Under the TREC New Home Contract (Completed Construction), the builder provides a structural warranty for 10 years. After 3 years, the buyer discovers a significant foundation crack. The buyer should:
Correct Answer
B) File a claim with the builder or warranty company under the structural warranty
Foundation cracks that develop within the structural warranty period should be reported to the builder or the warranty company. The buyer should follow the warranty claim procedures specified in the warranty documents.
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Related Topics & Key Terms
Key Terms:
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.
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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