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License holder must use Standard Contract forms when applicable. Exceptions are:
Those prepared by Attorneys from this state or any other state, or those specified by governmental agencies, property owners, or their lawyers.
TREC has promulgated sales contracts for most residential properties including __________
Farm and Ranch
TREC has no forms for _________ transactions.
The _____________ writes the promulgated contract forms. ____________ promulgates them.
The Broker Lawyer Committee; TREC
You can find "Time is of the Essence" where?
In the Sales Contract in the Termination/Option paragraph and it is found in the Third Party Financing Addendum, and Addendum for Sale of Other Property by Buyer. You can also find it in the Back-Up Addendum and in the Short Sale Addendum.
The Seller's Temporary Lease Addendum TREC 15-3, and the Buyer's Temporary Lease Addendum TREC 16-3, are used for what?
When the lease period is for 90 days or less.
All backup offers must be presented to the seller. For a backup offer to become effective the previous contract must be terminated and the backup buyer must pay any option fee, name any option period, and deposit any earnest money with an escrow agent. An option fee must be paid independently of any other consideration.
Can the option fee and the earnest money deposit be combined into one check?
The _______ party to sign a contract is the party accepting the final change.
Who is responsible for filling in the effective date?
Broker. This will also be the effective date of the option period if there is one.
What is a contingency clause?
A clause in a contract requiring a condition to be met. If a contingency cannot be met, the buyer is generally entitled to a refund of his earnest money.
Broker's presentation of offers to seller:
If a broker has more than one offer on a listed property, he must present all offers, but there is no required order of presentation.
Real Estate inspectors must use promulgated forms for ____________ inspections.
If lender-required repairs exceed _________ of the sales price, the buyer may terminate the contract and receive a refund of earnest money.
What is mediation and what is the process?
Our contracts require the parties to agree to mediation for dispute resolution. In mediation, a mediator hears both sides and tries to help the parties come to an agreement. A commission mediator will have at least 40 hours of formal training in ADR (alternative dispute resolution) procedures.
In _________, the _________ hears both sides and then tells the parties what to do.
In the event of breach of contract, where one party is in default, all TREC contracts state:
"The injured party can sue for specific performance, seek such relief as may be permitted by law, or both."
What is the purpose of Municipal Utility Districts?
The purpose of a Municipal Utility District (also called a water supply corporation or a utility service provider) is to proved flood control or drainage, water and sewers to residents of the district. If property is located in a Certified Service Area of a Utility Service Provider, a M.U.D., this must be disclosed to the buyer. The disclosure includes the bonded indebtedness, the tax rate, and standby fees of the M.U.D. Texas Legislation allows a buyer to back out of a contract if the bonded indebtedness is not disclosed prior to closing. The seller must deliver and the buyer must sign the M.U.D. disclosure. This disclosure also tells buyers that there may be a charge for turning on or connecting water and sewer services, and is required by the Texas Water Code.
How many days does a buyer who receives Title commitment, and is unhappy with the information about the title , or a buyer who receives a survey, and is unhappy with the information have to address his concerns with the seller?
The previously negotiated number of days (in the contract)
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 for Property Located Seaward of the Gulf Intracoastal Waterway" 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 structure would be subject to a lawsuit by the State of Texas for removal.
The title company has how many days to provide the title commitment after they receive the sales contract?
A buyer has how many days to deliver the option fee to the seller?
The HOA or POA addendum allows a buyer to do what?
Obtain a resale certificate on the property.
What are Statute of Frauds?
The Statute of Frauds requires that all contracts that relate to the transfer of any interest in real estate must be in writing to be enforceable. This also applies to compensation/employment agreements, such as listings and buyer representation agreements. Verbal agreements make you a volunteer in the eyes of the courts.
What are Seller Disclosure Requirements?
The Seller's Disclosure of Property Condition must be given to a buyer BEFORE HE SIGNS AN OFFER to make that offer binding on the buyer. If the buyer does not have disclosure before signing, he has 7 days to terminate his offer, after receiving the disclosure. The accuracy of the seller's disclosure is the responsibility of the seller. A seller's disclosure is not required in a foreclosure sale, tax sale, sale by guardian, executor, or administrator, or by sale by a builder of a new home that has not been lived in. A seller's disclosure is not required if the house is worth less than 5% of the price of the property.
Texas Department of Insurance Regulations Regarding Mold
1. Testing mold is not necessary to determine if it should be removed. If mold is visible it should be removed.
2. Removal is called remediation.
3. Both mold assessors and mold remediators must be licensed.
4. Testing after remediation is not required.
5. Property owners can assess and remediate their own properties without a license.
6. If you hire a mold remediator, he must give you a Certificate of Mold Remediation no later than 10 days after work is complete. The certificate verifies that the mold has been removed and certifies with a reasonable certainty that the underlying cause of the mold has been corrected.
7. 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.
8. On selling a home, the law requires you provide the buyer with copies of all Certificates of Mold Remediation you have received for the property within the past 5 years.
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