TEXAS PROMULGATED CONTRACTS-CHAMPIONS STUDY

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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) Recordi ... ng B 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 A A federal disclosure requirement for residential properties built prior to 1978 is: (a) An energy efficiency audit (b) A lead-based paint disclosure (c) A seller's disclosure of property condition (d) A water district noticeAccording to the Seller B If the Seller agrees to contribute to the Buyer's closing costs, the amount should be: (a) entered in Paragraph 11, Special Provisions (b) paid in cash to the Buyer after closing (c) entered in Paragraph 12.A(1)(b) (d) added to the sales price in Paragraph 3 C All of the TREC promulgated contracts provide that the Buyer is purchasing the property "as-is". (a) True (b) False A All written notices between the parties are effective when: (a) Mailed (b) Hand-delivered (c) Faxed or emailed (d) Any of the above D At closing the buyer should bring a: (a) personal check for the amount of closing costs and down payment (b) a promissory note for the amount of closing costs and down payment (c) cash for the amount of closing costs and down payment (d) a cashier's check or wire transfer for the amount of closing costs and down payment D TREC promulgated contracts allow the Buyer to have the property inspected: (a) by anybody selected by the buyer (b) by inspectors licensed by TREC or otherwise permitted by law (c) no more than three times (d) at any time by any person selected by their agent B 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 C The title company is: (a) A party to the transaction (b) Not a party to the transaction (c) Liable for the performance of the parties (d) Responsible for arranging suitable financing for the buyer B When should a licensee advise a client to consult an attorney: (a) at first contact with the client (b) before signing the contract if the client does not understand the effect of signing the sales contract or the terms or conditions in the agreement (c) after the contract has been signed by all parties (d) a licensee should never advise a client to consult an attorney B IRS statutes require a buyer to: (a) Purchase property only from U.S. citizens (b) Withhold 20% of the price from a foreign seller of U.S. property (c) Withhold 10% of the sale proceeds in excess of $300,000 when a foreign person has no social security card or green card (d) None of the above C If a seller wants to continue to occupy the property for two days after the closing and the buyer agrees: (a) This can be written into the special provisions paragraph of the contract (b) The buyer and seller should negotiate a periodic tenancy agreement (c) The Seller's Temporary Residential Lease form should be used (d) The TAR Residential Lease form should be used C The Buyer and Seller Temporary Residential Lease forms are good for any period up to: (a) 14 days (b) 30 days (c) 60 days (d) 90 days D If a licensee is receiving compensation from a residential service company, the compensation must be: (a) reported to TREC (b) disclosed to the parties using the appropriate TREC form (c) never disclosed to anybody (d) reported to the attorney general for action B A new survey is always required for all transactions: (a) True (b) False B At the closing the buyer should bring: (a) A personal check for the amount of closing costs and down [Show More]

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