When does the right to terminate begin in a Short Sale addendum?

When does the right to terminate begin in a Short Sale addendum?

• A. On the day of closing
• B. On original effective date
• C. After 10 days of negotiation
• D. Upon receipt of lender approval

Answer: (B)

The right to terminate in a Short Sale addendum begins on the original effective date of the contract. This is crucial because it establishes the timeframe within which the parties can back out of the agreement before settling on terms with the lender. The original effective date serves as the date from which all other timelines, including any necessary negotiations with the lender, are measured. In a short sale, while lender approval is essential, the ability to terminate doesn't hinge on receiving that approval; rather, it is linked to the initial agreement's effectiveness. Other options suggest conditions or timings that may occur during the process but do not accurately capture when the right to terminate first becomes available under the terms of the Short Sale addendum.

The right to terminate in a Short Sale addendum begins on the original effective date of the contract. This is crucial because it establishes the timeframe within which the parties can back out of the agreement before settling on terms with the lender. The original effective date serves as the date from which all other timelines, including any necessary negotiations with the lender, are measured.

In a short sale, while lender approval is essential, the ability to terminate doesn't hinge on receiving that approval; rather, it is linked to the initial agreement's effectiveness. Other options suggest conditions or timings that may occur during the process but do not accurately capture when the right to terminate first becomes available under the terms of the Short Sale addendum.