Under the TREC contract, what happens to the deed at closing?
Correct Answer
A) The seller signs and delivers the deed to the buyer, transferring ownership of the property
At closing, the seller signs the deed and delivers it to the buyer (through the closing agent), which transfers legal ownership of the property. The deed is then recorded at the county clerk's office.
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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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