Chapter 6 Flashcards
Residential Condominium Contract (Resale)
assists condominium purchasers in making informed decisions about the rights, responsibilities and risks of condominium ownership and is required by the Texas Real Estate Commission.
Residential Condominium Contract (Resale) VS the One to Four Family Residential Contract (Resale).
The Residential Condominium Contract (Resale) doesn’t have
1. SURVEY or
2.CASUALTY LOSS paragraphs.
………………………….
The TITLE NOTICES, SETTLEMENT AND OTHER EXPENSES, and PRORATIONS sections all have slight differences between the forms.
What documents licensees will use for farms and ranch contracts in Texas?
The One to Four Family Residential Contract (Resale) + the Farm and Ranch Contract
Farm and Ranch Contract.
- PROPERTY IMPROVEMENTS includes additional information specific to farms including barns, tanks, fences, crops, mineral and timber rights, etc.
- TITLE POLICY AND SURVEY includes an additional section in F&C that gives the option to omit a survey since surveying at such extensive acreages can be very expensive.
- Additional distinctions include concerns about flood plains, hunting leases, and any issues with the Texas Agricultural Development District.
Unimproved Property Contract
when no improvements have been placed on the property.
distinctions between Unimproved Property Contract and the One to Four Residential Contract (Resale) ?
- The UPC PROPERTY section is different because it does not need the paragraphs dealing with improvements, accessories, and exclusions because there is no home and no improvements.
- The UPC includes rollback taxes in the PRORATIONS paragraph.
New Home Contract
should be used for new home contracts, though it is not used often because most builders have their own forms. Licensees should “register” their client before showing him or her a builders’ model home in case a New Home Contract will be used.
differences between the New Home Contract and the One to Four Family Residential Contract (Resale)
- The PROPERTY CONDITION portion of the NHC does not include a seller’s disclosure notice because the house is brand new. However, disclosures are required for flooding, environmental hazards, litigation, and dumpsites.
2.The NHC includes provisions on rollback taxes.
3.The NHC doesn’t have a CLOSING paragraph dealing with the property being leased prior to the sale since that is not a possibility.
New Home Contract (Incomplete Construction)
is used for purchasing a new house where the construction is not yet complete. This document is less frequently used because most new-construction homes will not be sold until construction is completed. In instances where the buyer cannot wait for the completion of construction, this is the contract to be used.
New Home Contract (Incomplete Construction) VS the One to Four Family Residential Contract (Resale) ?
1.The SURVEY paragraph in the NHC assumes that there will not be an existing survey for a home that is complete.
2.The PROPERTY CONDITION paragraphs which addresses utilities, construction documents, cost adjustments, and commencement and completion dates will be different.
Condominium (Condo)
Type of housing that allows ownership of “airspace”, and a specified part of a piece of real estate, individually owned, with use of, and access to, common facilities like hallways elevators and exterior areas, is executed under legal rights associated with individual ownership. Common areas are controlled by the association of owners who jointly represent ownership of the whole property as tenants-in-common.
Residential condominium contract resale is a note regarding environmental matters
property condition
which items are included in condo document ?
declaration , bylaws, rules
FEMA can provide the buyer with?
Flood Plain Maps
