When we write or accept an offer in Texas, the TREC 1–4 Residential Contract is just the beginning. Many transactions also require addenda—extra forms that add terms, clarify conditions, or outline specific agreements.
These addenda are a normal part of Texas real estate, but they’re often misunderstood. When I represent buyers or sellers, I explain each one clearly so you know exactly what you’re signing and why.
Here’s a breakdown of the most common contract addenda we use in Texas.
1. Third-Party Financing Addendum (Required for Most Buyers)
Used when the buyer is obtaining a loan.
It covers:
✔️ Loan type (Conventional, FHA, VA, USDA)
✔️ Approval deadline
✔️ Appraisal contingency
✔️ Buyer financing protections
This addendum is essential—it's the buyer’s biggest safety net if financing falls through.
2. HOA Addendum (Mandatory for HOA Neighborhoods)
Used when the property is part of a homeowner's association.
It outlines:
✔️ HOA documents seller must provide
✔️ Delivery deadlines
✔️ Buyer’s rights to terminate
✔️ Possible transfer fees
In North Texas, most new-build communities require this addendum.
3. Non-Realty Items Addendum
Used if the buyer wants items that do NOT automatically convey with the home, such as:
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Refrigerators
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Washers/dryers
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Mounted TVs
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Furniture
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Backyard playsets
This makes the agreement enforceable.
4. Seller’s Temporary Residential Lease Addendum
Used when the seller needs to stay in the home after closing, also known as a leaseback.
Covers:
✔️ Lease term
✔️ Daily rent (if any)
✔️ Deposit
✔️ Utilities
✔️ Maintenance responsibilities
Seller leasebacks are extremely common in competitive Texas markets like Frisco, Prosper, and McKinney.
5. Buyer’s Temporary Residential Lease Addendum
Used when the buyer needs to move in before closing.
Much less common, and usually riskier for sellers.
6. Amendment to Contract
Used after the contract is executed.
We use amendments to:
✔️ Adjust closing date
✔️ Request repairs
✔️ Adjust price
✔️ Change Option Period
✔️ Add concessions
✔️ Add or remove terms
Most transactions involve at least one amendment.
7. Addendum for Property Subject to Mandatory Membership in a Property Owners Association
This is another version of the HOA addendum.
It clarifies:
✔️ Resale certificates
✔️ Subdivision information
✔️ Fees
✔️ Buyer’s right to terminate if docs are late
I double-check all dates and deadlines to protect buyers.
8. Addendum for Back-Up Contract
Used when we want to put an offer in behind the primary contract.
If the primary offer terminates:
✔️ Backup offer automatically moves into first position
✔️ Buyer is protected
✔️ No renegotiation needed
This is a powerful strategy in hot Texas markets.
9. Environmental Assessment, Threatened or Endangered Species Addendum
Rarely used, but sometimes required for:
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Rural properties
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Land sales
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Areas protected by environmental regulations
Mostly used outside the suburban North Texas counties.
10. Addendum Regarding Fixture Leases
Used when items on the property are leased, not owned.
Common examples:
✔️ Solar panels
✔️ Propane tanks
✔️ Security systems
✔️ Water softeners
✔️ HVAC equipment (rare but possible)
This protects buyers from inheriting unwanted lease obligations.
11. Addendum for Sale of Other Property by Buyer
Used when a buyer must sell their current home in order to buy.
This provides:
✔️ A contingency window
✔️ A kick-out clause for the seller
✔️ Deadlines for listing and contract
I only use this when necessary, since it's weaker in competitive situations.
12. Lead-Based Paint Addendum (Required for pre-1978 homes)
Legally required for older homes.
Includes:
✔️ Seller disclosures
✔️ Buyer rights to inspection
✔️ EPA informational pamphlet
I always ensure this is completed correctly.
13. Addendum Concerning Right to Terminate Due to Lender Appraisal
In competitive markets, this is a major addendum.
It offers:
✔️ Full appraisal waiver
✔️ Partial waiver
✔️ Zero waiver
✔️ Buyer protections
I use this strategically based on the home’s price, condition, and competition level.
14. Addendum for Property in a PID (Public Improvement District)
Required when a property has a PID.
Common in:
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Frisco
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Prosper
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Little Elm
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McKinney
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Celina
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Melissa
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Anna
I confirm the PID balance and whether the seller has paid off assessments.
15. Addendum for Property in a MUD (Municipal Utility District)
Required in many new developments.
It explains:
✔️ Tax implications
✔️ District obligations
✔️ Utility responsibilities
I have buyers review this carefully so tax rates aren’t a surprise later.
16. Addendum for Property Subject to Restrictive Covenants
Used when restrictive covenants may affect use of the property.
Common for:
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Acreage
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Rural land
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Unique lots
Typically not used for standard suburban homes.
17. Short Sale Addendum
Used rarely, only for short sales.
Includes:
✔️ Lender approval requirements
✔️ Long timeline contingencies
Not common in today’s North Texas market.
18. Addendum Containing Notice of Water Level Fluctuations
Used for lakefront properties.
Relevant for:
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Lake Lewisville
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Lake Ray Roberts
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Lake Lavon
Not used for inland suburban neighborhoods.
19. Farm & Ranch Addendum
Used for:
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Acreage
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Agricultural properties
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Properties with wells, minerals, crops, or livestock
This is different from the TREC 1–4 contract.
Why Addenda Matter So Much in Texas
Most of the protection for buyers and sellers comes through the addenda—not just the contract.
Addenda handle:
✔️ Financing
✔️ Appraisal
✔️ Inspections
✔️ Repairs
✔️ HOA rules
✔️ Taxes
✔️ Survey issues
✔️ Leasebacks
✔️ Property disclosures
✔️ Special conditions
When combined properly, they create a fully protected transaction.
Bottom Line: Addenda Are a Normal—and Essential—Part of Texas Real Estate
You’re not expected to understand all of them on your own.
When we work together, I break each one down, explain what you’re agreeing to, and make sure your contract is complete, accurate, and fully protective.
Ready for a Realtor Who Understands Every Addendum Inside & Out?
If you want a contract expert guiding your transaction, I’d love to help.
