Contracts
In Texas, the 'parol evidence rule' in real estate contracts means that:
AVerbal statements made before signing can freely change the written contract
BWhen parties have a written contract, prior oral agreements or negotiations generally cannot be used to contradict or add to the written terms✓ Correct
CContracts must be read aloud at closing
DEvidence of the parties' intentions cannot be used in court
Explanation
The parol evidence rule prevents the introduction of evidence of prior or contemporaneous oral agreements to contradict, vary, or add to the terms of a written contract. In real estate, this means that oral promises made during negotiations that are not included in the written contract are generally not enforceable. Everything important must be in writing.
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