A buyer purchases a newly constructed townhome from a builder. The townhome is part of a planned community with mandatory HOA membership. Which TREC forms should be used?
Correct Answer
A) The New Home Contract (Completed Construction) plus the Addendum for Property Subject to Mandatory Membership in a POA
A new construction townhome from a builder requires the New Home Contract (Completed Construction). Since the property is in a mandatory HOA community, the Addendum for Property Subject to Mandatory Membership in a POA is also required.
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Related Topics & Key Terms
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Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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.
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