In a TREC One to Four Family Residential Contract, the buyer has agreed to a 10-day option period ending on March 20. On March 19, the buyer's inspector finds major plumbing issues. The buyer sends a termination notice by email at 11:30 PM on March 20. Is the termination valid?
Correct Answer
D) Yes, but only if the email was sent to the correct address specified in the contract
Under the TREC contract, notices must be delivered using the methods and to the addresses specified in the contract (Paragraph 21). If email is an accepted method and the correct email address is used, the termination is valid as long as it is delivered within the option period.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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?
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Under the TREC One to Four Family Residential Contract, who typically pays for the owner's title insurance policy?
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A buyer and seller in Texas execute the TREC One to Four Family Residential Contract. The buyer plans to obtain an FHA loan. Which TREC addendum must be attached to the contract to address the financing terms?