Contracts
Under the TREC contract, if the property is condemned by a government agency before closing, the buyer typically has the right to:
AComplete the purchase at the reduced market value
BTerminate the contract and receive the earnest money, or accept the reduced property and condemnation award✓ Correct
CSue the government for all losses
DForce the seller to cure the condemnation
Explanation
If a portion of the property is condemned (or a condemnation proceeding is initiated) before closing, TREC contracts typically allow the buyer to either terminate and recover their earnest money, or proceed with the purchase accepting the property in its current state and receiving the benefit of any condemnation award.
Related Texas Contracts Questions
- The TREC contract's provision allowing the seller to terminate if the buyer's earnest money is not delivered on time means the seller has:
- In Texas, which addendum is used when a buyer's purchase is contingent on the sale of their current home?
- The Texas One to Four Family Residential Contract (Resale) is a TREC-promulgated form. 'Promulgated' means:
- In a Texas transaction, when the seller accepts the buyer's offer, acceptance must be communicated to the buyer. Under contract law, the offer is accepted when:
- A Texas TREC-promulgated lease form (Residential Lease) is used for:
- Under Texas law, a provision in a residential lease that exempts the landlord from liability for negligence in maintaining the property is generally:
- Under Texas law, the 'buyer's right to terminate' in a TREC residential contract without an option period exists primarily when:
- In a Texas residential contract, which clause protects the buyer if the property's appraised value comes in below the contract price?
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →