STUDY GUIDE – QUIZ 1 – CONTRACT BASICS
1.
What is a contract:
2.
What are the necessary elements of a contract:
3.
Are oral contracts legal in Texas :
4.
What does the Statute of Frauds require:
5.
Distinguish between:
Unilateral – Bilateral
Express – Implied
Valid – Void – Voidable – Unenforceable
6.
What effect does a wrong legal description have on a real estate contract:
7.
At what age is a person considered to be legally competent to contract:
8.
What are some of the rules that a court would follow to interpret a
9.
What is the consideration for a real estate sales contract:
10.
What is the role of earnest money in a real estate sales contract:
11.
Discuss the process of reaching an agreement, including offer, rejection or
acceptance and counter-offer.
12.
When may an offer be revoked:
13.
When is an offer considered accepted:
14.
What is the Effective Date of a contract and who provides it:
15.
How can a contract be changed, if both parties agree:
16.
What is the parol evidence rule:
17.
What is the difference between a novation and an assignment:
18.
What is equitable title:
contract:
19.
What is an option contract:
20.
What is a land conract and what other names is it called:
21.
What is a suit for specific performance:
22.
What is the difference between “conversion” and “commingling”:
23.
How should time limits be stated computed:
24.
What is the UETA:
25.
What effect does the phrase “time is of the essence” have on a contract:
25.
What is “default” and what are the remedies for it:
26.
When and how should offers be presented to the seller:
27.
What is mediation:
28.
What is “escrow”:
29. .
Where do the closing instructions for the title company or escrow agent come
from:
30.
When is the notary’s acknowledgement of signature required:
UNAUTHORIZED PRACTICE AND TREC FORMS STUDY GUIDE – Quiz 2
1.
What is the Broker – Lawyer Committee:
2.
How many members serve on it, for how long, and how do they get on it:
3.
What is the purpose / function of the Committee:
4.
Distinguish between a “promulgated” and an “approved” form:
5.
When does unauthorized practice of law occur:
6.
Must a licensee be compensated for there to be unauthorized practice
of law:
7.
What is the penalty for unauthorized practice of law:
8.
When can a licensee use a form other than a TREC promulgated form, if so,
which ones:
9.
What is a TAR form, when can it be used, why can it be used:
10.
List several types of contracts / situations in which the licensee is
a principal to the contract:
11.
What title interest does a Contract for Sale pass from the seller to the
12.
Why can a licensee fill in the blanks on a builders contract:
13.
What should a licensee do when there is no promulgated TREC form:
buyer:
14.
When should a licensee advise the buyer or seller to contact an attorney:
15.
May a form be modified by the licensee to fit a different situation. For
example, could an agent use and modify a Condo Resale contract for a
Single family residence:
16.
Should a licensee pay for a lawyer for the parties if one is needed:
17.
May the TREC forms by reproduced, are there any restrictions in doing so:
18.
May a Broker add his/her logo to the contract:
19.
What should a licensee advise the parties in regard to the validity of their
contracts:
20.
Why does a contract for the sale of property have to be in writing:
21.
Does drafting a contract for sale of property constitute the unauthorized
practice of law :
STUDY GUIDE – QUIZ 3 – CONTRACTS
1.
Who are the parties to the Residential Sales Contract:
2.
Are the title company and the mortgage company parties to the contract:
3.
May the title company deviate from the instructions in the Sales Contract:
4.
Should the marital status of the parties be designated in the Contract,
why, or why not:
5
What is LTV:
6.
Should the earnest money be subtracted from the “Cash Payable at
Closing” line:
7.
What is the role of Earnest Money in the Contract. Can a Contract have
$0 for Earnest Money. When and where should the Earnest Money be
deposited:
8.
What is the purpose of the Addendum for Property Subject to Mandatory
Membership in an Owner’s Association. Who prepares the Resale Certificate for
Property Subject to Mandatory Membership in an Owner’s Association. Who
requests the Certificate.
9.
What is a contingency clause. Give two examples:
10.
Can you waive the financing contingency for an FHA or VA loan:
11.
Explain loan approval / termination provisions of the Third Party Financing
Addendum:
12.
What must a buyer do in order to have a right to inspect the property:
13.
Explain the use of the Owner’s Disclosure of Property Condition, by when
must it be provided, what happens if it is not provided in timely manner:
14.
Name the six types of Contracts and when is each one used.
15.
Name 3 Approved forms:
16.
When should the Lead Based Paint Addendum be used:
17.
Who signs the Lead Based Paint Addendum and what do their signatures
mean:
18.
Explain the option paragraph in the Contract. Who receives the option
fee. When is the option fee paid. Must an additional option fee be paid if
the option period is mutually extended by the parties. When is the option
fee paid if a Back-Up Addendum is used.
19.
When should the Seller’s or Buyer’s Temporary Lease be used:
If the Seller’s Lease is used, who is responsible for damage to the
property while the Seller is in possession:
20.
What is Par. 11 used for:
21.
What provision do all contracts dealing with vacant land have:
22.
What are the major differences between the 1-4 Contract and the Farm and
Ranch contract:
23
What are rollback taxes: