40-11 loan amount doesn't match the contract: how to catch it before title does

When a deal is financed, the loan amount is written in two places: Section 3B of the TREC 20-19 and the TREC 40-11 Third Party Financing Addendum. If the two disagree, the file stops until someone fixes it.

The two numbers that must match

• TREC 20-19, Section 3B: the sum of all financing described in the attached Third Party Financing Addendum.
• TREC 40-11: the principal amount of the loan the buyer is applying for.

For a deal with a single loan, those should be the same dollar amount. A typo, a number carried over from an earlier draft, or a price change that only got updated in one place is all it takes. Example: Section 3B says $360,000 and the 40-11 says $36,000 on a 123 Main St purchase. Easy to type, easy to miss when you're skimming.

The checkbox half of the same problem

The 20-19 also has to say that a 40-11 is attached, in two places:

• The Third Party Financing Addendum box in Section 3B
• The same addendum in the Section 22 list of attached addenda

If a 40-11 is attached, both should be checked. If the deal is all cash and there's no 40-11, neither should be. A checked box with no addendum, or an addendum with an unchecked box, both cause questions.

Don't forget the 40-11's own initials

The 40-11 has its own "Initialed for identification by Buyer ___ and Seller ___" line on its first page. It's a separate document, so it's easy to check every page of the 20-19 and forget this one.

A 30-second check

1. Put Section 3B and the 40-11 principal amount side by side. Same number?
2. Section 3B box and Section 22 box: both checked if there's a 40-11, neither if there isn't.
3. 40-11 initials: one per party on page 1 (one buyer = one buyer box).

If the contract is already signed and the numbers disagree, fixing it usually means getting both parties to sign a correction. Catching it before it goes out is much cheaper. When the sales price changes later, remember the financing amount often needs to change with it.

General information about the forms, not legal or lending advice.

See the full TREC 20-19 pre-title checklist →

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