Buyers Termination of Contract
If your Buyer decides to terminate WITHIN the option period you will need to have the buyer sign the TREC Notice of Termination Form and select box 1 (Buyer is terminating within the Option period).
If your Buyer decides to terminate OUTSIDE of the option period but still within a contingency, you will need to have the buyer sign the TREC Notice of Termination Form with the correct box checked, in addition to the TREC Release of Earnest Money form WHICH WILL HAVE EARNEST MONEY RETURNED TO THE BUYER, which is signed by all buyers/sellers/Realtors involved.
If your Buyer decides to terminate WITH NO CONTINGENCIES remaining, you will need to have the buyer sign the TREC Notice of Termination Form in addition to the TREC Release of Earnest Money form WHICH WILL HAVE EARNEST MONEY SENT TO THE SELLER, which is signed by all buyers/sellers/Realtors involved.
Important: The Release of Earnest Money form serves a dual purpose. In addition to specifying the destination of the earnest money funds, it also constitutes a binding agreement among all parties involved (Seller, Buyer, Listing Agent, and Buyer's Agent). Once signed by all parties, it releases everyone from any further liability, precluding any legal action or claims for specific performance thereafter.
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Option Period Termination – The Buyer is terminating within the option period due to an inability to reach an agreement on repairs or concessions.
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Buyer’s Financing Contingency – The Buyer is unable to obtain financing for the property. A letter from the lender must be provided, stating the Buyer does not qualify for the loan.
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Property Loan Qualification – The property itself does not qualify for financing due to issues such as foundation problems, roof concerns, or other deficiencies noted by the appraiser and reported to the Buyer and Lender.
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HOA Document Review – The Buyer is terminating after reviewing HOA documents. A common example is when the Buyer intended to rent out the property, but HOA restrictions prohibit rentals.
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Seller’s Disclosure Contingency – If the Seller’s Disclosure Notice was delivered after contract execution, or not delivered at all, the Buyer may terminate under this provision.
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Appraisal Contingency – The property did not appraise for the contract price, and the Buyer chooses to terminate.
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Condominium Resale Certificate – Applies only to condos and is rarely used.
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Other Contractual Terminations – Any other termination rights outlined in the TREC 1–4 Family Residential Contract. If relying on Paragraph 8, contact your Broker before proceeding.
Address of Property
Name of the Escrow officer doing the transaction. NOT THE NAME OF THE TITLE COMPANY
The amount of the earnest money set in the initial 1-4 offer/contract. And WHO IS RECEIVING THE MONEY. Usually the Buyers names
Names and signatures of all buyers/Sellers/Realtors involved.