Chapter 7 review Flashcards
Paragraph A => addendum for sale of other property by buyer
Address of the property that need to be sold / date need to be sold/
Paragraph c => addendum for sale of other property by buyer
buyer may waive the contingency/ deposit extra with escrow agent as additional earnest money. all waivers must be in writing/
Amended effective date ( back-up ) contract
The effective date of the back-up contract will be changed to the date the buyer receive notification that the first contract is terminated.
Termination option paragraph in 1 to 4 family residential contract (Resale) on the back-up contract, not the first contract.
when the second buyer is notified that the first contract did not close,that day will be the day zero of the option period.
where is The Addendum for Reservation of Oil, Gas, and Other Minerals addendum ?
in the AGREEMENT OF PARTIES paragraph of the One to Four Family Residential Contract (Resale) as a possible attachment needed in certain transactions.
This addendum is also mentioned in the PROPERTY - RESERVATIONS paragraph of the Farm and Ranch Contract.
Why Oil and Gas addendum is required by TREC for use for any reservation of minerals?
prevent agents from practicing law by entering into the One to Four Family Residential Contract (Resale) any parties’ wishes on mineral rights.
SPECIAL PROVISIONS => in the One to Four Family Residential Contract (Resale)=»> Oil and Gas
paragraph is not the place to address minerals since this addendum does exist for agents to use.
Who signs the Notice of Buyer’s Termination of Contract?
Only the buyer
When does the buyer pay the seller any agreed-upon option money when using the Addendum For “Back-Up” Contract?
The buyer MUST pay the seller any agreed-upon option consideration at the time of the effective date of the backup contract.
Gulf Intracoastal Waterway
The Gulf Intracoastal Waterway is a 1,300-mile, man-made canal that runs along the Gulf of Mexico coastline from Brownsville, Texas, all the way to St. Marks, Florida. The Waterway links Texas ports with the rest of the country and helps enable shipping traffic
Seaward Land Definition
All of the Land between the actual gulf and this intracoastal canal falls into this category such as padre island
Open Beach Laws
Texas Beach is eroding 5 feet each year per year. /inform the buyer
Paragraph one of Coastal Area Property
Due to Erosion and Accretion , the amount of land the purchaser will get may change.
Paragraph 2 of Coastal Area Property
discusses FILL, Previous owner may fill in by topsoil to increase what they own. It violates federal law.
information about Landfill from the seller
Paragraph 4 of Coastal Area Property
GENERAL LAND OFFICE IN AUSTIN TEXAS for info !
The purpose of the Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners’ Association form?
Request information from the association to give to the buyer.
Association Information
The association will enter the street address, the city, and the county and other information. They will also attach additional documents to this form involving the deed restrictions and other items listed in Paragraph M.
why many developers create a Property Owners’ Association (POA)
1.to keep the value of their home
2. to help enforce the deed restrictions for the neighborhood.
Why the buyer pay a fee based on the mandatory membership addendum contract ?
To remove the seller’s name from the list and place the buyer’s name instead.
Some high-end development charge one-time membership fee that the buyer has to pay at closing
it may exceed $1000, so the buyer should be aware of that.
Authorization paragraph
deals with the release of subdivision information and any updated resale certificate .
“underwater” homeowner
homeowner owes more on the property than what it’s worth,
Paragraph D short sale addendum is important
Seller Notify the BUYER that seller had obtained Lienholder’s consent and agreement on or before ………..DATE should be written down . / if the lender has not given approval then the contract is terminated / If the buyer is notified of the bank approval before the date written in, the effective date of the contract must be amended to the date of the notification.
Changing of the effective date
amendment form
“cure date” ? ( Short Sale Addendum)
the date by which payments need to be made, or the foreclosure will go through.(The lender may push the seller into foreclosure if the owner has already received a “cure date”,)
When doing a short sale, keep in mind: ( read fast )
The seller may have to bring money at closing which they may not have. Calculations of closing costs need to be done in such a way that the lender takes on expenses the seller cannot pay.
The closing date needs to be set as far out as possible to allow time to get the mortgage company’s approval for the short sale. Otherwise, the seller and buyer may become frustrated and you will need to keep adjusting the closing date.
The lender may push the seller into foreclosure if the owner has already received a “cure date”, which is the date by which payments need to be made, or the foreclosure will go through.
In a short sale, if the buyer is notified of the bank’s approval before the date written in Paragraph (D) on the Short Sale Addendum, what will be the effective date of the contract?
It is amended to the date of the notification
What is the name of the 1,300-mile canal that runs from Brownsville, Texas to St. Mark’s, Florida?
Gulf Intracoastal Waterway
Ground Fault Circuit Interrupters (GFCIs)
The first bullet is about GFCIs, Ground Fault Circuit Interrupters. Some people know that their home has these because on electric plugs near a water source there is a reset button that will help to prevent electric shock.
However, in some areas and older homes, there is a way that the entire house could be wired in the electrical box for this and the common person would not know if their home has such a thing.
Balusters
They are the supports mounted perpendicular to the ground to support the railing on a stairway or balcony. If these are not spaced closely enough together, a child could fall through them or at least get stuck between them.
Most communities have property codes. Home inspectors determine whether the home is in compliance with these codes. the buyer may request the seller to fix the problem by reopening negotiations between contract time and closing time.
Who signs the Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies addendum?
Neither the buyer or seller
What is not discussed on the Information About Brokerage Services form (IABS)?
Non-agency
Which documents does TREC not make available?
- Contract for deed
- Listing representation agreement
- Buyer/Tenant representation agreement
When must the option money paid ? (Back up contract)
upon execution
