A buyer is purchasing a short sale property where the seller owes more on the mortgage than the property is worth. The sale is subject to the lender's approval. Which TREC addendum addresses this situation?
Correct Answer
C) The Short Sale Addendum
The TREC Short Sale Addendum is used when the property is being sold for less than what the seller owes on the existing mortgage. This addendum addresses the lender's approval requirement and the timeframe for obtaining that approval.
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Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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.
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