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Short Sale Addendum Form. This is a Texas form and can be use in Texas Real Estate Commission Statewide.
Tags: Short Sale Addendum, 45-0, Texas Statewide, Texas Real Estate Commission
PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC) 12-15-08 SHORT SALE ADDENDUM EQUAL HOUSING OPPORTUNITY ADDENDUM TO CONTRACT CONCERNING THE PROPERTY AT (Street Address and City) A. This contract involves a “short sale” of the Property. As used in this Addendum, “short sale” means that: (1) Seller’s net proceeds at closing will be insufficient to pay the balance of Seller’s mortgage loan; and (2) Seller requires: (a) the consent of the lienholder to sell the Property pursuant to this contract; and (b) the lienholder’s agreement to: (i) accept Seller’s net proceeds in full satisfaction of Seller’s liability under the mortgage loan; and (ii) provide Seller an executed release of lien against the Property in a recordable format. B. As used in this Addendum, “Seller’s net proceeds” means the Sales Price less Seller’s Expenses under Paragraph 12 of the contract and Seller’s obligation to pay any brokerage fees. C. The contract to which this Addendum is attached is binding upon execution by the parties and the earnest money and the Option Fee must be paid as provided in the contract. The contract is contingent on the satisfaction of Seller’s requirements under Paragraph A(2) of this Addendum (Lienholder’s Consent and Agreement). Seller shall apply promptly for and make every reasonable effort to obtain Lienholder’s Consent and Agreement, and shall furnish all information and documents required by the lienholder. Except as provided by this Addendum, neither party is required to perform under the contract while it is contingent upon obtaining Lienholder’s Consent and Agreement. D. If Seller does not notify Buyer that Seller has obtained Lienholder’s Consent and Agreement on or before , this contract terminates and the earnest money will be refunded to Buyer. Seller must notify Buyer immediately if Lienholder’s Consent and Agreement is obtained. For purposes of performance, the effective date of the contract changes to the date Seller provides Buyer notice of the Lienholder’s Consent and Agreement (Amended Effective Date). E. This contract will terminate and the earnest money will be refunded to Buyer if the Lienholder refuses or withdraws its Consent and Agreement prior to closing and funding. Seller shall promptly notify Buyer of any lienholder’s refusal to provide or withdrawal of a Lienholder’s Consent and Agreement. F. If Buyer has the unrestricted right to terminate this contract, the time for giving notice of termination begins on the effective date of the contract, continues after the Amended Effective Date and ends upon the expiration of Buyer’s unrestricted right to terminate the contract under Paragraph 23. G. For the purposes of this Addendum, time is of the essence. Strict compliance with the times for performance stated in this Addendum is required. H. Seller authorizes any lienholder to furnish to Buyer or Buyer’s representatives information relating to the status of the request for a Lienholder’s Consent and Agreement. I. If there is more than one lienholder or loan secured by the Property, this Addendum applies to each lienholder. Buyer Seller Buyer Seller The form of this addendum has been approved by the Texas Real Estate Commission for use only with similarly approved or promulgated forms of contracts. Such approval relates to this contract form only. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not intended for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us) TREC No. 45-0. TREC NO. 45-0