Contracts
A TREC contract provision requiring the buyer to obtain approval for a specific loan (e.g., conventional at 80% LTV) is called:
AA due diligence provision
BA financing contingency (Third Party Financing Addendum)✓ Correct
CAn option provision
DA specific performance clause
Explanation
TREC's Third Party Financing Addendum (also called the Financing Addendum) makes the contract contingent on the buyer obtaining specific loan approval. If the buyer cannot obtain the specified financing despite good faith efforts, they may terminate and receive their earnest money back.
Related Texas Contracts Questions
- In a Texas buyer's offer, consideration for the contract is provided by:
- A Texas seller accepts the buyer's offer but crosses out and initials one clause before signing. This action creates:
- In Texas, a real estate agent who drafts contract language not found in TREC promulgated forms is:
- In a Texas real estate transaction, when a buyer defaults and the seller elects to terminate the contract and retain the earnest money, this is generally treated as:
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- In Texas, a 'purchase option' agreement (not a simple option period) requires the optionor (seller) to hold the property available for purchase. During the option period:
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