FALSE: Just not living in the house will not exempt seller from not to provide the Seller’s Disclosure Notice to a Buyer.

True or False?   If a Seller enters into a contract and does not provide a Buyer the Seller’s Disclosure Notice the Seller is automatically in default.

False: The purchaser may terminate the contract for any reason within seven  (7) days after receiving the notice. If seller never provides the SD, the purchaser may terminate the contract for any reason all the way to closing date. There are other two key points here;
1.      There is nothing automatically happens
2.      If a paragraph / item has its own rules about not meeting that item, it will not go to the default paragraph.

True or False?             The Seller is selling both sides of a duplex in which he lives in one side.  The Seller is only legally required to fill out the Seller’s Disclosure Notice for the side he lives in.

False: If the seller sells the entire units (both sides) he does not have to provide SD, but if he sells one side, he has to provide SD.

False: With the property code, the seller does not have to provide updates to SD, but With TAR he has to.

All of the following Sellers are exempt from providing the Seller’s Disclosure Notice to a Buyer under the provisions of the Property Code except for.
A.  A trustee in a bankruptcy case.
B.  A spouse selling to the other spouse in a divorce settlement.
C.  An executor of a will selling the Property.
D.  An heir who has inherited the Property he has never seen and has no knowledge of the condition of the Property and is now selling it.
He is the owner now and must provide SD. If he is unaware of problems, could check unknown, but he has to provide SD.

Which of the following does the law required to be disclosed?
A.  A death on the Property by natural causes.
B.  A death on the Property by suicide.
C.   A death on the Property caused by a faulty stair railing.
D.   A violent death in the driveway but not in the house itself.
E.   All of these deaths have to be disclosed.
F.   None of these deaths have to be disclosed
G.   Only C and D have to be disclosed.

There are only three types of deaths are exempt frown property code, they are:
A death on the Property by natural causes.
A death on the Property by suicide.
A death on the Property by accident.
And C and D are not part of it. Therefore G (Both C and D) is correct.

Note: In some cases when dealing with cultural differences and/or believes A and B could also be a problem and should be disclosed.

True or False? In some cases when dealing with cultural differences and/or believes, should additional information be disclosed? example?

True:  These are in addition to the requirements of the law but due to prudent business practices. Examples:
A. A death on the Property by natural causes.
B.  A death on the Property by suicide

True or False?            There are ten Sellers who are exempt from the requirements of section 5.008 of the Property Code

False:  There are eleven (11) types of Sellers who are exempt from the requirements of section 5.008 of the Property Code. Click here to see their list and detail information about them.

True or False?            If the Seller is exempt from the requirements of the Property Code then that Seller is exempt from disclosing even known defects.

 False:            No. Property Code defines the minimum requirements. Other requirements from DPTA (Deceptive Trading Act) and from local agencies, organizations, ethics could be required to disclose known facts.

False: NO, AIDS patients are protected class in Fair Housing ..

True or False?             A Seller is required to disclose to a Buyer the amount of square footage of the house and the source of that data.

 
False: The seller is not required, but if the buyer wants, he should do it.

False: Absolutely Not. First of all we should not develop our CMA  based on Price per Square foot (See my blogs at ActiveRain), second if the   Property ends up with less square feet than stated in MLS and originally the buyer offer was based on Price per Square foot, then obviously he looses.

False: No, Do not explain the terminology. Just tell them to fill out the SD form based on what they know and understand or  refer seller to attorney to get accurate advise.

False: Because of keyword ALL, the statement is in-correct or False.
There are some problems such as Termite, foundation repair, roof repair, Fire needs to be disclosed even if the problems have been fixed.

True or False?    Under the Property Code the Seller must disclose if  they have made any insurance claims on the Property.

False:  Property code doesn’t require revealing about Insurance money. However, TAR requires it.

Which of the following is most true under the Property Code?
A.  Seller must disclose any inspections he has received in the past 4 years.
B. Seller must provide the Buyer with copies of any inspections from the past 4 years.
C.  Seller must provide any appraisals from the past 4 years.
D.  The Seller’s Disclosure Notice must reflect any information the Seller has from any inspections from which he has received information.

