Addendum for Sale of Other Property by Buyer — Page by Page
What this addendum asks, what each blank means, and what happens if the buyer's other property doesn't sell in time — translated into plain English.
Page 1
The Whole Addendum
Top of Form — Property Address
"TO CONTRACT CONCERNING THE PROPERTY AT ______" — enter the address of the property the buyer is trying to purchase. Example: 123 Main Street, Houston, TX 77000.
Think: which purchase contract does this addendum belong to?
Paragraph A — The Buyer’s Contingency
The contract is contingent upon Buyer’s receipt of the proceeds from the sale of Buyer’s property at ______ on or before ___, 20___ (the Contingency).
Blank #1 — Buyer’s property address: enter the address of the property the buyer is selling. This is NOT the house the buyer is purchasing.
Easy way to remember: top of addendum = property Buyer is buying. Paragraph A = property Buyer is selling.
Blank #2 — Deadline date ("on or before ___, 20"): the deadline by which the buyer must actually receive the sale proceeds. Example: October 15, 2026.
The form specifically warns this date should be no later than the Closing Date in Paragraph 9 of the purchase contract.
If the Contingency is not satisfied or waived by Buyer by the stated date, the contract terminates automatically and the earnest money is refunded to Buyer. The buyer does not need the seller to agree — it happens automatically.
Important word: "Proceeds"
Other house listed for sale❌ Not enough
Other house under contract❌ Not necessarily enough
Other house closes and Buyer receives proceeds✅ Contingency satisfied
The form does not say the buyer merely needs the house under contract — it requires Buyer’s receipt of the proceeds, meaning the money must actually be in hand.
Paragraph B — Seller Gets Another Offer
Think of this as: "Seller received another offer — Buyer, make a decision."
If Seller accepts another written offer to sell the property, Seller must notify Buyer of (1) that acceptance AND (2) that Seller requires Buyer to waive the Contingency. Both pieces of notice matter.
Blank — number of days: "Buyer must waive the Contingency on or before the ___ day after Seller’s notice to Buyer." Example: 2 days.
If Buyer does not waive within that period, the contract terminates automatically and the earnest money is refunded to Buyer.
Example: Buyer A is under contract with a sale-of-other-property contingency. Seller later accepts Buyer B’s offer and gives the required notice. Buyer A then has the number of days written here to either waive the contingency and continue, or let the contract terminate automatically.
Paragraph C — How Buyer Waives the Contingency
Buyer must do two things: (1) notify Seller in writing of the waiver, AND (2) deposit additional earnest money with the escrow agent.
Blank — additional earnest money amount: "depositing $___ with escrow agent as additional earnest money." Example: $5,000. This is in addition to the original earnest money already required by the contract.
Buyer does not waive the contingency simply by saying "I’m going forward" — both the written notice AND the deposit are required.
All notices and waivers must be in writing and are effective only when delivered in accordance with the contract’s notice provisions. Don’t rely on a phone call.
Paragraph D — What Happens After Buyer Waives
Once Buyer waives the Contingency, Buyer is saying: "I will close even if my other property does not produce the money I expected."
If Buyer waives the Contingency and then fails to close and fund solely because Buyer did not receive the proceeds described in Paragraph A, Buyer will be in default.
If that default occurs, Seller may exercise the remedies specified in Paragraph 15 of the main contract.
The exact remedy available to Seller depends on the contract and circumstances — this is where broker or attorney guidance may become important.
Paragraph E — Time Is of the Essence
No blank here, but it is important: "Time is of the essence; strict compliance with the times for performance stated herein is required."
This is not a form where an extra day probably does not matter — strict compliance with every deadline is required.
Signatures
Signature lines for Buyer, Buyer, Seller, and Seller. The parties sign this addendum because it becomes part of their purchase contract.
Focus Points
The 4 Blanks You Really Need to Understand
Quick reference
Buyer’s property addressWhich property Buyer needs to sell (Paragraph A).
Contingency dateDeadline for Buyer to receive the sale proceeds.
___ day after Seller’s noticeHow long Buyer gets to waive the contingency after Seller accepts another offer (Paragraph B).
$___ additional earnest moneyExtra earnest money Buyer must deposit when waiving (Paragraph C).
Easy example — how the whole form works
Property Buyer is purchasing: 123 New House Lane. Property Buyer needs to sell: 456 Current House Drive. Purchase closing date: November 20.
The parties agree: sale contingency deadline November 15; Buyer has 2 days after Seller’s notice to waive; additional earnest money upon waiver is $5,000.
If Buyer hasn’t received the money by November 15 and hasn’t waived, the contract automatically terminates and earnest money is refunded.
If Seller accepts another offer on October 20 and gives the required notice, Buyer has until the 2nd day after that notice to decide: waive in writing and deposit the extra $5,000, or let the contract terminate.
After Buyer waives, Buyer no longer has the protection of saying "my other house didn’t sell, so I don’t have to close."
Memory trick
AWhich house must Buyer sell, and by when?
BSeller got another offer — how long does Buyer get to decide?
CHow does Buyer remove the contingency?
DWhat happens if Buyer removes it and then can’t close?
EDeadlines are strict.
Want the original PDF handy?
Open the actual TREC form alongside this plain-English guide.
