Termination Tactics: Getting Out of the TREC Contracts
by Bart Stockton
Objectives: Upon completion, the participant will be able to
1. Describe and implement the contracts’ requirements for effective termination notices
2. Identify the common and not-so-common ways that the TREC contracts can be terminated
3. Avoid mistakes leading to unintentional terminations or termination failures
4. Understand the contract’s default provisions and what can happen when one party chooses not to move forward without a contractual right to terminate.
I. Introduction 5 Minutes
A. Introduction of Instructor, Provider, Participants
B. TREC & Provider CE Rules
C. Course Objectives
II. Review General Contract Concepts 10 Minutes
A. Written Communications & Forms
B. Effective and Ineffective Notices
C. Differences Between a Termination Right and Automatic Termination
III. Most Common Termination Scenarios 40 Minutes
A. Option Period
B. Borrower Financing Approval
C. Property Approval By Lender
D. Appraisal Issues
E. HOA or Condo Documents
F. Sale of Other Property Contingency
G. Back-Up Contract
IV. Less Common Termination Scenarios 30 Minutes
A. Earnest Money Delivery
B. Lender-Required Repairs & Treatments
C. Residential Leases
D. Fixture Leases
E. Right of First Refusal (condo)
F. Failure to Receive Title Commitment & Exceptions
G. Seller’s Disclosure Notice Issues
H. Casualty Loss
I. Short Sale Contingency
J. Excessive Settlement Costs
K. Loan Assumption Addendum Issues
L. Environmental, Wetlands, Endangered Species
M. Acreage Discrepancy (Farm & Ranch)
V. Mutual Terminations 5 Minutes
VI. Default 10 Minutes
Total: 120 Minutes (100 Instructional; 20 min of break time to be added by instructor)