Chapter 7 review

Question 1

Paragraph A => addendum for sale of other property by buyer

Answer 1

Address of the property that need to be sold / date need to be sold/

Question 2

Paragraph c => addendum for sale of other property by buyer

Answer 2

buyer may waive the contingency/ deposit extra with escrow agent as additional earnest money. all waivers must be in writing/

Question 3

Amended effective date ( back-up ) contract

Answer 3

The effective date of the back-up contract will be changed to the date the buyer receive notification that the first contract is terminated.

Question 4

Termination option paragraph in 1 to 4 family residential contract (Resale) on the back-up contract, not the first contract.

Answer 4

when the second buyer is notified that the first contract did not close,that day will be the day zero of the option period.

Question 5

where is The Addendum for Reservation of Oil, Gas, and Other Minerals addendum ?

Answer 5

in the AGREEMENT OF PARTIES paragraph of the One to Four Family Residential Contract (Resale) as a possible attachment needed in certain transactions.

This addendum is also mentioned in the PROPERTY - RESERVATIONS paragraph of the Farm and Ranch Contract.

Question 6

Why Oil and Gas addendum is required by TREC for use for any reservation of minerals?

Answer 6

prevent agents from practicing law by entering into the One to Four Family Residential Contract (Resale) any parties’ wishes on mineral rights.

Question 7

SPECIAL PROVISIONS => in the One to Four Family Residential Contract (Resale)=»> Oil and Gas

Answer 7

paragraph is not the place to address minerals since this addendum does exist for agents to use.

Question 8

Who signs the Notice of Buyer’s Termination of Contract?

Answer 8

Only the buyer

Question 9

When does the buyer pay the seller any agreed-upon option money when using the Addendum For “Back-Up” Contract?

Answer 9

The buyer MUST pay the seller any agreed-upon option consideration at the time of the effective date of the backup contract.

Question 10

Gulf Intracoastal Waterway

Answer 10

The Gulf Intracoastal Waterway is a 1,300-mile, man-made canal that runs along the Gulf of Mexico coastline from Brownsville, Texas, all the way to St. Marks, Florida. The Waterway links Texas ports with the rest of the country and helps enable shipping traffic

Question 11

Seaward Land Definition

Answer 11

All of the Land between the actual gulf and this intracoastal canal falls into this category such as padre island

Question 12

Open Beach Laws

Answer 12

Texas Beach is eroding 5 feet each year per year. /inform the buyer

Question 13

Paragraph one of Coastal Area Property

Answer 13

Due to Erosion and Accretion , the amount of land the purchaser will get may change.

Question 14

Paragraph 2 of Coastal Area Property

Answer 14

discusses FILL, Previous owner may fill in by topsoil to increase what they own. It violates federal law.
information about Landfill from the seller

Question 15

Paragraph 4 of Coastal Area Property

Answer 15

GENERAL LAND OFFICE IN AUSTIN TEXAS for info !

Question 16

The purpose of the Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners’ Association form?

Answer 16

Request information from the association to give to the buyer.

Question 17

Association Information

Answer 17

The association will enter the street address, the city, and the county and other information. They will also attach additional documents to this form involving the deed restrictions and other items listed in Paragraph M.

Question 18

why many developers create a Property Owners’ Association (POA)

Answer 18

1.to keep the value of their home
2. to help enforce the deed restrictions for the neighborhood.

Question 19

Why the buyer pay a fee based on the mandatory membership addendum contract ?

Answer 19

To remove the seller’s name from the list and place the buyer’s name instead.

Question 20

Some high-end development charge one-time membership fee that the buyer has to pay at closing

Answer 20

it may exceed $1000, so the buyer should be aware of that.

Question 21

Authorization paragraph

Answer 21

deals with the release of subdivision information and any updated resale certificate .

Question 22

“underwater” homeowner

Answer 22

homeowner owes more on the property than what it’s worth,

Question 23

Paragraph D short sale addendum is important

Answer 23

Seller Notify the BUYER that seller had obtained Lienholder’s consent and agreement on or before ………..DATE should be written down . / if the lender has not given approval then the contract is terminated / If the buyer is notified of the bank approval before the date written in, the effective date of the contract must be amended to the date of the notification.

Question 24

Changing of the effective date

Answer 24

amendment form

Question 25

“cure date” ? ( Short Sale Addendum)

Answer 25

the date by which payments need to be made, or the foreclosure will go through.(The lender may push the seller into foreclosure if the owner has already received a “cure date”,)

Question 26

When doing a short sale, keep in mind: ( read fast )

Answer 26

The seller may have to bring money at closing which they may not have. Calculations of closing costs need to be done in such a way that the lender takes on expenses the seller cannot pay. The closing date needs to be set as far out as possible to allow time to get the mortgage company's approval for the short sale. Otherwise, the seller and buyer may become frustrated and you will need to keep adjusting the closing date. The lender may push the seller into foreclosure if the owner has already received a “cure date”, which is the date by which payments need to be made, or the foreclosure will go through.

Question 27

In a short sale, if the buyer is notified of the bank’s approval before the date written in Paragraph (D) on the Short Sale Addendum, what will be the effective date of the contract?

Answer 27

It is amended to the date of the notification

Question 28

What is the name of the 1,300-mile canal that runs from Brownsville, Texas to St. Mark's, Florida?

Answer 28

Gulf Intracoastal Waterway

Question 29

Ground Fault Circuit Interrupters (GFCIs)

Answer 29

The first bullet is about GFCIs, Ground Fault Circuit Interrupters. Some people know that their home has these because on electric plugs near a water source there is a reset button that will help to prevent electric shock. However, in some areas and older homes, there is a way that the entire house could be wired in the electrical box for this and the common person would not know if their home has such a thing.

Question 30

Balusters

Answer 30

They are the supports mounted perpendicular to the ground to support the railing on a stairway or balcony. If these are not spaced closely enough together, a child could fall through them or at least get stuck between them. Most communities have property codes. Home inspectors determine whether the home is in compliance with these codes. the buyer may request the seller to fix the problem by reopening negotiations between contract time and closing time.

Question 31

Who signs the Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies addendum?

Answer 31

Neither the buyer or seller

Question 32

What is not discussed on the Information About Brokerage Services form (IABS)?

Answer 32

Non-agency

Question 33

Which documents does TREC not make available?

Answer 33

1. Contract for deed 2. Listing representation agreement 3. Buyer/Tenant representation agreement

Question 34

When must the option money paid ? (Back up contract)

Answer 34

upon execution