What written form must the seller use to disclose the legal status of the property?

Master the TREC Promulgated Contract Test with our interactive quiz. Utilize flashcards and multiple choice questions, complete with hints and explanations, to prepare effectively. Ace your exam!

The correct answer is that the seller must use TREC Form 20-14 to disclose the legal status of the property. This specific form is designed to provide potential buyers with essential information about the property, including any existing encumbrances, liens, or other legal issues that may affect the property's title. This is crucial for ensuring transparency in real estate transactions, as it helps buyers make informed decisions.

In Texas real estate transactions, TREC forms are standardized and recognized by regulatory agencies, making them a reliable choice for facilitating clear communication between parties. TREC Form 20-14 specifically addresses the legal status and ensures consistent documentation across transactions.

Other options do not serve this purpose: A title deed is a legal document that indicates ownership but does not provide a comprehensive legal status disclosure; an HOA agreement relates to the rules of a homeowner's association and may not cover legal status; and an exclusive listing agreement focuses on the relationship between the seller and the realtor without disclosing legal property issues. Each of these alternatives fails to fulfill the requirement for a detailed and structured disclosure of legal aspects pertaining to the property in question.

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