Contracts
In Texas, when a buyer uses the TREC Financing Addendum and fails to obtain loan approval by the deadline despite good faith efforts, the buyer may:
AHave no rights since they cannot obtain financing
BTerminate the contract and receive the earnest money back✓ Correct
CAutomatically receive an extension of the financing deadline
DOnly terminate if the seller agrees
Explanation
TREC's Third Party Financing Addendum provides that if the buyer, using good faith efforts, cannot obtain the specified financing by the deadline, the buyer may terminate and recover their earnest money. The buyer must notify the seller in writing within the time frame specified in the addendum.
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