A buyer in Texas wants to make the purchase contingent on the sale of the buyer's current home. Which TREC addendum should be used to address this contingency?
Correct Answer
B) The Addendum for Sale of Other Property by Buyer
The TREC Addendum for Sale of Other Property by Buyer is used when the buyer's purchase is contingent on the sale of another property. This addendum specifies the terms, including deadlines and the seller's right to continue marketing the property.
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Related Topics & Key Terms
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Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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