Contracts
Under the TREC contract, the 'inspection period' and the 'option period' are:
AThe same thing—any inspection done during the option period
BConceptually related but distinct; inspections can be done anytime, while the option period is a specific paid contractual right to terminate✓ Correct
CRequired by TREC to be at least 14 days each
DGoverned by different government agencies
Explanation
Inspections (by a TREC-licensed inspector or others) can occur at various points, but the option period provides an unrestricted right to terminate without giving a reason. Buyers typically conduct inspections during the option period so they can use the termination right if problems are found. The option fee is paid specifically for this right, separate from inspection fees.
Related Texas Contracts Questions
- A Texas buyer who has signed a contract and paid an option fee decides to exercise their right to terminate on the last day of the option period. To validly exercise the right, the buyer must:
- Under Texas law, a seller who has signed a listing agreement and then receives an acceptable offer is obligated to:
- In Texas, the TREC Promulgated Addendum 'Seller's Temporary Residential Lease' allows:
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- In a Texas buyer's offer, consideration for the contract is provided by:
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