Chapter 6 Flashcards
PROPERTY description in Farm and Ranch contract
Ranches are not described as lot and block, but are portrayed in other ways.
You would probably have to attach an addendum to completely describe the property.
CROPS
crop is owned by the seller up to the day of closing
if the seller is planning to reserve any water or timber rights
that desire needs to be communicated in reservations part in farm contract.
FEMA flood map - objections ( Farm and Ranch contract)
if the property is located in the flood map the buyer may object or terminate the contract in a time allowed.
the number of the days is negotiable between the buyer and the seller.
Exception documents title policy and survey ( F&R)
- space to list the exception that may be involved in the transaction.
- surface leases such as hunting leases, grazing leases. which helps the farmer to get agricultural real estate tax exemptions.
3.
Title notice in F & R contract
Address agricultural districts
Seller Disclosure Notice
Texas Property code doesn’t require the rancher or farmer seller disclosure notice. Attorney should advise the seller for that.
RATIFICATION OF FEE in F & R contract
at the top of the page on the F&R contract
but is at the bottom of the Broker Information section of the One to Four Family Residential Contract (Resale).
On the F&R, it is set off in its own box, and requires separate signatures.
EMK
earnest money contract
MSA
Metropolitan Statistical Area
What contract shows an area called the Ratification of Fee?
F and R contract
What is a reason that a survey may not be required?
No lender is involved
What would an agent need to do when writing a legal description for a large ranch?
Attach an addendum to completely describe the property
Which of the following is required to be able to sue for a commission?
The listing agreement must be in writing
In a Farm and Ranch Contract, what paragraph do you select information about a home warranty?
Residential Service Contract
UPC
Unimproved Property Contract
(there are no subparagraphs in the PROPERTY section.)
Difference between UPC contract and one to 4 family residential contract (Resale )
- WATER RIGHTS AND EASEMENT in property paragraph.
- TITLE POLICY & SURVEY=> Special agricultural development districts which is not in Texas
- property condition=> No Seller Disclosure NOTICE (TREC )
- UPC ( disclosure about flooding environmental hazards, wetlands,..etc. )
- No Residential service contract.
- No need for POSSESSION BEFORE OR AFTER CLOSING .
- Proration and RollBack Taxes in UPC => when seller change the use of the property he has to pay an increased tax because some lands has agricultural tax exemptions.
- Agreement of parties Paragraph : No short sale addendum or No Loan assumption addendum, No SDN of lead-based paint
DBA
Doing Business As =>Sometimes the builder has a Doing Business As (DBA) followed by their real name. in NEW HOME CONTRACT=> parties paragraph
Differences between NEW HOME CONTRACT and 1 to 4 family residential contract resale
1.property paragraph much shorter
2. property condition much shorter
3. Warranties and Insulation
4. proration and rollback taxes => due by the one who changed its use, the builder. if the builder fail to pay then the buyer is responsible.
If the buyer finds Defects in the material construction of the home ?
Chapter 27 of the Texas Property Code / 60th day before the date you file suit to recover damages => consult an attorney before signing paragraph
Spec house
Builders construct “spec houses” so they can show it off and sell later, hoping to make a profit when it is sold. Spec homes are built to certain specifications. Any alteration by the buyer would mean a new construction home.
Property Condition Paragraph => incomplete construction
What should the buyer do?
Ask a General contractor to look at the property ,it may cost money. but it may well worth having them looking over the construction.
An agent’s client is interested in a builder’s new home. How can the agent protect their commission in completing the transaction?
The agent must register their client before showing the model home
On the New Home Contract (Completed Construction) which paragraph is the same as on a One to Four Family Residential Contract (Resale)?
The paragraph dealing with the buyer and seller’s legal names
in what paragraph in condominium contract resale you would find items deal with Exclusions ?
Property and Condominium documents
Residential service contract => in one to 4 family Residential resale
property condition paragraph 7
