Promulgated Contracts Units 1-6

Elements of a valid contract include mutual agreement, legal objective, competent parties, compliance with the statute of frauds, and:

• consideration

• earnest money

• acceptance

A broker listed a property for a bank that the bank had foreclosed on. The bank had their own contract form prepared by their attorney, and they wanted the broker to use it. Can the broker use the bank’s form without violating the license act?

• Yes, a seller can require a form written by their attorney.

• No, they must use the TREC form.

• No, the broker will be in violation of the license act.

• Yes, but the broker cannot fill in the blanks.

If a certain kind of form or contract is needed for a transaction, but no TREC promulgated version of it exists:

• A form created by an attorney can be used.

• The agent will have to edit a promulgated form to fit the situation.

An agent must submit all offers to the seller:

• until closing

• until the first offer is accepted

How can an agent be sure they are using the most up-to-date promulgated forms?

• by checking the date in the upper-righthand corner

• by checking the date in the last paragraph of the form

• by calling TREC

A seller wants to keep the artificial fireplace logs that are in his home. They were a gift and the seller intends to use them in their new home. Where in the contract will the seller retaining the fireplace logs need to be mentioned?

• Paragraph 2D – Exclusions

• Paragraph 10 – Possession

The decision of which title company to use should be left to the:

• parties to the contract

• broker

• sales agent

• lender

A buyer made an offer that did not include payment of earnest money. Since the buyer was paying a considerable amount of option money, the seller accepted the offer. What is the status of the contract?

• The contract is valid.

• The contract is void.

• The contract is unenforceable.

• The contract is voidable.

A buyer is making an offer on a property but wants to be sure they will be able to have their four dogs in that property. The agent is not sure of the restrictions regarding pets.

How can the agent protect the buyer and give them an out under the contract if they cannot keep their dogs there?

• List it in Paragraph 6D of the One to Four as a valid objection.

• Tell the buyer they can have the dogs and just not tell the neighbors.

Jim signed a contract with his 17-year-old cousin to sell him his car. That contract is voidable — why?

• It was made with a minor.

• It was made without a lawyer present.

• It wasn't notarized.

• It was not bilateral.