PARTIES, PROPERTY, AND FINANCING

paragraph 3 of third party financing addendum

if required by Buyer's lender, each note for the financing described above must be secured by vendor's and deed of trust liens.

parties

buyer and seller

Paragraph 1 of the TREC One to Four Family Residential Contract

parties: buyer and seller; the buyer and sellers name should appear

Paragraph 2 of the TREC One to Four Family Residential Contract

property; The land, improvements and accessories are collectively referred to as the Property

Paragraph 2A of the TREC One to Four Family Residential Contract

Enter the legal description and address of the property to be conveyed or attach the metes and bounds description to the contract

Paragraph 2B of the TREC One to Four Family Residential Contract

Includes the improvements, such as the house, garage, and other permanently installed and built-in items

Paragraph 2C of the TREC One to Four Family Residential Contract

Describes accessories, which are commonly conveyed to the buyer in the sale

Paragraph 2D of the TREC One to Four Family Residential Contract

. Enter exclusions to the sale with names and locations

Paragraph 3 of the TREC One to Four Family Residential Contract

sales price

Paragraph 3A of the TREC One to Four Family Residential Contract

The down payment is always the difference between the sales price and the sum of all financing

Paragraph 3B of the TREC One to Four Family Residential Contract

the sum of all financing from all sources

Paragraph 3C of the TREC One to Four Family Residential Contract

The Sales Price is the sum of 3.A and 3.B

Paragraph 4 of the TREC One to Four Family Residential Contract

States that if a seller is aware of any leases affecting the property, the seller must disclose them to the buyer

Paragraph 4A of the TREC One to Four Family Residential Contract

Residential leases: If a tenant with a lease agreement resides on the property, the seller must inform the buyer of the residential lease attached to the property

Paragraph 4B of the TREC One to Four Family Residential Contract

Fixture leases: lease of a fixture that is not owned; example is solar panels

Paragraph 4C of the TREC One to Four Family Residential Contract

Natural Resources Lease: The seller is responsible for providing the buyer with copies of all natural resource leases within 3 days of the contract's effective date. Natural resource leases include oil and gas leases, mineral leases, wind leases, water leases, and other leases for natural resources

third party financing falls into what two categories?

government loans and conventional loans

Government Loans

-Mortgages insured or guaranteed by the U.S. Government

-made by lenders

-FHA, VA,

conventional loans

Any loan not insured or guaranteed by a government agency.

Fixed Rate Mortgage

A mortgage in which the interest rate does not change during the entire term of the loan.

Paragraph 1 of the third party financing addendum

type of financing and duty to apply and obtain approval

paragraph 2 of third party financing addendum

approval of financing

paragraph 4 of third party financing addendum

FHA/VA provisions: the Buyer is not obligated to purchase the property in question if the Buyer has not received a written statement of value from an approved source (Certificate of Reasonable Value for VA loans only), OR if the purchase price or cost exceeds the reasonable value of the property, as established by the Department of Veterans Affairs

paragraph 5 of third party financing addendum

Authorized to release information

Loan Assumption

Buyer assumes and agrees to pay the sellers existing mortgage

true or false: The TREC Promulgated form, Release of Liability on Assumption of FHA, VA or Conventional Loan (TREC No. 12-3), is used to make a contract contingent on the lender releasing the seller upon the assumption by the buyer

true

the original borrower is ________ necessarily released from ongoing liability for repayment

not

Seller Financing Addendum

In this type of agreement, the Seller helps to finance the purchase by giving the Buyer a trust deed loan on the property.

Paragraph A in the Seller Financing Addendum

credit documentation

Paragraph B of Seller Financing Addendum

Buyers Credit approval

Paragraph C of Seller Financing Addendum

Promissory note:

1. A single payment with interest payable at maturity, monthly or quarterly

2. Monthly installments that either include interest or have interest added to them; the most common is monthly installments, including interest.

3.Payments will be made in a combination of interest-only payments followed by payment of principal and interest

Paragraph D of Seller Financing Addendum

Deed of Trust :

1. property transfer

2.casualty insurance

3. tax and insurance escrow

4. prior liens

Non-Realty Items Addendum

used when personal property is to be included in a sale

AUTHORIZATION TO FURNISH TILA-RESPA INTEGRATED DISCLOSURES

The form indicates to lenders, title companies, and/or escrow agents that the buyer or seller has signed an exclusive agreement with a particular broker and authorizes these entities to disclose and furnish any documents or information pertinent to the transaction to the broker or broker's agent.

Property includes:

(a) Land

(b) Accessories

(c) Improvements

(d) All of these are collectively referred to as property

d

In order for a buyer to purchase a property using VA Guaranteed financing, the buyer must receive a(n) _________which establishes the value of the property.

(a) Direct endorsement

(b) Adjustable-rate

(c) Certificate of Reasonable Value

(d) Loan commitment letter

c

Paragraph 4 of the TREC-promulgated contracts addresses the disclosure of _____affect the property

(a) Real estate license holder relationships

(b) Property owners associations

(c) Rollback taxes

(d) Leases

d

Which of the following is NOT considered an accessory?

(a) Curtains

(b) A mailbox

(c) Blinds

(d) A fireplace screen

b

ltems to be removed prior to delivery of possession are called _________

(a) Accessories

(b) Built-ins

(c) Real Property

(d) Exclusions

d