What types of deaths are exempt to be disclosed from property code?
Answer: There are only three types of deaths are exempt frown property code, they are:
A death on the Property by natural causes.
A death on the Property by suicide.
A death on the Property by accident.
And C and D are not part of it. Therefore G (Both C and D) is correct.

Note: In some cases when dealing with cultural differences and/or believes A and B could also be a problem and should be disclosed.

True or False?  The Protection period in the listing agreement ceases to exist in all cases if the Seller lists the Property with another Broker.
a.      Answer:  FALSE
b.      Reason:  The exemption does not apply if that Broker is not a member of NAR.

True or False?  The T-47 Residential Property Affidavit can not be used if the Seller has made changes to the Property since the date of the existing survey.
a.      Answer:  FALSE
b.      Reason:  It is not the listing agent or the buyer rep. job to interpret that T-47 is good or bad. Title Company is the one that looks at the changes and decides whether or not to accept the existing T-47.

True or False?  The Non-Realty Items Addendum to Contract is good to use because it is a separate agreement between the Buyer and Seller and doesn’t have to be given to the Buyer’s Lender.
a.      Answer:  FALSE
b.      Reason:  It is not a separate agreement, it is an addendum to the contract and must be given to all parties including to the Buyer’s Lender (as it is with any other addendum)

True or False?  If the Seller conveys Non-Realty Items to the Buyer by using the Addendum then the Seller warrants the condition of the items.
a.      Answer:  FALSE
b.      Reason:  Paragraph C of the Non-Realty items Addendum to contract exactly spells out the Seller Does NOT warrants the condition of items. Make sure the Buyer knows and understand about it.

True or False?   The Seller’s Invitation to Buyer to Submit New Offer is not actually a rejection of the Buyer’s Offer but is just a request for another offer from the Buyer that hopefully will be better.
Answer:  FALSE
Reason:  Paragraph (1) of the Seller’s Invitation to Buyer to Submit New Offer spells out the Seller Does NOT accept the existing offer, which means the Seller rejects the offer. This is not a counter offer and even if the Buyer submits a new offer with requested suggestions, the Seller is under no obligation to accept the new offer meeting his request. Also, the Seller could send different version of this invitation to different potential Buyers. It doesn’t have to be the same invitation for all Buyers, but you need to be careful you don’t violate the Fair Housing Act. You could put time frame for each invitation form. Make sure the Buyer knows and understand that the Seller is under no obligation to accept the new offer though meeting all Sellers’ request.

True or False? It is okay to just verbally tell your client where you got important information since there is not a form that would identify the source of the information.
a.      Answer:  FALSE
b.      Reason:  There is a form (“TAR-2502 NOTICE OF INFORMATION FROM OTHER SOURCES”) for this purpose. However, this is applicable mostly for Property Condition Information and not Personal information.

True or False?   If the agent and the Seller want to extend the term of a listing agreement they should line through the previous end date in the listing agreement, put in the new end date and both should initial the change.  Answer:  FALSE
Reason:  They should sign a new agreement

True or False? The TREC Promulgated Notice of Buyer’s Termination of Contract form not only terminates the contract but also serves as a release of the earnest money.
a.      Answer:  FALSE
b.      Reason:  This Notice only terminates the contract and has nothing to do with Releasing the Earnest Money. Buyer and Seller could terminate the contract, but still fighting over the Earnest Money.

True or False?  Both the Buyer and Seller sign the Notice of Buyer’s Termination of Contract form.
a.      Answer:  FALSE
b.      Reason:  As it shows in the form, Only Buyer(s) sign the form.

True or False?  The agent(s) are required to give written notice to the Buyer that the Buyer should have an abstract covering the Property examined by an attorney of their choice or they should be furnished with or obtain a title insurance policy.
a.      Answer:  TRUE
b.      Reason:  As it is shown on the first line of the form “TAR-2505: NOTICE TO PROSPECTIVE BUYER” it is Required by Law. If you are using TREC or TAR BUYER REPRESENTATIVE AGREEMENT, it is already covered on these forms (TREC under Paragraph 6E (6E1 and 6E2)). If you are NOT using TREC or TAR form (e.g., using Builder Contract in purchasing new homes, etc…), You MUST give this notice via “TAR-2505: NOTICE TO PROSPECTIVE BUYER” to the buyer, otherwise, the Agent is not entitled to Commission.

