STATE: contracts

when is it exceptionable for license holders to not use the standard contract form?

those prepared by Attorneys from this state or any other state, or those specified by governmental agencies, property owners, or their lawyers.

TREC has promulgated sales contract forms for?

most residential properties, including Farm and Ranch.

TREC has NO forms for?

Commercial transactions

sale of Co-ops or Mobile Homes.

who writes/creates the promulgated contract forms?

Broker Lawyer Committee

who promulgates the promulgated contract forms?

TREC

what is a backup offer?

when broker receives a offer when property is in excretory period. This backup offer allows person B to take place in purchasing the property if original person A does follow through with purchasing property

what is the only addenda that changes the effective date of a contract?

backup addenda

what must broker do when they receive a backup offer?

must present it to the seller

A backup offer cannot  become effective unless the previous contract is terminated. A backup buyer must meet the requirements for any negotiated earnest money and option fees.

what is a clause in a contract requiring a condition to be met?

Contingency Clause

contingency cannot be met, what happens?

buyer is generally entitled to a refund of their earnest money.

1-4 Family Contract paragraphs that must be memorized

3B

5

6-D

7D1

7F

11

12-A-1B

15

1-4 Family Contract (3B)

-the amount financed

oil and gas leases

how many days does the seller have to convey a copy of the gas lease effecting the property to the buyer?

3 calendar days

the seller is under contact to sell their house (executory period) the tenants lease is goin to expire in a couple of months. They go to the seller who is already in contract to sale, and ask “can we extend our lease for another year?”

1. seller can extend I t

2. seller cannot extend it

3. the seller needs buyers written permission to extend it

4. the lease automatically renews

3. the seller needs buyers written permission to extend it

1-4 Residential Contract (p5) what is the name and number? has the most questions on the exam

5. Earnest Money and Termination Option

1-4 Residential Contract (5a)

(1%) earnest money- first $ sign blank

(10%) option fee- second $ sign blank

amounts may be paid separately or combined, funds will be applied first to Option Fee then to Earnest Money

the only place business days come in on the national part of the test?

lender requirements for delivery of the loan estimate and closing disclosure, and that’s a RESPA rule

its the Wednesday before Labor Day, we’re signing our deal today. When is the money due to the title company

Tuesday after Labor Day

title company are closed when?

weekends and federal holidays

what if client accidentally wire transferred below required amount to title company and deadline passes? what happens?

default (buyer has defaulted)

effective date in real estate

the exact date when a contract becomes legally binding on all parties

1-4 Residential Contract (5E)

time is of the essence- strict compliance with the time for performance is required

1-4 Family Contract (6-D)

6-D- Objections

second blank in the paragraph (limited number of days 1-5)

the number of days you have to object to commitment, exceptions, or survey

you always need a ??? for a loan?

survey

1-4 Family Contract (7D-1)

7D-1 ACCEPTANCE OF PROPERTY CONDITION

selling property as is, with sellers disclosure

7A

the seller at seller’s expense must cause all utilities to be on for the entire ????

executory period of the contract

the buyer has the right to inspect the property during the entire executor period of the contract

1-4 Residential Contract (7F)

7F- COMPLETION OF REPAIRS AND TREATMENTS

sellers must give buyer a detailed copy of receipts documenting the work completed and repairs done

1-4 Residential Contract (11)

11- SPECIAL PROVISIONS

not putting anything in this paragraph unless its at the express consent of client

1-4 Residenial Contract (15)

15- DEFAULT

same for buyer as the seller

sue for specific performance and damages and go to court

seller- take earnest money as liquidated damages and walk away

buyer- refund of their earnest money

under the Texas Department of Insurance Regulations, regarding mold, testing for mold is not necessary to ???

determine if it should be removed, if you see it, it certainly should be removed

what is the word for removal of mold?

remediation

is testing after remediation required?

not required

once you have mold cleaned up by licensed mold remediate, how many days of work being completed they have to give you a certificate of mold remediation.

10 days

must be disclosed to any potential buyer within 5 years if you are selling your property