Texas Promulgated Contracts – CHAMPIONS STUDY EXAM

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Texas Promulgated Contracts – CHAMPIONS STUDY EXAM Reservations of oil, gas and other minerals will generally be inserted in: (a) Paragraph 2 (b) Paragraph 11 (c) TREC Addenda form (d) Paragraph 7 ... The sales price may be adjusted based upon a survey. If the sales price is adjusted, ____________. (a) The cash portion can be adjusted (b) The amount financed can be adjusted (c) The cash portion and amount financed can be adjusted proportionately (d) Any of the above are possible If the sales priced is adjusted based upon a survey, either party may terminate the contract if the sales price varies by more than: (a) The amount entered in 3.C of the contract (b) 5% (c) 10% (d) The amount entered in 3.A of the contract If the property is currently under an agricultural exemption, and the use of the property changes, the buyer may be charged a: (a) Fine (b) Penalty (c) Rollback tax (d) d. Change of use fee The buyer may terminate the contract and receive a refund of earnest money if lender required repairs: (a) Seem really high (b) Exceed 5% of the Sales Price (c) Exceed 3% of the Sales Price (d) Exceed $10,000 If in Paragraph B(2) is checked, and 50% entered in the Addendum for Reservation of Oil, Gas, and Other Minerals, (a) Seller reserves 50% of all of the mineral estate (b) Seller reserves 50% of whatever mineral estate the seller owns as of the closing date A purchaser of property seaward of the Gulf Intracoastal Waterway must be given a disclosure notice that (a) Dangerous marine life pose a significant risk to swimmers (b) Beach erosion and movement of the vegetation line could cause an owner to lose the property (c) Serious rip tides are a constant danger (d) Wave action and strong winds are a danger in these areas If a home is to be sold, with lender's consent, at a price less than the outstanding balance on a mortgage, the sale is known as a (a) Deed in lieu of foreclosure (b) Foreclosure (c) Short sale (d) Distress sale Which of the following activities is specifically prohibited under the Civil Rights Act of 1968? (a) Denying availability of property when it is available (b) Refusing to sell, or rent to, deal or negotiate with any person (c) Steering or blockbusting (d) All of the above activities are specifically prohibited under the Civil Rights Act of 1968 A building or community must not discriminate based on familial status, unless it qualifies as housing for older persons. (a) True (b) False The commission agreement between the broker and the seller is usually found in the: (a) Sales contract (b) Listing agreement (c) Buyer representation agreement (d) IABS _______________ occurs when a property is refinanced or resold immediately after purchase for an artificially inflated value. (a) Chunking (b) Churning (c) Property flipping (d) Equity theft A state government entity created to encourage agricultural development in Texas is the: (a) Texas Department of Parks and Wildlife (b) Texas Agricultural Development District (c) Texas Farm Bureau (d) Texas Farm Aid The elements of a valid contract are, competent parties, consideration, legal subject matter, in writing, and ___________. (a) Default (b) Mutual consent (c) Property condition (d) Recording A(n) __________________ contract is defined as a contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed. (a) Executory (b) Executed (c) Bilateral (d) Void In the business of real estate, ___________ is defined as something given in exchange for a promise. (a) Consideration (b) Mutual assent (c) A bribe (d) Legal subject matter The TREC-promulgated contract forms: (a) Are for optional use by real estate licensees (b) Are drafted by the Broker-Lawyer Committee (c) Are promulgated by the legislature (d) Are used in both commercial and residential transactions In a lease with a "right of first refusal" provision: (a) The price is set when the lease agreement is negotiated (b) The tenant has promised to buy the property (c) The TREC promulgated form must be used (d) The tenant has the right to match or better any offer the landlord receives to prevent the property from being sold to someone else TREC has promulgated forms for: (a) lease purchase transactions (b) cooperatives (c) right of first refusal (d) residential transactions An offer can be communicated by ___________________. (a) Phone (b) Hand delivery (c) E-mail (d) All of the above The Third Party Financing Addendum For Credit Approval is used when: (a) The buyer is obtaining FHA financing (b) Paragraph 4.A(2)(a) is checked in the contract (c) The buyer is obtaining VA financing (d) The buyer is obtaining any kind of financing In the Third Party Financing Addendum for Credit Approval: (a) The buyer has no incentive to obtain financial approval (b) The buyer has a definite time to notify seller of the inability to obtain financing approval (c) The buyer's earnest money will not be returned if the buyer does not obtain financing (d) The option period is explained The Third Party Financing Addendum for Credit Approval cannot be used for: (a) VA guaranteed loans (b) FHA insured loans (c) Seller Financing (d) Texas Veterans Loans According to the Seller Financing Addendum, the interest rate is: (a) Set at 6% (b) Negotiated between the p [Show More]

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