chapter 4

Question 1

termination option

Answer 1

for nominal consideration, the receipt of which the seller acknowledges, and the buyers agreement to pay the option fee within the time required, the seller grants the buyer the unrestricted right to terminate this contract by giving notice of the termination to the seller within __ days after the effective date of this contract ( option period). notice under this paragraph must be given by 5:00 pm

Question 2

time

Answer 2

time is of the essence for this paragraph and strict compliance with the time for performance is required

Question 3

option

Answer 3

if a buyer chooses to terminate under the option, they will receive a refund of earnest money but will not receive a refund of the option fee

Question 4

for a valid option to exist, the following are required

Answer 4

a . The applicable blanks in paragraphs 5.A. and 5.B. must be filled in
b. the option fee must be paid within three days after the effective date of the contract
c . The buyer must deliver the option fee to the escrow agent

Question 5

commitment

Answer 5

the title company has 20 days from the date that they receive the contract to deliver a commitment to the buyer and the title company for title insurance

Question 6

seller’s existing survey

Answer 6

t-47 affidavit

Question 7

objections

Answer 7

buyer may object in writing to defects, exceptions , or encumbrances to title. Buyer may object to any matters that might prohibit a specific use or activity of the property , such installing dish, operating a business out of the home, or parking an RV within view of the street

Question 8

Notice to prospective buyer-

Answer 8

his notice complies with the texas real estate license act’s provision requiring license holders to advise buyers to have an abstract examined or obtain title insurance

Question 9

access, inspections and utilities

Answer 9

buyer may have the property inspected by inspectors selected by buyer and licensed by TREC or otherwise permitted by law to make inspections

Question 10

lead based paint addendum

Answer 10

1978, the required lead-based paint addendum must accompany the contract

Question 11

lender required repairs and treatment

Answer 11

if the cost of lender required repairs and treatment exceeds 5% of the sales price, buyer may terminate this contract and the earnest money will be refunded to buyer

Question 12

environmental matters

Answer 12

is concerned about these matters, an addendum promulgated by TREC or required by the parties should be used

Question 13

broker or sales agent disclosure

Answer 13

texas law requires a real estate broker or sales agent who is a party to a transaction or acting on behalf of a spouse, parent, or child business entity in which the broker or sales agent owns more than 10%

Question 14

disclosure at first contact

Answer 14

disclosure of representation

Question 15

disclosure of agency (IABS)

Answer 15

give at first substantive

Question 16

disclosure of agency with interest

Answer 16

spouse, parent , or child

Question 17

lead warning statement

Answer 17

the states that if you are about to buy a residential dwelling or inspection

Question 18

buyers rights

Answer 18

to indicate whether buyer waives the right to conduct a risk assessment or inspection

Question 19

buyers acknowledgement

Answer 19

protect your family from lead in your home

Question 20

environmental assessment

Answer 20

this box is checked if buyer wishes to obtain an environmental assessment. the addendum states that the buyer “may obtain” the assessment