Aceable Agent Promulgated Contracts Exam Questions With 100% Correct Answers | Verified, Exams of Advanced Education

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Aceable Agent Promulgated Contracts

Exam Questions With 100% Correct

Answers | Verified | Updated 2024

Contract - Correct Answer-A legally binding and enforceable agreement to do or not to do a specific thing Promulgated Contract - Correct Answer-A contract that has been approved and is required to be used by license holders Legally Competent - Correct Answer-an individual that has reached the age of majority (18 years of age) and has not been declared mentally incompetent by a judge Void Contract - Correct Answer-the contract has no legal effect Voidable Contract - Correct Answer-one or more of the parties has the authority to rescind the contract Valid Contract - Correct Answer-legal agreement meeting all the essential, basic requirements of the law

Unenforceable Contract - Correct Answer-A contract that cannot be enforced by the courts Executory Contract - Correct Answer-A contract that is not completely executed or performed Executed Contract - Correct Answer-A contract in which all terms have been fulfilled by all parties Bilateral Contract - Correct Answer-A contract in which one party must promise to do something for another party and that party must promise to do something for the first party Unilateral Contract - Correct Answer-A contract made between two or more parties in which only one of those parties makes a promise or otherwise accepts an obligation Addenda - Correct Answer-materials added to and included in the initial contract that provide more information on the transaction

Amendment - Correct Answer-tems that are attached to the original document and should never be changed after the document has been signed and accepted Performance - Correct Answer-the responsibility of all the parties to carry out their part of a contract QuitClaim Deed - Correct Answer-transfers ownership of whatever the grantor owns but make no guarantee of ownership and no promise to defend Novation - Correct Answer-the substitution of a new contract for an existing contract, relieves the original party of liability Statute Of Limitations - Correct Answer-A law establishing a time limit for civil suits Offer - Correct Answer-A promise made by one party requesting something in exchange for that promise with the intention that the offeror will be bound to the terms if the offer is accepted

Counter Offer - Correct Answer-A contract proposal submitted in re- sponse to a previous offer, modifying the terms of the original offer; considered a rejection of the original offer Subagency - Correct Answer-when an agent works with the buyer but is not representing the buyer Title Policy (Title Insurance) - Correct Answer-policy that protects homeowners (and likewise, lend- ers) from certain financial losses due to title issues, such as defects, encumbrances, and liens Mortgage Title Policy (Loan Policy) - Correct Answer-Title insurance for mortgage lenders, which protects their interests should a problem with the title arise Endorsement - Correct Answer-amendments to the standard coverage in the title policy Restrictive Covenant - Correct Answer-A type of encumbrance that restricts how a buyer could use the property they are buying

Loan to Value Ratio LTV - Correct Answer-ratio that represents how much of the sales price is covered by the mortgage loan Recourse Loan - Correct Answer-A loan in which the lender is allowed to seize the collateral property, and could also go after the borrower's other assets if the sale of the property doesn't cover the whole amount owed to the lender Earnest money - Correct Answer-A deposit paid by the buyer in a real estate transaction to demonstrate good faith or seriousness about the sale Survey - Correct Answer-A professional assessment of a specific piece of real estate, showing the exact borders of the property and any easements or encroachments that may affect it Residential Real Property Affidavit (T-47) - Correct Answer-A form completed by the seller to assure the buyer that they haven't changed the boundaries of the property since the last survey was done

Residential Service Contract - Correct Answer-also known as a home Warranty; an agreement by a company to maintain, repair, or replace applicable components of a home for a specified period of time Option Money - Correct Answer-money that a buyer pays a seller in exchange for the option to terminate the contract within a specified amount of days after the effective date, a.k.a. the option fee Option Period - Correct Answer-the period of time in which the buyer, who has paid an option fee, has the property reserved and the option to walk away from the transaction for any reason Casualty Loss - Correct Answer-A sudden, unexpected event, like a fire, flood, storm, earthquake that causes serious damage Escrow - Correct Answer-A process in which funds and/or financial documents are held by a disinterested third party on behalf of the other two parties in the real estate transaction

