RE Promulgated Forms Ch.6 The Remaining Promulgated Forms

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  1. What are the six TREC promulgated contract forms?
    • -Unimproved Property Contract
    • -One to Four Family Residential Contract (Resale)
    • -New Home Contract (Incomplete Contract)
    • -New Home Contract (Completed Construction)
    • -Farm and Ranch Contract
    • -Residential Condominium Contract (Resale)
  2. Paragraph 2 is different in each contract, describing...
    the type of property that is covered.
  3. Paragraph 3 is only different in the ______________________ contract compared to the One to Four Family Contact because the sales price can be adjusted by the survey.
    Farm and Ranch Contract
  4. Paragraph 6 is different in Condominium Contract and the Farm and Ranch Contract from the One to Four Family Residential Contract.
    true; The Farm and Ranch Contract allows for info regarding Exception Documents and Surface Leases. Paragraph 6G7 discusses Texas Agricultal Development Districts.
  5. Paragraph 7 is different in both ______________ contract, ___________ Contract and ______________________ Contract. Different seller's disclosures are required by the type of property and are contained in these paragraphs.
    New Home Contracts, the Unimproved Property Contract, and the Farm and Ranch Contract.
  6. Paragraph 12 is only different from the One to Four Family Residential Contract in the ________________ Contract. It addresses the association fees and deposits.
    Condominium Contract
  7. Paragraph 13 is different from the One to Four Family Residential Contract in the New Home Contract, the Unimproved Property Contract, the Farm and Ranch Contract, and the Condominium Contract. How do these differ in this paragraph?
    -For New Home Contracts, the Unimproved Property Contract, and the Farm and Ranch Contract, there is a possibility of the assessment of rollback taxes. Rollback taxes can be assessed when the property zoning is changing. The amount of roll back taxes can be a significant amount. The contract forms say the party changing the usage is responsible for the roll back assessment. Encourage the parties to investigate and understand roll back taxes and the amount of the assessment before agreeing to be responsible for them.

    -In paragraph 13, the Condominium Contract states the following: "Cash reserves from regular condominium assessments for deferred maintenance or capital improvements established by the Association will not be credited to Seller. Any special condominium assessment due and unpaid at closing will be the obligation of Seller
  8. Paragraph 14 is different only in ______________ Contract from the One to Four Family Residential Contract. The seller owns the unit only, so that must be defined.
    Condominium Contract
  9. The Farm and Ranch Contract calls for what kind of description?
    metes-and-bounds legal description rather than reference to a recorded plat
  10. When selling a farm or ranch property, what issues and items must be addressed?
    • Crops
    • Equipment
    • Royalties
    • Surface leases
    • Other restrictions and exceptions already existing or to be created
    • Rights and obligations of applicable government programs and cooperative or association memberships
  11. What are rollback taxes?
    Is an additional tax that is collected when an agriculture-use property is no longer used for agricultural purposes and no longer qualifies for a reduced tax rate.
  12. Paragraph 2 of the unimproved property from is considerably less involved and complicated than some paragraphs found in other forms because..
    due to the lack of fixtures and accessories found in an unimproved property
  13. A buyer of an ______________ must carefully research zoning ordinances, restrictive covenants, availability of utilities, access and other matters that will affect the suitability of the building lot for the buyer's intended use.
    unimproved building lot
  14. Most builders will require the contract form that they provide to be used instead of a TREC promulgated form.
    true
  15. This kind of construction, usually called spec homes, has already been finished and does not have high-in stuff.
    completed construction.
  16. What contract do you use for Completed construction homes?
    New Home Contract
  17. This kind of construction property is customable.
    Incomplet construction
  18. What contract do you use for Incomplete construction homes?
    New Home Contract
  19. Federal Law requires that builders reveal to the buyer the R-value of the insulation installed in the new home. What is a R-value?
    A measure of insulation. The higher the R-value, the better resistance to the transfer of heat.

    **may be included in the contract or in an addendum attached to the contract
  20. What factors should be addressed for a new home contract?
    • R-value
    • Construction documents
    • Cost adjustments¬†
    • Buyer selections
    • Completion dates
    • Possible delays
    • Warranties
  21. It is always prudent for a buyer to seek legal counsel before signing a builder's contract or before agreeing to the provisions of a contract that addresses _______________ construction.
    incomplete

    **licensee can get into trouble if they don't advise this
  22. Interim loans
    builders loans; borrow money when they need it to build the house; find sub-contractors
  23. Licensees should find builders to list their properties.
    true
  24. Rollback taxes are involved in...
    • both New Home Contracts
    • Unimproved Property Contract
    • Farm and Ranch Contract
  25. Rollback taxes can be assessed when...
    zoning is changing and the property no longer qualifies for a previous exemption
  26. When a buyer purchases a condominium, they are buying the
    unit and an undivided interest in the common area
  27. The seller on unimproved property provides a disclosure...
    in paragraph 7E of TREC 9-10, Unimproved Property Contract
  28. Paragraph 6E8 of the Farm and Ranch Contract informs the consumer that if the property is subject to a private transfer fee,...
    the seller must notify the buyer
  29. The TREC contract forms that discuss rollback taxes say that if the rollback taxes are assessed because the seller changed the usage prior to closing,...
    the seller will be obligated to pay the rollback taxes
  30. The TREC contract forms say that if the property is damaged by fire or other casualty prior to closing, the
    seller will be obligated to restore the property prior to closing
  31. Which TREC-promulgated contract form allows for the sales price to be adjusted because of the survey?
    The Farm and Ranch Contract
  32. Which TREC-promulgated contract form(s) gives disclosure about the type of insulation in the property?
    Both New Home Contracts
  33. Which TREC-promulgated contract form has a spot for information about Exception Documents and Surface Leases?
    The Farm and Ranch Contract

Card Set Information

Author:
Blue2xa88
ID:
325909
Filename:
RE Promulgated Forms Ch.6 The Remaining Promulgated Forms
Updated:
2016-11-21 16:37:32
Tags:
Promulated forms real estate
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Description:
Other Promulgated Forms
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