After the TREC contract is executed, the buyer's agent realizes they entered the wrong closing date—October 15 instead of October 30. Both parties agree October 30 is the correct date. The agent should:
Correct Answer
D) Prepare a TREC Amendment correcting the closing date from October 15 to October 30
Even for obvious errors, the proper method is to execute a TREC Amendment correcting the closing date. This ensures both parties formally agree to the corrected date.
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Related Topics & Key Terms
Key Terms:
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.
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:
Sales agent Torres uses the current version of the TREC One to Four Family Residential Contract but does not realize that TREC recently updated the form. The transaction closes using the outdated version. What is the potential consequence?
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