TREC PROMULGATED CONTRACT FORMS 351 FINAL EXAM LATEST 2023-2024 ACTUAL EXAM 210 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) | ALREADY GRADED A

TREC PROMULGATED CONTRACT FORMS 351 FINAL

EXAM LATEST 2023-2024 ACTUAL EXAM 210 QUESTIONS

AND CORRECT DETAILED ANSWERS WITH RATIONALES

(VERIFIED ANSWERS) | ALREADY GRADED A

Paul is using a TREC form for a contract that is dated February 2003. Priscilla who

works in the same office has a TREC form dated May 2014. Which form is

correct?

Paul's form because it was the original TREC contract form

Paul's form because it allows him to fill in the blanks

Priscilla's form because this form is the latest updated TREC form and the most

current

Rationale: Paul's because he paid TREC for the right to use this older form -

ANSWER- Priscilla's form because this form is the latest updated TREC form and

the most current

TREC provides:

Residential leases

Forms for commercial property in all states

Property management contracts

TREC real estate forms - ANSWER- TREC only provides forms for a real estate

Rationale: transaction that are intended to be used by trained licensed real estate

brokers or salespersons

When receiving an offer, Julie is allowed to:

Stall an offer

Tell a buyer she won't present it because the offer is too low

Provide no advice for low offers

Provide advice to her client regarding a ridiculous offer - ANSWER- Provide

advice to her client regarding a ridiculous offer

Once a real estate contract is formed:

One party must perform

Both parties must perform

One party may back out

Either party may back out - ANSWER- Both parties must perform

When only one party of a performing couple accepts an offer:

It remains an offer

It becomes a contract

It is a listing

It is a counteroffer - ANSWER- It remains an offer

Who must sign and date the sales agreement?

The buyers and the sellers

The sellers and their attorney

The buyers and their attorney

The licensee that is involved with the sale - ANSWER- The buyers and the sellers

Zella is writing up the TREC addendum for the rototiller that will be included in

the sale of the house and property. What information should she include on the

addendum?

The price the seller is asking

Where the rototiller is currently being stored

A detailed description of the rototiller

All of these - ANSWER- All of these

Gabe is not pre-approved for a loan. His realtor should suggest what be included

with the offer for the house since Gabe is not pre-approved?

A notation that Gabe may not be approved

The TREC Form 40-6 Third Party Financing Addendum for credit approval

A petition to speed up the transaction

Additional earnest money - ANSWER- Financing Addendum for credit approval

The Texas VA Loan Program has what kind of rating from the Better Business

Bureau?

C

B

A

A+ - ANSWER- A+

All of the following statements are incorrect with the exception of:

The VA allows the veteran/buyer to take out a second mortgage

The VA is allowed to obtain any form of financing to make up the property's sale

price from the appraisal's price

The veteran is allowed to pay cash for the difference between the appraised value

and the asking price - ANSWER- The VA is allowed to obtain any form of

financing to make up the property's sale price from the appraisal's price

All may be reasons the owner would become the lender with the exception of:

The buyer is a relative of the owner

The tenant wants rent to apply to the purchase of the subject property

The buyer has bad credit

The buyer would hold title to the property - ANSWER- The buyer would hold title

to the property

When a seller holds a lien on the property, the right of foreclosure is specified in:

First Right of Refusal

Power of Attorney

A Deed of Trust

A Living Will - ANSWER- A Deed of Trust

One of the benefits for those who serve in the military is:

Obtaining a low guaranteed home loan through Department of Veteran Affairs

Free housing

Purchasing multiple homes

All of these - ANSWER- Obtaining a low guaranteed home loan through

Department of Veteran

All of the following are TREC earnest money requirements with the exception of:

The earnest money is held by the third party

The earnest money is held by the seller

The earnest money is held by the broker in the firm's trust account

The earnest money may be held by an escrow company - ANSWER- The earnest

money is held by the seller

Wendy, the potential buyer has an option fee attached to her offer. During the

option period she has all of the following options with the exception of: