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.
Get more answers to legal questions on texasrealestate.com.
The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.
While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.