A buyer using the TREC Unimproved Property Contract wants to verify that the soil can support a residential foundation. The buyer should:
Correct Answer
C) Order a geotechnical soil test during the option period as part of due diligence
The option period is the appropriate time for the buyer to conduct all due diligence, including geotechnical soil testing. This allows the buyer to terminate if the soil conditions are unsuitable for construction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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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