1. Madison is writing up a contract on a townhouse unit for which the buyer will have fee simple ownership and pay a monthly HOA for the upkeep of common areas. Which should she use? (a) Residential Condominium Contract (b) Unimproved Property Contract (c) One to Four Family Residential Contract (d) Residential Townhome Contrac
2. What is TRUE of the paragraph regarding Earnest Money in the 1-4 Family Residential Contract? (a) Earnest money is required to make the contract valid./// (b) Time is not of the essence for this paragraph.(c) Time is of the essence for this paragraph (d) The paragraph states the standard dollar amount of earnest money required for a valid contract.
3. According to the TREC Third Party Financing Addendum, buyer approval is obtained when the terms of the loan described are available, and the buyer has satisfied all of the lender’s requirements related to the buyer’s _____(a) Credit history and employment record (b) Income and credit history. (c) Assets and income. (d) Assets, income and credit history
4. _____ is not a requirement of a valid contract (a) Earnest money (b) Legal subject matter (c) Mutual assent (d) At closing
5. The Smith’s property is on the market, and their agent has received a full price offer from the Johnsons. The agent has presented the offer to Mr. and Mrs. Smith, who have accepted the offer by signing it. When is this contract valid? (a) Immediately (b) After all parties have a written copy (c) When the Johnsons have received communication of the acceptance (d) At closing
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