Which document serves as a contingency for obtaining a loan in a real estate transaction?

The correct document that serves as a contingency for obtaining a loan in a real estate transaction is TREC Form 40-9. This form is specifically designed to include financing contingencies, which means it allows buyers to make their purchase contingent upon their ability to secure a loan.

In real estate transactions, having a financing contingency is crucial for potential buyers as it provides a safeguard; if they are unable to secure the necessary funding, they have the right to terminate the contract without penalty. This emphasizes the importance of ensuring that buyers are financially capable of completing the purchase before fully committing to the transaction.

TREC Form 40-9 lays out the terms and conditions regarding the loan, including how long the buyer has to obtain the financing and what happens if they are unable to do so. Thus, it plays a critical role in the transaction by providing clarity and assurance regarding financing.