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Texas licensee Janice is working with a buyer who's decided to use seller financing to purchase the property. To which type of contract will Janice attach the seller financing addendum?

a) Exclusive Right to Sell Agreement
b) Lease Agreement
c) Contract for Deed

1 Answer

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Final answer:

Janice should attach the seller financing addendum to a Contract for Deed. This contract is specifically designed for situations where the seller finances the buyer's purchase and retains title until full payment is made.

Step-by-step explanation:

The student asked about which type of contract a seller financing addendum should be attached. In the scenario where Texas licensee Janice is working with a buyer using seller financing, the appropriate contract to attach the seller financing addendum to is a Contract for Deed. Seller financing addendums are generally used in situations where the seller is providing the financing for the buyer's purchase rather than a traditional lender like a bank. The Contract for Deed is a type of real estate transaction where the seller retains the title to the property until the purchaser has paid for the property in full. This is unlike a traditional purchase where the title is transferred upon sale completion and financing is secured through a mortgage with a bank.

The Exclusive Right to Sell Agreement is a listing agreement between a seller and a real estate broker, not a buyer. A Lease Agreement is between a landlord and a tenant for rental property and is not applicable for a sale involving seller financing. Therefore, these options are not relevant for attaching a seller financing addendum.

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