Broker Martinez lists a commercial office building for sale. A buyer's agent contacts Martinez to submit an offer. Martinez's sales agent asks which contract form to use. Which statement is correct regarding TREC promulgated forms for this transaction?
Correct Answer
D) No TREC promulgated form is required because TREC does not promulgate a form for commercial transactions
TREC promulgated forms are designed for specific residential and land transaction types. TREC does not promulgate a contract form for commercial office building transactions. In this case, the parties may use a TAR commercial form or an attorney-drafted contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
More Promulgated Contract Forms Questions
Under the TREC contract, all of the following contract terms may be changed through a TREC Amendment EXCEPT:
A buyer purchases a property for $450,000. The contract includes a $750 option fee and $12,000 in earnest money. The buyer defaults on the contract after the option period expires. The seller terminates and seeks liquidated damages. If the earnest money serves as liquidated damages, what is the maximum the seller can retain from the buyer's deposits?
A Texas license holder is asked to prepare a lease-purchase agreement for a residential property. TREC has a promulgated Residential Lease form and a promulgated One to Four Family Residential Contract, but no promulgated lease-purchase form. What should the license holder do?
Under the TREC contract, who typically pays for the mortgagee's (lender's) title insurance policy?
A relocation company purchases homes from transferred employees and then resells them. The company's attorney has drafted a standard purchase contract for all such transactions. A Texas license holder listing one of these properties receives an offer using the company's attorney-drafted contract. Should the license holder accept this contract?
- → License holder Kim is helping a buyer purchase a residential property that is currently a foreclosure being sold by a bank (REO property). The bank provides its own lengthy purchase agreement drafted by its corporate attorneys. Kim should:
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- → A Texas license holder prepares a TREC promulgated contract for a residential sale. Before the buyer signs, the license holder strikes through the paragraph regarding the survey requirement and writes 'N/A - Survey Waived' in the margin. What is the potential consequence for this license holder?
- → TREC categorizes its forms into different classifications. Which of the following is NOT a category of TREC forms?
- → Under TREC rules, a Texas license holder is permitted to use a non-promulgated contract form in all of the following situations EXCEPT:
- → A government entity is selling surplus property (a single-family home) at a public auction. A Texas license holder representing a buyer at the auction is asked to sign the government's standard contract form. The form was not drafted by an attorney but is the government's standard form used for all surplus property sales. What should the license holder do?
- → Which of the following transactions does NOT require the use of a TREC promulgated contract form by a Texas license holder?
- → A license holder in Texas assists a client with a for-sale-by-owner (FSBO) transaction where the license holder is only providing limited services (filling out paperwork). The client wants to use a contract downloaded from the internet. The license holder should:
- → All of the following are valid exceptions to the mandatory use of TREC promulgated contract forms EXCEPT:
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Previous Question
A Texas sales agent is helping a buyer purchase a single-family home. The buyer asks the agent to prepare the purchase contract. Under TREC rules, which form must the sales agent use?
Next Question
A buyer in Texas hires an attorney to draft a custom purchase contract for a single-family home. The buyer's sales agent is uncomfortable because a TREC promulgated form exists for this transaction. What should the sales agent do?