A license holder in Texas assists a client with a for-sale-by-owner (FSBO) transaction where the license holder is only providing limited services (filling out paperwork). The client wants to use a contract downloaded from the internet. The license holder should:
Correct Answer
D) Use the TREC promulgated form because the mandatory use requirement applies regardless of the level of service provided
The mandatory use of TREC promulgated forms applies to all license holders in all transactions for which a promulgated form exists, regardless of the scope of services being provided. Limited service agreements do not exempt the license holder from this requirement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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.
More Promulgated Contract Forms Questions
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Under the TREC contract, a TREC Amendment is effective when:
Sales agent Torres uses the current version of the TREC One to Four Family Residential Contract but does not realize that TREC recently updated the form. The transaction closes using the outdated version. What is the potential consequence?
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Agent Nguyen is working with a buyer who wants to purchase a duplex in Fort Worth. The duplex has two rental units. Which TREC promulgated form should Agent Nguyen use?
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Sales agent Brown wants to help her client by adding a clause to the TREC promulgated contract requiring the seller to pay for pest inspection. Brown should: