chapter 2

Question 1

broker lawyer committee

Answer 1

they write residential contract forms that, with few exceptions, are mandatory for license holders. TREC the promulgates the contracts becoming mandatory for license holders in most cases

Question 2

why was the broker lawyer committee created

Answer 2

it was created to draft and revise contract forms that, with few exceptions, are mandatory for license holders. TREC then promulgates the contracts becoming mandatory for license holders.

Question 3

why was the broker lawyer committee created

Answer 3

it was created to draft and revise contract forms capable of standardization for use by real estate license holders

Question 4

license holders may

Answer 4

use forms prepared and approved by a license texas attorney for the particular transaction involved

Question 5

TREC can

Answer 5

they can suspend or revoke a license on proof that the license holder drew a deed, note, deed of trust, will, or other written instrument that transferred or affected the title to or an interest in land. they can also suspend or revoke a license if the license holder is found to have advised or counseled a person as to the validity or legal sufficiency of an instrument or as to the validity of title to real estate.

Question 6

TREC promulgated forms and leases

Answer 6

a. buyers temporary residential lease ( 90 days )
b. sellers temporary residential lease ( 90 days )

Question 7

right of first refusal

Answer 7

this provision in a lease gives the tenant the right to purchase the leased property by matching or bettering any offer.

Question 8

an offer can be communicated

Answer 8

1. phone
2. e-mail
3. hand delivery

Question 9

imputed notice

Answer 9

under this concept , an offer is presumed to have been delivered to the principal when it is delivered to the agent

Question 10

the person to whom an offer is made has several options when responding to the offer

Answer 10

1. reject
2. accept
3. counteroffer

Question 11

accepatnce

Answer 11

agent should take care that they make no representations as to acceptance of an offer until all parties have signed and the acceptance has been communicated

Question 12

multiple offers

Answer 12

if a broker receives more than one offer must be presented to the seller unless instructed otherwise by the seller. no offer has a priority of presentation over another

Question 13

when does the offer become a contract?

Answer 13

an offer becomes a binding contract when all parties sign it, and the acceptance is communicated to the offering party. communication is also referred to as notification