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Promulgated Contracts 8-12

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

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?

a)

Special Provisions (Paragraph 11)

b)

Closing (Paragraph 9)

c)

Broker's Fees (Paragraph 8)

d)

Property Condition (Paragraph 7)

2.

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?

a)

upon closing and funding

b)

within seven days of closing and funding

3.

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

a)

charged for the previous year

b)

prepaid for the year going forward

c)

paid monthly in installments

d)

paid in escrow and distributed biannually

4.

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

a)

a description of the property being sold

b)

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

c)

a section on mineral rights

d)

a determination of broker fees

5.

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

a)

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

b)

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

c)

The property has no improvements whatsoever.

d)

The property has been leased out to individuals for hunting.

6.

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:

a)

Residential Condominium Contract

b)

Unimproved Property Contract

c)

One to Four Family Residential Contract

7.

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

a)

Notice of Buyer's Termination of Contract

b)

Addendum for Reservation of Oil, Gas, and Other Minerals

c)

Addendum for "Back-Up" Contract

d)

Addendum for Sale of Other Property by Buyer

8.

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?

a)

New Home Contract (Completed Construction)

b)

Residential Condominium Contract

c)

Unimproved Property Contract

d)

One to Four Family Residential Contract

9.

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:

a)

the approval of the seller’s lender

b)

the approval of the buyer’s lender

c)

the sale of the buyer's current property

d)

the initial contract falling through

10.

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

a)

Addendum for "Back-Up" Contract

b)

Contingency Addendum

c)

Short Sale Addendum

d)

Second Buyer Addendum

11.

If you believe there is a transaction involved in illegal activity, you should:

a)

notify your broker

b)

withdraw from the transaction

c)

tell your client to seek legal advice if they plan to continue with the transaction

d)

All choices are correct.

12.

Which of the following laws has no exemptions?

a)

Civil Rights Act of 1866

b)

Fair Lending Act

c)

Fair Housing Act

d)

Equal Credit Opportunity Act

13.

A blind tenant asks a landlord if it will be all right to have her guide dog with her in the apartment and if there will be a pet deposit. How should the landlord answer this question?

a)

It will be fine and there is no deposit for an assistance animal.

b)

The landlord can say no if they have a 'no pets’ policy.

c)

It will be fine, but the pet deposit will be $350.

d)

None of these are correct.

14.

What information must be put on all closing forms and related addenda?

a)

the address of the property

b)

the social security numbers of all parties involved in the transaction

c)

the lender's information

d)

the date the form was first received

15.

In the lead-based paint addendum, what must the seller disclose to the buyer?

a)

the presence of lead-based paint and/or lead-based paint hazards, and whether records and reports are available

b)

a list of TREC-approved inspectors

c)

that pregnant people are at greater risk

d)

whether or not they will return earnest money to the buyer

16.

If a contract has been signed, but there is a significant delay that will push the closing date well beyond what was on the original contract, the agent will need to:

a)

make an amendment to the contract to adjust the closing date

b)

draw up a new contract with the new closing date

17.

Samuel (Sam) Hunter and his wife, Debbie Hunter, are buying a home. Which is the BEST way an agent should represent this on the contract?

a)

Samuel Hunter and Debbie Hunter

b)

Samuel and Debbie Hunter

18.

In Paragraph 3 of the One to Four Contract, agents will:

a)

make note of the seller receiving any cash from the buyer at closing

b)

specify if there are any related finance addenda to be aware of

c)

identify the sales price

d)

All choices are correct.