What addendum form should be used if the buyers will be unable to buy the new property unless their existing property is sold and closed?
Addendum for Sale of Other Property by Buyer
-used when the buyer needs the money from the first sale to complete the second sale.
**best when the buyer's present home is already under contract and they are just concerned about the closing and funding.
If the seller accepts a back-up offer, the seller will notify this buyer (1) and buyer 1 may waive the contingency on or before a date they have agreed upon; otherwise this first contract will be terminated. Paragraph D cautions the buyer not to waive the contingency unless they are certain they can close even if their first property does not close. Otherwise the buyer will be in default.
true
**parties can agree upon additional earnest money and when buyer 1 waives the contingency in paragraph C.
The seller can continue to market the property for back-up offers and receive, negotiate and accept a back-up offer.
true
This contract enables the seller to negotiate with a second buyer and agree upon terms that will be used for the back-up buyer in the event the first buyer's transaction falls through.
A back-up contract
The Back-up Contract allows for just one back-up.
true
How is it a win-win for the back-up buyer and seller?
-back-up buyer; if the first contract terminates the back-up buyer does not have to compete with other buyers for the home; also free to continue to look at other homes; if they find another home they must have negotiated for an option to terminate in paragraph 23.
-Seller; free to continue to work with the first buyer in a good faith attempt at getting to closing, but now has the power of knowing there is another buyer interested in the property.
The back-up should put up earnest money and the option money while waiting to see if the first transaction terminates.
true; if the back-up contract terminates the earnest money will be refunded to the buyer.
If the first contract does terminate, the seller must notify the back-up buyer...
immediately
If the back-up buyer has an option to terminate when does it begin and end?
begins on the original effective date of the back-up contract and continues after the amended effective date for the number days agreed to in paragraph 23 of the contract.
What addendum it used when the seller retains oil, gas, or other mineral interests of the property?
Addendum for Reservation of Oil, Gas, and Other Minerals
Notice of Buyer's Termination of Contract is used for what?
Exercise the right to terminate (para 23), the buyer must deliver the promulgated notice to the seller prior to expiration of the option period; failure to deliver the buyer is stuck with the contract
In what paragraph of the One to Four Family Residential Contract, addresses Membership of an Owner's Association? Is there an addendum for this?
Paragraph 6E(2), yes, Addendum for Property Subject to Mandatory Membership in an Owner's Association; only use if buyer is concerned about what the membership entails.
The Addendum for Property Subject to Mandatory Membership in an Owner's Association allows the buyer to elect to receive or not to receive the Subdivision Information. What is does Subdivision Information mean?
1. the restrictions applying to the subdivision
2. the bylaws and rules of the Property Owners Association
3. a resale certificate
What two forms/documents must be given to the buyer if they want to receive the subdivision information?
the TREC form Subdivision Information
Resale Certificate for Property Subject to Mandatory Owners Association*****NOT to be filled out by licensees and is not for condominium transactions
A short sale transaction cannot move forward without the approval and cooperation of...
the lender's Loss Mitigation Department; the listing agent and the seller must contact the lender for permission and directions.
A short sale transaction cannot and will not close without...
the lender's cooperation; the listing agent should contact the lender early and then make certain that everyone follows the lender's instructions.
What three forms are not part of any contractual agreement between buyer and seller?
Promulgated Resale Certificates
Consumer Information Form
Information About Brokerage Services
What form must be displayed in the office of every licensed inspector and broker in Texas?
Consumer Information Form
What is a substantive discussion? And what must be given during the discussion?
the first discussion at which substantive info about a particular property or a prospect's ability to buy or lease occurs.
-Information About Brokerage Services
Who fills out the Promulgated Resale Certificates for homes and condos?
A representative of the home or property owners association fills out these resale certificates, generally for a fee.
When is Non-Realty Items Addendum used?
is added to the contract when the parties add some additional items of personal property that are to stay with the property.
What form should be given to the buyer when the inspector reports many items that were acceptable when the home was built, but have grandfathered as the codes changed?
The Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies
**These items may need to be upgraded in future.
**Buyer may ask seller to fix, but seller is not obilgated to fix.
Reverse Mortgage is for people over the age of...
62
Reverse mortgage has monthly payments.
false; has no monthly payments; is taken by value of property.
The amount a person can borrow for a reverse mortgage is based on what two things?
value of the property and age of borrower.
-lender is not concerned with credit or income
How does the broker satisfy the statutory requirement that the broker advise a buyer that the buyer should have an abstract of title examined by an attorney, or receive a policy of title insurance, when the broker is using a TREC contract form? What if a TREC form is not used?
it is in paragraph 6E1
It is also in the TAR Buyer/Tenant Representation Agreement and the TREC Notice to Purchaser.
If a Back-Up Contract is negotiated with an option period of ten days, with an original effective date of September 5, and an amended effective date of September 16, when does the option period end?
Sept 26
If the seller wants to be able to accept back up offers on his property, is it necessary to add that to special provisions in paragraph 11 of the TREC Contract?
No, it is in paragraph 19
What form do you use? The buyer you are working with wants an abstract, rather than a title policy, on the acreage he is going to buy.
No addendum; add to Special Provisions
What form do you use? The buyer wants to make an offer contingent upon the seller agreeing to allow the buyer to move in two weeks prior to closing.
Buyer's Temporary Residential Lease
What form do you use? The buyer wants the seller to reimburse her for a Residential Service Policy.
No addendum needed; include in the contract
What form do you use? The buyer want his offer to be contingent upon his home, which is already under contract, closing as scheduled.
Addendum for Sale of Other Property By Buyer
What form do you use? The seller is going to carry a second lien for a portion of her equity.
Seller Financing Addendum
What form do you use? The buyer wants to have the property inspected and have the right to just walk away from the contract.
No addendum needed; included in the contract
What form do you use? The seller has accepted a contingency offer on her property. She has received another offer and would like to negotiate the second offer, but does not want to take a chance on being obligated to sell to two different parties.
Addendum for Back-Up Contract
What form do you use? The buyer and seller have agreed that they want to mediate if a dispute arises related to the contract that cannot be solved by negotiation.
No addendum needed; included in contract
What form do you use? The seller is agreeable to the offer if the buyer will allow him to remain in the property for three days after closing.
Seller's Temporary Residential Lease
What form do you use? The buyer wants to exercise her right to terminate under paragraph 23.
Notice of Buyer's Termination of Contract
What form do you use? The property was built prior to 1978.
Lead Based Paint Addendum (Addendum for Seller's Disclose of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law)
What form do you use? A seller's home is being sold and his VA loan is being assumed. The seller hopes to have his VA entitlement restored.
Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller's VA Entitlement
What form do you use? A prospective buyer is concerned that part of the property she is interested in may be wetlands.
Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum
What form do you use? The buyer's contract gives him the right to terminate. After inspections, he decides that he still wants to buy the property, but at a reduced price.
Amendment
A contract is subject to fi
Author
Blue2xa88
ID
325935
Card Set
RE Promulgated Forms Ch.7 Promulgated Addenda Notices and Other Forms
