Addendum

TXR 1931Commercial Contract Financing Addendum

This addendum specifies how the non-cash portion of the commercial property sales price will be paid. It covers three financing methods -- third party loans, assumption of existing debt, and seller financing -- along with credit approval requirements and special provisions. Each method includes detailed terms: the third party financing contingency (loan amount, minimum term, rate cap, amortization period and the buyer's notice deadline); assumption of an existing note (payee, note date, balance at closing, recording reference, variance threshold, maximum assumption fee and rate increase, application and notice deadlines); and seller financing (note amount and rate, one of three payment structures -- single payment, installments, or interest-only then installments -- liability election, prepayment, due-on-sale and tax/insurance deposit provisions). Paragraph D sets the buyer's credit documentation delivery deadline and the seller's right to terminate; Paragraph E is an open space for special provisions.

Source: TXR
Form Number: 1931
Category: Addendum
Revised: January 26, 2010

Used For

Commercial Sales

Form Outline

The TXR 1931 form is organized into the following sections:

  1. Header and Property Identification
    Identifies the property address and establishes that checked sections below govern how the non-cash portion of the sales price will be paid. "(Check all that apply.)"
  2. A. THIRD PARTY FINANCING
    Creates a financing contingency for third party loans, specifying loan amount, term, interest rate cap, and amortization period. Buyer has a deadline to notify seller of inability to obtain financing or the contingency is automatically waived.
  3. B. ASSUMPTION
    Governs buyer's assumption of existing debt, including balance adjustments, variance thresholds for termination, and protections against excessive assumption fees or interest rate increases. Seller retains a lien to secure assumption unless released by the note holder.
  4. C. SELLER FINANCING
    Establishes seller-carried financing with detailed note terms including amount, interest rate, three payment structure options (check one — each has its own blanks), security instruments, late fees, liability election, prepayment rights, a due-on-sale clause, and tax/insurance escrow provisions (C(9), page 3).
  5. D. CREDIT APPROVAL ON ASSUMPTION OR SELLER FINANCING
    Establishes a credit review process for assumption or seller financing. Buyer delivers financial documentation within a deadline, and seller has sole discretion to accept or reject buyer's creditworthiness within a second deadline, or credit is deemed accepted.
  6. E. SPECIAL PROVISIONS
    Open space (no ruled lines) for additional financing terms or conditions not addressed by the standard sections of this addendum.
  7. Signature Block
    Page 4: "Seller: ____" and "Buyer: ____", then two signer blocks per side — "By:" (the person or entity signing on the party's behalf), "By (signature):" (an e-sign tab), "Printed Name:" and "Title:". No "Date" line is printed.

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