-FOR ISSUES REGARDING PROPERTY

Texas Real Estate Contracts Flashcards According to Section 18 of the Buyer Representation Agreement, when might a buyer seek professional assistance from somewhere other than the broker?

-FOR ISSUES REGARDING PROPERTY

INSPECTION-FOR INFORMATION ON

ENVIRONMENTAL ASSESSMENTS-FOR ASSISTANCE

WITH SURVEYING

Sam agrees to enter a lease agreement to have Jane occupy his property in exchange for rent. Who holds a reversionary right to the property?Sam TREC Rules 537.11 lists the forms currently promulgated

for use by real estate licensees. It also offers:

instructions for completing the forms When the buyer holds an interest on property that is legally

vested in the name of another person it is known as:

equitable title A title insurance company performs a title check of a property's chain of ownership records before issuing

insurance in order to:

be sure there is no question about who owns the property when ownership is transferred Which requirement states that something must occur before the goal of the contract - the property sale - can occur?a contingency Something that changes an existing element of the contract according to the agreement of both the buyer and the seller

refers to a(n):

amendment Regarding the Seller's Disclosure of Property Condition form, if an answer is "yes" to a question regarding the condition of of the property, what should the seller do if there is not enough space on the form to provide a complete answer?make a note on the form that the buyer should see the attached sheet providing a more detailed answer According to a Loan Assumption Addendum, if the seller does not terminate the sales contract after reviewing the

buyer's credit, it can be assumed that the seller:

approves the buyer's credit If a seller receives offers from 3 different buyers, may the seller's (listing) agent disclose the terms of the competing offers to each of the buyers?Yes. If a listing agent receives multiple offers, the listing agent is obligates to treat the competing buyers fairly

A competent real estate licensee:-KEEPS INFORMED ABOUT ISSUES AND

DEVELOPMENTS IN THE REAL ESTATE

INDUSTRY-EXERCISES GOOD JUDGEMENT AND

SKILL IN PERFORMING HIS OR HER WORK-FOLLOWS

ANTI-DISCRIMINATION RULES AND REGULATIONS

It is important to know TRELA Section 16 and Article 13 of the National Association of Realtors Code of Ethics

because these rules:

prohibit a licensee from providing legal counsel to his or her client Section 28 of the Residential Lease Form states that a sub

lessor is:

still primarily liable for paying rent to the owner

An escrow is termed "complete" when:all terms and conditions of the escrow instructions have been fulfilled Which tax laws are affected by the Foreign Investment in Real Property Tax Act (FIRPTA)?federal and state An agency relationship may be terminated by all of the

following, except:

-a fire destroying the property that is the subject of the agency contract-THE PRINCIPAL'S REFUSAL OF AN

OFFER TO PURCHASE PRESENTED IN THE NAME OF

A THIRD PARTY-mutual agreement of both the principal and the agent before the original term expires-the renunciation of the agency by the agent Which position is the agent's in a fiduciary relationship?a position of trust or confidence with the principal and a duty of loyalty, integrity, and utmost care to the principal.By agreeing to the Buyer Representation Agreement, the broker must fulfill the fiduciary duties owned to the buyer.According to Section 5, which obligation does that include?doing everything in the broker's power to help the buyer purchase real property A(n) _____ is an agreement created by separate parties to perform or not perform certain acts.contract In Section 7 of the One to Four Family Residential Contract (Resale), a buyer may choose to have a professional

evaluate the property. This professional may be a(n):

-ELECTRICIAN-PLUMBER-LEAD INSPECTOR

Which of these in an example of a closing cost? -PROPERTY TAXES-RECORDING FEES-TITLE

INSURANCE

If a buyer or tenant does not want to be shown or acquire any of the broker's listings, what part of the Residential Buyers/Tenant Representation Agreement should be completed?Section 8 - Intermediary8(B) What does TREC form OP-H address?The Seller's Disclosure of Property Condition According to Section 12 of the Residential Real Estate Listing Agreement - Exclusive Right to Sell form, the seller

represents that:

he or she is not bound to another listing agreement with another broker.In Section 11 of the One to Four Family Residential Contract (Resale) both patios can include special

provisions. These special provisions may include:

-A WALK THROUGH INSPECTION-AN INVENTORY

LIST-the amount of earnest money Which statute declares that a valid contract must be in writing and signed by the parties to be enforceable?Statute of Frauds A legal relationship in which a principal authorizes an agent to act as the principal's representative when dealing with

third parties is known as:

agency.If a buyer works exclusively with a broker or sales associate, what must the broker or sales associate first do before entering into a buyer representation agreement?present a written disclosure regarding the agency relationship If a buyer has an agreement to pay a percentage of the buyer's side commission to a relocation company, where in the Residential Buyer/Tenant Representation Agreement would the buyer place that information?Section 7(D) - Representations

What did listing agent Bo say to the buyer that violated his agency relationship with seller Gary?Gary's house has been for sale for almost one year. I think it is listed too high, don't you? Let's see if he will take a lower offer.When creating a valid sales contract, which element is necessary?

