Contracts
In a TREC contract, earnest money is typically held by:
AThe listing broker only
BThe buyer's lender
CAn escrow agent, often the title company✓ Correct
DTREC directly
Explanation
Earnest money in Texas transactions is customarily held by an escrow agent, typically the title company. The title company holds it in escrow until closing when it is applied to the buyer's costs, or until it is properly released or disputed per the contract terms.
Related Texas Contracts Questions
- The 'merger doctrine' in Texas real estate law means that once a deed is delivered and accepted at closing:
- Under Texas law, the 'buyer's right to terminate' in a TREC residential contract without an option period exists primarily when:
- The TREC contract's 'paragraph 4' addresses the license holder disclosure required when a real estate agent has a personal interest in the property. This disclosure:
- A Texas real estate sales contract becomes binding when:
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- The TREC contract's Third Party Financing Addendum allows the buyer to terminate if they are unable to obtain financing approval within a specified period. The buyer must notify the seller of the inability to obtain financing:
- A Texas contract provision stating that 'time is of the essence' means:
- Under the Texas One to Four Family Residential Contract, the default number of days for the title company to deliver title commitment after the effective date is:
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