A seller in Texas owns a property with mineral rights. The seller wants to reserve the mineral rights and not convey them to the buyer. Which TREC addendum should be used?
Correct Answer
D) The Addendum for Reservation of Oil, Gas, and Other Minerals
The TREC Addendum for Reservation of Oil, Gas, and Other Minerals is the appropriate promulgated form for reserving mineral rights from the conveyance. This addendum specifies which mineral interests the seller retains.
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Related Concepts
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.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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