Under TREC rules, a broker receives a $1,000 option fee from a buyer under a TREC residential contract. Under Texas law and TREC rules, what must the broker do with the option fee?
Correct Answer
C) Deliver the option fee to the seller or the seller's agent within the time specified in the contract, as the option fee belongs to the seller upon payment
Under TREC promulgated contract forms, the option fee is paid to the seller (or seller's agent) and becomes the seller's property upon payment. It is not held in the trust account like earnest money. The broker must deliver it to the seller or seller's agent within the timeframe specified in the contract.
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