In Texas, REALTORS® are required to use TAR form 1601, aka: One To Four Residential Contract (RESALE) when helping a buyer purchase a resale home. Condo's and new construction homes are different.
Here are two very important details that home buyers, sellers and especially agents should remember:
Pg 3 of 9 (3) Statutory Tax Districts:
Seller to deliver and buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district PRIOR to final execution of this contract.
Many people think the only 2 ways to kill a contract on behalf of a buyer are 1) terminating within the option period 2) buyer financing or appraisal issues within the time described per the 3rd party financing condition addendum. What if the buyer argued they weren't made fully aware of the water taxes "prior to?"
According to the Texas Water Code: 49.452 (f)
From your real estate attorney's in Austin, Texas:
In the event a contract of purchase and sale is entered into without the seller providing the notice required by this subsection, the purchaser shall be entitled to terminate the contract.
Pg 4 of 9 A.
Seller at Seller's expense shall immediately cause the existing utilities to be turned on and shall keep the utilities on during the time this contract is in effect.
It does not matter that the home "had" a tenant and that they moved out prior to the closing date of the executed contract. The owner of the home MUST turn those utilities on in THEIR name and leave them on or they will have breached the contract.
Every state is different. You should consult your REALTOR® or real estate attorney for advice.
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