A buyer wants to add their spouse's name to the TREC contract after it has been executed. The buyer and seller agree to this change. The proper method is to:
Correct Answer
C) Execute a TREC Amendment adding the spouse's name as a buyer
Adding a party to the contract after execution is a material change that requires a TREC Amendment. Both the original buyer and seller must sign the amendment to make the change effective.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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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