The Texas Real Estate Sales Contract form is a standard document used in real estate transactions in Texas. It outlines the terms and conditions agreed upon by the buyer and seller regarding the sale of a property. Understanding this form is essential for anyone involved in a real estate transaction in Texas.
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The Texas Real Estate Sales Contract form serves as a crucial framework for real estate transactions within the state, facilitating the sale of residential properties. This standardized document, promulgated by the Texas Real Estate Commission (TREC), encompasses essential details that govern the agreement between buyers and sellers. Key components include the identification of the parties involved, a thorough description of the property, and the agreed-upon sales price. Additionally, the form outlines financing options, including third-party financing and seller financing, ensuring clarity on how the purchase will be funded. Earnest money requirements are specified to demonstrate the buyer's commitment, while provisions for title policies and surveys protect both parties' interests. The contract also addresses property conditions, closing procedures, and potential contingencies, such as construction delays or environmental concerns. By incorporating these elements, the Texas Real Estate Sales Contract form aims to create a transparent and equitable process for all parties involved in a real estate transaction.
Cont r act Concer ning PROMULGATED BY THE TEXAS REAL ESTATE COMMI SSI ON ( TREC)Page of 9 12-05-2011
( Addr ess of Pr oper t y )
N EW H OM E CON TRACT
EQU AL H OU SI N G OPPORT U N I T Y
( I n com ple t e Con st r u ct ion )
NOTI CE: Not For Use For Condom inium Tr ansact ions or Closings Prior t o Com plet ion of Const r uct ion
1
. PARTI ES: The par t ies t o t his cont ract ar e
( Seller ) and
( Buyer ) . Seller agr ees t o sell and
convey t o Buyer and Buyer agrees t o buy from Seller t he Propert y defined below .
2
. PROPERTY:Lot
,Block
,
Addit ion, Cit y of
,Count y of
Texas, know n
as
( address/ zip code) , or as
descr ibed on at t ached exhibit , t oget her w it h: ( i)
im provem ent s, fixt ures and all ot her propert y
descr ibed in t he
Const r uct ion Docum ent s; and
( ii) all right s, privileges and appur t enances
t heret o, including
but not lim it ed t o: perm it s,
easem ent s,
and cooperat ive and associat ion
m em berships. All propert y sold by t his cont ract is called t he “ Propert y” .
3 . SALES PRI CE:
A.Cash por t ion of Sales Price payable by Buyer at closing ..................... $
B.Sum of all financing described below ( excluding any loan funding
fee or m ort gage insurance prem ium ) .............................................. $
C.Sales Pr ice ( Sum of A and B) ......................................................... $
4 . FI N AN CI N G: The port ion
of Sales Price not payable in
cash w ill
be paid
follow s: ( Check
applicable boxes below )
A. THI RD PARTY FI NANCI NG: One or m ore t hird part y m ort gage loans
in
t he
t ot al am ount
of $
( excluding any loan funding fee or m or t gage insur ance pr em ium ) .
( 1) Propert y Approval:
I f
t he Propert y does not
sat isfy
lenders'
underw rit ing
requirem ent s for t he loan( s) , ( including, but not
lim it ed t o
appraisal,
insurabilit y and
lender required repairs) ,
Buyer m ay t erm inat e t his cont ract by
giving
not ice t o Seller
prior t o closing and t he earnest m oney w ill be r efunded t o Buyer .
( 2) Cr edit Approval: ( Check one box only)
( a) This cont ract is subj ect t o Buyer being approved for t he financing described in t he at t ached Third Part y Financing Addendum for Cr edit Approval.
( b) This cont ract is not subj ect t o Buyer being approved for financing and does not involve FHA or VA financing.
B. ASSUMPTI ON: The assum pt ion of t he unpaid principal balance of one or m ore prom issory
not es described in t he at t ached TREC Loan Assum pt ion Addendum .
C. SELLER
FI NANCI NG: A prom issory not e
from Buyer t o Seller of $
secur ed
by vendor 's and deed of t r ust liens, and cont aining t he
t er m s
and condit ions
descr ibed in t he at t ached TREC Seller Financing
Addendum . I f an
owner
policy of t it le
insurance is furnished, Buyer shall furnish Seller w it h a m ort gagee policy of t it le insurance.
