A buyer and seller in a Texas transaction both agree they want to use a contract form created by a paralegal working in the buyer's attorney's office. The attorney has reviewed and approved the contract. Does this satisfy the attorney-drafted exception to TREC's mandatory use requirement?
Correct Answer
C) Yes, because the attorney reviewed and approved the paralegal's work product
An attorney may supervise and approve work done by support staff, including paralegals. When the attorney reviews, approves, and takes responsibility for the contract, it is considered attorney-drafted for purposes of the TREC exception.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
More Promulgated Contract Forms Questions
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Sales agent Lee is preparing a TREC contract and notices that the form includes a section about the seller's disclosure of lead-based paint. The property was built in 2015. What should Lee do with this section?
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Agent Thompson is listing a property and receives two offers: one using the TREC promulgated form and another using an attorney-drafted contract. Thompson should: