Chapter2_exam-bank_AnswerKey.docx - Texas Promulgated Forms Second Edition Update Texas Promulgated Forms Second Edition Update Chapter 2 Exam Bank

Chapter2_exam-bank_AnswerKey.docx - Texas Promulgated Forms...

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Texas Promulgated Forms, Second Edition UpdateTexas Promulgated Forms, Second Edition UpdateChapter 2 Exam Bank Answer Key1. a. The answer is Reverse Mortgage Financing Addendum. The Reverse Mortgage Financing Addendum is nota TREC promulgated addendum; it was approved for voluntary use for a time but no longer exists. Learning Objective 2.4. 2. c. The answer is Texas Real Estate Licensing Act (TRELA). The TRELA specifically prohibits licensees frompracticing law. Learning Objective 2.2. 3. b. The answer is the agent can use the contract because it is an exception. According to Section 537.11(a)(3), transactions for which a contract form has been prepared by a principal to the transaction are an exception to therule that TREC promulgated forms must be used. Learning Objective 2.1. 4. a. The answer is acceptance. Agents should transmit all offers, acceptances, or other responses as soon as possible to avoid any questions about proper communication. Learning Objective 2.4.5. d. The answer is none of these. The TRELA clearly establishes that it is illegal for the licensee to draw a deed, note, deed of trust, will, or other written instrument that transfers or may transfer an interest in or title to real property. However, the act goes on to give permission for a licensee to complete a contract form that may bind the sale, exchange, option, lease, or rental of any interest in real property as long as the forms used have been prepared by or are required by the property owner or have been provided by the real estate commission, prepared by an attorney licensed by the State of Texas, and approved by that attorney for a particular type of transaction. Learning Objective 2.2. 6. b. The answer is buyer is notified that the seller has accepted the offer. In today’s electronic world, there may be a question as to when an acceptance, rejection, or counteroffer has been made and accepted. A standard contract may state that electronic transmissions are valid. Learning Objective 2.5. 7. b. The answer is licensees giving council regarding the validity or an instrument that addresses real property rights. The TRELA specifically prohibits licensees from practicing law by giving opinions or counsel regarding the validity or legal sufficiency of an instrument that addresses real property rights or as to the status of title to real estate. Learning Objective 2.2. 8. c. The answer is advisory. One of the advisory committees that exists under the statutes of the TRELA is the Broker-Lawyer Committee. Learning Objective 2.3. 9. c. The answer is drafts contracts. The Broker-Lawyer Committee develops forms and recommends their adoption, but it is the TREC that promulgates the forms for mandatory use. Learning Objective 2.3. 10. c. The answer is the licensee has the right to draft his own contract. TREC promulgated forms are not required in transactions in which the licensee is functioning solely as a principal, not as an agent. Learning Objective 2.1.
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