5 . EARN EST M ON EY: Upon execut ion of t his cont ract
by
all part ies,
Buyer
shall deposit
$
as ear nest m oney w it h
, as
escr ow agent ,
at
( address) . Buyer shall deposit addit ional earnest m oney of $
w it h escrow
agent w it hin
days aft er t he effect ive dat e of t his cont ract . I f Buyer fails t o deposit t he
earnest m oney as required by t his cont ract , Buyer w ill be in default .
6 . TI TLE POLI CY AN D SURV EY:
A. TI TLE POLI CY: Seller shall furnish t o Buyer at
Seller’s
Buyer’s expense an ow ner policy of
t it le insur ance ( Tit le Policy) issued by
( T i t l e
Com pany) in t he am ount of t he Sales Price, dat ed at or aft er closing, insuring Buyer against loss under t he provisions of t he Tit le Policy, subj ect t o t he prom ulgat ed exclusions ( including exist ing building and zoning or dinances) and t he follow ing except ions:
( 1)
Rest rict ive covenant s com m on t o t he plat t ed subdivision in w hich t he Pr oper t y is locat ed.
( 2)
The st andard print ed except ion for st andby fees, t axes and assessm ent s.
( 3) Liens creat ed as part of t he financing described in Paragraph 4 .
( 4) Ut ilit y easem ent s creat ed by t he dedicat ion deed or plat of t he subdivision in w hich t he Propert y is locat ed.
( 5) Reservat ions or except ions ot herw ise perm it t ed by t his cont ract or as m ay be approved by
Buyer in w rit ing.
( 6)
The st andard print ed except ion as t o m arit al right s.
( 7)
The st andard print ed except ion as t o w at ers, t idelands, beaches, st ream s, and relat ed
m at t ers.
( 8) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachm ents or protrusions, or overlapping im provem ents. Buyer, at Buyer’s expense,
m ay have the exception am ended to read, "shortages in area" .
B. COMMI TMENT: Wit hin 20 days aft er
t he Tit le Com pany receives a copy of t his cont ract ,
Seller shall furnish t o Buyer a com m it m ent for t it le insurance ( Com m it m ent ) and, at Buyer's
expense, legible copies of rest rict ive covenant s and docum ent s evidencing except ions in t he
Com m it m ent ( Except ion Docum ent s)
ot her t han t he st andard print ed
except ions. Seller
aut horizes t he Tit le Com pany t o deliver t he Com m it m ent and Except ion Docum ent s t o Buyer
I nit ialed for ident ificat ion by Buyer
and Seller
TREC NO. 23 - 12
Cont r act Concer ning
Page 2 of 9
12-05-2011
at Buyer's address show n in Paragraph 21.
I f t he Com m it m ent
and Except ion Docum ent s
are not delivered t o
w it hin
t he specified
t im e,
t he t im e
for
deliv ery
w ill be
aut om at ically
ext ended
up t o 15 days or t he Closing Dat e,
whichever
is ear lier . I f,
due t o
fact ors beyond Seller’s cont rol, t he Com m it m ent and Except ion Docum ent s are not delivered
w it hin t he t im e required, Buyer m ay t erm inat e t his cont ract
and t he earnest m oney w ill be
refunded t o Buyer .
C. SURVEY:
The sur vey m ust be m ade aft er t he Subst ant ial Com plet ion Dat e by a r egist er ed
professional land surveyor accept able t o t he Tit le Com pany and Buyer’s lender( s) .
( Check one box only)
At
least
days prior t o t he Closing Dat e, Seller , at Seller’s expense, shall
provide a new survey t o Buyer .
days prior t o t he Closing Dat e, Buyer, at Buyer’s expense, shall
obt ain
a new survey . Buyer is deem ed t o receive t he survey on
t he dat e of act ual
receipt or t he dat e specified in t his paragraph, w hichever is earlier .
