The short answer
In a Texas resale transaction, TREC’s Addendum for Sale of Other Property by Buyer can make the new-home purchase contingent on the buyer receiving proceeds from the sale of a specified property by a stated date. If the contingency is not satisfied or waived by that date, the contract terminates automatically and the earnest money is refunded. But if the seller accepts another offer, the seller may require the buyer to waive the contingency within the negotiated notice period—or the contract can terminate.
Move-up buyers in Plano, Frisco, McKinney, Little Elm, Aubrey, and across North DFW often face one central problem: the equity is available, but it is tied up in the current home.
One possible solution is a home-sale contingency. It can protect a buyer who truly needs the current home to close before funding the next purchase. It also introduces timing and competition risks that should be understood before an offer is written.
The Texas form behind the contingency
The Texas Real Estate Commission publishes the Addendum for Sale of Other Property by Buyer, TREC Form 10-6. TREC describes it as the addendum used when buyers cannot purchase the new property unless their existing property is sold and closed.
Paragraph A identifies the buyer’s property and the date by which the buyer must receive the sale proceeds. If the contingency is not satisfied or waived by that date, the purchase contract terminates automatically and the earnest money is refunded. The form warns that the contingency date should be no later than the closing date in the purchase contract.
This is a proceeds contingency—not merely a promise to list the current house or place it under contract. The exact address, deadline, additional earnest money, and notice period must be filled into the form.
The seller-notice provision buyers should not miss
The addendum allows the seller to keep considering other offers. If the seller accepts another written offer, the seller can notify the first buyer both that the offer was accepted and that the seller requires the first buyer to waive the contingency.
The buyer then has the number of days written into the addendum to waive. If the buyer does not waive by the deadline, the contract terminates automatically and the earnest money is refunded.
This is sometimes casually described as a “kick-out” provision, but the actual rights and deadlines come from the signed form. The blank is negotiable; never assume a standard number of days.
What happens if the buyer waives
Waiver requires written notice to the seller and the deposit of the additional earnest money stated in the addendum. Once the buyer waives, the protection is gone.
TREC Form 10-6 says that if the buyer then fails to close and fund solely because the proceeds from the old home were not received, the buyer is in default and the seller may use the remedies in the purchase contract. The addendum also says time is of the essence, meaning the stated performance deadlines require strict compliance.
That is why waiver should be a financial decision, not an emotional reaction to the possibility of losing the next home.
Questions to answer before making a contingent offer
Work through these questions before making the offer.
Is the current home ready for market?
The more preparation still required, the more schedule risk the buyer carries. Pricing, repairs, photography, showing readiness, title issues, and realistic closing time all matter.
Can the buyer qualify without the sale proceeds?
Ask the lender to model both outcomes. Some buyers may have an approved bridge loan, home-equity strategy, larger down payment, or sufficient income and reserves to waive later. Others should not waive because the sale proceeds are essential.
How competitive is the target-home situation?
A seller may prefer a noncontingent offer, but price is not the only term. A well-prepared contingent buyer can strengthen the offer with a realistic listing plan, documented financing, clear timelines, and responsive communication—without pretending the contingency does not exist.
What is the fallback if the current sale stalls?
Before signing, decide what happens if the old home does not go under contract, the buyer of that home terminates, appraisal or title issues arise, or the two closing dates stop aligning. The answer may be to extend, renegotiate, use another approved financing tool, or allow the new-home contract to terminate. None is automatic.
Contingency versus other buy-before-sell strategies
A home-sale contingency is only one tool. Other possibilities include selling first with a temporary leaseback, using a bridge loan, using a home-equity product, making a noncontingent purchase when the lender approves, or buying first and later asking the lender about a mortgage recast after the old home sells.
Each shifts risk differently among timing, carrying costs, qualification, liquidity, and offer strength. Compare the complete plan with your lender, agent, and—when contract interpretation is needed—an attorney.
Map your next North DFW move
Need to move in North DFW without guessing which closing should come first? Clarissa can map your current-home preparation, financing checkpoints, target-home offer terms, and fallback plan before you commit. Call 469-253-7506 or request a strategy call at https://www.clarissasellsitalldfw.com/contact.
Related guides
- Sell First or Buy First? 4 Ways DFW Families Can Move Up
- Buying Before You Sell: How a Bridge Loan Can Affect Mortgage Qualification
- Buying Before You Sell in North DFW: What Your Home Equity Can—and Can’t—Do
- Buying Before You Sell? A Mortgage Recast May Lower the New Payment After Your Old Home Closes
Frequently asked questions
Does a home-sale contingency mean my current home only needs to be under contract?
TREC Form 10-6 ties the contingency to the buyer’s receipt of proceeds from the sale by the stated date. A signed contract on the old home is progress, but it is not the same as a completed sale and receipt of proceeds.
Can the seller accept another offer while my contract is contingent?
The form anticipates that possibility. If the seller accepts another written offer and delivers the required notice, the buyer must waive within the negotiated number of days or the contract terminates automatically and earnest money is refunded.
What do I have to do to waive the contingency?
Under Form 10-6, the buyer gives written notice of waiver and deposits the additional earnest money stated in the addendum. Review the completed form and coordinate delivery with your agent and escrow officer.
What if I waive and my current home does not close?
If the buyer fails to close and fund solely because the proceeds were not received, Form 10-6 says the buyer is in default and the seller may exercise the remedies in the purchase contract. Get lender confirmation before waiving.
Is this addendum right for every move-up buyer?
No. It is designed for buyers who cannot purchase without the sale and closing of the existing property. The offer strategy depends on qualification, equity, cash reserves, market conditions, timing, and risk tolerance.
Sources
- Texas Real Estate Commission — Addendum for Sale of Other Property by Buyer — Form 10-6 — as of Effective December 5, 2011; current TREC listing rechecked October 15, 2026
- Texas Real Estate Commission — Form 10-6 PDF — as of Rechecked October 15, 2026
This article summarizes the currently posted TREC form for general education and is not legal advice. The form contains blanks and negotiated terms, and TREC states its forms are intended for use by trained real-estate licensees and may not suit complex transactions. A lender must determine qualification and available loan products. Consult a Texas real-estate attorney for legal advice or complex contract questions.