Which TREC addendum is used when the buyer must sell their current home to purchase?
Question & Answer
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Third Party Financing Addendum
The Third Party Financing Addendum addresses contingencies related to the buyer securing financing, not selling another property. It's used when the purchase depends on obtaining a loan with specific terms, not on selling a current residence.
Addendum for Sale of Other Property by Buyer
Buyer's Temporary Residential Lease
The Buyer's Temporary Residential Lease Addendum is used when the buyer needs to lease the property from the seller after closing, not when they need to sell their current home to complete the purchase.
Short Sale Addendum
The Short Sale Addendum is specifically for transactions where the seller's lender must approve a sale for less than the mortgage balance, not for situations where the buyer needs to sell their own property.
Why is this correct?
The Addendum for Sale of Other Property by Buyer is specifically designed for situations where the buyer's ability to purchase is contingent on the sale of their existing home. This addendum establishes the contingency period, terms of the sale, and what happens if the buyer's home doesn't sell within that timeframe.
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