONS Exam 2024 100% Correct Answers New and more Exams Financial Management in PDF only on Docsity!
The TREC-promulgated contract forms: The elements of a valid contract are, competent parties, consideration, legal subject matter, in writing, and. (a) Default (b) Mutual consent (c) Property condition (d) Recording B A(n) contract is 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. (a) Executory (b) Executed (c) Bilateral (d) Void A In the business of real estate, is defined as something given in exchange for a promise. (a) Consideration (b) Mutual assent (c) A bribe (d) Legal subject matter A (a) Are for optional use by real estate licensees (b) Are drafted by the Broker-Lawyer Committee
(c) Are promulgated by the legislature (d) Are used in both commercial and residential transactions B
(c) The buyer is obtaining VA financing (d) The buyer is obtaining any kind of financing B
In the Third Party Financing Addendum for Credit Approval: (a) The buyer has no incentive to obtain financial approval (b) The buyer has a definite time to notify seller of the inability to obtain financing approval (c) The buyer's earnest money will not be returned if the buyer does not obtain financing (d) The option period is explained C The Third Party Financing Addendum for Credit Approval cannot be used for: (a) VA guaranteed loans (b) FHA insured loans (c) Seller Financing (d) Texas Veterans Loans B According to the Seller Financing Addendum, the interest rate is: (a) Set at 6% (b) Negotiated between the parties (c) Set by TREC (d) Determined at closing A occurs when a buyer assumes and agrees to pay the seller's existing mortgage. (a) Loan assumption
A
Land, improvements and accessories are collectively referred to as: (a) The estate (b) The property (c) The listing (d) The homestead B According to the TREC contract, accessories include: (a) Refrigerators (b) Stoves (c) Washing machines (d) Gas dryers A Exclusions to the sale must be removed (a) Prior to delivery of possession (b) At the convenience of the seller (c) When the offer becomes a binding contract (d) Two days prior to closing A The loan amount in Paragraph 3.B. of the sales contract includes: (a) The amount of the mortgage insurance (b) The loan plus origination fees
(c) Only the amount borrowed by the buyer (d) The loan amount minus the earnest money C
(c) Seller's Disclosure (d) Inspection report A
A Seller's Disclosure Notice is not required (a) When the property being sold is a previously unoccupied new home (b) When the property is sold to an investor (c) When the property has an out of state owner (d) When the property is sold "as i" A If a buyer is concerned about the presence of endangered species, toxic substances or wetlands on a property, the agent should (a) Add the Environmental Assessment Addendum to the contract (b) Avoid the property at all costs (c) Add in Paragraph 11, Special Provisions, that the contract is subject to an environmental review (d) Explain to the buyer that environmental issues are rarely a problem A How long does a buyer have to object to defects, exceptions and encumbrances to title disclosed in the survey and title commitment? (a) Within 3 days of the effective date of the contract (b) Up to 5 days prior to closing (c) Within 7 days of becoming concerned (d) The negotiated number of days stated in the contract D Being within the extraterritorial jurisdiction of a municipality is an
(c) Be unmarketable (d) Never be annexed by any municipality B The Lead-Based Paint Disclosure is: (a) Required for all properties (b) A federal requirement for residential property built prior to 1978 (c) A TREC requirement (d) The responsibility of the buyer's agent B If a buyer makes an offer without having received the Seller's Disclosure Notice, how many days does the seller have to provide the notice? (a) Not less than 3 days prior to closing (b) Not more than 5 days after the effective date of the contract (c) Within 7 days of loan approval (d) The number of days negotiated in the contract D If a license holder is receiving compensation from a residential service company, the compensation is: (a) Reported to TREC (b) Disclosed to the parties using the appropriate TREC form (c) Never disclosed to anyone (d) Reported to the attorney general for action B
For a valid option to exist (a) The option fee must be paid directly to the seller or listing broker
B
If not using a temporary lease, the buyer is entitled to possession of the property:
(a) 24 hours before closing (b) When the seller has moved out (c) On closing day (d) Upon closing and funding D The Buyer and Seller Temporary Residential Lease forms are good for any period up to: (a) 14 days (b) 30 days (c) 60 days (d) 90 days D If a seller wants to continue to occupy the property for two days after the closing and the buyer agrees: (a) This can be written into the special provisions paragraph of the contract (b) The buyer and seller should negotiate a periodic tenancy agreement (c) The Seller's Temporary Residential Lease form should be used (d) The TAR Residential Lease form should be used C When one party defaults under a contract, the other party is known as the: (a) Breaching party (b) Injured party
B
The State of Texas encourages the parties to resolve all conflicts and disputes through alternative dispute resolution procedures such as: (a) Arbitration (b) Going to court (c) Mediation (d) Termination of the contract C IRS statutes require a buyer to: (a) Purchase property only from U.S. citizens (b) Withhold 20% of the price from a foreign seller of U.S. property (c) Withhold 10% of the sale proceeds in excess of $300, when a foreign person has no social security card or green card (d) None of the above C All written notices between the parties are effective when: (a) Mailed (b) Hand-delivered (c) Faxed or emailed (d) Any of the above D When should a licensee advise a party to a contract to consult an attorney?
(a) At first contact with the client (b) Before signing the contract if the client does not understand the effect of signing the sales contract or the terms or conditions in the agreement
