TX Promulgated Forms Flashcards
1
Q
Broker-Lawyer Committee
A
- advisory committee under TRELA; drafts/revises contract forms for licensee use, not mandatory use
- 13 members, staggered 6 year terms
- 6 Lawyers - selected by the commission
- 6 Brokers - appointed by State Bar of Texas
- 1 Member - appointed by the govenor
- does not promulgate (publish) forms
- develops forms and recommends their adoption
2
Q
Unauthorized Practice of Law
A
- Have to be an attorney to practice law/draft contracts or instruments to convey real property. If you aren’t and you do by…
- drafting doc, other than forms in Sec. 1101.155 of TRELA, transferring/affecting real property or;
- advises regarding validity of an instrument/title to real property
- …license/cert is revoked
- no illegal if using forms that
- are adopted by the commission for that purpose
- prepared by an attorney for that purpose
- prepared by property owner
3
Q
Promulgated vs. Approved Forms
A
- Promulgated (mandatory) for use by licensees under TREC
- licensee can fill out
- Approved for use by licensees under TREC (not mandatory)
- Promulgated Form - Exemptions
- licensee functioning as principal
- other form required
- form prepared by property owner/attorney & required by
- if no standard form in existance & using attorney/B-LC prepared form
- Changes to forms not allowed
- except logo/business name outside border
- inserting broker’s name in blank
- parties make licensee strike/add
4
Q
Guidelines to Avoid Practicing Law
A
- No altering forms
- Say what you would say in court
- Don’t talk about:
- Rights
- Remedies
- Default
- Validity
- “If you do this, they do that…”
- NOPE! interpretting the law
5
Q
TREC has these forms for licensee use…
(Promulgated AND Approved)
A
- 6 Promulgated Contracts
- 15 Promulgated Addenda (including 2 Temp Leases)
- 1 Promulgated Amendment
- 2 Promulgated Resale Certificateds
- 1 Promulgated Notice
- 2 Promulgated Consumer Disclosures
- 7 Approved Forms
6
Q
One to Four Family Residential Contract
(Resale)
A
- properties under 4 units
- anyhting over needs attorney to draft contract
- not for condo transactions
7
Q
Farm and Ranch Contract
A
- M-n-B land description
- Par. 13 - Rollback Taxes:
- additional tax when not used for agriculture/doesn’t qualify for reduced tax rate
- Buyer pays if buyer changed use (builder/developers)
- Seller pays if seller changed use
- Par. 3 - Sales Price Adjustment, 10% cap
- Par. 2 - Addendum requirement for oil reservations
- Par. 7 - Property Conditions
- more elements than normal, check:
- crops
- equipment
- royalties
- surface leases
- restrictions & exceptions
- rights & obligations of gov’t programs & coop/assoc memberships
- more elements than normal, check:
8
Q
Residential Condominium Contract (Resale)
A
- “Cube of Air” ownership
- not used with fee simple title to land
- Par. 2 - Declaration & Resale Certificat
- CC&R (Convenants, Conditions, & Restrictions)
9
Q
Unimproved Property Contract
A
- used when
- intended use is 1 to 4 family dwelling
- transferring unimproved land
- doesn’t address structures
- property is/isn’t located in TX AG development district
- Par. 13 - Prorations & Rollback Taxes
- if taxes not paid at closing, buyer pays at end of year
- if seller’s change in use results in assessments prior to closing, seller pays for assessments
- Par. 7 - Prop Conditions
10
Q
New Home Contract - 2 kinds
A
- Incomplete Construction
- Par. 7 - Property conditions
- access, construction docs, cost adjustments, buyer’s selection, completion, warranties, insulation, evironmental matters, seller’s disclosure
- Par. 13. - Prorations & Rollback Taxes
- if taxes not paid at closing, buyer pays at end of year
- if seller’s change in use results in assessments prior to closing, seller pays for assessments
- Par. 7 - Property conditions
- Completed Construction
- Par. 7 - Property conditions (more extensive)
- access, acceptance of property, warranties, insulation, lender required repairs, completion of repairs, evironmental matters, seller’s disclosure, residential service contracts
- Par. 13. - Prorations & Rollback Taxes
- if taxes not paid at closing, buyer pays at end of year
- if seller’s change in use results in assessments prior to closing, seller pays for assessments
- Par. 7 - Property conditions (more extensive)
11
Q
One to Four Family Residential Contract - ALL Paragraphs
A
- Parties
- Property
- land/address, improvements, accessories, & exclusions
- Sales Price
- Financing
- third party, assumption, or seller financing
- Earnest Money
- Title Policy & Survey
- Title Policy, Commitment, Survey, Objections, Title Notices
- Property Conditions
- Access/Inspections/Utilities, seller’s disclosure, LBP disclosure/hazards, acceptance of prop conditions, lender required repairs, completion of repairs, environmental matters, residential service contracts
- Broker’s Fees
- Closing
- Possession
- Special Provisions
- “END OF SPECIAL PROVISIONS”
- Settlement/Other Expenses
- Prorations
- Casualty Loss
- Default
- Mediation
- Attorney’s Fees
- Escrow
- Escrow, expenses, demand, damages, notices
- Representations
- Fed Tax Requirements
- Notices
- Agreement of all Parties
- Termination Option
- Consult An Attorney Before Signing
12
Q
Which TREC forms include time is of the essence?
A
- Addenudm for Sale of Other Property by Buyer
- Addendum for Back-Up Contract
- Third Party Financing Addendum for Credit Approval
- Reverse Mortgage Financing Addendum
- Short Sale Addendum
13
Q
Identify the provisions in Paragraph 1 of One to Four Family Contract
A
- promise is known as the first consideration in the contract
- fill in names of all parties CORRECTLY - check deed, title policy, etc. to list seller’s information
- buyers provide ID at closing
14
Q
Identify provisions in Paragraph 2 of One to Four Family Contract
A
- 2A - property specifics are listed (legal description)
- 2B & 2C - items to remain
- 2D - any exclusions
15
Q
Identify provisions in Paragraph 3 of One to Four Family Contract
A
- 3A - down payment
- 3B - total of all loans
- 3C - sales price
