Under Paragraph 12 of the TREC One to Four Family Residential Contract, the settlement is typically handled by which entity in Texas?
Correct Answer
D) A title company or an attorney's office as designated in the contract
In Texas, real estate closings are typically handled by a title company or an attorney's office. The closing agent is designated in the contract. Texas does not require an attorney to conduct the closing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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:
- → Under the TREC contract, the buyer agrees to have the seller retain possession for 2 days after closing using a TREC Seller's Temporary Residential Lease. If the seller refuses to vacate after the lease period, the buyer may:
- → 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
In the TREC One to Four Family Residential Contract, Paragraph 10 addresses possession. If the parties agree that the buyer will take possession at closing and funding, what does this mean?
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Under the TREC One to Four Family Residential Contract, the default provisions in Paragraph 15 allow the non-defaulting party all of the following remedies EXCEPT: