Under the TREC contract, the buyer provides notice of title objections. The seller cures some objections but cannot cure an easement for a neighboring property's driveway that crosses the buyer's land. The buyer has three options under the contract:
Correct Answer
C) Accept the easement and close, terminate the contract and receive earnest money back, or negotiate a price reduction through an amendment
The buyer may: (1) accept the property with the uncured easement and proceed to closing, (2) terminate the contract and receive the earnest money back, or (3) negotiate with the seller for a price reduction or other consideration through a TREC Amendment.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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