Promulgated Contracts 8-12

If you need to add additional informational items to the sales contract for which a TREC-promulgated form does not already exist, in which paragraph can you add it?

• Special Provisions (Paragraph 11)

• Closing (Paragraph 9)

• Broker's Fees (Paragraph 8)

• Property Condition (Paragraph 7)

Buyer Brandon purchases a home from Seller Donald. Neither party requires a temporary residential lease. When is Seller Donald required to deliver possession of the property to Buyer Brandon?

• upon closing and funding

• within seven days of closing and funding

Property taxes are paid in arrears. This means that taxes are:

• charged for the previous year

• prepaid for the year going forward

• paid monthly in installments

• paid in escrow and distributed biannually

What is in ALL residential real estate contracts promulgated by TREC?

• a description of the property being sold

• a provision that the sales price can change depending on the survey

• a section on mineral rights

• a determination of broker fees

A survey is often necessary for a farm and ranch sale because:

• The property may have been in the family for years and not been surveyed for a long time.

• The property is an empty lot in an urban area with strict survey requirements.

• The property has no improvements whatsoever.

• The property has been leased out to individuals for hunting.

A broker is writing an offer on a single-family home that is in an area where all of the land is owned by and maintained by a homeowners association. The owner of the home owns the building (but not the land that it sits on) and an undivided interest in the common areas.

The broker should write the offer on the:

• Residential Condominium Contract

• Unimproved Property Contract

• One to Four Family Residential Contract

If a buyer is exercising the unrestricted option to terminate the contract, they are using which addendum?

• Notice of Buyer's Termination of Contract

• Addendum for Reservation of Oil, Gas, and Other Minerals

• Addendum for "Back-Up" Contract

• Addendum for Sale of Other Property by Buyer

A broker is going to write an offer on a property that was built a year ago. The broker's client would be the first owner of the house. Which form should the broker use?

• New Home Contract (Completed Construction)

• Residential Condominium Contract

• Unimproved Property Contract

• One to Four Family Residential Contract

A Short Sale Addendum is needed when a property is going to sell for less than what a seller owes on their mortgage. The transaction is contingent upon:

• the approval of the seller’s lender

• the approval of the buyer’s lender

• the sale of the buyer's current property

• the initial contract falling through

Which addendum allows a seller to simultaneously negotiate with a second buyer in case the first buyer falls through?

• Addendum for "Back-Up" Contract

• Contingency Addendum

• Short Sale Addendum

• Second Buyer Addendum