If question FORM-10 is true then how does the agent give that notice?

If you are using TREC or TAR BUYER REPRESENTATIVE AGREEMENT, it is already covered on these forms (TREC under Paragraph 6E (6E1 and 6E2)). If you are NOT using TREC or TAR form (e.g., using Builder Contract in purchasing new homes, etc…), You MUST give this notice via “TAR-2505: NOTICE TO PROSPECTIVE BUYER” to the buyer, otherwise, the Agent is not entitled to Commission.

The Buyer is obtaining conventional third party financing, the Property is located in a mandatory homeowners subdivision and the Buyer has a house they are selling.  The required addenda to be used in this transaction are:
A.          The Third Party Financing Condition form, the Mandatory HOA form and the Sale of Other Property by Buyer form.
B.                  The Third Party Financing Condition form and the Mandatory HOA
C.                  Only the Third Party Financing Condition form.
D.                 None of the addenda are required in this transaction.
Answer:  B

True or False?  There is no form to caution the Buyer of square footage issues so you should just verbally give them notice.
a.      Answer:  FALSE
b.      Reason:  Though there is no TREC Promulgated form on this, but almost all offices they have such a form. Also, a real estate attorney could generate one.

True or False?  The Option period in the executed contract starts from the time the contract signed by all parties (Effective Date)
a.      Answer:  FALSE
b.      Reason:  It starts the day after the executed day/date.

What is the Maximum FHA Loan in Year 2012?
Mortgage maximums as of Wednesday December 07, 2011, for Collin County Texas:

True or False?       You only need to talk to the Seller about what he wants to exclude on the Property under the definition of the Property.
Answer: False
Reason: Because of the keyword “Only”. Buyer has a choice of what being excluded and be removed by seller before closing.

True or False?   You should talk to the Buyer about survey deletion only on an existing survey since they don't need it on a new survey.
Answer: False
Reason: Because of the keyword “Only”. The new survey does not automatically cover survey deletion. You need to ask for it.

TRUE OF FALSE: The only difference between an amendment and an addendum is timing.
Answer: False
Reason: Addendums are part of the original contract, where as Amendments are request for change(s) after the contract.

TRUE OR FALSE: If there is financing in the transaction then the Third Party Financing Addendum must be used.
Answer: False
Reason: Because of the keyword must, the statement is not always correct. It is possible the buyer make the offer without contingency of being approved of financing.

TRUE OR FALSE: If the terms of the loans described in the Third Party Financing Addendum change after the number of days stated in the addendum and now the Buyer does not qualify then that is a valid basis for the Buyer to terminate the contract under this addendum.
Answer: False
Reason: After the deadline, buyer cannot terminate, without consequences, because he does not qualify.

TRUE OR FALSE: The Seller Financing Addendum is to be used for all types of Owner financing including Contract for Deeds.
Answer: False
Reason: Contract for Deed must be drawn by attorney and seller retains the title. TREC does not have a form for it.

TRUE OR FALSE: The mandatory HOA addendum must be used when the Property is located in a subdivision in which the owner's must be a member of the HOA.
Answer: False
Reason: The Seller does not have to accept HOA Addendum, if is not giving re-certificate. It becomes negotiation item and buyer could select option #3 that states Buyer does not require delivery of the sub-division information.

TRUE OR FALSE: The Seller got a Resale Certificate three months ago and now the Buyer wants an updated certificate so the Seller must pay for the updated certificate.
Answer: False
Reason: Since the Buyer wants a new one, Buyer must pay the fee.

TRUE OR FALSE: In the HOA addendum the Buyer only has a right of termination if the Seller does not get the Resale Certificate to the Buyer within the number of days in the addendum.
Answer: False
Reason: Buyer has termination right from day one until 7 days after receiving HOA resale certificate.

