Chapter 1 Flashcards
TRELA LAW for real estate agents ( contract )
- allows real estate licensees to “fill in the blanks” of contracts that are made available for licensees’ use by TREC. As long as you are only filling in the blanks of a promulgated contract, you will not be considered practicing law.
- Never add the words “time is of the essence” to a real estate contract without the explicit direction of the parties of the contract.
- Be sure to note that the blank for closing date in a contract requires an exact date
- You should never write that the closing will be by “lender’s discretion”, because doing so is a violation of the TREC. Moreover, it could be viewed as illegally practicing law.
Addenda
are additions to a contract. Any time an addendum is attached to a contract, the box referencing that addendum should be checked in paragraph 22 of the 1-4 Family Residential Contract (Resale).
Amendments
Amendments are specific changes to a contract agreed upon by both parties.
- Amendments do not replace the original contract, only the section stipulated by the amendment.
- By law, under the Statute of Frauds, any amendment must be signed by both parties.
3.Amendments only take place after the initial contract has been signed. Amendments should be numbered for the sake of clarity.
When the amendments are used ?
- when making amendments to the One to Four Family Residential Contract (Resale).
2.it is typically used when there are changes in the down payment, loan amount(s), or sales price.
3.When there is a request of the seller to make additional repairs or change the closing date, among others.
Amendment to the One to Four Family Residential Contract (Resale). Paragraph One
Paragraph (1) is used for changes in how the Sales Price is calculated.
(1) A is for changes in Down Payment.
(1) B is for any changes to the Loan Amount.
(1) C is for any changes in the Sales Price.
Amendment to the One to Four Family Residential Contract (Resale) Paragraph 2
Request that the seller complete certain repairs.
Amendment to the One to Four Family Residential Contract (Resale). Paragraph 3
When the original closing date needs to be changed.
Amendment to the One to Four Family Residential Contract (Resale). Paragraph 4
there is a change in the type of financing from the original contract, or if the parties simply wish to change the amount of the contract.
Paragraph 5/Amendment to the One to Four Family Residential Contract
change the agreement in the Property Condition paragraph.
Paragraph 6 /Amendment to the One to Four Family Residential Contract
Alter the agreement dealing with the Termination Option paragraph, to extend the date.
P7. Amendment to the One to Four Family Residential Contract
Paragraph (7) of the Amendment, should be used when the buyer is waiving their unrestricted right to terminate the contract for which the option fee was paid.
Paragraph (8), Amendment
exists to make changes to the Third Party Financing Addendum, allowing the buyer a longer period of time before closing.
Paragraph (9) of the Amendment
Add or adjust the Special Provisions paragraph.
Performance
Performance is the fulfillment of obligations required by contract and may be demanded by a lawsuit.
Although contracts usually call for full and precise performance, a substantial performance may be acceptable under certain circumstances, or upon payment of damages for unfinished or defective performance.
The act of successful performance, as the other party reasonably understands the stipulated terms, discharges an individual from future contractual liability.
PART performance
frequently arises with the sale of land,Part performance entails the completion of a portion of what the contract stipulates. (In contrast, specific performance compels a party to execute an agreement to its terms where monetary damages would be inadequate compensation for breach of an agreement. )