D. OBJECTI ONS: Buyer m ay obj ect in w r it ing t o defect s, except ions, or encum br ances t o t it le:
disclosed on t he survey ot her t han
it em s
6A( 1) t hrough ( 7)
above;
disclosed
in t he
Com m it m ent ot her t han it em s 6A( 1) t hr ough ( 8) above; or w hich prohibit t he follow ing use
or act ivit y:
.
Buyer m ust obj ect t he earlier of ( i) t he Closing Dat e or ( ii)
days
aft er Buyer r eceives
t he Com m it m ent , Except ion Docum ent s, and t he sur vey . Buyer ’s failur e t o obj ect w it hin t he
t im e allow ed w ill const it ut e a w aiver of Buyer’s right t o obj ect ; except t hat t he requirem ent s
in Schedule C of t he Com m it m ent are not w aived by Buyer .
Provided Seller is not obligat ed
t o incur any expense,
Seller shall cure t he
t im ely
obj ect ions of
Buyer or any t hird part y
lender w it hin 15 days
aft er
Seller receives
t he obj ect ions and
Closing Dat e
ext ended as necessary .
I f obj ect ions are not cured w it hin such 15 day period, t his cont ract
w ill t erm inat e
and t he
earnest m oney
w ill be refunded t o
unless Buyer w aives t he
obj ect ions.
E. TI TLE NOTI CES:
( 1) ABSTRACT OR TI TLE POLI CY: Broker advises Bu y er t o have an abst ract of t it le covering
t he Propert y exam ined by an at t orney of Buyer’s select ion, or Bu y er should be furnished
w it h or obt ain a
Tit le
Policy .
a Tit le Policy is
furnished,
Com m it m ent should be
prom pt ly r ev iew ed by an
at t orney of
Bu y er ’s
choice due
t o
lim it at ions
on
Buyer’s right t o obj ect .
( 2 ) MEMBERSHI P
I N PROPERTY OWNERS ASSOCI ATI ON( S) : The
Propert y
is
not
subj ect t o m andat ory m em bership in a propert y ow ners associat ion( s) . I f t he Propert y is
subj ect
t o m andat ory
m em bership in
a
propert y ow ners
associat ion( s) ,
Seller
not ifies
under §5 . 012,
Texas
Code, t hat ,
as a
purchaser of propert y
r esident ial com m unit y ident ified in Par agr aph 2A in w hich t he Propert y is locat ed, you are
obligat ed t o be a
m em ber
of t he propert y ow ners associat ion( s) . Rest rict ive
covenant s
gover ning t he use and occupancy of t he Propert y and all
dedicat ory inst rum ent s
governing t he est ablishm ent ,
m aint enance, and operat ion
of t his resident ial com m unit y
have been or w ill be recorded in t he Real Propert y Records of t he count y in w hich t he
Propert y is locat ed. Copies of t he rest rict ive covenant s and dedicat ory inst rum ent s m ay
be obt ained from t he count y clerk . You
a r e obliga t e d t o
pa y a sse ssm e n t s
t h e
pr ope r t y ow n e r s a ssocia t ion ( s) . Th e
a m ou n t of t h e
a sse ssm e n t s is su bj e ct t o
ch a n ge . You r fa ilu r e t o pa y t h e a sse ssm e n t s cou ld r e su lt in e n for ce m e n t of t h e
a ssocia t ion ’s lie n on a n d t h e for e closu r e of t h e Pr ope r t y .
Sect ion 207 . 003,
Code,
ent it les an ow ner
t o receive
copies of
any
docum ent
t hat governs t he
est ablishm ent ,
m aint enance, or operat ion
of
a subdivision,
including,
but not lim it ed t o, rest rict ions, bylaw s, rules and regulat ions, and a resale cert ificat e from
a propert y ow ners' associat ion .
A resale cert ificat e
cont ains inform at ion
but
not lim it ed t o, st at em ent s specifying t he am ount
and fr equency of regular assessm ent s
and t he st yle and cause num ber of law suit s t o w hich t he proper t y owner s' associat ion is a
part y, ot her t han law suit s relat ing t o unpaid ad valorem t axes of an individual m em ber of
t he associat ion .
