Contract Addenda and Non-contract Forms Flashcards

1
Q

What is the central purpose of this promulgated addendum?

A

It is a warning statement

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2
Q

When should this addendum be used?

A

Anytime a coastal real property is sold near a beach.

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3
Q

Shown below is an excerpt from one of the addenda presented in this unit. What is the name of it? IF YOU OWN A STRUCTURE LOCATED ON COASTAL REAL PROPERTY NEAR A GULF COAST BEACH, IT MAY COME TO BE LOCATED ON THE PUBLIC BEACH BECAUSE OF COASTAL EROSION AND STORM EVENTS.

A

Addendum for the property located seaward of the Gulf Intracoastal waterway

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4
Q

Shown below is an excerpt from one of the addenda presented in this unit. What is the name of it? State law prohibits the use, encumbrance, construction, or placing of any structure in, on, or over state-owned submerged lands below the applicable tide line, without proper permission.

A

ADDENDUM FOR COASTAL AREA PROPERTY

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5
Q

Who are the parties of a residential purchase agreement when a “short sale” is involved?

A

The buyer and seller

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6
Q

When might a “short sale” occur?

A

A short sale occurs when a buyer has been located and an agreement is reached for an amount that is less than what is owed. The seller will receive nothing and the lender will receive less than what the bank is currently owed.

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7
Q

What should a licensee representing the buyer do with the information found from Subdivision Information, Including Resale Certificate for Property Subject to Membership in a Property Owner’s Association?

A

Present it to the buyer as soon as the documents are received but do not discuss with the buyer.

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8
Q

What is the Gulf Intracoastal Waterway?

A

It is a 1,300-mile man-made canal.
It is a canal that runs along the Gulf of Mexico coastline from Brownsville all the way to St. Marks, Florida.
The Waterway links Texas ports with the rest of the country and enables Texas to handle most of the shipping traffic.

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9
Q

TREC No. 34-4 Addendum is used for property located

A

seaward of the Gulf Intracoastal Waterway. This form is primarily a warning notice to the buyer to make them completely aware of all the things that could go wrong in a purchase of land between the gulf and the intra-coastal waterway. All of the land between the actual gulf and this intra-coastal canal falls into this category.

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10
Q

TREC No. 33-2 Addendum is used for

A

Coastal Area Property and the unique issues that arise when owning land along the gulf coast. This document makes the buyer aware of:

The impact that erosion and accretion may have on the amount of land the purchaser will own.
Federal laws pertaining to filling in land with top soil to increase the amount of land owned.
Federal laws about building structures—including submerged structures—on state land.

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11
Q

TREC No. 37-5 is used for

A

Subdivision Information, Including Resale Certificate for Property Subject to Membership in a Property Owner’s Association. In many cases, this form is given by the licensee to the seller to take to the homeowner’s association. It is of vital importance that the buyer reviews these documents before signing the closing documents.

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12
Q

TREC No. 36-8 Addendum

A

is used for property subject to mandatory membership in the owner’s association.

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13
Q

TREC No. 45-1 Short Sell Addendum

A

is used with a seller who is behind in the mortgage payments. A short sale occurs when a buyer has been located and an agreement is reached for an amount that is less than what is owed. The seller will receive nothing and the lender will receive less than what the bank is currently owed.

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14
Q

There are forms that licensees will use that are not promulgated

A

They exist to make the seller and buyer as fully informed as possible about the property involved in real estate transactions. Some of them are:

Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies
IABS Form
OP-M Addendum
Contract for Deed

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15
Q

Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies

A

is a document that aims to educate clients and customers about avoidable accidents. The licensee could give this form to a seller when listing a property to educate the seller that these conditions may be addressed by a buyer when an offer is made.

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16
Q

IABS Form

A

contains information about brokerage services. This form accomplishes the purpose of fully informing the buyer and the seller as to the function of the real estate licensee in terms of how he or she will function if the seller is represented, the buyer is represented, and then, both the buyer and the seller are represented by the same brokerage in the same transaction in an Intermediary transaction. This form should be given to customers by the licensee upon the first substantial discussion about real estate.

17
Q

OP-M Addendum

A

is used when there are some items that are personal property that will be conveyed from the seller to the buyer. Personal property is anything that is not real estate. This form covers anything that is moveable and yet will be left behind by the seller for the ownership and use of the buyer.

18
Q

Contract for Deed

A

is the executory contract where the seller gives possession the property to the buyer and stipulates that at some time in the future the buyer will receive a deed that shows actual ownership.

19
Q

Who signs the Texas Real Estate Consumer Notice Concerning Hazards or Deficiencies addendum?

A

No one

20
Q

What is the purpose of Ground Fault Circuit Interrupters (GFCI)’s?

A

Any electric plugs near a water source there is a reset button that will help to prevent electric shock, those plugs are GFCI’s.

21
Q

What is the purpose of the form Information About Brokerage Services?

A

It full informs the buyer and the seller as to the function of the real estate licensee.

22
Q

Which addendum should be used when personal property is conveyed?

A

Non Realty Items Addendum

23
Q

What style of transfer of ownership in which the seller gives possession of the property to the buyer and stipulates that at some time in the future the buyer will receive a deed that shows actual ownership called?

A

Contract for deed

24
Q

According to the TREC Addendum for Property Subject to Mandatory Membership in an Owner’s Association, who is responsible for paying the title company for the cost of obtaining information from the association?

A

Its negotiable, the real estate agent would mark the correct box.

25
Q

Are transfer fees legal for an association to charge?

A

Yes, this transfer fee is perfectly legal.

26
Q

Who is charged the association fee for providing information?

A

Who requests the information

27
Q

What is the main reason for creating a mandatory property owner’s association?

A

To keep the value of homes in a subdivision up

28
Q

During a short sale, how much is the maximum the seller can receive?

A

The seller cannot make any money on the sale.

29
Q

What is the potential issue if a landowner fills in land on the coast to extend his/her land?

A

Possible violation of state and federal laws