My buyer won’t get credit approval in time. What should she do?
08/04/2015 | Author: Editorial Staff
What can a buyer do if she is unable to obtain credit approval in the time provided in the Third Party Financing Addendum for Credit Approval?
If the buyer cannot obtain credit approval and she wants to exercise her right to terminate the contract, she must give written notice to the seller within the time period provided in the addendum. She can use the Notice of Buyer’s Termination of Contract (TAR 1902, TREC 38-4) for this purpose. If the buyer gives timely notice, 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 he is unable to obtain credit approval.
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