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

The property is in a flood zone

Answer

The buyer is financing with FHA

Answer

The seller has a lien on the property

Question 2

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

Accepted Answer

The date the deed and other closing documents are recorded

Answer

The day the buyer's loan is approved

Answer

The date the seller vacates the property

Answer

The date the earnest money is deposited

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 9-13

Answer

TREC Form 38-7

Answer

TREC Form 1-4

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

To list the property's current market value

Answer

To authorize the listing agent to advertise the property

Answer

To waive the buyer's right to an inspection

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

Only accept the property as-is

Answer

Sue the seller for double damages automatically

Answer

Delay closing indefinitely

Question 6

The 'Survey' section of a TREC residential contract typically requires:

Accepted Answer

Delivery of an existing survey or a new survey within a specified number of days

Answer

The buyer to pay for a new survey in all cases

Answer

The seller to always provide a brand-new survey

Answer

No survey if the property is under 1 acre