Contract Addenda and Non-contract Forms Flashcards
What is the central purpose of this promulgated addendum?
It is a warning statement
When should this addendum be used?
Anytime a coastal real property is sold near a beach.
Shown below is an excerpt from one of the addenda presented in this unit. What is the name of it? IF YOU OWN A STRUCTURE LOCATED ON COASTAL REAL PROPERTY NEAR A GULF COAST BEACH, IT MAY COME TO BE LOCATED ON THE PUBLIC BEACH BECAUSE OF COASTAL EROSION AND STORM EVENTS.
Addendum for the property located seaward of the Gulf Intracoastal waterway
Shown below is an excerpt from one of the addenda presented in this unit. What is the name of it? State law prohibits the use, encumbrance, construction, or placing of any structure in, on, or over state-owned submerged lands below the applicable tide line, without proper permission.
ADDENDUM FOR COASTAL AREA PROPERTY
Who are the parties of a residential purchase agreement when a “short sale” is involved?
The buyer and seller
When might a “short sale” occur?
A short sale occurs when a buyer has been located and an agreement is reached for an amount that is less than what is owed. The seller will receive nothing and the lender will receive less than what the bank is currently owed.
What should a licensee representing the buyer do with the information found from Subdivision Information, Including Resale Certificate for Property Subject to Membership in a Property Owner’s Association?
Present it to the buyer as soon as the documents are received but do not discuss with the buyer.
What is the Gulf Intracoastal Waterway?
It is a 1,300-mile man-made canal.
It is a canal that runs along the Gulf of Mexico coastline from Brownsville all the way to St. Marks, Florida.
The Waterway links Texas ports with the rest of the country and enables Texas to handle most of the shipping traffic.
TREC No. 34-4 Addendum is used for property located
seaward of the Gulf Intracoastal Waterway. This form is primarily a warning notice to the buyer to make them completely aware of all the things that could go wrong in a purchase of land between the gulf and the intra-coastal waterway. All of the land between the actual gulf and this intra-coastal canal falls into this category.
TREC No. 33-2 Addendum is used for
Coastal Area Property and the unique issues that arise when owning land along the gulf coast. This document makes the buyer aware of:
The impact that erosion and accretion may have on the amount of land the purchaser will own.
Federal laws pertaining to filling in land with top soil to increase the amount of land owned.
Federal laws about building structures—including submerged structures—on state land.
TREC No. 37-5 is used for
Subdivision Information, Including Resale Certificate for Property Subject to Membership in a Property Owner’s Association. In many cases, this form is given by the licensee to the seller to take to the homeowner’s association. It is of vital importance that the buyer reviews these documents before signing the closing documents.
TREC No. 36-8 Addendum
is used for property subject to mandatory membership in the owner’s association.
TREC No. 45-1 Short Sell Addendum
is used with a seller who is behind in the mortgage payments. A short sale occurs when a buyer has been located and an agreement is reached for an amount that is less than what is owed. The seller will receive nothing and the lender will receive less than what the bank is currently owed.
There are forms that licensees will use that are not promulgated
They exist to make the seller and buyer as fully informed as possible about the property involved in real estate transactions. Some of them are:
Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies
IABS Form
OP-M Addendum
Contract for Deed
Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies
is a document that aims to educate clients and customers about avoidable accidents. The licensee could give this form to a seller when listing a property to educate the seller that these conditions may be addressed by a buyer when an offer is made.
