Which of the following requires a contract for the conveyance of real estate to be in writing to be enforceable?
Statue of Frauds
The TREC residential contract forms
are drafted by the Broker Lawyer Committee
An option contract is
a unilateral contract
In a lease with a "right of first refusal" provision
the tenant has the right to match or better any offer the landlord receives to prevent the property from being sold to someone else
If a broker receives more than one offer on a property
all must be presented to the seller unless the seller has instructed the broker otherwise
A counteroffer is
a rejection, a new offer, able to be withdrawn prior to acceptance
If a buyer defaults on a contract and the seller chooses to keep the deposits, this is an example of
accepting liquidated damages
Freehold estate usually include
surface, subsurface, and air rights
A written history of all instruments and happenings that may affect the title is called
an abstract of title
RESPA regulates the closing on
1-4 family residential properties with federally related financing
Rule P-53 of the Texas Department of Insurance states that Title Companies
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
The most common form of financing used by buyers is
third party financing
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?
$1456
"Days" in all TREC contracts and forms refers to
calendar days
Texas Veteran's Housing Assistance Program loans can be
FHA, VA, Conventional
An offer by a prospective purchaser can be terminated prior to acceptance due to
expiration of a specified time period, bankruptcy of either party, a change in the law that renders the contract illegal
Buyers and sellers in the contract should be identified by their
legal names
Issues relating to community property and homestead
are determined by the title company
Land, improvements and accessories are collectively referred to as
the property
According to the TREC contract, accessories include
stoves
When a seller wishes to retain certain fixtures or accessories, these items are called
exclusions
The loan amount under paragraph 3.B of the sales contracts includes
only the amount borrowed by the buyer
Paragraph 3.B of the contract includes the PMI or MIP in the loan amount
False
The sales price in 3.C is always
3.A + 3.B, the amount borrowed plus the down payment, the loan amount plus the cash portion
The One to Four Family Residential Contract can be used for
third party conventional financing, loan assumptions, and seller financing
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
True
Earnest money is deposited in an escrow account when
the contract is signed by all parties
The buyer's policy of title insurance is paid for by
the party stipulated in the contract
Exceptions for coverage under title insurance policies include
utility easements
The title company must furnish the title commitment within how many days?
20
How long does a buyer have to object to defects, exceptions and encumbrances to title disclosed in the survey and title commitment?
the negotiated number of days stated in the contract
The Texas Property Code requires buyers by given notice of
Property Owners Association Mandatory Membership
The Seller's Disclosure Notice should be prepared by
the owner
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?
the number of days negotiated in the contract
The Lead-Based Paint Disclosure is
a federal requirement for residential property built prior to 1978
A Seller's Disclosure Notice is not required
at a foreclosure sale
Lender required repairs
are usually the result of an inspector's comments, can result in termination of the contract, and can delay the closing
The commission agreement between the broker and the seller is usually found
in the listing agreement
The closing date
is negotiated between the buyer and the seller, is an on or before date, and may be extended when necessary
At the closing the buyer should bring
a cashier's check or wire transfer for the amount of closing costs and down payment
The buyer will be entitled to possession of the purchased property
upon closing and funding
If a seller wants to continue to occupy the property for one month after the closing and the buyer agrees
the Seller's Temporary Residential Lease form should be used
The Buyer and Seller Temporary Residential Lease forms are good for any period up to
90 days
The special provisions paragraph of the contract allows licensee to insert
factual business details, statements not addressed in the contract, and information for which there is not TREC promulgated addendum, lease or mandatory form
Usual expenses of the seller as stated in the contract include
release of existing lien
Usual expenses of the buyer as stated in the contract include
loan application fees
The process of dividing ongoing expenses between the buyer and seller at the closing is called
prorating
For tax prorations
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
Damage or destruction of a property under contract prior to closing
can terminate the contract
The State of Texas encourages the parties to resolve all conflicts and disputes through alternative dispute resolution procedures such as
mediation
The escrow agent is not
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
IRS statutes require a buyer to
withhold 10% of the sale proceeds in excess of $300,000 when a seller has not social security card or green card
All written notices between the parties are effective when
mailed, hand delivered, faxed or emailed
For a valid option to exist
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
When should a licensee advise a client to consult an attorney
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
Who is responsible for filling in the effective date of the contract after the last party signs?
the broker
The sales contract identifies the agency relationships between the broker and parties
in the Broker Information section
In the Third Party Financing Addendum for Credit Approval
The buyer has a definite time to notify seller of the inability to obtain financing approval
The Third Party Financing Addendum for Credit Approval cannot be used for
Seller Financing
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,
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
