Addendum

TXR 1909 — Addendum for "Back-Up" Contract

This addendum converts a standard purchase contract into a 'back-up' contract that is contingent upon the termination of a prior (first) contract on the same property. The back-up contract is fully binding upon execution but neither party is required to perform until the first contract terminates. I

Source: TXR
Form Number: 1909
Category: Addendum
Revised: November 4, 2024

Used For

Residential Sales, Farm & Ranch, Vacant Land

Form Outline

The TXR 1909 form is organized into the following sections:

  1. Header and Property Identification
    Identifies the subject property and attaches this addendum to the main purchase contract.
  2. Binding Upon Execution and Earnest Money/Option Fee
    Establishes that the back-up contract is binding at execution. Original earnest money and option fee are due per normal contract terms. Additional earnest money and option fee are due within specified days after the Amended Effective Date (when the first contract terminates).
  3. Weekend/Holiday Extension for Additional Delivery
    Extends the deadline for delivering additional earnest money or option fee if it falls on a weekend or legal holiday.
  4. Application of Funds
    Specifies the order in which funds received under Paragraph A(2) are applied: first to the additional Option Fee, then to additional earnest money.
  5. Release of Additional Option Fee
    Buyer authorizes Escrow Agent to release the additional Option Fee to Seller immediately and without notice, just like the original Option Fee. The additional Option Fee is credited to Sales Price at closing.
  6. Failure to Timely Deliver Additional Earnest Money
    If Buyer fails to deliver additional earnest money on time, Seller may terminate the contract or pursue remedies under Paragraph 15 (default), or both, by giving notice to Buyer before Buyer cures the deficiency.
  7. Failure to Timely Deliver Additional Option Fee
    If Buyer fails to deliver the additional Option Fee on time, Buyer loses the unrestricted right to terminate under the option period (Paragraph 5(B)).
  8. Contingency on First Contract Termination
    Identifies the First Contract by date and establishes that the Back-Up Contract is contingent on its termination. Performance is suspended while the contingency exists.
  9. Deadline for First Contract Termination
    Sets a deadline for the First Contract to terminate. If it does not terminate by the deadline, the Back-Up Contract automatically terminates with earnest money refund. Defines the Amended Effective Date as the date Buyer receives notice of the First Contract's termination.
  10. Amendment Does Not Constitute Termination
    Clarifies that amending or modifying the First Contract does not trigger the back-up contract. Only actual termination of the First Contract activates the Back-Up.
  11. Option Period Timing
    Clarifies that the option period clock starts on the original Effective Date of the Back-Up Contract (not the Amended Effective Date), runs continuously, and expires per the original option period terms.
  12. Time is of the Essence
    All deadlines in this addendum require strict compliance. Time is of the essence.

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