Under the TREC Farm and Ranch Contract, the seller has been leasing portions of the ranch to a hunting outfitter. The hunting lease extends 8 months beyond the closing date. Under the contract:
Correct Answer
C) The buyer must honor the existing hunting lease and becomes the landlord under the lease terms
Under Texas law, existing leases generally survive the sale of the property. The buyer becomes the new landlord and must honor the existing hunting lease. The contract should address any existing leases.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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.
More Promulgated Contract Forms Questions
In Texas, title insurance rates are:
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Under the TREC contract, a TREC Amendment is effective when:
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