Must promptly apply for financing and give timely notice if unable to obtain Buyer Approval (their own qualification: income, credit, assets) or if the property fails Property Approval (lender underwriting, appraisal, required repairs) — missing either deadline forfeits that termination right.

Must allow the financing and appraisal process to run its course within the agreed timelines; cannot force the buyer past a legitimate financing failure without exposing the deal to termination under this addendum.

Must act within whichever appraisal-related termination right the parties selected on the form — a full waiver removes the buyer's ability to walk away over a low appraisal entirely.

None beyond honoring whichever option is checked; sellers often request this addendum specifically to get a buyer to waive appraisal contingency rights in a competitive offer.

Must deliver credit documentation (credit report, employment/income verification, funds on deposit) within the stated window; seller can terminate if it's not delivered on time. Buyer also bears responsibility if the actual assumed loan balance varies from the stated figure by more than $500 at closing, unless someone agrees to cover the difference.

Remains liable on the underlying note unless separately released via the 12-3 addendum — meaning the seller carries real ongoing risk on this loan even after the sale unless that release is obtained.

Must cooperate with whatever the lender/VA requires to process the release or entitlement restoration — the deal can terminate if that approval doesn't come through by closing.

Is the direct beneficiary of this addendum — it's what actually gets the seller off the hook for the assumed loan and/or frees up their VA entitlement for a future purchase.

Signs a promissory note and deed of trust and makes payments directly to the seller per the agreed terms; real foreclosure risk if payments default.

May take on real accounting and tax-reporting obligations as the lender of record, and carries real risk if the buyer defaults — foreclosure is a real, but often slow and costly, remedy.

Must accept that closing is contingent on third-party lender approval, which can take significantly longer and is less certain than a standard sale.

Must actively pursue and obtain lender approval of the short sale — the seller doesn't unilaterally control whether or when this deal can close.

Remains bound in back-up position and must be ready to move forward if the primary contract terminates — timelines for earnest money and option periods generally start once that happens, not before.

Must notify the back-up buyer promptly if the primary contract does terminate, so the back-up contract's own clocks can start running correctly.

If the seller receives another written offer and issues notice, the buyer must waive the contingency (and deposit additional earnest money) within the stated window, or the contract terminates automatically and earnest money is refunded to the buyer.

Must properly notify the buyer of both the competing offer's acceptance and the requirement to waive the contingency — the kick-out clock doesn't start without that formal notice.

Must reasonably cooperate with the seller's exchange paperwork/logistics if the seller is the one exchanging — but owes nothing extra in cost, obligation, or liability to do so.

Same reciprocal cooperation duty if the buyer is the one exchanging. Neither party gives tax advice here — both should be directed to their own qualified tax professional; 1031 exchanges are genuinely complex.

Advised to seek legal counsel on how the shifting-boundary risk affects the specific property before closing.

Must provide this disclosure when applicable — it's a statutory notice, not optional once the property qualifies.

Should determine the local shoreline erosion rate and seek an attorney's advice before signing. Buyer may terminate the contract based on this notice.

Must provide this notice when applicable — failing to do so can be treated as a deceptive act under state law, not just a paperwork miss.

Should confirm with the propane provider what costs or construction may be needed before service actually starts.

Should have the recorded notice from the propane distribution retailer on hand — it's a real document filed in county real property records, not just a checkbox.

Pays for any reports obtained. To terminate based on adverse findings, must furnish the seller a copy of the report along with the termination notice within the stated window — earnest money is refunded if done correctly.

Must allow reasonable access for these assessments to be performed within the agreed timeframe.

Must be given a real opportunity to review known lead paint information and any available records before being bound to the contract, per federal requirements.

Must disclose known lead-based paint or hazards, and provide any available records/reports — this obligation exists under federal law even if this exact form isn't the one used.

Should specifically confirm what the surface waiver says — even if minerals aren't part of the sale, an un-waived surface-use right can mean drilling activity on the buyer's future property.

Must clearly state what's being reserved and whether the surface-use right is kept or waived — this isn't automatic and needs to be an active decision on the form.

Takes on the ongoing PID assessment obligation going forward — payable in full at any time or in annual installments, depending on the district.

Must provide this notice when the property is within a PID — it's a required disclosure, not a negotiable term.

Can elect to terminate under this addendum specifically if the POA disclosure/resale certificate reveals something unacceptable, within the stated window.

Must disclose the mandatory membership and associated assessment obligations to the buyer per statute.

May be accepting an existing tenant through the remainder of the lease term rather than getting the property vacant at closing — depends on what the parties agree to here.

Must accurately disclose the lease terms and either deliver the property vacant or properly transfer the tenant relationship and security deposit to the buyer, per what's agreed.

Assumes the checked fixture leases at closing (unless excluded) and must sign whatever documents the lessor requires to complete the assignment.

Must deliver a copy of the actual lease within 5 days of the effective date. If they don't, the buyer gets a 7-day window after eventually receiving it to terminate and get earnest money back — and if it's never delivered, the buyer can declare the seller in default any time before closing.

Becomes a tenant with real obligations — pays rent, a deposit, and is responsible for the property during occupancy, separate from their obligations under the purchase contract itself.

Takes on real risk as landlord: if the sale falls through, the seller has an occupant who may need to be formally evicted — a process that can take weeks to months in Texas. Worth thinking hard about before agreeing to this.

Becomes the landlord immediately at closing, with the seller as tenant — must handle the arrangement like any short-term lease, including what happens if the seller doesn't vacate on time.

Pays rent and must vacate by the lease's end date; remains responsible for the property as a tenant during this period even though they no longer own it.

Typically arranges and pays for the test if they're the one requesting it, per what the addendum specifies.

Must allow access for the test and is typically responsible for any damage the test itself causes to existing plumbing/sewer lines, per the addendum's terms.

Receives the listed non-realty items as part of the deal — worth confirming exactly what's included, since these items are legally separate from the real property itself.

Must clearly itemize what's included so there's no ambiguity between what's real property versus separately-sold personal property.