2016 Kaplan Inc May be reproduced for educational uses only Texas Promulgated

2016 kaplan inc may be reproduced for educational

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©2016 Kaplan, Inc. May be reproduced for educational uses only.
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Texas Promulgated Forms, Second Edition Update 66. b. The answer is interest rate. 3A is down payment, 3B is sum of financing, and 3C is sales price. Learning Objective 3.1. 67. a. The answer is Seller Financing Addendum and Loan Assumption Addendum. Both the Seller Financing Addendum and Loan Assumption Addendum give the seller the option to terminate the contract under a couple of circumstances related to approval of the buyer’s credit. Failure to timely terminate may subject the seller to accepting the buyer’s creditworthiness. Learning Objective 3.4. 68. d. The answer is if the buyer fails to provide credit documentation within the negotiated time period. The only time the seller may receive the earnest money under the Seller Financing Addendum is if the buyer fails to timely provide credit documentation within the negotiated time period. While the seller may terminate based on the buyer’s credit, the earnest money is refunded to the buyer. The buyer may not terminate if the seller fails to timely provide notice of approval or non approval of the buyer’s credit. If seller fails to timely provide notice, the buyer’s creditworthiness is deemed to be approved by the seller. Learning Objective 3.4. 69. d. The answer is the legal description of the property. The marital status of the parties is addressed in paragraph 1; the name of the parties is addressed in paragraph 1. The property price is addressed in paragraph 3. Learning Objective 3.1. 70. d. The answer is paragraph 6. Paragraph 6 addresses the title policy, survey, and HOA information, among other things. Paragraph 5 addresses earnest money, paragraph 7 addresses the property condition, and paragraph 4 addresses a licensee disclosure. Learning Objective 3.1. 71. b. The answer is the contract terminates if the buyer timely notifies the seller that the buyer was unable to get buyer approval. Under this provision, the contract terminates and the buyer receives the earnest money. If the buyer fails to timely notify the seller, the contract is still binding but no longer subject to a buyer approval contingency. Learning Objective 3.4. 72. a. The answer is buyer required repairs. Repairs are addressed in paragraph 7. Paragraph 23 is the paragraph that addresses information related to the termination option. Learning Objective 3.1. 73. b. The answer is TREC approved and promulgated the form. Learning Objective 3.2. 74. d. The answer is Third Party Financing Addendum. The Third Party Financing Addendum details the requirements for a USDA guaranteed loan. There is no such form as the USDA Financing Addendum. Learning Objective 3.4. 75. a. The answer is because Texas is a community property state. Although Texas is a community property state, a married person can buy or sell separate property in Texas.
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