The Notice of Buyer's Termination of Contract (TREC No. 38-8) is dated 02-10-2025 and replaces TREC No. 38-7. It's the form a buyer uses to formally notify a seller that a contract is terminated — and it requires the buyer to check which specific contractual basis they're terminating under.
The eight grounds
- Unrestricted right under Paragraph 5 of the contract — the option period. No cause required.
- Buyer cannot obtain Buyer Approval under the Third Party Financing Addendum. The buyer must have already delivered the lender's written statement giving the reason(s) to the seller.
- Property does not satisfy Property Approval under the Third Party Financing Addendum. Same requirement — lender's written statement already delivered.
- Termination under Paragraph A of the Addendum for Property Subject to Mandatory Membership in a Property Owners' Association (the HOA addendum).
- Termination under Paragraph 7B(2) of the contract, relating to the Seller's Disclosure Notice.
- Termination under Paragraph (3) of the Addendum Concerning Right to Terminate Due to Lender's Appraisal (TREC 49-1). The buyer must have delivered a copy of the appraisal to the seller.
- Termination under Paragraph 6.D. of the contract (6.C. for the Residential Condominium Contract), because timely title objections weren't cured by the end of the Cure Period.
- Other — the buyer identifies the specific paragraph number of the contract or addendum being relied on.
Not an election of remedies. The form states directly: "This notice is not an election of remedies. Release of the earnest money is governed by the contract." Checking a box and delivering the notice doesn't itself resolve whether earnest money gets released — that's a separate step governed by the underlying contract.
Consult an attorney before signing
The form carries its own bolded warning: "CONSULT AN ATTORNEY BEFORE SIGNING: TREC rules prohibit real estate license holders from giving legal advice. READ THIS FORM CAREFULLY."