Agent Torres is preparing a contract for a property that includes surface water rights from a nearby creek. Which aspect of the transaction might require additional addenda or attorney consultation?
Correct Answer
A) Water rights in Texas are separate from land ownership and may require specific addressing in the contract or addenda
In Texas, surface water rights are regulated by the state and may be separate from land ownership. The contract should specifically address whether water rights are included in the sale, and additional addenda or attorney consultation may be needed.
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Related Topics & Key Terms
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Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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