In the Farm and Ranch contract, if the sales price is adjusted based on a survey, what can be adjusted?

Study for the Texas Promulgated Contracts Exam. Gain understanding with detailed explanations and various question formats. Prepare effectively and ace your test!

In the context of the Farm and Ranch contract, when the sales price is adjusted based on a survey, it can impact both the cash portion and the amount financed. This flexibility allows for a comprehensive adjustment of the financial arrangements based on the survey findings, which may indicate changes in the property size, dimensions, or value.

When a survey shows discrepancies that affect the overall valuation of the property, both parties typically agree to adjust the terms of the contract accordingly. This means that if the property's value is reassessed as a result of the survey, both the cash amount that the buyer needs to pay upfront and the financing amount that the buyer may require can be proportionately adjusted.

In this situation, proportionate adjustments can ensure that both elements of the transaction align with the updated valuation, providing a fair outcome for both the buyer and seller. This is why the option stating that any of the above adjustments are possible is the most accurate in capturing the full range of possible adjustments available under these circumstances.

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