question

Which of the following requires a contract for the conveyance of real estate to be in writing to be enforceable?

answer

Statue of Frauds

question

The TREC residential contract forms

answer

are drafted by the Broker Lawyer Committee

question

An option contract is

answer

a unilateral contract

question

In a lease with a "right of first refusal" provision

answer

the tenant has the right to match or better any offer the landlord receives to prevent the property from being sold to someone else

question

If a broker receives more than one offer on a property

answer

all must be presented to the seller unless the seller has instructed the broker otherwise

question

A counteroffer is

answer

a rejection, a new offer, able to be withdrawn prior to acceptance

question

If a buyer defaults on a contract and the seller chooses to keep the deposits, this is an example of

answer

accepting liquidated damages

question

Freehold estate usually include

answer

surface, subsurface, and air rights

question

A written history of all instruments and happenings that may affect the title is called

answer

an abstract of title

question

RESPA regulates the closing on

answer

1-4 family residential properties with federally related financing

question

Rule P-53 of the Texas Department of Insurance states that Title Companies

answer

cannot provide food and beverages for a picnic for a single firm, can't provide an annual party for a single firm, can't provide continuing education classes unless they charge the market rate for those classes

question

The most common form of financing used by buyers is

answer

third party financing

question

If the loan factor is $5.53 on a $200,000 loan, taxes are $2400/year and insurance is $1800/year, what is the monthly PITI payment?

answer

$1456

question

"Days" in all TREC contracts and forms refers to

answer

calendar days

question

Texas Veteran's Housing Assistance Program loans can be

answer

FHA, VA, Conventional

question

An offer by a prospective purchaser can be terminated prior to acceptance due to

answer

expiration of a specified time period, bankruptcy of either party, a change in the law that renders the contract illegal

question

Buyers and sellers in the contract should be identified by their

answer

legal names

question

Issues relating to community property and homestead

answer

are determined by the title company

question

Land, improvements and accessories are collectively referred to as

answer

the property

question

According to the TREC contract, accessories include

answer

stoves

question

When a seller wishes to retain certain fixtures or accessories, these items are called

answer

exclusions

question

The loan amount under paragraph 3.B of the sales contracts includes

answer

only the amount borrowed by the buyer

question

Paragraph 3.B of the contract includes the PMI or MIP in the loan amount

answer

False

question

The sales price in 3.C is always

answer

3.A + 3.B, the amount borrowed plus the down payment, the loan amount plus the cash portion

question

The One to Four Family Residential Contract can be used for

answer

third party conventional financing, loan assumptions, and seller financing

question

In a loan assumption the buyer will be taking over the debt of the seller equal to the unpaid balance of one or more promissory notes as described in an attached addendum

answer

True

question

Earnest money is deposited in an escrow account when

answer

the contract is signed by all parties

question

The buyer's policy of title insurance is paid for by

answer

the party stipulated in the contract

question

Exceptions for coverage under title insurance policies include

answer

utility easements

question

The title company must furnish the title commitment within how many days?

answer

20

question

How long does a buyer have to object to defects, exceptions and encumbrances to title disclosed in the survey and title commitment?

answer

the negotiated number of days stated in the contract

question

The Texas Property Code requires buyers by given notice of

answer

Property Owners Association Mandatory Membership

question

The Seller's Disclosure Notice should be prepared by

answer

the owner

question

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?

answer

the number of days negotiated in the contract

question

The Lead-Based Paint Disclosure is

answer

a federal requirement for residential property built prior to 1978

question

A Seller's Disclosure Notice is not required

answer

at a foreclosure sale

question

Lender required repairs

answer

are usually the result of an inspector's comments, can result in termination of the contract, and can delay the closing

question

The commission agreement between the broker and the seller is usually found

answer

in the listing agreement

question

The closing date

answer

is negotiated between the buyer and the seller, is an on or before date, and may be extended when necessary

question

At the closing the buyer should bring

answer

a cashier's check or wire transfer for the amount of closing costs and down payment

question

The buyer will be entitled to possession of the purchased property

answer

upon closing and funding

question

If a seller wants to continue to occupy the property for one month after the closing and the buyer agrees

answer

the Seller's Temporary Residential Lease form should be used

question

The Buyer and Seller Temporary Residential Lease forms are good for any period up to

answer

90 days

question

The special provisions paragraph of the contract allows licensee to insert

answer

factual business details, statements not addressed in the contract, and information for which there is not TREC promulgated addendum, lease or mandatory form

question

Usual expenses of the seller as stated in the contract include

answer

release of existing lien

question

Usual expenses of the buyer as stated in the contract include

answer

loan application fees

question

The process of dividing ongoing expenses between the buyer and seller at the closing is called

answer

prorating

question

For tax prorations

answer

if taxes are not paid at or prior to closing the buyer shall pay for the current year, if taxes for the current year vary from the amount prorated at closing, the parties shale adjust the prorations when tax statements for the current year are available, the tax proration may be calculated taking into consideration any change in the exemptions that will affect the current year's taxes

question

Damage or destruction of a property under contract prior to closing

answer

can terminate the contract

question

The State of Texas encourages the parties to resolve all conflicts and disputes through alternative dispute resolution procedures such as

answer

mediation

question

The escrow agent is not

answer

a party to the contract, liable for interest on the earnest money, and liable for the performance or nonperformance of any party to the contract

question

IRS statutes require a buyer to

answer

withhold 10% of the sale proceeds in excess of $300,000 when a seller has not social security card or green card

question

All written notices between the parties are effective when

answer

mailed, hand delivered, faxed or emailed

question

For a valid option to exist

answer

all of the blanks in paragraph 23 must be filled in, the option fee must be paid within two days after the effective date of the contract, and the option fee must be paid directly to the Seller or the listing broker

question

When should a licensee advise a client to consult an attorney

answer

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

question

Who is responsible for filling in the effective date of the contract after the last party signs?

answer

the broker

question

The sales contract identifies the agency relationships between the broker and parties

answer

in the Broker Information section

question

In the Third Party Financing Addendum for Credit Approval

answer

The buyer has a definite time to notify seller of the inability to obtain financing approval

question

The Third Party Financing Addendum for Credit Approval cannot be used for

answer

Seller Financing

question

According to the Third Party Financing Addendum for Credit Approval of a VA loan, if the purchase price or cost exceeds the reasonable value of the property as determined by the Department of Veterans Affairs the Buyer,

answer

can terminate the transaction without penalty, can pay the excess amount in cash from a source which Buyer agrees to disclose to the VA, can negotiate with the seller to have the seller lower the sales price to an amount equal to the VA reasonable value

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