TEXAS INTERACTIVE STUDY GROUP UNIT 3 QUESTIONS
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1 TEXAS INTERACTIVE STUDY GROUP 1 UNIT 3 QUESTIONS
2 TEXAS INTERACTIVE STUDY GROUP 2 SESSION 3 GRACE JENKINS
3 Notes for Tonight 3 1. PLEASE USE MUTE *6 TO SILENCE YOUR PHONE # 6 TO UNMUTE. 2. Chat is the best way to communicate questions.
4 Notes for Tonight 4 Contact Information Grace Jenkins and John Mathis releadinstructortx@kaplan.com
5 TONIGHT S TOPICS 5 USE OF PROMULGATED CONTRACT FORMS STATUTE OF FRAUDS SELLER DISCLOSURE REQUIREMENTS
6 QUESTION When no promulgated form meets the needs of a particular transaction, the license holder may use which of the following? A. Any standard form sold at the office supply store B. Any of the State Bar standard forms C. A form drafted and approved by a licensed attorney at law 6 D. A form created and approved by a Texas licensed attorney
7 QUESTION 7 TREC promulgated forms must be used by real estate license holders in all transactions to which the forms are applicable unless one of four exceptions apply as defined by TREC. True False
8 QUESTION According to the preprinted language of the TREC promulgated contract form, what type of deed is to be used at closing to convey the title? 8 A. Quitclaim B. General Warranty C. Bargain and Sale D. Special Warranty
9 QUESTION The maximum tenancy that is allowed in a TREC Temporary Lease is: 9 A. 48 hours B. 72 hours C. 90 days D. 180 days
10 REVIEW OF TREC EXCEPTION RULE TREC rule provides the four exceptions to the requirement that real estate license holders must use TREC promulgated forms. (1) transactions in which the licensee is acting as a principal, not as an agent; (2) transactions in which an agency of the United States government requires a different form to be used (3) transactions for which a contract form has been prepared by a principal to the transaction or prepared by an attorney and required by a principal to the transaction; or (4) transactions for which no standard contract form has been promulgated by the commission, and the licensee uses a form prepared by an attorney at law licensed in Texas 10
11 QUESTION 11 All of the following are remedies under the provisions of TREC promulgated contracts EXCEPT A. Receiving the earnest money B. Suing for specific performance and for money damages C. Suing for attorney fees D. Suing for specific performance and receiving the earnest money
12 Review of Contractual Paragraphs 1. The parties in the contract 2. Legal description, improvements & accessories 3. Type of finance 4. Earnest money 5. Title and survey 6. Property condition-seller disclosure 15. Default 23. Option of termination 24. Effective date 12
13 QUESTION According to the Statute of Frauds all of the following have to be in writing to be enforceable EXCEPT 13 A. A contract for the sale of real estate B. A listing agreement C. A lease of real estate for more than one year D. A lease of real estate for one year or less
14 Review of Statute of Frauds Two agreements that must be in writing for them to be enforceable: 1) A lease more than one year 2) A purchase agreement for real property 14 Certain agreements must be signed by the parties (sales contracts, leases, bill of sales) Both spouses must sign agreements to release community and homestead rights
15 Review of the Statute of Frauds The purpose of the Statute of Frauds is: to prevent fraud 2. to protect spouses rights 3. to prevent oral agreements becoming enforceable
16 QUESTION Which of the following statements is TRUE concerning the Seller s Disclosure of Property Condition form as required by section of the Texas Property Code? 16 A. The sales contract is void without this form attached. B. It must be used in all single-family transactions. C. It requires the seller to disclose all adverse conditions pertaining to the property. D. It requires the seller to disclose the seller s knowledge of the condition of the property.
17 QUESTION If the Seller's Disclosure of Property Condition form is required but NOT provided at the time the purchase contract is signed, the buyer may terminate the contract within A. three days after receiving the notice or before closing, whichever is earlier B. seven days after receiving the notice C. three days before closing D. seven days after receiving the notice or before closing, whichever is earlier 17
18 QUESTION The Seller s Disclosure of Property Condition form issued by TREC is: 18 A. promulgated by TREC. B. attached to every real estate contract C. a promulgated addendum. D. published for voluntary use.
19 QUESTION The Seller s Disclosure of Property Condition form requires the seller to disclose all defects in the property. 19 True False
20 Review of Seller Property Disclosure Form 20 Sellers must disclose knowledge of the property condition. TREC has a form, TAR has a form and some parties choose to have their own form. The disclosure form is voluntary, as long as the disclosure covers the same information as the TREC form.
21 Review of Seller Property Disclosure Form There are exceptions to a seller delivering a seller s disclosure: 1) Spouse to spouse or divorcing spouses 2) Co-owner to co-owner 3) All foreclosure properties 4) If the structure is 5% or less in total property value 21
22 Notes for Tonight 22 Contact Information Grace Jenkins and John Mathis
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