These docum ent s m ust be m ade
available
t o y ou by t he propert y
ow ners' associat ion or t he associat ion's agent on your r equest .
I f Bu y e r is con ce r n e d a bou t t h e se m a t t e r s, t h e TREC pr om u lga t e d Adde n du m for
Pr ope r t y Su bj e ct t o
M a n da t or y M e m be r sh ip
a Pr ope r t y Ow n e r s Associa t ion
sh ou ld be u se d .
( 3)
STATUTORY TAX DI STRI CTS: I f
t he Propert y is sit uat ed
a ut ilit y or ot her
st at ut orily
creat ed dist rict providing w at er, sew er, drainage, or
flood cont rol facilit ies and services,
Chapt er 49, Texas Wat er Code, requires Seller t o deliver and Buyer t o sign t he st at ut ory
not ice relat ing t o t he t ax r at e, bonded indebt edness, or st andby fee of t he dist rict prior t o
final execut ion of t his cont r act .
( 4)
TI DE WATERS:
I f t he Propert y abut s t he t idally
influenced w at ers of t he st at e, §33 . 135,
Texas Nat ural Resources Code, requires a not ice regarding coast al area propert y t o be
included in t he cont r act .
An addendum
cont aining
t he not ice
pr om ulgat ed
TREC or
required by t he part ies m ust be used.
( 5)
ANNEXATI ON: I f t he Proper t y is locat ed out side t he lim it s of a m unicipalit y, Seller not ifies
Buyer under §5 . 011, Texas Pr oper t y Code, t hat t he Propert y m ay now or lat er be included
Page 3 of 9 12-05-2011
in t he ext rat er r it or ial j ur isdict ion of a m unicipalit y and m ay now or lat er be subj ect t o annexat ion by t he m unicipalit y . Each m unicipalit y m aint ains a m ap t hat depict s it s boundaries and ext rat errit or ial j ur isdict ion . To det er m ine if t he Pr opert y is locat ed w it hin a
m unicipalit y's
ext r at er r it or ial
j ur isdict ion or is likely
be locat ed w it hin a
m unicipalit y’s
ext rat errit orial
j urisdict ion,
cont act
all
m unicipalit ies
locat ed in t he general
proxim it y of
t he Proper t y for furt her inform at ion .
( 6) PROPERTY
LOCATED I N
A CERTI FI CATED SERVI CE
AREA OF A UTI LI TY SERVI CE
PROVI DER:
Not ice required
by §13 . 257, Wat er Code:
The real propert y, described in
Paragraph 2, t hat you are
about t o purchase m ay be
locat ed in a cert ificat ed w at er or
sew er service area, w hich is
aut horized by law t o provide w at er or sew er service t o t he
propert ies in t he cert ificat ed area.
I f your propert y is locat ed in a cert ificat ed area t here
m ay be special cost s or charges t hat
you w ill be required t o pay before you can receive
w at er or sew er service.
There m ay
be a period required t o const ruct lines or ot her
facilit ies necessary t o provide w at er or sew er service t o your propert y . You are advised t o det erm ine if t he propert y is in a cert ificat ed area and cont act t he ut ilit y service provider t o det erm ine t he cost t hat you w ill be required t o pay and t he period, if any, t hat is required t o provide w at er or sew er service t o your propert y . The undersigned Buyer hereby
acknow ledges receipt of t he foregoing not ice at or before
t he execut ion of a
binding
cont ract for t he purchase of t he real propert y described in Paragraph 2 or at closing of
purchase of t he real propert y .
( 7) PUBLI C I MPROVEMENT DI STRI CTS: I f t he
Propert y is in a public
im provem ent
dist rict ,
§5 . 014, Propert y Code, requires Seller t o not ify Buyer as follow s: As a purchaser of t his
parcel of real propert y you are obligat ed t o pay an assessm ent t o a m unicipalit y or count y
for an im provem ent proj ect undert aken by
a public im provem ent
dist rict
under
Chapt er
372, Local
Governm ent Code. The assessm ent m ay
be
due annually
or
periodic
inst allm ent s.