TRUE OR FALSE: In the Loan Assumption Addendum if the Buyer does not get the documentation to the Seller within the time agreed to then the contract terminates and the Buyer gets his earnest money back.
Answer: False
Reason: If the Buyer does not get the documentation to the Seller within the time agreed to, the Seller could terminate and keep the earnest money.

TRUE OR FALSE: In the Addendum for Sale of Other Property by Buyer if the Buyer does not sell their other house by the date in paragraph A of the addendum then the contract automatically terminates.
Answer: False
Reason: Buyer, at his choice, could waive the contingency. Therefore it is not automatic.

TRUE OR FALSE: The Buyer should always use the addendum for Reservations of Oil, Gas, and other Minerals if they are concerned about the mineral rights and want to be sure the Seller's mineral interest are conveyed.
Answer: False
Reason: When Seller sells a real property, whatever seller owns will be conveyed to Buyer as default. Therefore, only Seller needs to use this addendum, if he wants to keep something or some rights.

TRUE OR FALSE: In the Back-Up Contract addendum the earnest money and option fee are paid when the back-up contract moves into the first position.
Answer: False
Reason: These fees are paid when it becomes Contract. You could pay an small amount of option fee now (e.g., $10) and add a note in special provision to pay the other (e.g., $90) later.

TRUE OR FALSE: The Environmental addendum establishes a right of inspections for the Buyer but does not create a contingency and right of termination.
Answer: False
Reason: It creates Contingency.

TRUE OR FALSE: In the Short Sale addendum when the closing date of the contract changes it automatically changes the date in paragraph D of the Short Sale addendum.
Answer: False
Reason: The Closing date could change, if parties don’t want to void the contract.

TRUE OR FALSE: The Lead-Based Paint addendum is the most complex form the agents have to use in the transaction.
Answer: False
Reason: There is no way to indicate that a specific form is the most difficult or easiest for all agents to use. All depends on the level of the agent’s knowledge and experience. However, extreme caution must be taken that Buyer does not sign the form before Seller signs and checks box B.

TRUE OR FALSE: The Non-Realty Addendum must be used if the Seller is conveying personal Property to the Buyer in the transaction.
Answer: False
Reason: No Addendum “must” be used. However, the Buyer’s Lender may require that. If is Addendum, everybody in transaction must and will see that addendum. e.g., Buyer, Seller, Lender, Title Company, etc. Lender may ask Buyer to have Bill of Sale for these items, separate than the contract.

True or False? The Five Canons of Professional Ethics are obligations of the licensee and are in addition to the obligations under the NAR Code of Ethics.
Answer: False
Reason: The Five Canons of Professional Ethics (Fidelity, Integrity, Competency, Consumer Information Form, and Discriminatory Practices) are obligations of the REALTORS. But not all licensees are REALTORS that belong to NAR, therefore, makes the statement is FALSE.

True or False? The protected classes under the Canons of Professional Ethics of TREC are the same classes that the state of Texas has and the same classes in Article 10 of the NAR Code of Ethics.
Answer: False
Reason: Some locals might have additional protected class. For example Sexual Orientation are protected class in Dallas area effective January 1^st, 2011, But it is not protected class under federal or state laws.

True or False? In Texas there is now a provision for someone to file a complaint anonymously under certain circumstances against a REALTOR.
Answer: True
Reason:
 

True or False? A listing agent working with a Buyer customer can still receive the entire listing commission depending on the terms of the listing agreement.
Answer: True
Reason: Based on the listing agreement, the seller’s agent could get all commissions. However, this practice is not recommended, except when the seller’s agent is working with investor buyer. Broker must have written policy about these scenarios.

Which of the following is the best description of the fiduciary duties owed to a client in Texas?
A.         Obedience; faithfulness; disclosure; competence; accountability;
and diligence.
B.         Obedience; loyalty; discovery; availability; honesty and care.
C.        Obedience; loyalty; disclosure; confidentiality; accounting; reasonable care and diligence.
D.         Honesty; competence; confidentiality; disclosure; reasonable care.
Answer: C
Reason: OLDCAR

True or False? The Promulgated Form, "Information About Brokerage Services" is only required on residential transactions.
Answer: True
Reason:
 

True or False? There are no exceptions to the disclosure of who you represent at the first contact with another party to the transaction or to another licensee who represents another party to the transaction.
Answer: True
Reason:
 

True or False? If you are the listing agent and you are working with an unrepresented Buyer then you are automatically in an intermediary relationship.
Answer: False
Reason: In order to have intermediary relationship, must have written consent from both parties. Intermediary relationship is not created automatically.
 

