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Real Estate > Promulgated Contract Forms > Flashcards

Promulgated Contract Forms Flashcards

1
Q

Good Funds

A
  • Down Payment

- Cashier’s check or wire transfer

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2
Q

When does offer become a contract?

A

When signed and acceptance communicated to offering party

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3
Q

Default

A

When a party fails to perform under contract

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4
Q

Requirements of valid contract

A
  • COLIC
  • Competent Parties
  • Offer and Acceptance
  • Legal Purpose
  • In Writing
  • Consideration
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5
Q

Exclusions

A

Items to be retained by the Seller as specified in the contract

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6
Q

Prorated Items

A
  • Taxes
  • HOA fees
  • Rents
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7
Q

Paragraph 5

A
  • Earnest Money
  • Amount (~1%)
  • Name and Address of Title Company
  • Time is of the essence
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8
Q

Paragraph 3B

A

Sum of all financing from all sources

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9
Q

Executed Date

A

Offer accepted signed and communicated to other party

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10
Q

Paragraph 23

A
  • Option fee and time period
  • Fee must be paid within 3 days of effective date to seller or seller’s agent
  • Can be credited at closing
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11
Q

Imputed Notice

A

Offer presumed to be delivered to client when delivered to agent

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12
Q

Number of days for the title company to deliver the title commitment

A
  • 20 days

- Could be extended 15 days or up to 3 days before closing

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13
Q

T-47 Affidavit

A
  • When using existing survey

- Notarized

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14
Q

Requirements of a valid option

A
  • All Paragraph 23 filled in
  • Must be delivered within 3 days of effective date
  • Must be paid to seller or seller’s agent
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15
Q

Valid

A

Meets all requirements of law

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16
Q

Void

A

Invalid from beginning

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17
Q

Voidable

A

Cannot be enforces against parties

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18
Q

Unenforceable

A

Cannot be enforces due to flaw in contract

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19
Q

Executory

A

Binding but duties have not been performed

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20
Q

Executed

A

When all duties have been performed

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21
Q

Broker/Seller Commission Agreements

A
  • On listing agreement

- Between brokers on MLS or arrangement

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22
Q

Right of First Refusal

A

A tenant has the right to match or better any offer the landlord may receive on the property before the property is sold to someone else.

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23
Q

Option to Buy

A

Allows tenant to buy at preset price and terms for given period

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24
Q

Lease Purchase

A
  • tenant makes lease payments.
  • Tenant agrees to purchase at agreed time and price.
  • Binding on both parties
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25
Q

Straw Buyer

A

Person buys property to hide owner

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26
Q

Churning

A
  • Excessive selling to generate fees

- Refinancing

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27
Q

Chunking

A

Show investors how to get rich in real estate

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28
Q

Equity Theft

A

Forge deed transfer and obtain new liens

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29
Q

Foreclosure Rescue Scam

A

Homeowner signs over title with belief they can rent and repurchase

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30
Q

Property Flipping

A

Property sold for artificially inflated values

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31
Q

Presentation of Offers

A
  • All offers must be presented

- Imputed notice- offered presumed to be delivered when given to agent

32
Q

Acceptance

A 
-No changes to offer, as is
Intent
-Manner of acceptance
-Timeliness of acceptance
-If acceptance is unconditional
33
Q

Counteroffer

A
  • Party changes offer in some way

- Reject initial offer and make new offer

34
Q

Offer Requirements

A
  • Communicated to specific offeree
  • Intended to be serious offer
  • Definite and certain enough to be accepted
35
Q

Rejection with Invitation to Resubmit

A

Reject offer and makes suggestions to what would be acceptable

36
Q

Multiple offers

A
  • Present all offers

- Inform agents multiple offers have been received

37
Q

Paragraph 12

A
  • Settlement Expenses
  • Seller’s contributions
  • If expenses exceed what was agreed contract will terminate unless other party pays
38
Q

paragraph 4

A
  • License Holder Disclosure
  • Any client is license holder
  • Agency Coupled with Interest
  • Family Relationships
39
Q

Common Amendments to Original Contract

A
  • Changes to closing date
  • Changes to sales price, down payment or finance amount
  • Seller’s repairs
  • Removal or waiver of contingencies
40
Q

Which provision prevails? Addendum or Original Contract?