Predatory Lending - Correct Answer-lending practices that take ad- vantage of consumers by charging unnecessary fees or unsubstantiated interest rates, making loans that are too big or risky for the borrower, or pressuring buyers into loans Buyer Rebate - Correct Answer-illegal action during a transaction that causes money to go back to the buyer, either at or after closing, without the knowledge of the lender Rollback Taxes - Correct Answer-taxes that can be assessed if the zoning (usage) of a property changes Fair Housing Act - Correct Answer-A federal law that prohibits discrimination in housing based on race, color, religion, or national origin and was amended to include sex, disability, and familial status Fair Lending Laws - Correct Answer-laws prohibiting lenders from discriminating against all of the same protected classes as the Fair Housing Act, with the addition of age, marital status, and receipt of public income

Disability - Correct Answer-A physical or mental impairment that limits one or more major life activities Mineral Estate - Correct Answer-the right of the owner to exploit, mine, and/or produce any or all of the minerals lying below the surface of the property Occupancy Standards - Correct Answer-Rules about the maximum number of people allowed to live together in a single dwelling House Flipping - Correct Answer-A type of real estate fraud in which someone purchases a property and then quickly resells it at an artificially high value through the use Special Provisions - Correct Answer-Paragraph 11. Only enter Factual statements & business details applicable to the sale. Farm and Ranch Contract - Correct Answer- TREC # of Promulgated contracts - Correct Answer-

Which of these does NOT create housing occupancy standards? - Correct Answer-FHA Why do townhouses require the One to Four Family Residential Contract instead of the Residential Condominium Contract? - Correct Answer-Townhouse purchasers are buying both the land and property unlike condo's What part of the Third Party Financing ADDENDUM for Credit Approval specifically pertains to people getting VA loans? - Correct Answer-Paragraph D How is "Time is of the essence" and "reasonable time" different? - Correct Answer-Time is of the essence means a specific date to whereas reasonable time means without a set date Time is of the essence is in which paragraph of the one to four family? - Correct Answer-Paragraph 23 and 5 What is the purpose of TREC form OP-C Notice to Prospective Buyer? - Correct Answer-Provides A notice to buyers using their own contract to obtain an Abstract of Title

What does IABS form do? - Correct Answer-Informs clients how a license holder can represent a party in a real estate transaction Addendum for sale of other property by buyer - Correct Answer-used when there is a contingency Condominium Resale Certificate - Correct Answer-Prepared by management of a condominium project. Buyer rebates - Correct Answer-Buyer get their money back without the lender's knowledge. Buyer scams lender for money. Lender is usually the victim Not a TREC promulgated form - Correct Answer-Condo Addendum Is Seller's Disclosure notice promulgated - Correct Answer-If contract says it isn't necessary then no.

Paragraph 22 of the One to Four Family Contract says - Correct Answer-Check's all the addendum's or contracts used in the specific real estate transaction Which of these is an example of a time when it is acceptable not to use a TREC promulgated form? - Correct Answer-US government requires A different form to be used According to Paragraph 6B: Commitments in the promulgated One to Four Family Residential Contract, what must be provided to the buyer along with the title policy documents? - Correct Answer-Any restrictive covenants If the seller is providing an existing survey during a real estate transaction, what must the license holder give to the buyer? - Correct Answer-T-47 Residential real Property Affidavit Agent Aaron was drawing up a contract, and opted to use his brokerage's (lawyer-created) Seller's Disclosure Notice instead of TREC's. Is this allowed? Why or why not? - Correct Answer- Yes because the Seller's Disclosure Notice is not Promulgated by TREC

Paragraph C2 on the Lead Based Paint Disclosure states that: - Correct Answer-The buyer has 10 days to have the property inspected for lead based paint Third Party Financing Addendum - Correct Answer-Buyer receiving financing from a third party (EX: Bank or Mortgage Company) Addendum for Property Subject To Mandatory Membership In an Owner's Association - Correct Answer-Gives info & requirements about HOA Notice of Buyer's Termination of Contract - Correct Answer- When a buyer notifies a seller that the buyer is terminating an existing contract. Assumption Addendum - Correct Answer-Seller's current loan can be assumed by the by the buyer T-47 Real Property Affidavit - Correct Answer-An affidavit stating the seller has not switched anything on the property since the last survey. Needs to be given when survey is given

Paragraph 7D - Correct Answer-Lets buyers accept the home "As Is" Prorating - Correct Answer-Proportionally dividing an expense between the parties