Contracts
In a Texas real estate transaction, earnest money that is not in dispute is released when:
ATREC issues an authorization
BThe parties sign a release of earnest money or at closing✓ Correct
C30 days have passed since termination
DThe buyer's lender approves the release
Explanation
Earnest money is released by the escrow agent upon receipt of written authorization signed by both parties (a release), or automatically applied at closing toward the buyer's costs.
Related Texas Contracts Questions
- The Texas One to Four Family Residential Contract (Resale) is a TREC-promulgated form. 'Promulgated' means:
- Under the Texas One to Four Family Residential Contract, the Third Party Financing Addendum is used when:
- The Texas Deceptive Trade Practices Act (DTPA) gives consumers the right to sue for damages when a seller makes a false, misleading, or deceptive representation. Which of the following best describes a DTPA violation in real estate?
- In Texas, the TREC-required contract form for a condominium purchase is:
- The Texas Residential Buyer/Tenant Representation Agreement (TREC/TAR form) is typically a(n):
- In Texas, a contract for the sale of real estate must be in writing to be enforceable under the:
- A Texas buyer terminates a contract after the option period using the Third Party Financing Addendum's financing contingency. The buyer is entitled to:
- In Texas, a 'backup offer' is useful because:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →