Aceable Agent - Promulgated Contracts Exam With 100% Correct Answers 2024, Exams of Advanced Education

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Aceable Agent - Promulgated Contracts

Exam With 100% Correct Answers 2024

A contract that has no legal effect. - Correct Answer-VOID When one or more of the parties has the authority to rescind the contract. It appears to be valid, but one party may disaffirm because they are a minor, were subject to duress, or a victim of fraud or misrepresentation. - Correct Answer- VOIDABLE A law that requires real estate contracts be in writing is the ______________________? - Correct Answer-STATUTE OF FRAUDS Prevents a party to a written contract from presenting additional evidence that adds to the written terms of the contract. - Correct Answer-PAROLE EVIDENCE RULE If 2 people have a legal contract for one party to sell illegal drugs to the other party, this contract would be _______________? - Correct Answer-VOID

Paragraph 5 in a sales contract? - Correct Answer-EARNEST MONEY Paragraph 23 in a sales contract? - Correct Answer-OPTION MONEY Legal loss of a right with the thought that "if you don't use it, you lose it." - Correct Answer-DOCTRINE OF LACHES A written contract has been accepted, signed, and communicated to the other party. - Correct Answer-EFFECTIVE DATE Prevents a party to a written contract from presenting additional evidence that adds to the written - Correct Answer- PAROLE EVIDENCE RULE Prevents a party - Correct Answer-PAROLE EVIDENCE RULE If a licensed agent uses an old promulgated TREC form, what is this in violation of? - Correct Answer-LICENSE ACT

If a seller does not want to leave a chandelier where should they put this information in the 1-4 Family Residential Contract? - Correct Answer-PARAGRAPH 2D EXCLUSIONS What addendum can you attach to the sales contract if your client wishes to have additional personal property to stay with the property (that is not listed in Paragraph 2B or 2C)? - Correct Answer-NON-REALTY ITEMS ADDENDUM Loan to value ratio that represents how much of the sales price is covered by the mortgage loan. - Correct Answer-LTV RATIO Loan in which the lender is allowed to seize the collateral property and could go after the borrower's other assets if the sale of the property doesn't cover the whole amount owed to the lender. - Correct Answer-RECOURSE LOAN After a real estate transaction fails, both parties can't agree who gets the earnest money, what should a buyer's agent do?

• Correct Answer-SEND A WRITTEN DEMAND TO THE TITLE CO

Who should the option money be delivered to? - Correct Answer-SELLER What paragraph is used for option period? - Correct Answer- PARAGRAPH 23 Amendments to the standard coverage in a title policy. - Correct Answer-ENDORSEMENTS Provision in a deed limiting the use of property and prohibiting certain uses. - Correct Answer-RESTRICTIVE COVENANT What are examples of exceptions of the title policy? - Correct Answer-1. STANDARD PRINTED EXCEPTION AS TO MARITAL RIGHTS

2. STANDARD PRINTED EXCEPTION FOR STANDBY FEES, TAXES, AND ASSESSMENTS
3. RESTRICTIVE COVENANTS (DEED RESTRICTIONS) COMMON TO THE PLATTED SUBDIVISION A form that is completed by the seller to assure the buyer that they haven't changed the boundaries of the property since the

last survey was completed. - Correct Answer-RESIDENTIAL REAL PROPERTY AFFIDAVIT According to the 1-4 Family Residential Agreement who is responsible to pay for the owner's title policy, the seller or buyer? - Correct Answer-BOTH PARTIES NEGOTIATE When should an agent deposit an earnest money check with an escrow agent? - Correct Answer-2ND BUSINESS DAY, CLOSE OF BUSINESS If the buyer fails to deposit the earnest money on time, they will be in ____________? - Correct Answer-DEFAULT How many days does a seller have to cure a valid objection listed by the buyer in Paragraph 6D? - Correct Answer- DAYS If the agent isn't sure of restrictions of the property, how can an agent protect the buyer and give them an out under the contract? - Correct Answer-LIST IN PARAGRAPH 6D AS A VALID OBJECTION

T/F? If there is an active lease on the property when the property is transferred, the seller needs to supply the buyer with a copy of the lease and move-in condition form within 7 days after the effective date. - Correct Answer-TRUE When is rent for a Buyer's Temporary Residential Lease Agreement paid? - Correct Answer-EFFECTIVE DAY OF LEASE Who does escrow protect? - Correct Answer-SELLER AND BUYER Does the contract permit sellers to continue to show properties for back up offers before contract termination period? - Correct Answer-YES What does it mean to pay property taxes in arrears? - Correct Answer-TAXES FOR PREVIOUS YEAR How many promulgated forms does TREC have? - Correct Answer-SIX

