In Texas, what does the FHA/VA Amendatory Clause (required addendum in TREC contracts) primarily protect?
Correct Answer
C) The buyer's right to terminate and receive a refund of earnest money if the appraised value is less than the sales price
The FHA/VA Amendatory Clause protects the buyer by stating that the buyer is not obligated to complete the purchase if the appraised value is less than the sales price. If the buyer terminates under this clause, the earnest money is returned.
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