Under Paragraph 2 of the TREC One to Four Family Residential Contract, all of the following items are typically included as part of the property EXCEPT:
Correct Answer
D) The seller's freestanding refrigerator not attached to any cabinetry
A freestanding refrigerator that is not attached to cabinetry or built into the property is generally considered personal property, not a fixture. Under Paragraph 2, only permanently installed and built-in items are automatically included in the sale.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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.
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?
A Texas license holder is asked to prepare a lease-purchase agreement for a residential property. TREC has a promulgated Residential Lease form and a promulgated One to Four Family Residential Contract, but no promulgated lease-purchase form. What should the license holder do?
Under the TREC contract, who typically pays for the mortgagee's (lender's) title insurance policy?
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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- → A Texas license holder prepares a TREC promulgated contract for a residential sale. Before the buyer signs, the license holder strikes through the paragraph regarding the survey requirement and writes 'N/A - Survey Waived' in the margin. What is the potential consequence for this license holder?
- → TREC categorizes its forms into different classifications. Which of the following is NOT a category of TREC forms?
- → Under TREC rules, a Texas license holder is permitted to use a non-promulgated contract form in all of the following situations EXCEPT:
- → A government entity is selling surplus property (a single-family home) at a public auction. A Texas license holder representing a buyer at the auction is asked to sign the government's standard contract form. The form was not drafted by an attorney but is the government's standard form used for all surplus property sales. What should the license holder do?
- → Which of the following transactions does NOT require the use of a TREC promulgated contract form by a Texas license holder?
- → 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:
- → All of the following are valid exceptions to the mandatory use of TREC promulgated contract forms EXCEPT:
- → A Texas license holder receives a purchase offer from a buyer's agent. The offer uses the correct TREC promulgated form, but the buyer's agent has typed additional paragraphs on a separate page labeled 'Additional Contract Terms' and attached it to the form. These terms were not drafted by an attorney. What should the listing agent advise?
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Previous Question
Paragraph 7 of the TREC One to Four Family Residential Contract addresses property condition. A buyer receives the Seller's Disclosure Notice and discovers that the seller has disclosed a previous foundation repair. The buyer wants to terminate the contract based on this information. Under the contract, the buyer:
Next Question
Agent Park is completing Paragraph 9 of the TREC One to Four Family Residential Contract, which addresses closing. The buyer and seller have agreed on a closing date of March 15. If the title company cannot complete the closing by March 15, what happens under the contract?