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Texas Prom Contracts > The Unimproved Property and New Home Contracts > Flashcards

The Unimproved Property and New Home Contracts Flashcards

1
Q

What is a “spec” house?

A

One that the builder builds to show off his or her work.

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2
Q

When working with a builder, what is “registration” of a client?

A

When the client registers with the builder to protect the agents commission.

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3
Q

When would the Unimproved Property Contract be used?

A

When there are no improvements on the property.

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4
Q

On the New Home Contract (Completed Construction), in what paragraph is property insulation recorded?

A

Property Condition

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5
Q

On the Unimproved Property Contract, in what paragraph would you find information regarding property repairs?

A

Property Condition

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6
Q

In which paragraph on the Unimproved Property Contract would you find information on dispute resolution?

A

Mediation

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7
Q

The TREC No. 9-12 contract

A

should be used when no improvements have been placed on the property. There are a number of distinctions between this document and the One to Four Residential Contract, including:
Paragraph 13.B
Paragraph 22

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8
Q

TREC No. 9-12 Contract inclusion of Paragraph 13.B

A

that contains new about the seller subdividing some land that had an agricultural exemption as far as taxes are concerned.

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9
Q

TREC No. 9-12 Contract inclusion of Paragraph 22

A

which includes possible addendums addressing loan assumption, short sale, and lead-based paint.

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10
Q

The TREC No. 24-14

A

should be used for new home contracts, though it is not used often. Licensee should “register” the client before showing him or her a builders’ model home. Important differences between the TREC No. 24-14 and the One to Four Family Residential Contract (Resale) 20-13 include:

Paragraph 7
Paragraph 13.B

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11
Q

TREC No. 24-14 Paragraph 7

A

which does not include a seller’s disclosure notice because the house is brand new. However, disclosures are required for flooding, environmental hazards, litigation, and dumpsites.

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12
Q

TREC No. 24-14 Paragraph 13.B

A

which deals with roll back taxes.

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13
Q

TREC No. 23-14

A

should be used when dealing with the purchasing of a new house where the construction is not yet complete. This document is less frequently used because most new-construction homes will not be sold until construction is completed. In instances where the buyer cannot wait for the completion of construction, this is the contract to be used.

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14
Q

There are important distinctions between the TREC No. 23-14 and the One to Four Family Residential Contract (Resale) 20-13, including:

A

Paragraph 6.C which assumes that there will not be an existing survey for a home that is complete.
Paragraph 7 which addresses utilities, construction documents, cost adjustments, and commencement and completion dates.

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15
Q

Unimproved Contract 9-12 Paragraph 1,3,4,5 (compared to Residential One to Four Family)

A

Paragraph 1,3,4,5 is the same.

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16
Q

Unimproved Contract 9-12 Paragraph 2 (compared to Residential One to Four Family)

A

only has a few differences between an unimproved property and one that is approved. The UPC addresses the rights to the property including water rights and easements.

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17
Q

Unimproved Contract 9-12 Paragraph 6 (compared to Residential One to Four Family)

A

is basically the same except that the UPC adds paragraph 6.E.8. Paragraph 6.E.8 is different in that this property may be located in a special Agricultural Development District. There currently are not any agricultural development districts in Texas.
Inserting the paragraph on the agricultural district moved the paragraph on transfer fees to paragraph 6.E.9 on the UPC.

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18
Q

Unimproved Contract 9-12 Paragraph 7.A (compared to Residential One to Four Family)

A

The same

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19
Q

Unimproved Contract 9-12 Paragraph 7.B (compared to Residential One to Four Family)

A

is different. Although some local boards have created a seller’s disclosure notice for unimproved properties, the Texas Real Estate Commission does not have one. So Paragraph 7.B is simply eliminatedin the Unimproved Property Contract.

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20
Q

Unimproved Contract 9-12 Paragraph 7.C (compared to Residential One to Four Family)

A

is about repairs on the property and is the same as paragraph 7.F of the Residential Contract.

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21
Q

Unimproved Contract 9-12 Paragraph 7.D (compared to Residential One to Four Family)

A

same as 7.G of the residential contract.

22
Q

Unimproved Contract 9-12 Paragraph 7.E (compared to Residential One to Four Family)

A

Paragraph 7.E in the Unimproved Property Contract lists several seller disclosures about the property including:
E.1. Flooding
E.2. Litigation, condemnation or special assessments
E.3. Environmental hazards
E.4. Dumpsite, landfills or underground tanks
E.5 Wetlands
E.6. Endangered species

23
Q

Unimproved Contract 9-12 Paragraph 7.H (compared to Residential One to Four Family)

A

on the Residential Contract is eliminated on the Unimproved Property Contract because a home warranty is not appropriate for unimproved property.

24
Q

Unimproved Contract 9-12 Paragraph 8 & 9, 11 & 12 (compared to Residential One to Four Family)

A

same in both contracts.

25
Q

Unimproved Contract 9-12 Paragraph 10 (compared to Residential One to Four Family)

A

essentially the same except that the UPC eliminates the need for possession before or after closing.

26
Q

Unimproved Contract 9-12 Paragraph 13.A (compared to Residential One to Four Family)

A

in the Unimproved Property Contract is the same as the entire paragraph 13 in the Residential Contract.

27
Q

Unimproved Contract 9-12 Paragraph 13.B (compared to Residential One to Four Family)

A

added in the UPC and contains new information that the licensee needs to understand. It is conceivable that the seller is subdividing some land that had an agricultural exemption as far as taxes are concerned.

28
Q

Unimproved Contract 9-12 Paragraph 14, 15, 16, 17, 18, 19, 20, and 21 (compared to Residential One to Four Family)

A

exactly the same between the two contracts.