More
inform at ion concerning
t he am ount
of t he assessm ent and
due
dat es of t hat
assessm ent m ay be obt ained
from t he m unicipalit y
or count y
levying
assessm ent .
The am ount of t he assessm ent s is subj ect t o change.
Your failure t o pay t he
assessm ent s could result in a lien on and t he foreclosure of your propert y .
( 8) TRANSFER FEES: I f t he Propert y is subj ect
t o a privat e
t ransfer fee obligat ion,
§5 . 205,
Propert y Code, requires Seller t o not ify Buyer as follow s: The privat e t ransfer fee
obligat ion m ay be governed by Chapt er 5, Subchapt er G of t he Texas Propert y Code.
7 . PROPERTY CON D I TI ON :
A. ACCESS AND I NSPECTI ONS: Seller shall perm it Buyer and Buyer’s
agent s access t o
Propert y at reasonable t im es. Buyer m ay have t he Propert y inspect ed by inspect ors select ed
by Buyer and licensed by TREC or ot herw ise per m it t ed by law t o m ake inspect ions.
B. CONSTRUCTI ON DOCUMENTS: Seller
shall com plet e all im pr ovem ent s t o t he Proper t y
w it h
due diligence in
accor dance w it h t he
Const ruct ion Docum ent s.
“ Const r uct ion
Docum ent s”
m eans t he plans and
specificat ions, t he finish
out schedules, any change orders,
and
allow ances relat ed t o t he plans and specificat ions, finish out schedules, and change orders.
The Const ruct ion Docum ent s have been signed by t he part ies and are incor por at ed int o t his
cont ract by reference.
C. COST ADJUSTMENTS:
All change orders m ust be in w rit ing.
I ncrease in cost s result ing from
change orders or it em s select ed by
Buyer w hich exceed
allow ances specified in
Const ruct ion Docum ent s w ill be paid by Buyer as follow s:
A decrease
in cost s result ing from change orders and unused allow ances w ill reduce t he Sales Price, w it h proport ionat e adj ust m ent s t o t he am ount s in Paragraphs 3A and 3B as required by lender .
D. BUYER’S SELECTI ONS: I f t he Const r uct ion Docum ent s perm it select ions by Buyer, Buyer’s select ions w ill conform t o Seller’s norm al st andards as set out in t he Const r uct ion Docum ent s
or w ill not , in Seller’s j udgm ent , adversely affect
t he m arket abilit y of t he Propert y . Buyer w ill
m ake required select ions w it hin
days aft er not ice from Seller .
E. COMPLETI ON: Seller m ust com m ence const r uct ion no lat er t han
days aft er t he effect ive
dat e of
t his cont ract . The im provem ent s w ill
be subst ant ially
com plet ed
in accordance w it h
Co n s t r u c t i o n
D o c u m e n t s
a n d
r e a d y
f o r
o c c u p a n c y
n o t
l a t e r
t han
20
The im provem ent s w ill be deem ed t o be
subst ant ially com plet ed
accor dance
t he Const ruct ion
Docum ent s
upon t he final
inspect ion
and approval
all applicable
governm ent al
aut horit ies
lender
( Subst ant ial
Com plet ion
Dat e) .
Const r uct ion
delays caused by act s of God, fir e or ot her
casualt y, st rikes,
boycot t s
nonavailabilit y
m at er ials
for which
no
subst it ut e of
com parable
qualit y
price is
available w ill
be added
t o t he
t im e allow ed
subst ant ial
com plet ion of t he const ruct ion . How ever , in no event m ay t he t im e for subst ant ial com plet ion
ext end beyond t he Closing Dat e. Seller
m ay subst it ut e m at er ials, equipm ent and appliances
of com parable qualit y for t hose specified
in t he Const ruct ion Docum ent s.
F. WARRANTI ES: Except as expr essly set fort h in t his cont ract , a separat e w rit ing, or provided by law, Seller m akes no ot her express w arrant ies. Seller shall assign t o Buyer at closing all
assignable m anufact urer w arrant ies.
