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:
Correct Answer
A) Use the bank's attorney-drafted contract since it qualifies as an exception to mandatory use requirements
Under TREC Rules §537.11(b), a contract form prepared by a party's attorney is an exception to the mandatory use of promulgated forms. When a bank (as seller) has its attorneys prepare a contract, the license holder may use that attorney-drafted contract. The bank is a principal requiring the use of its own attorney-drafted form.
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