Callers have asked if a buyer is required to apply for third-party financing if the Third Party Financing Addendum (TXR 1901, TREC 40-9) is attached to the contract. The answer is yes. The Third Party Financing Addendum says at the top that the buyer “shall apply promptly for all financing described below and make every reasonable effort to obtain approval for the financing.” Buyers who want to be protected by the loan approval contingencies in Paragraph 2 of the addendum must make a reasonable effort to obtain financing approval.

Ryan Bauman, staff attorney