G. I NSULATI ON: As required by Federal Trade Com m ission Regulat ions,
t he inform at ion
relat ing t o t he insulat ion inst alled or t o be inst alled in t he I m provem ent s at
t he Propert y is:
Page 4 of 9
( check only one box below )
( 1) as shown in t he at t ached specificat ions.
( 2) as follow s:
a)
Ext erior w alls of im proved liv ing areas: insulat ed w it h
insulat ion t o a t hickness of
inches which yields an R- Value of
b)
Walls in ot her areas of t he hom e: insulat ed w it h
c)
Ceilings in im proved liv ing areas:
insulat ed w it h
d)
Floors of im proved
living areas
not applied t o a slab
foundat ion: insulat ed w it h
inches w hich yields an R-
Value of
e)
Ot her insulat ed areas: insulat ed w it h
insulat ion t o a
t hickness of
All st at ed R- Values are based on inform at ion provided by t he m anufact urer of t he insulat ion .
H. ENVI RONMENTAL MATTERS: Buyer is advised t hat t he presence of w et lands, t oxic subst ances,
including
asbest os and
w ast es or
ot her
environm ent al
hazards,
presence
of a
t hreat ened or endangered species or
it s
habit at
m ay affect Buyer ’s
int ended use
Propert y . I f Buyer is concerned about
t hese m at t ers, an addendum
prom ulgat ed by TREC or
required by t he part ies should be used.
I . SELLER’S
DI SCLOSURE:
Except
ot her w ise
in t his
cont r act ,
Seller has
know ledge of t he follow ing:
( 1) any flooding of t he Propert y w hich
has had a
m at erial
adverse
effect on
t he use
Propert y;
( 2) any pending or t hreat ened lit igat ion, condem nat ion, or
special
assessm ent affect ing
Pr oper t y;
( 3) any environm ent al hazards or condit ions m at erially affect ing t he Propert y;
( 4) any dum psit e, landfill, or underground t anks or cont ainers now or previously locat ed on t he Propert y;
( 5) any w et lands, as defined by federal or st at e law or regulat ion, affect ing t he Propert y; or
( 6) any t hreat ened or endangered species or t heir habit at affect ing t he Propert y .
8 . BROKERS' FEES: All obligations of the parties for paym ent of brokers’ fees are contained in separate
written agreem ents.
9 . CLOSI N G:
A. The closing of t he sale w ill be on or befor e
, 20
, or w it hin 7 days
aft er obj ect ions m ade under Paragraph 6D have been cured or w aived, w hichever dat e is lat er
( Closing Dat e) .
I f eit her par t y fails t o close t he sale by t he Closing Dat e,
t he non - default ing
part y m ay exercise t he rem edies cont ained in Paragraph 15 .
B. At closing:
Seller shall execut e and deliver a general w arrant y deed conveying t it le t o t he Propert y t o
Buyer and show ing no addit ional except ions t o t hose perm it t ed in Paragraph 6 and furnish
t ax st at em ent s or cert ificat es show ing no delinquent t axes on t he Propert y .
Buyer shall pay t he Sales Price in good funds accept able t o t he escrow agent .
Seller and Buyer shall execut e and deliver any not ices, st at em ent s, cert ificat es, affidavit s,
releases, loan docum ents and ot her docum ent s reasonably required for
t he closing of t he
sale and t he issu an ce of t he Tit le Policy .
There w ill be
no liens, assessm ent s, or securit y
int erest s against t he Propert y w hich w ill
not be sat isfied out of t he sales
pr oceeds unless securing paym ent of any loans assum ed
by Buyer and assum ed loans w ill
not be in default .
1 0 . POSSESSI ON : Seller shall deliver to Buyer possession of the Property:
upon closing and funding
according to a tem porary residential lease form prom ulgated by TREC or other written lease required by the parties. Any possession by Buyer prior to closing or by Seller after closing which is not authorized by a written lease will establish a tenancy at sufferance relationship between the parties.
