After the TREC contract is executed, the buyer wants to add a home warranty that was not included in the original contract. The buyer and seller agree. The proper documentation is:
Correct Answer
A) A TREC Amendment specifying the home warranty provider, coverage, maximum cost, and which party pays
Adding a home warranty to the contract is a modification that requires a TREC Amendment. The amendment should specify the warranty details, including provider, coverage, maximum cost, and payment responsibility.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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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