Under the TREC contract, when must the option fee be delivered to the seller?
Correct Answer
A) Within the timeframe specified in the contract, typically within 3 days after the effective date
The TREC contract specifies that the option fee must be delivered to the seller within the number of days stated in the contract after the effective date. If the option fee is not timely delivered, the buyer may not have a valid option period.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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