chapter 3

Question 1

one to four family residential contract

Answer 1

this form is not to be used for a condominium but may be used for the sale of a townhouse

Question 2

Paragraph 2.(C) accessories

Answer 2

which while not necessarily permanently installed or built-in, are commonly {conveyed to the buyer} in the sale

Question 3

Paragraph .2.(D) exclusions to the sale

Answer 3

if an item is to be excluded, give it a name and a location. for example {“dining room chandelier”} would be an adequate name and location

Question 4

Paragraph 3.(B) sales price : sum of all financing described in the attached

Answer 4

1. Third-party financing addendum
2. Loan assumption addendum
3. Seller financing addendum

Question 5

third-party financing falls into two broad categories

Answer 5

a. government loans
b. conventional loans

Question 6

buyers approval

Answer 6

a. credit
b. income
c. acests

Question 7

loan assumption

Answer 7

occurs when a buyer assumes and agrees to pay the seller existing mortagage

Question 8

seller liability

Answer 8

the seller, who is the original borrower on the loan assumed, may continue to be liable, along with the buyer

Question 9

seller liability on assumed loans

Answer 9

when a purchaser assumes an existing mortgage, the original borrower is not necessarily released from ongoing liability for repayment

Question 10

TREC- promulgated forms and leases

Answer 10

• Buyer’s temporary residential leases
  90 days
• Seller’s temporary residential leases
  90 DAYS