Consult your insurance agent prior t o change of ow nership and possession because insurance coverage m ay be lim it ed or t erm inat ed. The absence of a w rit t en lease or appropriate insurance coverage m ay expose t he part ies t o econom ic loss.
1 1 . SPECI AL PROV I SI ON S: ( I nsert only fact ual st at em ent s and business det ails applicable t o t he sale. TREC rules prohibit licensees from adding fact ual st at em ent s or business det ails for w hich a cont ract addendum , lease or ot her form has been prom ulgat ed by TREC for m andat ory use. )
Filling out the Texas Real Estate Sales Contract form is a crucial step in the home buying process. This form lays out the terms of the sale, ensuring that both the buyer and seller are on the same page. To complete the form accurately, follow these steps carefully.
Once you have filled out the form, it is essential to review it for accuracy. Both parties should understand the terms before signing. This ensures a smooth transaction and helps prevent misunderstandings down the line.
The Texas Real Estate Sales Contract form is a standardized document used in real estate transactions in Texas. It outlines the terms and conditions under which a seller agrees to sell property to a buyer. The form includes details about the parties involved, the property being sold, the sales price, financing options, and other critical aspects of the transaction. It is important to note that this form is not intended for condominium transactions or closings prior to the completion of construction.
The parties involved in the Texas Real Estate Sales Contract are the seller and the buyer. The seller agrees to sell and convey the property to the buyer, who agrees to purchase it. The contract requires the identification of both parties, including their names and contact information, to ensure clarity and accountability throughout the transaction.
The Texas Real Estate Sales Contract provides several financing options for the buyer, including:
Each option has specific terms and conditions that must be met, including the requirement for property and credit approval by the lender.
Earnest money is a deposit made by the buyer to demonstrate their commitment to purchasing the property. According to the Texas Real Estate Sales Contract, the buyer must deposit a specified amount of earnest money with an escrow agent upon execution of the contract. This deposit serves several purposes:
Closing is the final step in the real estate transaction where ownership of the property is officially transferred from the seller to the buyer. During closing, the following occurs:
It is crucial for both parties to fulfill their obligations to ensure a smooth closing process.
Incomplete Information: One common mistake is leaving sections blank or failing to provide complete information. For instance, not filling in the address of the property or the sales price can lead to confusion or disputes later on.
Ignoring Financing Details: Buyers often overlook the financing section. It's crucial to specify how the sales price will be paid, whether through cash, third-party financing, or seller financing. Missing this information can complicate the transaction.
Failing to Deposit Earnest Money: Some buyers forget to include the earnest money deposit or fail to deposit it within the specified timeframe. This can result in default and jeopardize the transaction.
Not Reviewing Title Policy and Survey: Neglecting to review the title policy and survey can lead to unexpected issues. Buyers should ensure they understand any exceptions or encumbrances listed in these documents.
Overlooking Closing Dates: Lastly, buyers sometimes miss the closing date deadlines. It's essential to be aware of the timeline for closing and to ensure that all necessary documents and payments are prepared in advance.
The Texas Real Estate Sales Contract is a crucial document in real estate transactions, particularly when it comes to buying or selling property in Texas. However, it is often accompanied by several other forms and documents that help clarify the terms of the agreement and protect the interests of both buyers and sellers. Below is a list of commonly used documents that complement the Texas Real Estate Sales Contract.
In summary, these additional forms and documents work in tandem with the Texas Real Estate Sales Contract to facilitate a smooth transaction. Each document serves a specific purpose, helping to clarify the terms of the sale and protect the interests of both buyers and sellers. Understanding these documents is essential for anyone involved in a real estate transaction in Texas.
The Texas Real Estate Sales Contract form shares similarities with the Residential Real Estate Purchase Agreement. Both documents outline the essential terms of a real estate transaction, including the parties involved, property description, sales price, and financing details. The Residential Real Estate Purchase Agreement often includes contingencies that protect the buyer, such as inspections and financing approvals, similar to those found in the Texas form. This agreement serves as a standard framework for residential property transactions across the United States.
