Under the TREC Seller Financing Addendum, the seller agrees to carry a note for the buyer. Which of the following terms must be specified in the addendum?
Correct Answer
C) The loan amount, interest rate, monthly payment, term, and deed of trust details
The TREC Seller Financing Addendum requires specification of all material financing terms including the principal amount, interest rate, monthly payment amount, loan term, and that the note will be secured by a deed of trust on the property.
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Related Topics & Key Terms
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Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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