Which contract would you use for a brand new constructed home? - Correct Answer-NEW HOME CONTRACT (COMPLETE CONSTRUCTION) If a buyer wants to buy a property that was once zoned for farming, but wants to change to residential, who is responsible for the rollback taxes charged for new zoning of property? - Correct Answer-BUYER If a new survey is completed on a farm or ranch, at what percentage of the sales price INCREASE OR DECREASE of the property can either party of the contract terminate due to the price change? - Correct Answer-10% The seller of unimproved property provides a disclosure in the _____________________? - Correct Answer-UNIMPROVED PROPERTY CONTRACT Which contract should not be used for transactions that include land used for ranching or farming, and where surface leases and mineral estates may exist. - Correct Answer- UNIMPROVED PROPERTY CONTRACT

Which contract could be used for commercially zoned land in urban areas or smaller rural tracts? - Correct Answer- UNIMPROVED PROPERTY CONTRACT Paragraph 2 is always used for what? - Correct Answer- PROPERTY DESCRIPTION Which contract has a place for Exception Documents and Surface Leases? - Correct Answer-FARM AND RANCH Which contract would an agent use to sell a Townhouse? - Correct Answer-ONE TO FOUR FAMILY RESIDENTIAL CONTRACT What addendum do you attach to the 1-4 Family Residential contract if your seller client wants to buy a home before they close on their own home? - Correct Answer-CONTINGENCY ADDENDUM / ADDENDUM FOR SALE OF OTHER PROPERTY BY BUYER T/F? If a buyer has a new offer and had an option to terminate, the right to terminate continues from the original

effective date through the # of days starting from the new effective amended date. - Correct Answer-TRUE Do Mineral Estates include grave, limestone, and sand? - Correct Answer-NO Who signs the Notice of Termination Contract? - Correct Answer-BUYER How long could it take for a buyer to get their earnest money refunded? - Correct Answer-10 DAYS How many days does a buyer have to terminate a contract after receiving Subdivision/ HOA information? - Correct Answer-3 DAYS In a Short Sale, when does the Earnest money need to be delivered to the Title co? - Correct Answer-ON 2ND BUSINESS DAY AFTER ORIGINAL EFFECTIVE DATE In a Short Sale, when does the Option money need to be delivered to the Seller or Seller's Agent? - Correct Answer- WITHIN 3 DAYS OF THE ORIGINAL EFFECTIVE DATE

When does the right to terminate begin in a Short Sale Addendum? - Correct Answer-ON ORIGINAL EFFECTIVE DATE If a buyer is exercising the unrestricted right to terminate the contract under Paragraph 23 of the contract, they are using what contract? - Correct Answer-NOTICE OF BUYERS TERMINATION CONTRACT Who is meant to complete the Subdivision information? - Correct Answer-HOMEOWNERS ASSOCIATION Which addendum is used when the transaction is contingent upon the approval of the seller's lender? - Correct Answer- SHORT SALE ADDENDUM If there are questions about mineral rights, who should be asked the questions? - Correct Answer-OIL AND GAS ATTORNEY Does the Notice of Buyer's Termination Contract address Earnest Money? Who signs this contract? - Correct Answer-NO / BUYER

Which addendum allows a seller to simultaneously negotiate with a second buyer in case the first one falls through? - Correct Answer-ADDENDUM FOR BACK-UP CONTRACT Are a landlord's rules against smoking on a property legal? - Correct Answer-YES Who creates occupancy standards? - Correct Answer-LOCAL LAWS & HOUSING PROVIDERS Does HUD create official rules for occupancy standards? - Correct Answer-NO, ONLY SUGGESTED GUIDELINES What is not considered when HUD reviews fair housing complaints? - Correct Answer-# OF PETS Which paragraph indicates repairs that must be completed by the seller before closing? - Correct Answer-7D(2)

Which paragraph indicates that any restrictive covenants along with the title policy documents must be provided to the buyer? - Correct Answer-6B If a property is occupied solely by people over the age of 62 and qualifies as senior housing, they are exempt from what? - Correct Answer-FAMILIAL STATUS If a seller is selling a property that is under lease, how long does the seller have to provide a copy of the signed lease to the buyer? - Correct Answer-WITHIN 7 DAYS OF EFFECTIVE DATE The name of the document prepared by a condo association to outline fees and rules? - Correct Answer-CONDOMINIUM RESALE CERTIFICATE What paragraph advises a buyer to get a lawyer to review the abstract of title? - Correct Answer-6E(1) A house is being sold by someone who inherited it, but there are others who contest to the will.

