When you must use the contingency addendum

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03/20/2015 | Author: Editorial Staff

My client wants to purchase a property and make that contract contingent on the sale of his current home. Do I have to use the Addendum for Sale of Other Property, or can I just write this language in the Special Provisions Paragraph of the One to Four Family Residential Contract (Resale)?

You must provide the addendum. TREC rules require a licensee to provide the Addendum for Sale of Other Property to a buyer who wants to make a contract contingent on the sale of another property. Licensees are not allowed to write language into the Special Provisions Paragraph for situations that are covered by a TREC promulgated form, such as the contingency addendum.

If your client doesn’t want to use the addendum, you should advise him to consult his attorney to draft language that will reflect his intention.

Read more legal FAQs on texasrealestate.com.

Categories: Forms, Legal
Tags: forms, legal, addendum, legal faq

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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.

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