The Condominium Contract and Farm & Ranch Contract

Question 1

What requires a survey to be ordered on a condominium sale?

Answer 1

Since the exterior of the condominium is not relevant to the sale, the survey of the property is not relevant.

Question 2

What documents are necessary to the buyer because the buyer needs to know how the association will operate and the rules of the condo?

Answer 2

Condominium Declaration, Bylaws and any Rules of the Association.

Question 3

With a condominium, what is the strictest definition of what is owned?

Answer 3

Inside airspace of only the one unit.

Question 4

What is a vara?

Answer 4

It is a unit of measurement, equaling approximately 33 1/3 inches.

Question 5

Using the TREC Farm & Ranch contract, if the property is located on a FEMA flood map, what are the buyer’s rights?

Answer 5

The buyer may object and terminate the contract as long as the buyer does so in the time allowed.

Question 6

If the seller is exempt from filling out a Seller’s Disclosure Form, then which of the following is true?

Answer 6

The seller is still required to make any disclosures about the property condition.

Question 7

The Condominium Resale Certificate referred to in the Residential Condominium Contract (Resale) stipulates that the Certificate must be prepared no more than __________ prior to delivery to the buyer.

Answer 7

Three months

Question 8

FEMA can provide the buyer with what?

Answer 8

Flood Plain Maps

Question 9

According to the TREC Farm & Ranch contract, how long does the buyer have to object if any portion of the property is on the FEMA flood map?

Answer 9

It’s negotiable

Question 10

Residential Condominium Contract 30-12

Answer 10

is required in the management of condominiums. It shares many similarities to the One to Four Family Residential Contract 20-13.

Question 11

Condominiums are

Answer 11

a type of housing that allows for ownership of “air space” and a specified part of a piece of real estate (i.e. the condo is individually owned, while the common facilities is controlled by the association of owners that jointly represent ownership of the whole piece).

Question 12

Important distinctions between condominium contracts and the One to Four Family Residential Contract (Resale) 20-13 include:

Answer 12

Paragraph 2, 6 and 22

Question 13

Residential Condominium Contract Paragraph 2

Answer 13

which includes the specific bylaws and rules of a particular condominium association

Question 14

Residential Condominium Contract Paragraph 6

Answer 14

which is concerned with surveys of the contract

Question 15

Residential Condominium Contract Paragraph 22

Answer 15

which deals with specific addendums that are unique to condominiums.

Question 16

TREC No. 32-3 addendum

Answer 16

assists condominium purchasers in making informed decisions about the rights, responsibilities and risks of condominium ownership and is required by the Texas Real Estate Commission.

Question 17

TREC No. 20-13 and the Farm and Ranch Form No. 25-11

Answer 17

are the documents licensees will use for farms and ranch contracts in Texas. Distinctions of these documents include:
Paragraph 2
Paragraph 3
Paragraph 6

Question 18

TREC No. 20-13 and the Farm and Ranch Form No. 25-11 Paragraph 2

Answer 18

which include additional information specific to farms including barns, tanks, fences, crops, mineral and timber rights etc.

Question 19

TREC No. 20-13 and the Farm and Ranch Form No. 25-11 Paragraph 3

Answer 19

discusses “varas” which are measurement distinctions occasionally found on ranches.

Question 20

TREC No. 20-13 and the Farm and Ranch Form No. 25-11 Paragraph 6

Answer 20

includes an additional C.4 section in 25-11 that gives the option to omit a survey since surveying at such extensive acreages can be very expensive.

Question 21

TREC No. 20-13 and the Farm and Ranch Form No. 25-11 Additional distinctions include

Answer 21

concerns about flood plains, hunting leases, and any issues with the Texas Agricultural Developmental District.