Under the TREC Third Party Financing Addendum, the buyer must obtain financing approval within a specified number of days. If the buyer does not obtain approval and does not notify the seller of termination, what happens?
Correct Answer
B) The buyer waives the financing contingency and is obligated to proceed without it
Under the current TREC Third Party Financing Addendum, if the buyer fails to timely deliver notice of termination for lack of financing approval, the buyer is deemed to have waived the financing contingency and must proceed with the contract without that protection.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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.
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