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Promulgated Contract FormsOne_to_four_family_contractHARD

Under the TREC One to Four Family Residential Contract, Paragraph 7F addresses the seller's obligation regarding the condition of the property at closing. The seller must deliver the property with all items in working condition except for ordinary wear and tear. If the buyer discovers at the final walkthrough that the air conditioning system has failed, the buyer should:

Correct Answer

B) Request an amendment addressing the AC repair or a credit, and potentially exercise contract remedies if the seller refuses

The buyer should negotiate a resolution, such as requesting repairs or a credit through an amendment. If the seller refuses to address the issue, the buyer may have remedies under the contract's default provisions since the seller has an obligation to deliver the property with systems in working condition.

Answer Options
A
Proceed to closing and file a warranty claim afterward
B
Request an amendment addressing the AC repair or a credit, and potentially exercise contract remedies if the seller refuses
C
Refuse to close and demand the seller repair or replace the AC system before closing
D
File a complaint with TREC against the seller for failing to maintain the property

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Related Topics & Key Terms

Key Terms:

one_to_four_familyproperty_conditionparagraph_7Fworking_conditionfinal_walkthrough
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