For a contract where the first box in Paragraph 2A of the Third Party Financing Addendum is checked, what must a buyer do to terminate the contract if she is unable to obtain credit approval?

1 minuteread
  • Home
  • /
  • Knowledgebase
  • /
  • Contracts and Forms
  • /
  • For a contract where the first box in Paragraph 2A of the Third Party Financing Addendum is checked, what must a buyer do to terminate the contract if she is unable to obtain credit approval?

If the buyer cannot obtain credit approval and she wants to exercise her right to terminate the contract under the Third Party Financing Addendum, she must give written notice to the seller within the time period agreed to in the addendum. She can use the Notice of Buyer’s Termination of Contract (TXR 1902) for this purpose. If the buyer gives notice within the time required, the contract terminates, and the earnest money is refunded to the buyer. If the buyer doesn’t provide the notice within the time required, the contract will no longer be subject to the addendum and the buyer could end up in breach of the contract if she is unable to obtain credit approval.

Source: TAR

X
Welcome to Realty Nation
wpChatIcon
Scroll to Top