TEXAS Highlights from 1 - 4 Family Residential Contract (Resale) Flashcards
The TREC 1-4 Family Residential Contract (Resale) Paragraph 2: – Accessories, which may or may not be attached to the property (i.e. pool equipment/ pool covers) are considered
part of the real property
The TREC 1-4 Family Residential Contract (Resale) Paragraph 3:
The Sales Price =
The cash portion + the financing
The TREC 1-4 Family Residential Contract (Resale) Paragraph 4:
Seller may not, without Buyer’s written consent, create
create a new lease, amend any existing lease, or convey any interest in the Property
***The TREC 1-4 Family Residential Contract (Resale) Paragraph 5:
Within THREE DAYS after the Effective Date, Buyer must deliver earnest money and option fee to the escrow agent.
The TREC 1-4 Family Residential Contract (Resale) Paragraph 5:
Funds received by the escrow agent will be applied first to the ____ and then to the ____
Option Fee; Earnest Money
The TREC 1-4 Family Residential Contract (Resale) Paragraph 6B:
The title company has___ days to provide the title commitment after they receive the sales contract.
20 days
The TREC 1-4 Family Residential Contract (Resale) Paragraph 6D:
allows a buyer to choose a number of days to review both the title commitment and the survey. If the buyer is unhappy with the results of either, he has the negotiated number of days to ______
address his/her concerns with the seller
The TREC 1-4 Family Residential Contract (Resale) Paragraph 6E.3
Texas Water Code requires the Seller to deliver and the Buyer to sign the M.U.D. (Municipal Utility District) disclosure prior to _______
final execution of the contract.
A buyer who has not received the M.U.D. disclosure has the right to terminate the contract.
The TREC 1-4 Family Residential Contract (Resale) Paragraph 6E.6
If the property is located in a Certificated Service area of a Utility Service Provider (a M.U.D.) the buyer must be given notice of this, disclosing to the buyer that _____________________
there may be an extra charge for having water and sewer services connected.
The TREC 1-4 Family Residential Contract (Resale) Paragraph 7A:
Seller at Seller’s expense ____________
A Seller’s Disclosure of Property Condition must be given to a buyer ________ to make that offer binding on the buyer
shall keep the utilities on during the time this contract is in effect.
BEFORE HE SIGNS AN OFFER
The TREC 1-4 Family Residential Contract (Resale) Paragraph 7.B.2:
If the buyer has not received the ___________ he chooses a number of days for the Seller to provide it. If the buyer doesn’t receive it within that number of days he can terminate the contract.
If the Buyer receives it, the Buyer will have 7 days after receiving it to terminate for any reason.
Seller’s Disclosure
The TREC 1-4 Family Residential Contract (Resale) Paragraph 7.B.(3) - A seller’s disclosure is not required in ___________.
A seller’s disclosure is not required if the house is worth less than _______ of the price of the property.
a foreclosure sale, tax sale, sale by guardian, executor, or administrator, or sale by a builder of a new home that has not been lived in.
5%
***The TREC 1-4 Family Residential Contract (Resale) Paragraph 7.D. (1)
Buyer accepts the Property As Is
The TREC 1-4 Family Residential Contract (Resale) Paragraph 7.E. -
…If lender required repairs exceed 5% of the Sale Price, Buyer may ____________
terminate the contract and receive a refund of earnest money paid.
The TREC 1-4 Family Residential Contract (Resale) Paragraph 8. BROKERS and SALES AGENTS:
Texas law requires a real estate license holder
who is a party to a transaction or acting on behalf of a _______, __________, or ______….to notify the other party in writing before entering into a contract of sale. (Agency coupled with an interest must be
disclosed).
spouse, parent, or child
**The TREC 1-4 Family Residential Contract (Resale) Paragraph 11.
SPECIAL PROVISIONS –
Factual statements and business details applicable to the sale can be inserted here. It is prohibited by TREC rules to insert these details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use.
The TREC 1-4 Family Residential Contract (Resale) Paragraph 15 – Default – All TREC contracts have a default paragraph. This paragraph states that if either party defaults, the injured party can: _____________
sue for specific performance, seek such other relief as may be provided by law, or both, or the injured party can terminate the contract.
The TREC 1-4 Family Residential Contract (Resale) Paragraph 18.C. – If the contract is terminated and the escrow agent receives a demand of release of earnest money from one party, they must notify the other party. If the other party does not send a written objection to the demand within _____ days, the escrow agent may disburse the earnest money
to the party making the demand.
15
The TREC 1-4 Family Residential Contract (Resale) Paragraph 22 – review the Addenda.
The Seller’s Temporary Lease Addendum and the Buyer’s Temporary Lease Addendum are for use when the lease period is for _______ days or less.
A seller of coastal property abutting tidally influenced water must provide the “Addendum for Coastal Area Property.” This notice tells buyers that owners may gain or lose portions of the land due to the actions of water. A seller who sells property located seaward of the Gulf Intracoastal Waterway must provide the addendum to disclose that structures must not be erected seaward of the vegetation line. If a structure is erected seaward of that line, or becomes seaward as a result of natural causes, ____________
The ______ or ______ Addendum allows a buyer to obtain a resale certificate on a property.
90 days
the structure would be subject to a lawsuit by the State of Texas for removal.
HOA or POA
The TREC 1-4 Family Residential Contract (Resale) Paragraph 23: – if the parties need or want to see an attorney, an agent should send their clients to
an attorney before ______________.
The last party to sign the contract is the party accepting the final change. The ________ is responsible for filling in the effective date after the last party signs.
the clients sign the contract
broker
Testing mold is not necessary to determine if it should be removed. If mold is visible it
__________
should be removed.
Remediation
mold removal
Testing after remediation is/ is not required?
is not
Can property owners assess and remediate their own properties without a license?
yes
Receiving a Certificate of Mold Remediation is an advantage for a homeowner because _________
it prevents an insurer from making an underwriting decision on the property based on previous mold damage or claims.
On selling a home, the law requires the seller provide the buyer with copies of all Certificates of Mold Remediation they have received for the property within the past _______ years.
5 years
