Form Trec No 41 1 – Fill Out and Use This PDF

PROMULGATED BY THE TEXAS REAL ESTATE COMMI SSI ON ( TREC)

04 - 23- 07

A. CRED I T

D OCU M EN TATI ON . To est ablish Buy er's credit w ort hin ess, Buy er shall

deliv er t o Seller

w it hin

day s aft er t he

effect ive dat e of t his cont ract

cr edit r epor t

v er ificat ion of

em ploy m ent , including salary

ver ificat ion of funds on deposit in financial inst it ut ion s

current

financial st at em ent and

.

B. CRED I T APPRO V AL.

I f t he credit docum ent at ion described in Par agr aph A is not deliv er ed wit hin

t he specified

t im e, Seller

m ay

t er m inat e t his cont r act by

not ice t o

Buyer w it hin

7

days

aft er

expir at ion of

t he

t im e

for

deliver y,

and

t he earnest m oney

w ill be

paid t o Seller .

I f

t he

credit

docum ent at ion is

t im ely deliv er ed,

and

Seller det erm ines

in Seller's

sole discret ion

t hat Buy er's

cr edit is unaccept able,

Seller

m ay t er m inat e t his cont r act

by not ice t o Buyer w it hin 7

days aft er

not t er m inat e t h is cont r act

w it hin t he

t im e

specified, Seller w ill be deem ed

t o have

approved

Buy er's credit w ort h iness.

C. ASSU M PTI ON . Buy er 's assum pt ion of

an

ex ist ing

not e includes all obligat ions im posed by t he

deed of t r ust secur ing t he not e.

( 1) The unpaid principal balance of a fir st lien prom issor y not e pay able t o

w hich unpaid balance at closing w ill be $

.

The t ot al cur r ent

m ont hly paym ent including pr incipal, in t erest and any

r eserve deposit s is

$

. Buy er’s init ial pay m ent w ill be t he fir st pay m ent due aft er closing.

( 2) The unpaid principal balance of a second lien

pr om issory not e pay able

t o

w hich unpaid balance at closing w ill be $

.

The t ot al cur r ent

m ont hly paym ent including pr incipal, in t erest and any

r eserve deposit s is

$

. Buyer ’s init ial paym ent w ill be t he first pay m ent due aft er closing.

I f t he unpaid pr incipal balance of any assum ed loan as of t he Closing Dat e v ar ies from

t he loan

balance st at ed above, t he

cash pay able at closing

Sales Pr ice w ill be adj ust ed by t he am ount

( 1)

paym ent of an assum pt ion fee in excess of $

in C( 1) or $

in C( 2) and

Seller declines t o pay such ex cess, or

( 2)

an increase in t he int er est rat e t o m ore t han

% in C( 1) or

% in C( 2) , or

( 3)

any ot her m odificat ion of t he loan docum ent s.

I nit ialed for ident ificat ion by Buyer

and Seller

TREC NO. 41 - 1

Loan Assum pt ion Addendum Concer ning

Page 2 of 2 04 - 23 - 07

G. TAX AN D I N SU RAN CE ESCRO W .

I f

not eholder

m aint ains

an escrow

account for ad v alor em

t ax es, casualt y insur ance prem ium s

or

m ort gage

insurance

pr em ium s,

Seller shall t ransfer t he

N OTI CE TO BU YER:

I f y ou are concerned about

t he possibilit y

of fut ure adj ust m ent s, m ont hly

pay m ent s, int erest rat es or ot her t er m s, do not

sign

t he cont r act

w it hout

exam in ing t he not es and

deeds of t r ust .

N OTI CE TO SELLER:

Your liabilit y

t o pay t he

not es assum ed

by

Buy er

w ill cont inue unless y ou

obt ain a r elease of liabilit y from t he

not eholder s. I f y ou are concerned about fut ure liabilit y , y ou

should use t he TREC Release of Liabilit y Addendum .

Buy er

Seller

Buy er

Seller