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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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?