A Texas license holder may properly insert language into the Special Provisions paragraph (Paragraph 11) of the TREC promulgated contract in all of the following situations EXCEPT:
Correct Answer
C) Adding a clause that limits the seller's liability for property defects discovered after closing
Adding a clause that limits seller's liability for property defects is drafting a legal provision, which constitutes the unauthorized practice of law. This type of complex legal language requires attorney involvement and cannot be inserted by a license holder into Special Provisions.
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Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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Previous Question
License holder Williams discovers that after executing the TREC One to Four Family Residential Contract, the buyer and seller want to change the closing date. Williams should advise the parties to:
Next Question
A seller in Houston insists that the sales agent use a contract form downloaded from a legal website instead of the TREC promulgated form. The seller says the downloaded form is more comprehensive. What should the sales agent do?