Under the TREC contract, the seller must deliver the property with utilities turned on through the closing date. If the seller disconnects utilities before closing and the buyer's inspector cannot complete the inspection, the buyer may:
Correct Answer
B) Request the seller restore utilities; if refused, this may constitute a default by the seller
Under the TREC contract, the seller agrees to keep utilities on through closing. Disconnecting utilities may breach this obligation and could constitute a default, allowing the buyer to pursue contract remedies.
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Related Topics & Key Terms
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Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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.
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