FREE REAL ESTATE AND STUDY GAMES ABOUT TX- CHP5

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FREE REAL ESTATE AND STUDY GAMES ABOUT TX- CHP5

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -48 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: according to TREC 20-10, earnest money is never given to

Answer:

the seller's agent, but deposited by the buyer -buyer's agent may deposit it if so instructed by the buyer

Question 2: 5. addendum for coastal area property- natural resources code

Answer:

-owner of property may gain or lose portions of tract b/c of changes in boundary of state-owned tidally influenced submerged lands -state law prohibits use, encumbrance, construction, or placing of any structure in, on, or over state-owned sub. lands Question 3: *2) suit brought for a violation of the Deceptive Trade Practices Act

Answer:

must commence w/in 2 years from the date a buyer discovered or should reasonably have discovered the deceptive act

Question 4: addendum for "back-up" contract

Answer:

-time is of the essence -makes an offer or contract contingent upon an existing offer terminating -neither party is required to perform during the contingency period, although earnest money & any option fee must be paid if required by the contract Question 5: 5-3 remedies for breach of contract/default replacement notice contained in TREC-promulated contract forms

Answer:

• seller's remedies for buyer's default, according to paragraph 15 (default) of the TREC 20-10 contract

form

• buyer's remedies for seller's default, " " (buyer has 2 diff sets of options)

• statue of limitations

Question 6: *no changes except the

Answer:

business name or logo of a broker may appear at the top of a form outside the border -the broker's name may be inserted in any blank provided for that purpose

Question 7: 5. seller's disclosure of property condition

Answer:

-used optionally -contains only the minimum requirements of the Texas Property Code Section -many brokers use their own versions or TAR versions w/ many additional items of disclosure than those required

Question 8: promulgated means

Answer:

that the contracts are issued by TREC for mandatory use by license holders

Question 9: ...if 1st buyer elects to terminate,

Answer:

the 2nd buyer's contract (which should have Addendum For "Back-Up" Contact attached) will become the primary contract

Question 10: One- to Four-Family Residential Contract (Resale)

Answer:

freestanding home, duplex, triplex, one to 4 units Question 11: *1. seller's remedies for buyer's default, according to paragraph 15 (default) of the TREC 20-10 contract form

Answer:

-enforce specific performance (court action to force breaching party to perform), seek other relief as provided by law (suit for damages, injunction, etc.) or both -terminate contract & receive earnest money as liquidated damages=releasing both parties

Question 12: 5-1 texas promulgated contract forms

-*texas requires use of promulgated forms when negotiating contracts binding the sale, exchange, option, lease, or rental of property

Answer:

*licensees must use only those contract forms promulgated or approved by the Texas Real Estate Commission (TREC) for that kind of transaction Question 13: forms may be reproduced only from the following sources:

Answer:

-#ed copies obtained from TREC -printed copies made from copies obtained from TREC -legible photocopies made from such copies -computer-driven printers following mandatory guidelines

Question 14: ...written statement must be in at least

Answer:

10-point type -not addendum -shouldn't be attached to or made part of offer/contract -statue doesn't require anyone to sign it, good idea so licensee can prove in court or to TREC that he gave notice as required by law

Question 15: *seller financing addendum

Answer:

-buyer and seller can agree that buyer shall provide certain docs to establish buyer's creditworthiness or seller can terminate contract -seller has 7 days after receipt of the buyer's credit doc to terminate the contract at the seller's sole discretion

Question 16: agreement signed

Answer:

certain agreements must be signed by the parties to be charged w/ the responsibility to perform -*both spouses must sign agreements to release community property and homestead rights

Question 17: 2)

Answer:

-option fee= directly to seller w/in 2 days after the effective date of contract for this right -earnest money= deposited by buyer w/ escrow agent as soon as the buyer & seller have reached final agreement & have a contract

Question 18: 5-2 *statues of frauds

Answer:

a promise or agreement for sale of real property, or for lease of real property for > 1year, is not enforceable unless agreement is IN WRITING & SIGNED BY THE PERSON TO BE CHARGED W/

THE AGREEMENT OR BY SOMEONE LAWFULLY AUTHORIZED TO SIGN FOR THAT PERSON

Question 19: purpose of statue of frauds

Answer:

-not designed to prevent oral contracts -to prevent fraud by someone seeking the enforcement of an executory contract that was never made or to disallow fraudulent oral evidence of a fictitious contract -to protect spouses' rights in property

Question 20: selected texas addenda (8)

Answer:

• 3rd party financing addendum for credit approval

• seller financing addendum

• addendum for sale of other property by buyer

• ..."back-up" contract

• ...coastal area property- natural resources code
• ...property located seaward of the gulf