A buyer in Texas is purchasing a property and the closing is scheduled for December 28. The buyer's lender informs the agent that the lender cannot fund the loan until January 3 of the following year due to the holiday schedule. Under the TREC contract, the buyer should:
Correct Answer
B) Request an amendment to extend the closing date to January 3 or later to allow for funding
Since the TREC contract typically requires 'closing and funding,' the buyer should request an amendment to extend the closing date to accommodate the lender's funding schedule. Both parties must agree to the extension.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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.
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