Contracts
The TREC contract's Third Party Financing Addendum allows the buyer to terminate if they are unable to obtain financing approval within a specified period. The buyer must notify the seller of the inability to obtain financing:
AAt the time of the contract signing
BIn writing by the financing approval deadline specified in the addendum✓ Correct
COnly after the option period expires
DAt closing if the loan is not ready
Explanation
Under the Third Party Financing Addendum, if the buyer cannot obtain financing approval, the buyer must provide written notice to the seller by the financing deadline stated in the addendum. Failure to give timely notice may waive the right to terminate.
Related Texas Contracts Questions
- A Texas contract addendum for property subject to mandatory membership in a Property Owners Association (POA) is used to:
- In Texas, a contract for the sale of real estate must be in writing to be enforceable under:
- The Seller's Disclosure Notice (TREC OP-H) is NOT required for which type of Texas sale?
- In Texas, which addendum is used when a buyer's purchase is contingent on the sale of their current home?
- In a Texas transaction, when the seller accepts the buyer's offer, acceptance must be communicated to the buyer. Under contract law, the offer is accepted when:
- In a Texas real estate transaction, the 'closing' refers to:
- In a TREC One to Four Family Residential Contract, the option fee gives the buyer the right to:
- In Texas, the effective date of a real estate contract is:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →