Under the TREC One to Four Family Residential Contract, Paragraph 14 addresses casualty loss. If the property suffers substantial damage from a fire before closing, what rights does the buyer have?
Correct Answer
B) The buyer may terminate the contract and receive the earnest money back
Under Paragraph 14, if the property suffers casualty loss (substantial damage) before closing, the buyer may either terminate the contract and receive the earnest money back or proceed with the purchase and receive insurance proceeds or credit for the damage.
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The TREC One to Four Family Residential Contract is designed for the resale of residential properties containing how many dwelling units?
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In a TREC One to Four Family Residential Contract, the buyer and seller agree the seller will make certain repairs before closing. The contract is signed and the option period has expired. Before closing, the buyer discovers the seller has not made the agreed-upon repairs. Under the contract, the buyer may: