A buyer is purchasing a newly constructed home from a builder in Texas. The builder's sales contract is drafted by the builder's attorney. The buyer's agent asks which contract to use. In this situation:
Correct Answer
A) The builder's attorney-drafted contract may be used under the attorney-drafted exception to mandatory use
When a builder's contract is prepared by the builder's attorney, it qualifies under the attorney-drafted exception to the mandatory use of TREC promulgated forms. Many builders use their own attorney-drafted contracts for new construction.
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Related Topics & Key Terms
Key Terms:
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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