Contracts
The TREC contract requires the buyer to deliver the earnest money to the escrow agent within a specified number of days. If the buyer fails to deliver earnest money on time:
AThe contract automatically terminates
BThe buyer is in default and the seller has the remedies specified in the contract✓ Correct
CThe closing date is automatically extended
DThe seller must give the buyer 30 additional days
Explanation
Failure to deliver earnest money as required is a breach of the TREC contract. The seller's remedies upon buyer default include terminating the contract and receiving the earnest money as liquidated damages, or pursuing other remedies specified in the contract.
Related Texas Contracts Questions
- The TREC Back-Up Contract Addendum is used when a buyer wants to:
- In Texas, a real estate contract that is 'void' differs from one that is 'voidable' in that:
- In Texas, the effective date of a real estate contract is:
- Under the TREC Residential Condominium Contract, the buyer has the right to review which condominium document(s) during their review period?
- The TREC promulgated form for 'Amendment' to a contract is used when:
- 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:
- If a Texas residential contract has no closing date specified and both parties cannot agree on one, what is the likely result?
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →