Contracts
A Texas buyer who has signed a contract and paid an option fee decides to exercise their right to terminate on the last day of the option period. To validly exercise the right, the buyer must:
AVerbally notify their agent
BDeliver written notice of termination to the seller or seller's agent before midnight on the last day of the option period✓ Correct
CFile a termination notice with TREC
DReturn the option fee to the seller
Explanation
To validly exercise the right to terminate under the TREC option provision, the buyer must deliver written notice (not just verbal) to the seller or seller's agent before the option period expires. TREC's Notice of Buyer's Termination of Contract form is commonly used. If written notice is not timely delivered, the buyer loses their right to terminate under the option.
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