RELE 1300 - CONTRACTS and ADDENDA FINAL EXAM 1. Susie Salesperson believes that there are some unusual legal matters present relating to the proposed purchase agreement between her buyer clients and the sellers. She should A. advise the listing agent of her concern so that they can work it out together and have consistent recommendations for both the buyer and the seller. B. consult her company's legal counsel for advice and a solution for her buyer. C. offer to contribute part of her commission to the buyers, which will enable them to move ahead with the closing, since they have very limited funds. D. advise her clients, preferably in writing, to seek the advice of a competent real estate attorney before signing the purchase agreement 2. Which of the following is not listed as included in the transaction in paragraph 2 of TREC form 20-12? A. Heating and air conditioning units B. A water softener system C. Flat-screen television D. Artificial fireplace logs 3. Which of the following is not a \"Buyer's Expense\" as identified in paragraph twelve of the 20-12 contract? A. Appraisal fee B. 100% of escrow fee C. Underwriting fee D. Wire transfer fee 4. Sam is preparing an offer for the purchase of the property located at 4615 Pleasant Boulevard and is not sure of the legal description of the property. To complete paragraph 2 of the 20-12 contract form, he should A. call the listing company and obtain the legal description from whoever answers the phone. B. obtain the description from the county appraisal district, making certain that he obtains the lot, block, and section numbers as well as the correctly spelled name of the subdivision. C. fill in the street address for now and fill in the other blanks after everyone else has signed and he has had an opportunity to verify the accuracy of the information. D. just use the information given in the MLS printout even though he is reasonably certain that it is incomplete and probably inaccurate. 5. The buyers want to buy a $240,000 resale property by paying $140,000 in cash at closing and then paying the seller monthly interest payments of $500 for 2 years. At the end of the 2 years, the buyers will pay the final $500 interest payment and the outstanding principal amount of $100,000. In preparing the offer to purchase, the buyer's agent will A. use the TREC 20-12 contract form and will write the details of the two-year interest only loan in paragraph 11 since it deals with the business details of the transaction. B. use the TREC 20-12 contract form and the \"Seller Financing Addendum\