A builder in Texas is constructing a home on a lot that has a deed restriction limiting structures to single-story designs. The builder's plans include a two-story home. The buyer discovers this conflict during the option period. Under the TREC New Home Contract, the buyer:
Correct Answer
D) May terminate during the option period and should be advised about the potential conflict between the builder's plans and deed restrictions
The buyer should terminate during the option period if the builder's plans conflict with deed restrictions. The buyer should be advised that building a two-story home in violation of deed restrictions could result in legal action and forced modification.
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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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