Are you staying out of trouble on Texas Contracts?

Are you staying out of trouble on Texas Contracts?

Applying to the One to Four Family Residential Contract (resale)  

Question:  

Paragraph 11 Special Provisions had the following written in: 

"Buyer will increase this offer to $2000.00 more than the best offer you receive" 

Is this unauthorized practice of law by the agent? 

Answer:   

Real estate licensees should never engage in drafting an escalation clause. The main cautions here are proof of the seller having multiple offers and financial liability. You don't want your client to pay more than the home is worth.  If your client is insistent on writing this on the offer, the real estate licensee should advice the client to seek counsel. 

Question:  

Paragraph 7D(2) was checked with this written in: "Everything in the inspection" 

Won't the buyer be accepting the property "as-is" if the agent doesn't write this in and check 7D(1) ?  

Answer:  

Do not check Paragraph 7D(2) unless you are asking for something specific (e.g., replace a/c unit) and your buyer is purchasing a buyer option in paragraph 23. 

You should check 7D(1) because the parties can always amend the contract if they later agree there should be repairs. Remember, the buyer has the right to terminate in the event a seller refuses to amend the contract to require repairs.  

Question:  

Should an agent leave the termination option money with the Title Company or anyone other than the seller or the listing broker?

 Answer:  

Leaving the option money with anyone other than the seller or the listing broker threatens the buyer's right to terminate. The contract language specifically says who to deliver to. Delivering to anyone other than what the contract says fails to fulfill the buyer's obligations in order for the right to terminate the contract.  Don't count on others to do your job; it will most likely backfire on you. 

Question:  

Why are agents, buyers and sellers so confused by the Residential Real Property Affidavit T-47 for use of an existing survey? 

Answer:  

Paragraph 6C(1) says if the seller does not complete the Affidavit T-47 then the buyer can go buy a survey and the seller will be paying for it. 

 If you are on a listing appointment and the seller tells you he has an existing survey get a copy, go to the title company and get a T-47 to give to the seller to have notarized. You could offer to meet the seller at the title company since it can be notarized right there.

By doing this you don't have to worry about the seller complying with his obligations under the existing survey paragraph.

If you have any additional questions all Texas Realtors can call the legal hotline:

 1-800-873-9155. I have done this several times and they do call you back!  So don't hesitate to make sure you are staying out of trouble!!