Under the TREC New Home Contract (Completed Construction), the buyer is purchasing a completed new home from a builder. How does this contract differ from the standard Resale Contract regarding property condition?
Correct Answer
C) The New Home Contract includes builder warranty provisions rather than the standard property condition paragraph
The New Home Contract (Completed Construction) includes provisions for builder warranties, which replace the standard property condition provisions found in the Resale Contract. Builders typically provide warranties covering materials and workmanship.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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.
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