A MUD is a political subdivision of the state authorized by the Texas Environmental Quality Commission to provide water, wastewater, drainage, and other services within its boundaries. The seller is required by the Texas Water Code to notify a buyer that the property is in a MUD before the buyer enters into a purchase agreement. The notification shall include information on the tax rate, the obligation and, where applicable, the costs of the MUD. Usually, the fact that the property is in a MUD should be quite obvious to the seller, as it is indicated on the tax bill that the county sends to the owner. However, the seller does not always know what specific type of notice to provide to the buyer based on the requirements of the Water Code. TREC recently revised its contracts to change the mediation requirement from optional to mandatory. Buyers and sellers must now try to resolve all contractual disputes through mediation before going through the court system. What should a buyer do to terminate the contract if the property does not meet the buyer`s lender`s insurance requirements for the loan? Remitting the cancellation option fee to the title company exposes the buyer to the risk of not having an unlimited right of termination. Section 23 of the TREC Four-Family Single-Family Residential Contract (Resale) requires that the option fee be remitted to the seller or the seller`s agent – not to the title company – within three days of the effective date of the contract. If the option fee is instead remitted to the securities company, this provision is not respected.

Paragraph 23 also stipulates that strict compliance with the execution time is required. If the termination option fee is remitted to the title company, but the title company does not make it available to the seller or the seller`s representative within the time limit, the buyer will not have a valid termination option. Remember that according to § 7F of the TREC contracts, the seller is obliged to carry out all agreed repairs before completion, unless the parties have agreed otherwise in writing. A seller may want to wait to make repairs until the buyer`s right to terminate under the termination option has expired or has been revoked in accordance with the terms of the contract. In addition, § 7B of the commercial contracts stipulates that the seller retains the consideration independent regardless of whether or not the buyer exercises his right of termination. My client has a contract to sell her home, but the buyer did not deposit the money despite numerous requests from her agent. My client thinks that the buyer is in default and wants to cancel the contract and get the serious money. Is there a form to inform the buyer that the contract is terminated? My buyer has received written notice from the seller that they are asking my client to waive their contingency in the sale of their current property, otherwise the contract will be terminated as set out in the addendum. Everything is on track with the sale of her current property, so she decided to waive the eventuality and gave written notice in time with notice of contingencies under the Addendum for the Buyer`s Sale of Other Property (TAR 1912). Now the seller wants my client to provide proof that she can get her loan, even if the sale of her current property doesn`t take place before closing. Can the seller force my customer to do this? Are the seller and the listing broker required to submit the second offer or safeguard contract to the lender even if the lender has not yet accepted or rejected the first contract? If the form is an addendum that modifies a party`s rights, obligations or remedies under a contract or a mandatory TREC addendum, it must contain the following additional elements: with your customer`s consent, you must ask the buyer`s representative to clarify the buyer`s intention and ask the buyer to resubmit an offer, it clearly indicates that intention. The addendum on third-party financing should only be attached to a contract in which the first box of paragraph 3B is checked.

I noticed that Texas REALTORS® has a new form on mineral clauses in contracts. Who should sign this form and it should be attached in addition to the contract? By submitting a second offer to a lender before the lender makes a decision on an initial contract, is the listing broker compromising its fiduciary duty to the seller because the seller`s negotiating position with the lender has been damaged? The main objective of the seller should be to formally terminate the contract. This ensures that he can put the property back on the market and sell it to someone else without risking a lawsuit that could prevent a subsequent sale of the property. The backup buyer must deposit the money and pay the option fee, if any, to the seller when the parties perform the backup contract. No other services are required unless the security contract becomes the primary contract. These requirements are listed in Section A of the Addendum. The addendum indicates that the notice period begins on the effective date of the security contract. It will continue without restriction until the modified effective date of the contract – the day your buyers receive the termination of the first contract. At that time, the option period lasts for the duration specified in the contract.

If a contractual problem arises and cannot be resolved through an informal discussion, the parties must submit to a mutually acceptable mediation service or provider and bear the costs of mediation equally. No. A buyer who may qualify for a loan without having to sell their other property does not need to use the addendum. However, she can still use it if she wants to make the contract dependent on the sale of her other property. Can the lack of actuarial approval from the lender for the property still result in the termination of the contract, even if the time has already elapsed for the buyer to terminate the contract in accordance with the Third Party Financing Addendum? If your seller wishes to formally inform the buyer of his decision to terminate the contract and receive the serious money due to the buyer`s non-payment, he can write a letter to this effect, containing a serious release of money for the buyer. .

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