Texas Crammer Practice Exam

What should buyers do if the seller provides a Seller's Disclosure Notice indicating that the basement leaks after the contract is signed?

1. Accept the property as is

2. Negotiate a price reduction

3. Back out any time before the option period

4. Proceed with the closing anyway

The correct answer is: Back out any time before the option period

If the seller provides a Seller's Disclosure Notice indicating that the basement leaks after the contract is signed, it is crucial for buyers to understand their rights and options under Texas real estate law. The correct choice emphasizes that buyers can back out of the transaction at any time before the option period expires. This period is a critical timeframe during which buyers are afforded the opportunity to conduct inspections and assess the property's condition without the risk of losing their earnest money. The option period allows buyers the flexibility to make informed decisions regarding whether to continue with the purchase or to withdraw based on newly acquired information about the property's condition, such as a disclosure about water leaks in the basement. This protects the buyer from unforeseen issues that could be costly or lead to significant repairs after the sale is finalized. Understanding this timeline is essential for buyers, as it empowers them to take action based on the seller's disclosures, ultimately ensuring they can proceed with caution and make decisions that are in their best interest.