Third Party Financing Addendum
Plain-English form education, related documents, and how the pieces connect.
What this form is for
To be used with any TREC contract form to make the contract contingent upon the buyer qualifying for and being approved for the financing described in the addendum.
Key sections and how to complete the form
Use the form in order. The sections below explain the main decisions, blanks, disclosures, or deadlines the form is designed to address. Complete the actual form from the transaction facts and the instructions printed on the current version.
1. Type Of Financing And Duty To Apply And Obtain Approval
Buyer shall apply promptly for all financing described below and make every reasonable effort to obtain approval for the financing, including but not limited to furnishing all information and documents required by Buyer’s lender. (Check applicable boxes): q A. CONVENTIONAL FINANCING: q (1) A first mortgage loan in the principal amount of $ (excluding any financed PMI premium), due in full in year(s), with…
2. Approval Of Financing
Approval for the financing described above will be deemed to have been obtained when Buyer Approval and Property Approval are obtained. Time is of the essence for this paragraph and strict compliance with the time for performance is required.
3. Security
If required by Buyer’s lender, each note for the financing described above must be secured by vendor’s and deed of trust liens.
4. Fha/Va Required Provision
If the financing described above involves FHA insured or VA financing, it is expressly agreed that, notwithstanding any other provision of this contract, the purchaser (Buyer) shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise: (i) unless the Buyer has been given in accordance with HUD/FHA or VA requirements…
5. Authorization To Release Information
A. Buyer authorizes Buyer’s lender to furnish to Seller or Buyer or their representatives information relating to the status of the approval for the financing. B. Seller and Buyer authorize Buyer’s lender, title company, and Escrow Agent to disclose and furnish a copy of the closing disclosures and settlement statements to the parties’ respective brokers and sales agents provided under Broker Information. Buyer…
Related forms and resources
These documents may connect to this form depending on the property, financing, occupancy, disclosure requirements, or other facts of the transaction. Open the related resource to see what it does and how it is completed.
This page explains the form; complete the current official TREC version for the transaction. Form shown in this resource: TREC 40-11.
Open TREC contract formsNeed further assistance?
For transaction-specific questions, contact your broker or Broker Rochelle Fitzgerald at Fitz & Co. Real Estate.
For educational purposes only. Agents should verify current forms and consult with their broker when needed.