Texas Law of Contracts - Chp. 6 The Sales Contract

One to Four Family Residential Contract (resale)

Abby is a real estate agent in Dallas. She would like to make an offer on an existing two family home. Which of the following forms should Abby use to submit her offer...?

One to Four Family Residential Contract (resale)

Optional Residential Contract

Residential Offer Form

Residential Listing Contract

Lease Application

Which of the following is utilized to submit an offer to lease a property...?

One to Four Family Residential Contract (resale)

Residential Offer Form

Lease Application

All of the above

F (False) (New home/New construction contract)

The One to Four Family Residential Contract (resale) can be utilized to submit an offer on a newly constructed house...?

T (True)

F (False)

The seller's broker

Once a buyer completes their offer, the buyer's broker submits the offer to which of the following...?

The escrow agent

The buyer's agent

The seller's broker

TREC

The seller would like to increase the amount of earnest money

The seller would like to sell at a price above the buyer's offer

The seller would like to close earlier than the proposed closing time by the buyer

All of the above

Which of the following is an example of a counter-offer...?

The seller would like to increase the amount of earnest money

The seller would like to sell at a price above the buyer's offer

The seller would like to close earlier than the proposed closing time by the buyer

All of the above

An offer is accepted

An agreement is made when which of the following occurs...?

An offer is accepted

An offer is countered

An offer is rejected

An offer is rescinded

Statute of Frauds

A State law, based on an Old English statute, requiring certain contracts to be in writing and signed before they will be enforceable at law, e.g. contracts for the sale of real property, contracts not be performed within one year.

Constructive Notice

Notice of the condition of title to real property given by the official records of a government entity which does not require actual knowledge of the information.

Vendor

A seller.

Vendee

A purchaser; buyer.

Notice that a contract has been signed can be done orally or in writing...?

T (True)

F (False)

(True)

Offer

If the residential contract form is not signed by both parties, the contract is still considered a/an...?

Executed contract

Offer

Binding contract

Executory contract

Offer to Purchase

Contract of Sale

Purchase and Sale Agreement

All of the above

The offer to purchase a house is also called the...?

Offer to Purchase

Contract of Sale

Purchase and Sale Agreement

All of the above

A purchaser is also referred to as a...?

Vendor

Vendee

Lessor

Lessee

Vendee

A seller is also referred to as a...?

Vendor

Vendee

Lessor

Lessee

Vendor

Constructive Notice

The notice of the condition of title to real property given by the official records of a government entity which does not require actual knowledge of the information is known as....?

Actual Notice

Constructive Notice

Implied Notice

Conditional Notice

Earnest Money

Down payment made by a purchaser of real estate as evidence of good faith. A deposit or partial payment.

A down payment made by a purchaser of real estate as evidence of good faith is known as...?

Contingency money

Security deposit

Earnest money

Interest money

Earnest money

Earnest money is required in all residential transactions in Texas...?

T (True)

F (False)

F (False)

A broker depositing a buyer's earnest money into their own personal bank account

Which of the following is an example of commingling...?

A broker depositing a buyer's earnest money into their own personal bank account

A broker depositing a buyer's earnest money into a separate trust account

A broker depositing a buyer's earnest money into a separate escrow account

All of the above

Breach of Contract

A violation of the terms or conditions of a contract without a legal excuse.

There isn't a standard rate for earnest money

What is the standardized rate for earnest money on a residential property in Texas...?

$1

$500

$1,000

There isn't a standard rate for earnest money

Seller financing

When a seller provides the buyer with a loan to purchase their property it is referred to as...?

Seller assignment

Buyer financing

Seller financing

Buyer assumption

$150,000

If the sales price for a property is $200,000, and the buyer puts down a downpayment of $50,000, how much does the buyer need in financing from a lender...?

$50,000

$150,000

$160,000

$200,000

Home warranty

Which of the following can be purchased, which protects the buyer against defects found in the personal property left by the seller...?

Title warranty

Home warranty

Real property warranty

General warranty

Property taxes

Which of the following items may be prorated between the buyer and seller...?

Broker fees

Attorney fees

Property taxes

All of the above

Seller's temporary residential lease

If the seller will live in the property several days after the closing occurs, what should be included with the sales contract...?

Seller's temporary residential lease

Buyer's temporary residential lease

Net lease

Ground lease

Buyer's temporary residential lease

If the buyer will move into the property prior to closing, what should be included with the sales contract...?

Seller's temporary residential lease

Buyer's temporary residential lease

Net lease

Ground lease

AOfferee

The party that receives the offer is called the...?

AOfferee

BOfferor

CGrantor

DGrantee

Contingency

A clause written in a sales contract that states the buyer must be allowed to terminate the contract if he/she cannot obtain financing is an example of which of the following...?

AContingency

BBulletin

CNotice

DAcknowledgement

Conversion

The commingling of funds may lead to which of the following...?

AConversion

BSteering

CRedlining

DBlockbusting

Breach of contract

If a party cannot close on the agreed upon closing date, and an amendment isn't made to the contract, the party is said to be in...?

ABreach of contract

BExecution of contract

CRescission of contract

DBlocked contract

The escrow agent

The buyer's earnest money is normally held by which of the following...?

AThe escrow agent

BThe seller themselves

CThe buyer's attorney

DThe County Clerk