Study (Principles 1) Real Estate Contracts Part Two Flash Cards

 
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(Principles 1) Real Estate Contracts Part Two

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The difference between forms "promulgated" and forms "approved" by the commission is that
the licensee MUST use the promulgated forms, whereas the licensee MAY use the approved forms
In real estate sales contracts, which term is used to establish the effective date of the contract?
Date of Final Acceptance
In an installment contract or contract for deed, the buyer obtains possession
Prior to the delivery of the deed
All builders and remodelers are required to obtain a certificate of registration from the Texas Residential Construction Commission T/F?
F
An escrow agreement requires the seller to deposit which of the following, and other pertinent documents, with the escrow agent?
Deed
In a buyer brokerage transaction, notification of acceptance must be given directly to the buyer T/F?
F
An option contract is what kind of contract?
Unilateral
If a purchaser under a contract for deed elects to convert the contract into recorded, legal title, he may deliver to the seller a promissory note that matches the terms and conditions of the contract for deed and the seller would be required to accept the note secured by a deed of trust and to deliver legal title T/F?
T
Acceptance of a written offer to purchase real estate requires the signature of the
Offeree
All obligations of the parties for payment of broker's fees are contained in
Seperate Written Agreements
Which is a means by which the parties to a contract carry out the terms of their agreement?
Escrow
Standard contract forms used by real estate licensees in Texas are drafted and revised by
Texas Real Estate Broker-Lawyer Committee
In real estate sales contracts, which term is used to specify which party is to bear the risk of loss prior to closing and addresses the results of any such loss?
Casualty Loss
In real estate sales contracts, which term is used to identify the seller and buyer and to establish the intent to sell and buy?
Parties
In an option contract the prospective purchaser or lessee is the
Optionee
A promulgated contract form is drawn up, signed by the prospective buyer, and presented by the broker to the seller. This is a
Offer
The difference between forms "promulgated" and forms "approved" by the commission is that
the licensee MUST use the promulgated forms, whereas the licensee MAY use the approved forms
In a buyer brokerage transaction, notification of acceptance must be given directly to the buyer T/F?
F
Limited service brokers are NOT required to present offers to or from sellers with whom they have contracted to provide only selected brokerage services T/F?
F
In real estate sales contracts, which term is used to establish the effective date of the contract?
date of Final Acceptance
If the option is NOT exercised within the time specified, the
optionor's obligation and the optionee's right will expire
In real estate sales contracts, which term is used to clarify any business aspects of the sale NOT covered by any provisions of the printed earnest money contract form?
Special Provisions
An offer will be terminated if the seller revokes the offer, rejects the offer, or creates a counteroffer to the offer made by the buyer T/F?
T
When filling in a printed form approved or promulgated by TREC, the licensee may only fill in the blanks provided and may NOT add or strike matter unless it is requested by the principals T/F?
T
There is no redemption period during which a buyer in default may redeem a contract for deed and retain possession of the property T/F?
F
Any attempt by the seller to change the terms proposed by the buyer creates a counteroffer T/F?
T
The purpose of the Texas Real Estate Broker-Lawyer Committee is the drafting and revising of standard contract forms to be used by real estate licensees T/F?
T
A contract by which an owner gives a prospective purchaser or lessee the right to buy or lease the owner's property at a fixed price within a stated time period is called an option T/F?
T
An option is enforceable by only one party—the optionee T/F?
T
An attorney should ALWAYS be retained by both parties prior to signing a contract for deed T/F?
T
A broker may place more than one earnest money deposit into the same escrow account T/F?
T
A licensee may design and create forms for real estate transactions for which there is no promulgated form T/F?
F
A licensee functioning solely as a principal, NOT as an agent, would be required to use a promulgated contract form T/F?
F
The option fee in an option contract must be independent of any earnest money deposit T/F?
T
Earnest money is NOT required to have a valid contract T/F?
T
In an installment contract or contract for deed, the seller is obligated to execute and deliver a deed to the buyer when the contract is signed by both parties T/F?
F
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