Agent Martinez is helping a buyer negotiate repairs after a home inspection. The buyer and seller agree that the seller will credit $2,500 at closing for the buyer to handle the repairs. How should this agreement be documented?
Correct Answer
D) A TREC Amendment should be executed specifying the $2,500 seller credit at closing
A seller credit is a material contract modification that must be documented through a TREC Amendment. The amendment should specify the amount, purpose, and how the credit will be applied at closing.
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Related Topics & Key Terms
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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.
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