A buyer purchases vacant land using the TREC Unimproved Property Contract with plans to subdivide and develop it. During the option period, the buyer discovers the land is landlocked (no public road access). The buyer should:
Correct Answer
D) Terminate during the option period since lack of access significantly impacts the land's developability
Lack of road access is a critical issue for development. The buyer should terminate during the option period rather than closing on landlocked property. The unrestricted termination right during the option period allows the buyer to walk away.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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.
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