Module 1 Knowledge Check

CHAPTERS

• 0:00Overview of the One-to-Four Contract
• 2:08Parties to the Contract — Names and Roles
• 5:44Property Description Requirements
• 9:30Sales Price and Financing Terms
• 13:15Earnest Money Obligations
• 16:40Title and Survey Paragraphs
• 19:55Closing and Possession Dates

KEY TERMS IN THIS LESSON

• Earnest Money

  A deposit made by the buyer to demonstrate good faith. Held in escrow and applied at closing or forfeited on breach.

• Option Fee

  Non-refundable amount paid for the unrestricted right to terminate the contract within the option period.

• Legal Description

  A precise description of real property using metes and bounds, lot and block, or section/township/range.

• Title Commitment

  A preliminary report issued by a title company showing the conditions under which it will issue a title policy.

• Survey Exception

  An exclusion in a title policy for matters that a current survey would reveal — can be deleted with T-47 affidavit.

• Promulgated Form

  A form approved and required for use by the Texas Real Estate Commission for specific transaction types.