True or False? If a Buyer is in a written representation agreement with another agent you should not provide services to that Buyer until they have terminated the other agreement. If the Buyer is not familiar with the process to terminate the other agreement it is okay for you to provide the appropriate documents and explain how to terminate.
Answer: False
Reason: The licensee should not interfere with an existing exclusive agency relationship under any circumstances [TRELA & 1101.652 (b)(22)].

True or False? The effective date of the contract is always the date of unequivocal acceptance.
Answer: False
Reason: Acceptance must have been communicated to the other side with no changes.

 

Which of the following statements is the truest about paragraph 11?
A.         Paragraph 11 is where the agents practice their creative writing.
B.         This is the paragraph where the agent can insert business details
and factual statements at the instruction of their principal.
C.         The agent can insert simple contingencies in this paragraph.
D.         Occasionally an agent might be in violation of the unauthorized
practice of law by what they do in paragraph 11.
Answer: B
Reason:  Examples are: If the principal is related to the agent, OR identify who pays for appraisal.

True or False? In the case of a short sale transaction there is not a binding contract nor an effective date until we have the Seller's lien holder's approval.
Answer: ??
Reason:  

 

True or False? When it comes to disclosures the agent should never have an original thought. Every thing the agent knows about the Property originates in someone or something else.
Answer: True.
Reason:  
 

True or False? Sellers who are not required to complete a Seller's Disclosure Notice under the Property Code are also relieved from the requirement of disclosure of a known defect.
Answer: False
Reason:  The Seller must disclose the known fact. How does he do it? He could still use the Seller's Disclosure form, even the form is not required.
 

Which of the following Seller is exempt under the Property Code from completing a Seller's Disclosure Notice?
A.         A relocation company that now owns the Property.
B.         An investor who has never seen the Property and believes they
have no actual knowledge regarding the condition of the Property.
C.        An heir who has inherited the Property and now owns it and is
selling the Property but truly has no knowledge of the Property.
D.         The Seller is selling the entire duplex to a Buyer but the Seller
lives in one side of the duplex.
Answer: D
Reason:  The keyword “entire duplex” makes the seller to be exempt. Other types of Seller described in A, B, and C must complete the SD notice, but they could check “Unknown” for questions that do not know the answer or are not aware of a problem.

True or False? The disclosure of prior water penetration is a huge issue and the variables and potential liability are significant.
Answer: True
Reason:  If the Seller had water penetration, but had fixed it, still must disclose it. Because, it could have caused other problems outside or inside of the wall.
 

True or False? The updated TREC rules regarding advertising are now very clear and basically say everything is advertising so always disclose your status and broker in everything.
Answer: False
Reason:  Still there are some issues that are not very clear, such as Team Names and advertising in social medias (e.g., Facebook). If you operate under a business name that is not your name, you must register that name with TREC. Also, make sure you register that name with your county/state or assumed name or AKA (DBA).

True or False? An agent is protected regarding copyright laws if they will just give credit to the creator of the work as the agent uses copyrighted work.
Answer: False
Reason:  You must have written permission to use it.

 

Which of the following is not a responsibility of a sponsoring broker?
A.         Must maintain written policies of the scope of the sponsored salesperson's authorized activities.
B.         Responsibility for any property management of their salespersons.
C.         Each salesperson is competent to perform activities included in their scope of authorized activities.
D.        Maintain business records for at least 4 years from the date of a
closing or termination of a contract.
E.        All of the above are responsibilities of the sponsoring broker.
Answer: E
Reason: Obvious

True or False? The new TREC Rules regarding Property Management still hold the Broker responsible for all Property Management activities including advertising by their salespersons.
Answer: True
Reason: