Trec Form 40 5 PDF Details

Are you familiar with the TREC Form 40 5? If not, don't worry! This blog post will provide an overview of all the important information you need to know about this important Texas documents. Understanding what it is and how it works are two essential steps for buyers and sellers in real estate transactions here in the Lone Star State. Here, we'll explain what a TREC Form 40 5 is, why it's necessary and how to go about filing one correctly. With that being said let's begin getting into more specifics.

QuestionAnswer
Form NameTrec Form 40 5
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namestrec third party financing addendum, third party financing addendum, 5 form trec, third party financing addendum texas

Form Preview Example

12 - 05 - 11

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

EQU AL H OU SI N G

OPPORT U N I T Y

TH I RD PARTY FI N AN CI N G AD D EN D U M FOR CRED I T APPROV AL

TO CONTRACT CONCERNI NG THE PROPERTY AT

( St r eet Addr ess and Cit y )

Buy er shall apply pr om pt ly for all financing descr ibed below and m ake ev er y r easonable effor t t o obt ain cr edit appr ov al for t he financing ( Cr edit Appr ov al) . Buy er shall fur nish all infor m at ion and

docum ent s r equir ed by lender for Cr edit

Approv al. Cr edit

Appr oval w ill be deem ed t o have been

obt ained w hen ( 1) t he t er m s of t he

loan( s) descr ibed

below ar e av ailable and ( 2) lender

det er m ines t hat Buy er has sat isfied all of lender 's r equir em ent s r elat ed t o Buy er 's asset s, incom e

and cr edit hist or y . I f Buy er cannot obt ain Cr edit

Appr ov al, Buy er

m ay giv e w r it t en

not ice t o

Seller w it hin ____ days aft er t he effect ive dat e of

t his cont r act and

t his cont r act

w ill

t er m inat e

and t he ear nest m oney w ill be r efunded t o Buyer . I f

Bu y e r d oe s n ot

g iv e su ch

n ot ice w it h in

t h e

t im e r e q u ir e d , t h is con t r a ct w ill n o lon g e r b e su b j e ct t o Cr e d it Ap p r ov a l. Tim e is of

t h e

e sse n ce f or t h is p a r a g r a p h a n d st r ict com p lia n ce w it h t h e t im e f or p e r f or m a n ce is

r e q u ir e d .

NOTE: Cr edit Appr ov al does not include appr ov al of

lender 's under w r it ing r equir em ent s for t he

Pr oper t y , as specified in Par agr aph 4 . A. ( 1) of t he cont r act .

 

 

 

 

 

 

 

 

 

 

 

Each not e m ust be secur ed by v endor ’s and deed of t r ust liens.

 

 

 

 

 

 

 

 

 

 

 

CH ECK APPLI CABLE BOX ES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A. CONVENTI ONAL FI NANCI NG:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

( 1) A fir st m or t gage loan in t he pr incipal am ount of $

 

 

 

 

 

 

 

 

 

( ex cluding

 

 

any financed PMI

pr em ium ) ,

due in full

in

 

y ear ( s) ,

w it h int er est

not t o

 

 

ex ceed

 

%

per annum for t he fir st

 

 

 

 

 

 

y ear ( s) of t he loan w it h Adj ust ed

 

 

Or iginat ion Char ges as show n on Buy er ’s Good Fait h

Est im at e

for t he loan

not t o

 

 

ex ceed

 

 

 

 

% of t he loan .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

( 2) A second m or t gage loan in t he pr incipal am ount of $

 

 

 

 

 

 

 

 

 

( ex cluding

 

 

any financed PMI

prem ium ) ,

due in full in

 

 

 

 

 

 

 

 

year( s) ,

w it h int erest

not t o

 

 

ex ceed

 

 

 

% per annum for t he fir st

 

 

 

 

 

 

 

 

 

 

y ear ( s) of t he loan w it h

 

 

Adj ust ed Or iginat ion Char ges as show n on Buyer ’s Good Fait h Est im at e for t he loan

 

 

not t o ex ceed

 

 

 

 

 

 

% of t he loan .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B. TEXAS VETERANS LOAN: A loan( s) fr om t he Tex as Vet er ans Land Boar d of $

 

 

 

 

for a per iod in t he t ot al am ount of

 

 

y ear s at

t he int er est

r at e est ablished by t he Tex as

 

Vet er ans Land Boar d.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C. FHA I NSURED FI NANCI NG: A Sect ion

 

 

 

 

 

 

 

 

FHA insur ed loan of not less t han

$

 

 

 

 

 

 

( ex cluding any financed MI P) , am or t izable m ont hly for not less t han

 

 

 

y ear s, w it h int er est not t o ex ceed

 

 

 

 

% per annum

for t he fir st

 

year ( s)

of t he loan w it h Adj ust ed Or iginat ion Char ges as show n on Buy er ’s Good Fait h Est im at e for

t he loan not t o ex ceed

 

 

 

 

 

% of t he loan .

As r equir ed by HUD- FHA, if FHA v aluat ion is

unknow n, " I t is ex pr essly

agr eed t hat , not w it hst anding any ot her

pr ov ision of t his cont r act ,

t he pur chaser ( Buy er )

 

shall not be

obligat ed

t o

 

com plet e t he

pur chase of t he Pr oper t y

descr ibed her ein or t o incur any penalt y by for feit ur e of ear nest m oney deposit s or ot her w ise unless t he pur chaser ( Buy er ) has been giv en in accor dance w it h HUD/ FHA or VA r equir em ent s a w r it t en st at em ent issued by t he Feder al Housing Com m issioner , Depar t m ent

of Vet er ans Affair s, or a Dir ect

Endor sem ent Lender

set t ing for t h t he appr aised v alue of

t he Pr oper t y of not less t han $

 

 

.

The pur chaser ( Buy er ) shall hav e t he

pr iv ilege and opt ion of pr oceeding w it h consum m at ion of t he cont r act w it hout r egar d t o t he

I nit ialed for ident ificat ion by Buy er

 

 

 

and Seller

 

 

 

TREC NO. 40 - 5

Thir d Par t y Financing Condit ion Addendum Concer ning

Page 2 of 2

12 - 05 - 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

( Addr ess of Pr oper t y )

 

 

 

 

 

am ount of t he appr aised v aluat ion .

 

The appr aised v aluat ion is ar r iv ed at t o det er m ine t he

m ax im um m or t gage t he Depar t m ent of Housing and Ur ban Dev elopm ent w ill insur e.

HUD

does not w ar r ant t he v alue or t he condit ion of t he Pr oper t y . The pur chaser ( Buy er ) should

sat isfy him self/ her self t hat t he pr ice and t he condit ion of t he Pr oper t y ar e accept able. "

 

D. VA GUARANTEED FI NANCI NG: A VA guar ant eed loan of not less t han $

 

 

 

 

 

( ex cluding any financed Funding Fee) , am or t izable m ont hly for not less t han

 

 

y ear s,

w it h int er est not t o ex ceed

 

 

% per annum for t he fir st

 

 

y ear ( s) of t he loan

w it h Adj ust ed Or iginat ion Char ges as show n on Buy er ’s Good Fait h Est im at e for t he loan not

t o ex ceed

 

 

% of t he loan .

 

 

 

 

 

 

 

 

VA NOTI CE TO BUYER: " I t is ex pr essly agr eed t hat , not w it hst anding any ot her pr ov isions of

t his cont r act ,

t he Buy er shall not

incur any penalt y by for feit ur e

of ear nest

m oney or

ot her w ise or be obligat ed t o com plet e t he pur chase of t he Pr oper t y descr ibed her ein, if t he

cont r act pur chase pr ice or cost ex ceeds t he r easonable v alue of t he Pr oper t y est ablished by

t he Depar t m ent of Vet er ans Affair s.

The Buy er shall, how ev er , hav e t he pr iv ilege and opt ion

of pr oceeding w it h t he consum m at ion of t his cont r act w it hout r egar d t o t he am ount

of t he

r easonable v alue est ablished by t he Depar t m ent of Vet er ans Affair s. "

 

 

 

 

 

I f Buy er elect s t o com plet e t he pur chase at an am ount in excess of

t he r easonable value

est ablished by VA, Buyer shall pay such ex cess am ount in cash fr om a sour ce w hich Buyer

agr ees t o disclose t o t he VA and w hich Buy er r epr esent s w ill not be fr om bor r ow ed funds

ex cept as appr ov ed by VA. I f VA r easonable value of t he Pr oper t y

is less t han

t he Sales

Pr ice, Seller m ay r educe t he Sales Pr ice t o an am ount equal t o t he VA r easonable v alue and t he sale w ill be closed at t he low er Sales Price w it h pr opor t ionat e adj ust m ent s t o t he dow n pay m ent and t he loan am ount .

Buy er her eby aut hor izes any lender t o fur nish t o t he Seller or Buy er or t heir r epr esent at iv es infor m at ion r elat ing only t o t he st at us of Cr edit Appr ov al of Buy er .

Buy er

Seller

Buy er

Seller

This for m has

been appr ov ed by t he Tex as Real Est at e

Com m ission

for

use w it h

sim ilar ly

appr ov ed or pr om ulgat ed

cont r act for m s.

Such appr ov al r elat es t o t his for m only .

TREC for m s

ar e

int ended

for use

only by t r ained r eal est at e

licensees. No r epr esent at ion is m ade as t o t he legal v alidit y or adequacy of any pr ov ision in any specific t r ansact ions. I t is not int ended for com plex t r ansact ions. Tex as Real Est at e Com m ission, P. O. Box 12188, Aust in, TX 78 711 - 2188, ( 512) 936 - 3000 ( ht t p: / / w w w . t r ec. t ex as. gov ) TREC No. 40 - 5 . This for m r eplaces TREC No. 40 - 4 .

TREC NO. 40 - 5