The TREC PROMULGATED CONTRACT FORMS
ARE DRAFTED BY THE BROKER-LAWYER COMMITTEE
IN A LEASE WITH A RIGHT OF FIRST REFUSAL PROVISION
THE TENANT HAS
... [Show More] THE RIGHT TO MATCH OR BETTER ANY OFFER THE LANDLORD RECEIVES TO PREVENT THE PROPERTY FROM BEING SOLD
TREC promulgated contract forms provide for
third party financing,
assumption
seller finance
a lender can withdraw the approval of a property
at any time prior to closing
the third party financing addendum for credit approval is used when
the buyer is obtaining any kind of financing
a new survey is always required for all transactions
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the number of days allowed for objections to title or survey is
the number of days entered in paragraph 6
trec has promulgated forms for
residential transactions
TREC promulgated contracts allow the buyer to have the property inspected
by inspectors licensed by trec or otherwise permitted by law
when a buyer defaults on a contract and the seller choses to retain the buyer's earnest money, the seller has agreed to
liquidated damages
when one party defaults under a contract, the other party is known as
injured party
earnest money is first applied to the
buyer's down payment
the escrow agent is
not a party to the transaction
for a valid option to exist
the option fee must be paid directly to the seller or listing broker
all blanks in paragraph 23 must be filled
the fee must be paid within two days of the effective date of the contract
buyers and sellers in the contract should be identified by their
legal names
land, improvements and accessories are collectively referred to as
the property
according to the TREC contract, accessories include
stoves
exclusions to the sale must be removed
prior to delivery of possession
the loan amount in paragraph 3B of the sales contract includes
only the amount borrowed by the buyer
the sales price in 3C is always
the loan amount plus the cash portion
3A+3B
the amount borrowed plus the down payment
the earnest money is
negotiated between the parties
how long does a buyer have to object to defects, exceptions and encumbrances to title disclosed in the survey and the title commitment
the negotiated days stated in contract
being within the extraterritorial jurisdiction of a municipality is an indication the property will
possibly be annexed in the future
if the buyer is allowed to select certain items in the new home that is under construction, the builder (seller) may reject a selection if it adversely affects the market value of the home
true
if an overage is incurred due to a change order, the excess is paid by
the buyer
a seller's disclosure notice is not required
when the property being sold is a previously unoccupied new home
at the closing the buyer should bring
a cashier's check or wire transfer for the closing costs and down payment
if not using a temporary residential lease, the buyer is entitled to possession of the property
upon the closing and funding
the buyer and seller temporary residential lease forms are good for any period up to
90 days
the special provisions paragraph of the contract allows licensees to insert
factual business details
statements not addressed in the contract
info where is not trec promulgated addendum, lease or mandatory form
usual expenses of the seller as stated in the contract include
release of existing lien
the process of dividing ongoing expenses between the buyer and seller at closing is called
prorating
damage or destruction of a property under contract prior to closing
can result in termination of the contract
in a farm and ranch sale, the buyer will receive everything but
trucks
the seller generally has the right to harvest crops
until delivery of possession
reservations of oil, gas and other mineral rights will be inserted in
trec addenda form
the sales price may be adjusted based upon a survey. if the sales price is adjusted
- the cash portion can be adjusted
- the amount financed can be adjusted
- the cash portion and the amount financed can be adjusted proportionately
if the sales price is adjusted based upon a survey, either party may terminate the contract if the sales price varies by more than
10%
if the property is currently under an agricultural exemption, and the use of the property changes, the buyers may be charged a
rollback tax
the buyer may terminate the contract and receive a refund of earnest money if lener required repairs
exceed 5% of the sales price
if a seller wants to continue to occupy the property for two days after the closing and the buyer agrees
the seller's temporary residential lease form should be used
the State of Texas encourages the parties to resolve all conflicts and disputes through alternative dispute resolution procedures such as
mediation [Show Less]