SCENARIO 1

Use TREC Form 20-14, OP-L and 15-5

Mason and Micah Timmons inherited money from Mason's mother and want to buy a house for rental property. They employ Kent Hilliard as a buyer's broker who locates a suitable house on Lot 11 Block 3 of the Snyder Addition to the City of Stephenville.The seller Kate Agnew (a widow) agrees to the sale price of $83,000 with buyers paying cash at closing. Ms. Agnew did not have the property listed and based on the buyer's broker agreement Mr. Hilliard's fee is $3000 which buyers will pay at closing which should be on November 15.

The Timmons deposit $4000 earnest money with Lawyer's Abstract and Ms. Agnew will pay for an owner's title policy and the buyers will have six days to object to title problems after receiving the commitment. Ms. Agnew would like to retain possession for 60 days after closing at the rate of $500 per month with no deposit required.The rate of $100 per day is charged for any hold over by the tenant.

The buyers are willing to accept seller's existing survey if provided within five days. Seller will also provide a property condition notice required by Texas Property Code sec. 5.008 within three days and the house was built prior to 1978 so a lead based paint disclosure will be prepared to submit with the contract. There is no homeowner's association. Ms. Agnew will pay $275 for a residential services contract but no buyer's expenses. They decide to mediate any disputes arising under the contract.

The Timmons want to have the house inspected and have a right to terminate the contract if the inspection is unfavorable. The parties agree that buyers will deposit $600 for the right to terminate the contract within 7 days with the money applied to the purchase price.