Under the TREC contract, can the buyer submit additional earnest money after the initial deposit?
Correct Answer
D) Yes, the contract allows for additional earnest money deposits as specified in the contract terms
The TREC contract allows for additional earnest money deposits. Paragraph 5 provides blanks for specifying both the initial earnest money and any additional deposits, including the amounts and due dates.
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Related Topics & Key Terms
Key Terms:
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.
More Promulgated Contract Forms Questions
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