In a Texas transaction using the TREC One to Four Family Residential Contract, the buyer and seller disagree about whether a mounted flat-screen TV in the living room is included in the sale. According to Paragraph 2 of the contract, which items are automatically included as part of the property?
Correct Answer
B) Permanently installed and built-in items, including fixtures and improvements
Under Paragraph 2 of the TREC contract, the sale includes permanently installed and built-in items, including fixtures. Whether the TV qualifies depends on how it is mounted—if it is a wall-mounted bracket that is part of the wall structure, it may be considered a fixture.
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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.
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Previous Question
Under the TREC One to Four Family Residential Contract, Paragraph 2 addresses the property description. Agent Lopez is completing this section for a buyer purchasing a home with a detached garage and a storage shed. How should Lopez describe these items?
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Under the TREC One to Four Family Residential Contract, all of the following are addressed in Paragraph 6 (Title Policy and Survey) EXCEPT: