TREC NO. 41-2
12-05-11
A. CREDIT DOCUMENTATION. To establish Buyer's creditworthiness, Buyer shall deliver to Seller
within days after the effective date of this contract credit report verification of
employment, including salary verification of funds on deposit in financial institutions current
financial statement and
.
Buyer hereby authorizes any credit reporting agency to furnish copies of Buyer's credit reports to
Seller at Buyer's sole expense.
B. CREDIT APPROVAL. If the credit documentation described in Paragraph A is not delivered within
the specified time, Seller may terminate this contract by notice to Buyer within 7 days after
expiration of the time for delivery, and the earnest money will be paid to Seller. If the credit
documentation is timely delivered, and Seller determines in Seller's sole discretion that Buyer's
credit is unacceptable, Seller may terminate this contract by notice to Buyer within 7 days after
expiration of the time for delivery and the earnest money will be refunded to Buyer. If Seller does
not terminate this contract within the time specified, Seller will be deemed to have approved
Buyer's creditworthiness.
C. ASSUMPTION. Buyer's assumption of an existing note includes all obligations imposed by the
deed of trust securing the note.
(1) The unpaid principal balance of a first lien promissory note payable to
which unpaid balance at closing will be $ .
The total current monthly payment including principal, interest and any reserve deposits is
$ . Buyer’s initial payment will be the first payment due after closing.
(2) The unpaid principal balance of a second lien promissory note payable to
which unpaid balance at closing will be $ .
The total current monthly payment including principal, interest and any reserve deposits is
$ . Buyer’s initial payment will be the first payment due after closing.
If the unpaid principal balance of any assumed loan as of the Closing Date varies from the loan
balance stated above, the cash payable at closing Sales Price will be adjusted by the amount
of any variance. If the total principal balance of all assumed loans varies in an amount greater than
$500 at closing, either party may terminate this contract and the earnest money will be refunded
to Buyer unless the other party elects to pay the excess of the variance.
D. LOAN ASSUMPTION TERMS. Buyer may terminate this contract and the earnest money will be
refunded to Buyer if the noteholder requires:
(1) payment of an assumption fee in excess of $ in C(1) or $ in C(2) and
Seller declines to pay such excess, or
(2) an increase in the interest rate to more than % in C(1) or % in C(2), or
(3) any other modification of the loan documents.
E. CONSENT BY NOTEHOLDER. If the noteholder fails to consent to the assumption of the loan,
either Seller or Buyer may terminate this contract by notice to the other party and the earnest
money will be refunded to the Buyer.
F. SELLER'S LIENS. Unless Seller is released from liability on any assumed note, a vendor’s lien and
deed of trust to secure assumption will be required. The vendor's lien will automatically be
released on delivery of an executed release by noteholder.
PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)
LOAN ASSUMPTION ADDENDUM
TO CONTRACT CONCERNING THE PROPERTY AT
(Address of Property)
EQUAL HOUSING
OPPORTUNITY
Initialed for identification by Buyer and Seller
