Contracts
Under the Texas TREC contract, if the buyer fails to timely deposit the earnest money, the seller may:
ATake no action until closing
BTerminate the contract and potentially seek the earnest money as damages✓ Correct
COnly file a complaint with TREC
DAutomatically retain the option fee
Explanation
If the buyer fails to timely deliver the earnest money as required by the contract, the seller has the right to terminate the contract. The earnest money deadline in Texas contracts is typically 3 business days after the effective date.
Related Texas Contracts Questions
- In Texas, the 'parole evidence rule' in contract law means that:
- The TREC Addendum for Reservation of Oil, Gas, and Other Minerals is used in Texas when:
- The Texas Farm and Ranch Contract differs from the One to Four Family Contract primarily because it includes provisions for:
- In a Texas transaction, the 'effective date' of a real estate contract is defined as:
- The Texas TREC Seller's Disclosure Notice (OP-H) is required to be delivered by the seller to:
- A Texas TREC-promulgated lease form (Residential Lease) is used for:
- In a Texas real estate transaction, earnest money that is not in dispute is released when:
- A Texas seller's agent receives an offer well below the listing price while the seller is traveling. The agent should:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →