Is the contract automatically terminated if the closing date has passed?
No. Generally, once the closing date has passed, there are two ways to formally terminate the One to Four Family Residential Contract (Resale) (TAR 1601, TREC 20-14):
- The parties can agree to terminate and sign a document like Release of Earnest Money (TAR 1904) that releases both parties from further obligations under the contract.
- A judge can order a contract termination.
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