In a Texas real estate transaction, what is the difference between a TREC promulgated addendum and an approved optional form?
Correct Answer
B) Promulgated addenda are mandatory when applicable, while approved optional forms may be used at the parties' discretion
TREC promulgated addenda are mandatory when the situation they address is part of the transaction. Approved optional forms are available for use but are not required—the parties may choose whether to include them.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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