Under the TREC contract, the buyer receives the title commitment and discovers an easement across the backyard for a utility company. The buyer objects within the specified timeframe. What must the seller do?
Correct Answer
C) The seller must attempt to cure the objection; if unable, the buyer may terminate
When the buyer objects to a title exception within the specified timeframe, the seller must attempt to cure the objection. If the seller is unable to cure, the buyer may terminate the contract and receive the earnest money back.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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.
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