When executed property, Paragraph 23. TERMINATION OPTION of the Texas ONE TO FOUR FAMILY RESIDENTIAL CONTRACT (RESALE) – TREC NO. 20.8, grants the buyer and unrestricted right to terminate during the Option.
During the Option Period the buyer should perform their property inspections and negotiate property repairs if desired.
Occasionally the seller is unhappy when presented with what they perceive as unreasonable repair requests. Sometimes sellers misread or misunderstand the terms of Para. 23 and believe that the Option Period allows the seller to terminate if they don’t like the buyers repair request. This is incorrect. Only the buyer has the Unrestricted Right To Terminate.
Here’s further explanation from the Texas Association of REALTORS.
| Proposing amendments to a contract |
| After completing his inspection, the buyer sent a TREC Amendment form to the seller that provided that the seller would do several repairs to the property. The seller responded by sending his own amendment to the buyer, which provided that the seller would do one repair, the sales price would increase by $2,000, and if the buyer did not sign the amendment within 24 hours the contract would terminate. Can the seller require that the buyer accept his amendment to the contract or terminate the contract if buyer doesn’t accept the amendment?
No. A buyer or seller can propose an amendment to his contract at any time. However, proposing an amendment to a contract does not give anyone a right to terminate an existing contract. Unless both parties agree to all terms of a proposed amendment, their contract rights and obligations remain as provided in the existing contract. This type of post-contract negotiation should not be confused with the offer, rejection of offer, and counteroffer rules that govern negotiating contracts prior to the contract becoming a binding contract in the first place. Once a contract is fully executed and binding on the parties, the rejection of a proposal to amend the contract or a counterproposal to amend the contract does not change the terms of the original contract. Only after the parties agree to all the terms of any amendment proposal and sign the amendment form signifying their agreement is the contract changed to include the amended provisions. Without a fully executed amendment, the original contract remains in effect as written. Note: This question is not intended to address a buyer’s right to terminate a contract by giving notice to terminate the contract to the seller under the option provision. For other legal topics, visit the Legal FAQs on TexasRealtors.com |
A few more tips:
SUBMITTING AN OFFER
Once you have found the right property, the next step is to make a purchase offer to the seller.
Determine the price you want to offer.
The price the seller is asking may or may not reflect realistic market value.
The best way to determine market value is with a Comparative Market Analysis (CMA) showing similar properties that sold recently, those that are currently active on the market and those that failed to sell.
Your Prudential, Gary Greene agent will discuss with you an estimate of costs associated with purchasing this property.
Decide on financing.
You will review together with your real estate agent the status of your loan pre-approval.
You will work together with your real estate agent and loan officer to explain financing options and help you determine the mortgage plan that best fits your requirements.
Decide on other issues that are important to you, such as:
Items of personal property you want included with the house.
Warranty, inspections, repairs or other home enhancements by the seller.
Closing date and possession.
Your agent will present your offer.
The seller will have three choices: accept your offer as it is presented; reject it completely; or propose adjustments to your offer (counter offer).
If there is a counter offer, you can choose whether to accept it, reject it or counter it.
Once you have reached a signed agreement with the seller, you will have a firm contract to purchase the home.
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