Do you know the deadlines in Paragraph 23?

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03/10/2016 | Author: Editorial Staff

The Texas Real Estate Commission recently changed the time for one of the deadlines in Paragraph 23 of the One to Four Family Residential Contract (Resale). Watch the latest Texas REALTOR® Magazine Minute for an explanation of the deadlines outlined in Paragraph 23 that deal with the buyer’s right to terminate the contract.

Categories: Legal
Tags: legal, forms, termination option, deadlines, texas realtor magazine minute


Comments

Brenda Stahelin on 03/10/2016

David, I know where you are coming from, and in a perfect world, you would be right. Actually, I was covering for another agent in our office who had just lost her father. Apparently the inspection was later than expected, so we were crunched for time.  Later,I learned that the buyer could not always be reached easily.  The fact that it was not my client, but the client of another agent actually made it more stressful. I wanted to take care her client, even though her client was not responding in a timely fashion.  In this business we all know to expect what we don’t think will happen. I still believe it would help if the option period ended at a time that was not one of the busiest times of our day.

David Davis on 03/10/2016

@ Brenda How is this causing you stress?  If the buyer doesn’t opt out by 5PM then the option period expires.  The buyer knows this when they buy the option period.  So does the seller.  This time was arrived at to stop the middle of the night decision making.  I was at the meeting when this was discussed and later presented to TREC.  The idea here is if 5PM is too early in the day for you (or your client) to make decisions, then make the decision(s) the day before the expiration.  It’s just that simple!  No one is trying to tell anyone when to do their job, or when to practice real estate, it’s just that the brokers at the broker/lawyer committe meeting that day felt that the midnight notices had gone on long enought and they wanted a stop put to it, and the lawyers agreed.  Obviously, so did TREC!

Brenda Stahelin on 03/10/2016

The option ending at 5:00 p,m, has caused a lot of stress in my life. In one scenario, I tried all day to notify a buyer of the seller’s response to an amendment to see if she still wanted to move forward. I had appointments to show homes that afternoon.
At 4:00 I had not been able to get with buyer and realized I still had two properties to show.  If the option period could at least last until after dark a bit,  it would be much less stress and worry since we usually try to show before dark.
There are two other similar scenarios I have gone through. I believe 5:00 is in the middle the day for most of us, so it would be a great help if it ended a bit later.

David Davis on 03/10/2016

@ Jeanette It doesn’t!

Jeanette Edwards on 03/10/2016

Some buyer’s agents mail the Option Fee.  How does that affect the deadline requirement to pay by 11:59pm on the 3rd day after the effective date?  I’ve had this happen several times when I’m the listing agent.


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

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