A seller agreed to complete several repairs the buyer asked for after his inspection, and the parties signed an Amendment (TAR 1903) that stated which items would be repaired. Three days later and still within his option period, the buyer terminated the contract under his termination option (Paragraph 23). The seller is upset because he’s already repaired a few of the agreed-upon items. Can the buyer still terminate the contract under the termination option after the parties have agreed to the repair provisions contained in the amendment?
Yes, the buyer can still exercise his right to terminate the contract. A buyer does not automatically give up his right to terminate the contract under the termination option because the parties negotiated and signed an amendment that provides that the seller will do repairs to the property.
However, if Paragraph 7 of the amendment was checked, indicating the parties had included the buyer’s waiver of his right to terminate the contract under the termination option in the amendment, then the buyer could no longer exercise that right to terminate once the amendment became effective. If the buyer has not waived his right to terminate under the termination option, the buyer is still entitled to exercise that right within the option period stated in the contract.
Under the provisions of Paragraph 7 (Property Condition) of the TREC contracts, the seller is obligated to complete all agreed-upon repairs prior to closing unless the parties have otherwise agreed in writing. A seller might want to wait to do repairs until after the buyer’s right to terminate under the termination option has expired or has been waived according to the terms of the contract.