Chapter 6

Question 1

PROPERTY description in Farm and Ranch contract

Answer 1

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.

Question 2

CROPS

Answer 2

crop is owned by the seller up to the day of closing

Question 3

if the seller is planning to reserve any water or timber rights

Answer 3

that desire needs to be communicated in reservations part in farm contract.

Question 4

FEMA flood map - objections ( Farm and Ranch contract)

Answer 4

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.

Question 5

Exception documents title policy and survey ( F&R)

Answer 5

1. space to list the exception that may be involved in the transaction.
2. surface leases such as hunting leases, grazing leases. which helps the farmer to get agricultural real estate tax exemptions.
   3.

Question 6

Title notice in F & R contract

Answer 6

Address agricultural districts

Question 7

Seller Disclosure Notice

Answer 7

Texas Property code doesn’t require the rancher or farmer seller disclosure notice. Attorney should advise the seller for that.

Question 8

RATIFICATION OF FEE in F & R contract

Answer 8

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.

Question 9

EMK

Answer 9

earnest money contract

Question 10

MSA

Answer 10

Metropolitan Statistical Area

Question 11

What contract shows an area called the Ratification of Fee?

Answer 11

F and R contract

Question 12

What is a reason that a survey may not be required?

Answer 12

No lender is involved

Question 13

What would an agent need to do when writing a legal description for a large ranch?

Answer 13

Attach an addendum to completely describe the property

Question 14

Which of the following is required to be able to sue for a commission?

Answer 14

The listing agreement must be in writing

Question 15

In a Farm and Ranch Contract, what paragraph do you select information about a home warranty?

Answer 15

Residential Service Contract

Question 16

UPC

Answer 16

Unimproved Property Contract
(there are no subparagraphs in the PROPERTY section.)

Question 17

Difference between UPC contract and one to 4 family residential contract (Resale )

Answer 17

1. WATER RIGHTS AND EASEMENT in property paragraph.
2. TITLE POLICY & SURVEY=> Special agricultural development districts which is not in Texas
3. property condition=> No Seller Disclosure NOTICE (TREC )
4. UPC ( disclosure about flooding environmental hazards, wetlands,..etc. )
5. No Residential service contract.
6. No need for POSSESSION BEFORE OR AFTER CLOSING .
7. 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.
8. Agreement of parties Paragraph : No short sale addendum or No Loan assumption addendum, No SDN of lead-based paint

Question 18

DBA

Answer 18

Doing Business As =>Sometimes the builder has a Doing Business As (DBA) followed by their real name. in NEW HOME CONTRACT=> parties paragraph

Question 19

Differences between NEW HOME CONTRACT and 1 to 4 family residential contract resale

Answer 19

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.

Question 20

If the buyer finds Defects in the material construction of the home ?

Answer 20

Chapter 27 of the Texas Property Code / 60th day before the date you file suit to recover damages => consult an attorney before signing paragraph

Question 21

Spec house

Answer 21

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.

Question 22

Property Condition Paragraph => incomplete construction
What should the buyer do?

Answer 22

Ask a General contractor to look at the property ,it may cost money. but it may well worth having them looking over the construction.

Question 23

An agent’s client is interested in a builder’s new home. How can the agent protect their commission in completing the transaction?

Answer 23

The agent must register their client before showing the model home

Question 24

On the New Home Contract (Completed Construction) which paragraph is the same as on a One to Four Family Residential Contract (Resale)?

Answer 24

The paragraph dealing with the buyer and seller’s legal names

Question 25

in what paragraph in condominium contract resale you would find items deal with Exclusions ?

Answer 25

Property and Condominium documents

Question 26

Residential service contract => in one to 4 family Residential resale

Answer 26

property condition paragraph 7