Under the TREC Seller Financing Addendum, the buyer provides the seller with a credit report and financial statement. The seller reviews these documents and decides the buyer is not creditworthy. What may the seller do?
Correct Answer
C) The seller may decline to provide financing if the buyer does not meet the credit criteria specified in the addendum
Under the TREC Seller Financing Addendum, the seller has the right to review the buyer's credit information. If the buyer does not meet the credit requirements specified in the addendum, the seller may decline to provide financing, which may result in termination of the contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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