A seller provides the Seller's Disclosure Notice to the buyer after the contract is executed but before closing. The buyer discovers that the seller failed to disclose a known foundation issue. Under Texas Property Code §5.008, the buyer may:
Correct Answer
D) Terminate the contract within 7 days of receiving the notice and receive the earnest money back
Under Texas Property Code §5.008, if the buyer receives the Seller's Disclosure Notice after the effective date of the contract, the buyer may terminate the contract within 7 days of receiving the notice. The earnest money is returned to the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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