Under the TREC New Home Contract (Incomplete Construction), if the builder fails to complete construction by the agreed-upon completion date, the buyer may:
Correct Answer
A) Exercise remedies under the contract's default provisions, which may include termination
If the builder fails to complete construction by the agreed date, this may constitute a default. The buyer may exercise remedies under the contract's default provisions, which may include termination with return of earnest money or specific performance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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