In a TREC One to Four Family Residential Contract, the parties agree that the seller will provide a residential service contract (home warranty). Under Paragraph 7G, who pays for the residential service contract?
Correct Answer
A) The party specified in the contract pays, which may be either buyer or seller
Under Paragraph 7G, the contract specifies which party will pay for the residential service contract and the maximum cost. This is negotiable between the parties and must be specified in the contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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 contract, who typically pays for the mortgagee's (lender's) title insurance policy?
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- → 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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- → 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:
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Previous Question
Under the TREC One to Four Family Residential Contract, the seller is required to deliver a Seller's Disclosure Notice to the buyer. If the seller fails to deliver the notice, which Texas statute gives the buyer remedies?
Next Question
Under the TREC One to Four Family Residential Contract, Paragraph 19 addresses representations. Both buyer and seller make representations including that the contract is not subject to any other agreement. If a party makes a false representation, what is the consequence?