TREC TREC Contract Forms 2

Question 1

The TREC Addendum for Property Subject to Mandatory Membership in a Property Owners Association is required when:

Accepted Answer

The property is subject to mandatory HOA membership

Answer

This addendum must be attached whenever the property is subject to mandatory membership in a homeowners or property owners association.

Question 2

In a TREC contract, 'closing' is defined as:

Accepted Answer

The date the deed and other closing documents are recorded

Answer

Under Texas contracts, closing occurs when the deed and other required closing documents are filed and recorded in the county records.

Question 3

Which TREC form is used for the sale of unimproved (vacant) lots in a residential subdivision?

Accepted Answer

TREC Form 25-14

Answer

TREC Form 25-14 (Residential Condominium Contract) is for condos, while vacant lots in residential subdivisions use Form 9-13.

Question 4

What is the purpose of the TREC Seller's Disclosure Notice?

Accepted Answer

To inform the buyer of known material defects and conditions of the property

Answer

The Seller's Disclosure Notice requires sellers to disclose known material defects and conditions that could affect the property's value or desirability.

Question 5

Under a TREC contract, if the seller fails to complete agreed repairs before closing, the buyer may:

Accepted Answer

Terminate and receive the earnest money back, or accept the property with a credit

Answer

If the seller fails to complete agreed repairs, the buyer can terminate the contract and recover earnest money or accept the property with a negotiated credit.

TREC - Texas Real Estate Commission Practice Test

TREC - Texas Real Estate Commission Practice Test

TREC TREC Contract Forms 2