A foreign investor wants to purchase a single-family home in Texas. The investor's attorney in another country has prepared a purchase contract under the laws of that country. A Texas license holder representing the seller receives this contract. What should the license holder advise?
Correct Answer
A) Advise the investor to have a Texas-licensed attorney prepare the contract or use the TREC promulgated form
A contract drafted under foreign law may not comply with Texas requirements and may not qualify under the attorney-drafted exception, which contemplates contracts prepared for use in Texas transactions. The license holder should advise using the TREC promulgated form or having a Texas-licensed attorney prepare an appropriate contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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?
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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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- → Which of the following transactions does NOT require the use of a TREC promulgated contract form by a Texas license holder?
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Under TREC rules, inserting complex legal clauses into a promulgated contract form by a license holder is considered which of the following?
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A Texas license holder uses the correct TREC promulgated form but accidentally leaves Paragraph 7 (Property Condition) completely blank without selecting any options. Both parties sign the contract. What is the status of the contract?