Under the TREC Loan Assumption Addendum, when a buyer assumes the seller's existing mortgage, which party is typically responsible for paying the assumption fee?
Correct Answer
B) The assumption fee is paid as specified in the addendum, which is negotiable between buyer and seller
The TREC Loan Assumption Addendum specifies how the assumption fee will be paid, and this is a negotiable term between the buyer and seller. The parties agree on the allocation in the addendum.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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.
More Promulgated Contract Forms Questions
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