What kind of deed is the best for a buyer to best protect themselves from any potential claims on a title? - Correct Answer-QUITCLAIM DEED What type of contract has a specific type of offer and acceptance? - Correct Answer-EXPRESS What does a Residential Condominium Contract require in the legal description of the property? - Correct Answer-UNIT NUMBER What two sections of TREC's promulgated contracts contain "time is of the essence" language? - Correct Answer-EARNEST AND OPTION MONEY There is no mutual termination form for both parties, so who can provide each party with a form to sign that will go over earnest money. - Correct Answer-TITLE COMPANY T/F? Once an offer is countered, it's considered rejected and dead. - Correct Answer-TRUE

What must the broker keep a copy of for three years after a sale? - Correct Answer-LEAD BASED PAINT ADDENDUM Do changes to a contract have to be initialed? - Correct Answer-YES What paragraph covers a buyer accepting a property "with any and all defects and without warranty"? Or an "as is" condition? - Correct Answer-7D What does paragraph 6A8 refer to? - Correct Answer-"SHORTAGE IN AREA" Is "receipt of public income" a protected class according to Fair Lending Laws? - Correct Answer-YES How many days does earnest money have to be delivered by?

• Correct Answer-THREE DAYS Which paragraph grants the buyer the right to an inspection? - Correct Answer-7A

How long does a buyer have to terminate a contract after they receive an Addendum for Property Subject to Mandatory Membership in an Owner's Association? - Correct Answer- THREE DAYS How can buyers avoid paying extra prepaid interest to the mortgage company? - Correct Answer-CLOSE END OF MONTH Who does the Short Sale Addendum protect? - Correct Answer-SELLER Which paragraph on Lead Based Paint Disclosure states that the buyer has 10 days to have the property inspected? - Correct Answer-C What is this an example of: An agent gives their buyer client half of their commission without disclosing it on the settlement statement? - Correct Answer-ILLEGAL BUYER REBATE What is the difference between TREC's promulgated and approved forms? - Correct Answer-PROMULGATED ARE REQUIRED

APPROVED ARE OPTIONAL

If the agent's commission is set higher in the seller agreement than the buyer representation agreement, which would be used? - Correct Answer-SELLER AGREEMENT If a buyer is unable to get financing, what would he need in his contract to terminate without penalty? - Correct Answer- THIRD PARTY FINANCING ADDENDUM A Seller's Disclosure Notice is a requirement of what? - Correct Answer-TEXAS PROPERTY CODE What form should be used when a seller wants to use an existing survey but the affidavit is for assurance that the boundaries have not changed? - Correct Answer-T- RESIDENTIAL REAL PROPERTY AFFIDAVIT Can an HOA force a lien on a property and foreclose? - Correct Answer-YES

What paragraph says that a seller cannot execute any lease without the buyer's permission after execution date? - Correct Answer-PARAGRAPH 10B - POSSESSIONS What is a stand a lone refrigerator considered? - Correct Answer-PERSONAL PROPERTY THAT WILL NOT TRANSFER What paragraph contains that the seller is covering some of the buyer's closing costs? - Correct Answer-PARAGRAPH 12 Can a seller convey items that are not fully paid off yet into a Non-Realty Items Addendum? - Correct Answer-NO What does the Third Party Financing Addendum outline? - Correct Answer-FINANCING CONTENGENCY How long does a murder/suicide need to be disclosed on a property? - Correct Answer-FOREVER In what part of the Reservation of Oil, Gas and Other Minerals Addendum should a seller's percentage be provided if they decided to keep a part? - Correct Answer-B

What paragraph in the 1-4 Fam Res Agreement does it note the "on or before" closing date? - Correct Answer- PARAGRAPH 9 Is the Seller's Disclosure Notice promulgated by TREC? - Correct Answer-NO Who should create the documents for a buyer who wants to present an offer "lease option to buy"? - Correct Answer- LAWYER How many days does the seller have to furnish a new survey to the buyer prior to closing? - Correct Answer-3 DAYS Where is a copy of the title notice found? - Correct Answer- PARA 6E(1) TAR'S BUYER REPRESENTATION AGREEMENT NOTICE TO PROSPECTIVE BUYER

Are the members of the Broker-Lawyer Committee or members of TREC appointed by a governor? - Correct Answer- ONLY TREC If nothing is added to paragraph 7D, the buyer is accepting the property in what condition? - Correct Answer-PRESENT CONDITION What is the statute of limitations from the discovery date of fraud or misrepresentation of a license holder? - Correct Answer-4 YEARS What does a buyer have to do if the seller's property is in a special statutory tax district? - Correct Answer-SIGN A NOTICE THAT THEY WILL BE RESPONSIBLE FOR EXTRA TAXES Additions to a title policy are called what? - Correct Answer- ENDORSEMENTS