Module 5

Question 1

The consummation of a contractual real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are disbursed by the lender

Answer 1

Closing

Question 2

Delivering the property to a party in the contract

Answer 2

Possession

Question 3

A section of TREC’s promulgated contracts that is for factual statements or business details that are not addressed in the contract form and for which there is no TREC promulgated addendum, lease, lease, or other mandatory forms

Answer 3

Special provisions

Question 4

Often referred to a as closing, which is the consummation of a contractual real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are disbursed by the lender

Answer 4

Settlement

Question 5

Expenses that are prepaid or paid in arrears, that are divided or distributed between the buyer and seller at closing (such as taxes, insurance, interest and rents)

Answer 5

Prorations

Question 6

A fire or other casualty that damages or destroys the property after the effective date of the contract

Answer 6

Casualty Loss

Question 7

Non-performance of a duty under a contract

Answer 7

Default

Question 8

A type of dispute resolution where a mediator hears both sides and tries to help the parties to come to an agreement

Answer 8

Mediation

Question 9

The closing of a transaction through a third party called an escrow agent, who receives certain funds and documents to be delivered upon the performance of certain conditions outlined in the escrow agreement

Answer 9

Escrow

Question 10

The time period that the buyer has the right to purchase property within a definite time at a specified price.

Answer 10

Option period

Question 11

Occurs when a property s listed by one firm and later sold by another

Answer 11

Cooperative Sale

Question 12

Occurs when a single brokerage firm sells one of its own listings, the broker is on both the listing and the selling side of the transaction

Answer 12

In-house sale

Question 13

“Good funds” is described as a

Answer 13

a cashier’s check or wire transfer

Question 14

The buyer temporary residential lease is used when

Answer 14

the buyer moves in before closing

Question 15

The buyer’s temporary residential lease is used for no more than

Answer 15

90 days

Question 16

Settlement expenses include:

Answer 16

Release of existing liens, appraisal fees, and loan application fees

Question 17

What is the process of dividing ongoing expenses between the buyer and seller at closing

Answer 17

Proration

Question 18

If buyer fails to comply with this contract, who is in default

Answer 18

Buyer will be in default

Question 19

If Seller fails to comply with this contract, who is in default

Answer 19

Seller will be in default

Question 20

The state of Texas encourages who to resolve disputes

Answer 20

Mediation

Question 21

A seller who has no social security card or green card is considered a

Answer 21

foreign person

Question 22

The escrow agent will withhold from the sales proceeds an amount sufficient to comply with

Answer 22

applicable tax law

Question 23

An agent should encourage a client to consult an attorney before

Answer 23

signing the contract

Question 24

The broker is responsible for ensuring that the effective date is

Answer 24

filled in