In a Texas real estate transaction using the TREC One to Four Family Residential Contract, the buyer agrees to purchase a home for $350,000 with a 7-day option period. On Day 5, the buyer's agent discovers that the property is in a flood zone. The buyer's agent should advise the buyer that:
Correct Answer
D) The buyer may terminate during the remaining option period for any reason, including flood zone concerns
During the option period, the buyer has an unrestricted right to terminate for any reason. Discovering the property is in a flood zone is a valid concern, and the buyer may terminate within the remaining option period without needing to provide a specific reason.
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Under the TREC One to Four Family Residential Contract, Paragraph 17 addresses attorney's fees. What does this paragraph generally provide?
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A buyer enters into a TREC One to Four Family Residential Contract with a 10-day option period. The buyer pays a $200 option fee. On Day 6, the buyer terminates the contract within the option period. The buyer also deposited $5,000 in earnest money. What happens to these funds?