Addendum

TREC 10-6 — Addendum for Sale of Other Property by Buyer

This addendum makes the purchase contract contingent upon the buyer selling their existing property and receiving the sale proceeds by a specified deadline. It protects the buyer from being obligated to purchase a new home while still owning and carrying their current property, and provides the sell

Source: TREC
Form Number: 10-6
Category: Addendum
Revised: December 5, 2011

Used For

Residential Sales, Farm & Ranch, Vacant Land

Form Outline

The TREC 10-6 form is organized into the following sections:

  1. Header and Property Identification
    Identifies the property under contract and ties this addendum to the underlying purchase agreement.
  2. Contingency on Sale of Buyer's Property
    Establishes the core contingency: the purchase is conditional on the buyer receiving sale proceeds from their existing property by a specific deadline. If not met or waived, the contract automatically terminates and earnest money is refunded.
  3. Seller's Right to Require Waiver (Kick-Out Clause)
    This is the 'kick-out' clause. If the seller receives and accepts another offer, the seller can force the buyer to either waive the sale contingency within a specified number of days or lose the contract. If the buyer does not waive in time, the contract terminates automatically with earnest money refunded.
  4. Waiver Requirements
    Specifies the two requirements for a valid contingency waiver: the buyer must provide written notice to the seller AND deposit a specified amount of additional earnest money with the escrow agent. Both steps are required; doing only one is insufficient.
  5. Consequences of Waiver and Default
    Clarifies that if the buyer waives the contingency but then fails to close because the other property did not sell, the buyer is in default. The seller can then pursue remedies under Paragraph 15 of the contract, which may include retaining the earnest money as liquidated damages.
  6. Time Is of the Essence
    Declares that all deadlines in this addendum are strictly enforced. Missing a deadline by even one day can have binding legal consequences, and no grace periods or extensions are implied.
  7. Signatures
    Signature lines for all buyers and sellers to execute the addendum. Includes the standard TREC disclaimer that the form is intended for use by trained licensees and is not suitable for complex transactions.

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