Under the TREC contract, the buyer discovers after the option period that the seller's HOA transfer fee is $500—significantly higher than the $100 mentioned during negotiations. The buyer wants the seller to pay the full amount. The buyer should:
Correct Answer
B) Propose a TREC Amendment specifying that the seller will pay the $500 HOA transfer fee
If the buyer wants the seller to pay the HOA transfer fee, this should be documented through a TREC Amendment. The amendment specifies the allocation of this cost between the parties.
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Related Topics & Key Terms
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Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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Under the TREC contract, a TREC Amendment is effective when:
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