A buyer is purchasing a property using the TREC One to Four Family Residential Contract. The property was previously used as a condominium but has since been converted to a single-family home by removing interior walls. The condominium regime has been terminated. Which TREC form should be used?
Correct Answer
B) The One to Four Family Residential Contract without the condominium addendum since the regime has been terminated
Since the condominium regime has been terminated and the property has been converted to a single-family home, the standard One to Four Family Residential Contract is appropriate. The condominium addendum is not needed because there is no longer a condominium association.
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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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