29
Q

Unimproved Contract 9-12 Paragraph 22 (compared to Residential One to Four Family)

A

only slightly different. A few of the possible addendums have been left out of the Unimproved Property Contract including:

The Loan Assumption Addendum
The Short Sale Addendum
The Addendum for Seller’s Disclosure of Information on Lead-based Paint.

30
Q

Unimproved Contract 9-12 Paragraph 23 & 24 (compared to Residential One to Four Family)

A

the same

31
Q

Page 8 of the Unimproved Property Contract and page 9 of the Residential Contract

A

are the same

32
Q

44-2 Addendum for Reservation of Oil, Gas and Other Minerals Paragraph A

A

gives the definition of mineral estate. Because real estate can be severed laterally, it is possible for one person to own the surface of the land and someone else to own the minerals under the land.

33
Q

44-2 Addendum for Reservation of Oil, Gas and Other Minerals Paragraph B

A

is to be used to determine if the seller retains the rights of ingress and egress for minerals.

34
Q

44-2 Addendum for Reservation of Oil, Gas and Other Minerals Paragraph C

A

the seller must provide the buyer with any mineral leases currently on the property.

35
Q

New Home Contract (Completed Construction) Paragraphs 1 - 6 (Comparison to Residential One to Four)

A

Paragraph 1 is the same.
Paragraph 2 is much shorter because there is not as likely to be a discussion about the seller wanting to retain something in the property unless it is a model home
Paragraphs 3, 4, 5, and 6 are essentially the same.

36
Q

New Home Contract (Completed Construction) Paragraphs 7 (Comparison to Residential One to Four)

A

different because the Texas Property Code has a few exemptions for when a seller does not have to provide a seller’s disclosure notice, one of which is new home construction.

37
Q

The New Home Contract (Completed Construction) Paragraph 7.C and 7.D

A

Paragraph 7.C indicates the seller is not making any warranties about the property.
Paragraph 7.D addresses insulation used in the construction which exists because the federal government requires homes to be more energy efficient. This information would have to be obtained from the builder. This information includes the following:
D.1 - A box to mark if there is an attachment about the insulation
D.2.a - Exterior walls insulation
D.2.b - Interior walls insulation
D.2.c - Ceiling insulation
D.2.d - Floor insulation
D.2.e - Other insulated areas

38
Q

The New Home Contract (Completed Construction) Paragraph 7.E, 7.F, and 7.G

A

the same

39
Q

The New Home Contract (Completed Construction) Paragraph 7.H

A

on the New Home Contract (Completed Construction) is about the Seller’s Disclosure. If any of the following affects the property, it must be disclosed.

H.1 Flooding
H.2 Litigation, condemnation or special assessments
H.3 Environmental hazards
H.4 Dumpsites, landfills or underground tanks
H.5 Wetlands
H.6 Endangered species

40
Q

The New Home Contract (Completed Construction) Paragraph 7.I

A

of the New Home Contract (Completed Construction) is the same as 7.H on the Residential Contract.

41
Q

The New Home Contract (Completed Construction) Paragraph 8, 9.A and 9.B.1 through 9.B.4

A

are the same

Paragraph 9.B.5 on residential contract is not on the New Home Contract

42
Q

The New Home Contract (Completed Construction) Paragraphs 10, 11, and 12

A

are essentially the same as the residential contract.

43
Q

The New Home Contract (Completed Construction) Paragraph 13

A

Paragraph 13.A is the same on both contracts. Paragraph 13.B addresses roll back taxes.

44
Q

The New Home Contract (Completed Construction) Paragraphs 14 through 24

A

are the in both contracts.

45
Q

New Home Contract (Incomplete Construction) Paragraphs 1 - 6

A

Paragraphs 1 through 6.B. are the same in both contracts.

Notice in paragraph 6.C there is a difference between these two forms in that it is assumed that there will not be an existing survey for a home that is incomplete. This is because surveys usually show where the improvements are and are drawn after the home is completed.

Paragraphs 6.D and 6. E.1 – 8 are all the same on both New Home Contracts.

46
Q

New Home Contract (Incomplete Construction) Paragraphs 7.A

A

the incomplete home builder does not have the requirement to keep the utilities on during the entire time to closing. It would not be practical to require all the utilities to be on because some wiring or plumbing may not be finished yet.

47
Q

New Home Contract (Incomplete Construction) Paragraphs 7.B

A

of the new home contract incomplete construction contract requires the seller to complete the property in accordance with the Construction Documents.

48
Q

New Home Contract (Incomplete Construction) Paragraphs 7.C

A

discusses any cost adjustments, both more and less.

49
Q

New Home Contract (Incomplete Construction) Paragraphs 7.D

A

states that if the Construction Documents allow the buyer the right to request certain selections (carpet color, countertops, appliance colors), those selection must be made within the number of indicated in the blank space.

50
Q

New Home Contract (Incomplete Construction) Paragraphs 7.E

A

describes the commencement and completion dates.

51
Q

New Home Contract (Incomplete Construction) Paragraphs 7.F to 7.I

A

Paragraph 7.F of the new home contract incomplete construction contract is the same as 7.C of the completed construction contract.

Paragraph 7.G of the new home contract incomplete construction contract is the same as 7.D of completed construction contract.

Paragraph 7.H of the new home contract incomplete construction contract is the same as 7.G of completed construction contract.

Paragraph 7.I of the new home contract incomplete construction contract is the same as 7.H of completed construction contract.

52
Q

New Home Contract (Incomplete Construction) Paragraphs 8 through 24 and pages 8 and 9

A

Are the same

Texas Prom Contracts (16 decks)

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