Another comparable document is the Commercial Real Estate Purchase Agreement. This agreement is tailored for commercial properties and includes specific clauses related to zoning, environmental assessments, and business operations. Like the Texas Real Estate Sales Contract, it defines the roles of the buyer and seller, the property details, and the financial arrangements. Both contracts aim to provide a clear understanding of the transaction, ensuring that both parties are aware of their rights and obligations.
The Exclusive Right to Sell Listing Agreement also resembles the Texas Real Estate Sales Contract. This document establishes the relationship between a seller and a real estate agent, granting the agent the exclusive right to market and sell the property. Similar to the Texas form, it includes details about the property, the commission structure, and the terms of the sale. Both agreements are designed to protect the interests of the parties involved and facilitate a smooth transaction process.
The Lease Agreement is another document that shares characteristics with the Texas Real Estate Sales Contract. While primarily focused on rental agreements, both documents outline the rights and responsibilities of the parties involved. A Lease Agreement specifies terms such as duration, rent, and maintenance responsibilities, much like how the Texas form details the sales price and conditions of sale. Both agreements serve to clarify expectations and ensure compliance with legal obligations.
The Option to Purchase Agreement is similar in that it grants a potential buyer the right to purchase a property at a predetermined price within a specified timeframe. This document, like the Texas Real Estate Sales Contract, includes essential terms such as the purchase price and conditions under which the option may be exercised. Both agreements aim to protect the interests of buyers and sellers while providing a clear framework for the transaction.
The Seller Financing Addendum is another document that parallels the Texas Real Estate Sales Contract. This addendum outlines the terms under which the seller will finance the purchase of the property. Similar to the Texas form, it includes details about the loan amount, interest rate, and repayment terms. Both documents are designed to facilitate transactions where traditional financing may not be available or desired.
Lastly, the Property Disclosure Statement is akin to the Texas Real Estate Sales Contract in that it provides essential information about the property's condition. This document requires the seller to disclose known defects or issues with the property, helping buyers make informed decisions. Both the disclosure statement and the Texas contract aim to promote transparency and protect the interests of the buyer, ensuring that they are aware of any potential concerns before finalizing the sale.
When filling out the Texas Real Estate Sales Contract form, there are several important dos and don'ts to keep in mind. Following these guidelines can help ensure a smoother transaction.
This is incorrect. The contract is specifically designed for residential properties and is not suitable for condominiums or transactions before the completion of construction.
While there are provisions allowing buyers to terminate the contract under certain conditions, failing to meet the contract's requirements can lead to default, which may result in the loss of earnest money.
Not necessarily. The contract outlines that buyers can request repairs, but sellers are only obligated to address timely objections or defects that are disclosed during the inspection process.
This is false. Earnest money is a crucial part of the contract, showing the buyer's commitment. If the buyer fails to deposit the earnest money as required, they may be in default.
While the seller is required to furnish a title policy, the cost of this policy is typically borne by the buyer, as stated in the contract.
This is not true. Buyers must object to any defects or exceptions within a specified time frame, or they waive their right to do so.
In fact, sellers must disclose various issues, such as flooding, environmental hazards, and other conditions that could materially affect the property. These disclosures are essential for protecting the buyer's interests.
Understand the Parties Involved: The contract specifies the seller and buyer. Ensure both parties are correctly identified to avoid future disputes.
Define the Property Clearly: Clearly describe the property, including lot, block, and address. This prevents ambiguity regarding what is being sold.
Sales Price Details: Include both cash and financing portions of the sales price. Accurate calculations help clarify financial obligations at closing.
Financing Options: Specify whether third-party financing, assumption of loans, or seller financing will be used. Each option has different implications for the buyer and seller.
Earnest Money Requirements: Buyers must deposit earnest money to show commitment. Failure to do so may result in a default.
Title Policy and Survey: The seller must provide a title policy and survey. These documents protect the buyer's interests and clarify property boundaries.
Property Condition and Inspections: The seller must allow access for inspections. Buyers should verify the condition of the property before closing.
Closing Procedures: Understand the steps required for closing, including the transfer of title and payment of the sales price. All parties must fulfill their obligations to finalize the sale.