-THE OFFER AND ACCEPTANCE-EARNEST

MONEY-EQUITABLE TITLE

If a property is tenant occupied, and the salesperson has reached agreement with the tenant and owner to provide easy access to the property, which addendum form would the salesperson secure from the tenant at the time the listing is taken?key box authorization by tenant When all contingencies of a contract are fulfilled, a buyer is:obligated to complete the purchase When could an Addendum for Sale of Other Property by Buyer be attached to the residential sales contract?when the purchase of the buyer's new home is contingent on the sale of buyer's present home Which promulgated contract form is currently used for a One to Four Family Residential Contract (Resale)?20-11 One person may give another the authority to act on his or her behalf. The legal document that creates this

relationship is called a:

power of attorney Which statement regarding the One to Four Family Residential Contract (Resale) is true?-the same form is used for all types of property-the contract only refers to commercial property-the contract only refers to a condominium-DIFFERENT VERSIONS OF THE

FORM EXIST DEPENDING ON THE TYPES OF

PROPERTY

Which Section of the One to Four Family Residential Contract (Resale) form may be used to list any fixtures or exclusions that will not transfer with the sale?Section 2 If the buyer is securing an FHA loan, the seller is required to pay a portion of the buyer's closing costs. In which section of the contract would the agent enter this amount?Section 12(A)(1)(b) - Settlement and Other Expenses TRELA Section 16 prohibits a realtor from providing legal

counsel to his or her client or:

creating his or her own forms In 1995, the Texas legislature created a uniform process regarding the Texas Real Estate License Act, resulting in which two rules?Initial Meetings and Representation.To avoid confusion when deterring whether the selling

agent represents the buyer or the seller, it is best to:

obtain a buyer's representation agreement.Who is in charge of a mediation form?the neutral party What determines the difference between a special agent and a general agent?the scope of authority delegated to the agent by the principal.A licensee does not have to use a promulgated contract form if a transaction involves a contracts form prepared by whom?the property owner or an attorney for a contract required by the property owner Regarding the Addendum for the Back-Up Contracts, what occurs if the first contract does not terminate?

-THE BACK UP CONTRACT TERMINATES-THE BUYER

IS REFUNDED HIS OR HER EARNEST MONEY

DEPOSIT

Under Section 7 of the Buyer Representation Agreement,

the parties under this contract must have:

the mental capacity to bind them to a contract and legal authority to bind them to the contract According to the Seller Financing Addendum, what must the buyer provide to the seller?

-A CREDIT REPORT-VERIFICATION OF EMPLOYMENT

WITH SALARY HISTORY-A CURRENT FINANCIAL

STATEMENT

Which of the following would never be a party to a Residential Buyer/Tenant Representation Agreement?landlord(it would either be... buyer to broker or tenant to broker) The principal or agent may terminate the agency at any

time during the agency, except:

-in the event of death or insanity of the broker or principal-if the property is in excellent condition-IN AN AGENCY COUPLED WITH AN INTEREST-in an agreement with unexpired terms According to Section 3 of the Residential Buyer/Tenant Representation Agreement. when is a lease transaction considered closed?when the landlord and tenant enter into a binding lease of the property In Texas, how many requirements must a contract meet to be valid?6 Which situation constitutes mutual consent? -AN OFFER BY ONE PARTY AND ACCEPTANCE BY

ANOTHER-GENUINE ASSENT

Which of these is not part of the broker's authority as outlined in the Residential Real Estate Listing Agreement - Exclusive Right to Sell form?-advertise the property in various forms of media-provide information about the property to other brokers and buyers-OBTAIN THE HIGHEST POSSIBLE COMMISSION-place a "for sale" sign on the property Which requirement is not needed to create a valid lease?written lease agreement Within what period of time after the Title Company receives a copy of the purchase contract, must the seller furnish the buyer a commitment for the title insurance?within 20 days According to Section 13 of Real Estate Listing Agreement -

Exclusive Right to Sell form, the seller promises to:

cooperate with the broker to facilitate the showing and marketing of the property.Which party is considered legally competent to enter into a contract?

-AN 18 YEAR OLD INDIVIDUAL-AN EMANCIPATED

INDIVIDUAL-AN INDIVIDUAL SERVING IN THE

MILITARY

The One to Four Family Residential Contract (Resale) is the most common sales contract, however _____ additional sales contracts are also used in Texas.Five According to Section 14 of the Residential Real Estate Listing Agreement - Exclusive Right to Sell form, if the property becomes vacated during the listing agreement, the

seller must:

notify his or her casualty insurance company and request a vacancy clause from the insurance company.An "as is" clause in a real estate purchase agreement:does not relieve a seller from the responsibility to disclose all known material facts to a buyer A broker who has been authorized in writing by the parties to a purchase agreement to represent both parties following Section 1101.559 of the Texas Real Estate Act is

a(n):

intermediary