A

Addendum

41
Q

Paragraph 24

A
  • Attorney contact information

- Effective date

42
Q

Paragraph 7E

A
  • Lender required repairs
  • If repairs are more than 5% of sales price contract can be terminated
  • Must be completed up to 5 days before closing
43
Q

Notice to Prospective Buyer Form

A

Inform to have abstract examines or get title insurance

44
Q

Paragraph 6

A
  • Title Policy
  • Commitment within 20 days
  • Survey
  • Objections
  • Title Notices and POA
45
Q

Deed in Lieu

A
  • Borrower deeds property in exchange for release from mortgage
  • Not accepted if they can afford payments
46
Q

Foreclosure

A

Legal procedure of selling property to satisfy note

47
Q

Short Sale

A

Property sold for less than when is owed

48
Q

Paragraph 20

A
  • Federal Tax Requirements

- Escrow agent will withhold amount for taxes for someone with no SSN or green card

49
Q

Temporary Lease Forms

A
  • Used when a party will occupy before or after closing

- Rent to be paid per day

50
Q

Mediation

A
  • Cost shared equally

- If cannot be settled with informal discussion

51
Q

Arbitration

A

Third party to sale will decide outcome

52
Q

Lawsuit

A

Court settles dispute

53
Q

Broker-Lawyer Committee

A
  • Draft and revise contract forms to be standardized
  • 13 members
  • 6 brokers
  • 6 attorneys
  • 1 public member
54
Q

Unlawful Practice of Law

A
  • Alter text in promulgated contract form

- Add provisions in Paragraph 11 that change legal effect

55
Q

Paragraph 2C

A
  • Accessories

- Not permanently installed but commonly conveyed

56
Q

Loan Forms

A
  • Seller Financing
  • Third Party Financing
  • Loan Assumption
57
Q

Stigmatized Properties

A
  • Physical or psychological stigma

- Must disclose unless AIDS/HIV related or death

58
Q

Requirements for Use of Inspector

A
  • Must be licensed
  • Selected by Buyer
  • Hydrostatic testing must be approved by Seller
59
Q

Origination

A

process of creating a loan

60
Q

Loan Assumption

A

Buyer assumes and pays seller’s existing mortgage

61
Q

Assignment

A
  • Transfers all rights and liabilities to new party
  • Most contracts are assignable
  • Exceptions
  • Personal services
  • Dependent on credit
  • Must have approval
62
Q

Lead Paint Disclosure

A
  • Completed by seller if home built before 1978
  • Buyer can have property inspected within 10 days of effective date
  • Deliver pamphlet
63
Q

Environmental Concerns Addendum

A
  • Environmental Assessment
  • Endangered Species
  • Wetlands
  • # of days to complete assessments
64
Q

Loan Assumption Benefits

A
  • Lower Rate

- Lower Cost

65
Q

Loan Assumption Concerns

A
  • Seller’s Liability

- Processing Time

66
Q

Information About Brokerage Services

A
  • Given to prospective clients at first substantive conversation
  • Broker duties as agent, intermediary
67
Q

Steering

A

Taking buyers to or away from an area

68
Q

Blockbusting

A

Inducing panic selling

69
Q

Third Party Financing Buyer Approval Requirements

A
  • Given set amount of days
  • Time is of the essence
  • If cannot be obtained
  • Terminate
  • Allow time to run out
  • Request extension
70
Q

TREC Form RSC-2

A
  • Disclosure of Relationship with Residential Service Company
  • Home warranty companies
  • If they pay broker any compensation
71
Q

Third-Party Financing Addendum

A
  • Type of financing
  • Conventional
  • Texas Veterans Loan
  • VA
  • FHA
  • USDA
  • Reverse Mortgage
72
Q

Farm and Ranch Crops

A

Right to harvest until closing

73
Q

Farm and Ranch Improvements

A
  • Permanently installed items
  • Windmills
  • Tanks
  • Pens
  • Barns
74
Q

Farm and Ranch Accessories

A
  • Feeders
  • Corrals
  • Portable buildings
75
Q

TREC Contract Forms

A
  • Required unless prepared by attorney and requested by client
  • 1-4 Resale
  • New Incomplete Construction
  • New Complete Construction
  • Unimproved Property
  • Condo Resale
  • Farm and Ranch

Real Estate (6 decks)

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