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Texas · TREC 38-8Texas buyer termination notice (TREC 38-8): the eight grounds

A Texas buyer terminates a TREC contract with the Notice of Buyer's Termination of Contract (TREC 38-8, effective April 1, 2025), checking the paragraph the termination relies on – the option period, financing (Buyer or Property Approval), the HOA addendum, the seller's disclosure, the appraisal addendum, uncured title objections or another paragraph. The notice must be delivered within that right's deadline; it is not an election of remedies, and the release of earnest money is governed by the contract.

The eight boxes

  1. 1. Option period (¶5)

    The unrestricted right to terminate – by 5:00 p.m. local time on the last day of the option period.

  2. 2. Buyer Approval (40-11 ¶2A)

    The buyer cannot obtain Buyer Approval – with the lender's written statement of the reasons delivered to the seller.

  3. 3. Property Approval (40-11 ¶2B)

    The property does not satisfy the lender's requirements – with the lender's written statement – on or before the 3rd day before closing.

  4. 4. HOA addendum (36-11 ¶A)

    Within 3 days after receiving the subdivision information or before closing, whichever is first.

  5. 5. Seller's Disclosure Notice (¶7B(2))

    Within 7 days after receiving a late disclosure, or before closing, whichever is first.

  6. 6. Appraisal addendum (49-1 ¶3)

    Within the days written if the appraisal is below the amount written – with a copy of the appraisal delivered to the seller.

  7. 7. Uncured title objections (¶6D)

    Within 5 days after the end of the cure period.

  8. 8. Other

    Any other paragraph of the contract or an addendum – identify it on the notice.

Before sending it

  • Check the deadline of the right you rely on – a late notice may not terminate the contract.
  • Attach what the box requires (lender's statement, appraisal copy).
  • Deliver it as ¶21 of the contract allows and keep proof of delivery.
  • The notice does not release the earnest money by itself – the contract's escrow paragraph governs that.

Questions about the Texas buyer termination notice

What form does a Texas buyer use to terminate?

TREC No. 38-8, Notice of Buyer's Termination of Contract, effective April 1, 2025 (it replaces 38-7).

Does the termination notice release the earnest money?

No. The form states it is not an election of remedies and that release of the earnest money is governed by the contract.

When must the option period termination be sent?

By 5:00 p.m. local time where the property is, on the last day of the option period.

What must be attached for a financing termination?

A copy of the lender's written statement of the reasons, delivered to the seller.

Is there a form for the seller to terminate?

Yes, TREC publishes a separate Notice of Seller's Termination of Contract (50-0).

Texas deadlines

ClosingCode keeps the TREC deadlines – option period, financing, title objections and any date you add – on one timeline, so the notice goes out before the deadline, not after.

Start free trial

Source: Texas Real Estate Commission, TREC No. 38-8 Notice of Buyer's Termination of Contract (02-10-2025, effective April 1, 2025); deadlines from TREC 20-19, 40-11, 36-11 and 49-1.

General information, not legal advice. TREC rules prohibit license holders from giving legal advice; consult an attorney before signing. ClosingCode is software; it is not a law firm or brokerage, and it is not affiliated with TREC.