Agent Foster is working with a buyer who wants to purchase a property and assume the seller's existing VA loan. Which TREC addendum should Agent Foster use to address the loan assumption?
Correct Answer
C) The Loan Assumption Addendum
The TREC Loan Assumption Addendum is used when the buyer will assume the seller's existing loan. This addendum specifies the terms of the assumption, including the lender's approval requirements and any assumption fees.
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Related Topics & Key Terms
Key Terms:
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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