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Blank Texas Real Estate Sales Contract Form

The Texas Real Estate Sales Contract form is a standardized document used in real estate transactions within the state of Texas. This contract outlines the terms and conditions under which a seller agrees to sell and a buyer agrees to purchase a property. It serves to protect the interests of both parties by clearly defining their rights and obligations throughout the buying process.

Outline

The Texas Real Estate Sales Contract form is a crucial document in real estate transactions, particularly for new home purchases. This form, promulgated by the Texas Real Estate Commission (TREC), outlines the agreement between the seller and buyer, detailing essential elements such as the property description, sales price, and financing arrangements. It specifies the earnest money deposit required from the buyer, which serves as a commitment to follow through with the purchase. The contract also addresses title policy and survey requirements, ensuring that the buyer receives clear title to the property and understands any existing encumbrances. Additionally, it includes provisions for property condition, closing procedures, and the responsibilities of both parties. Notably, the contract emphasizes compliance with various state laws, including those related to property owners' associations and tax districts. Understanding these components is vital for both buyers and sellers to navigate the complexities of real estate transactions in Texas effectively.

Sample - Texas Real Estate Sales Contract Form

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

. 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 .

. PROPERTY:Lot

,Block

Addit ion, Cit y of

,Count y of

Texas, know n

( 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		as	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	t he	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

all part ies,

Buyer

shall deposit

as ear nest m oney w it h

, as

escr ow agent ,

( 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

( Addr ess of Pr oper t y )

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

Buyer

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)

( 1)

least

days prior t o t he Closing Dat e, Seller , at Seller’s expense, shall

provide a new survey t o Buyer .

( 2)

least

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

t he

Closing Dat e

w ill be

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

Buyer

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 .

I f

a Tit le Policy is

furnished,

t he

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

t he t im e

lim it at ions

Buyer’s right t o obj ect .

( 2 ) MEMBERSHI P

I N PROPERTY OWNERS ASSOCI ATI ON( S) : The

Propert y

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

propert y ow ners

associat ion( s) ,

Seller

not ifies

Buyer

under §5 . 012,

Texas

Propert y

Code, t hat ,

as a

purchaser of propert y

t he

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 o

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,

Propert y

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

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

including,

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

I nit ialed for ident ificat ion by Buyer

and Seller

TREC NO. 23 - 12

Cont r act Concer ning

Page 3 of 9 12-05-2011

( Addr ess of Pr oper t y )

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			t o	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

due annually

periodic

inst allm ent s.

inform at ion concerning

t he am ount

of t he assessm ent and

t he

due

dat es of t hat

assessm ent m ay be obt ained

from t he m unicipalit y

or count y

levying

t he

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

t he

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

any

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

t he

allow ances specified in

t he

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

t h e

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

The im provem ent s w ill be deem ed t o be

subst ant ially com plet ed

accor dance

w it h

t he Const ruct ion

Docum ent s

upon t he final

inspect ion

and approval

all applicable

governm ent al

aut horit ies

and

any

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

subst it ut e of

com parable

qualit y

and

price is

available w ill

be added

t o t he

t im e allow ed

for

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:

I nit ialed for ident ificat ion by Buyer

and Seller

TREC NO. 23 - 12

Cont r act Concer ning

Page 4 of 9

12-05-2011

( Addr ess of Pr oper t y )

( check only one box below )

( 1) as shown in t he at t ached specificat ions.

( 2) as follow s:

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

Walls in ot her areas of t he hom e: insulat ed w it h

insulat ion t o a t hickness of

inches which yields an R- Value of

Ceilings in 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

Floors of im proved

living areas

not applied t o a slab

foundat ion: insulat ed w it h

insulat ion t o a t hickness of

inches w hich yields an R-

Value of

Ot her insulat ed areas: insulat ed w it h

insulat ion t o a

t hickness of

inches which yields an R- Value 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,

t he

presence

of a

t hreat ened or endangered species or

it s

habit at

m ay affect Buyer ’s

int ended use

t he

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

disclosed

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

t he

Propert y;

( 2) any pending or t hreat ened lit igat ion, condem nat ion, or

special

assessm ent affect ing

t he

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:
( 1)	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 .
( 2)	Buyer shall pay t he Sales Price in good funds accept able t o t he escrow agent .
( 3)	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 .
( 4)	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. )

I nit ialed for ident ificat ion by Buyer

and Seller

TREC NO. 23 - 12

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Form Information

Fact Name	Fact Description
Governing Body	The Texas Real Estate Sales Contract is promulgated by the Texas Real Estate Commission (TREC).
Parties Involved	The contract involves two parties: the Seller and the Buyer.
Property Definition	The contract defines the Property by lot, block, addition, city, and county in Texas.
Sales Price Structure	The Sales Price includes a cash portion and financing options, detailed in the contract.
Earnest Money Requirement	Buyer must deposit earnest money with an escrow agent upon executing the contract.
Title Policy	The Seller is responsible for providing a title policy to the Buyer at closing.
Financing Options	Buyers can choose from various financing options, including third-party financing and seller financing.
Closing Date	The closing must occur on or before a specified date, or within seven days after resolving objections.
Possession Terms	Possession of the Property is delivered to the Buyer upon closing and funding.

Detailed Guide for Filling Out Texas Real Estate Sales Contract

Filling out the Texas Real Estate Sales Contract form is a crucial step in the home buying process. It requires careful attention to detail to ensure that all necessary information is accurately provided. Once the form is completed, it will be submitted for review and signatures from both parties involved in the transaction.

Identify the Parties: Fill in the names of the Seller and Buyer in the designated spaces.
Property Description: Provide the lot, block, addition, city, and county information, along with the property address and zip code.
Sales Price: Enter the cash portion of the sales price, the sum of financing, and calculate the total sales price.
Financing Details: Indicate the financing method by checking the appropriate boxes and providing necessary amounts.
Earnest Money: Specify the earnest money amount and the name and address of the escrow agent where it will be deposited.
Title Policy and Survey: Identify the title company and the details regarding the title policy and survey arrangements.
Property Condition: Acknowledge the condition of the property and any inspections that will be conducted.
Closing Date: Enter the proposed closing date or conditions under which the closing date may change.
Possession: Specify when the Buyer will take possession of the property.
Special Provisions: Include any additional terms or conditions that are specific to this transaction.
Settlement Expenses: Outline which party will be responsible for various closing costs.
Signatures: Ensure both parties sign and date the contract to make it legally binding.

Obtain Answers on Texas Real Estate Sales Contract

What is the Texas Real Estate Sales Contract?

The Texas Real Estate Sales Contract is a legally binding agreement between a buyer and a seller regarding the sale of real estate in Texas. This form is standardized and promulgated by the Texas Real Estate Commission (TREC) to ensure clarity and consistency in real estate transactions.
Who uses this contract?

This contract is used by individuals or entities involved in the sale of residential real estate in Texas. Both sellers and buyers must understand its terms to ensure a smooth transaction.
What information is included in the contract?

The contract includes essential details such as:
- The parties involved (buyer and seller)
- A description of the property being sold
- The sales price and payment terms
- Financing details, if applicable
- Earnest money deposit information
- Title policy and survey requirements
- Closing date and conditions
What is earnest money, and why is it important?

Earnest money is a deposit made by the buyer to demonstrate their commitment to purchasing the property. It is held in escrow and is typically applied to the purchase price at closing. If the buyer fails to follow through with the contract without a valid reason, the seller may keep the earnest money as compensation for their time and effort.
What happens if the property is not completed by the closing date?

If the property is not completed by the agreed-upon closing date, the buyer has several options. They may choose to terminate the contract and receive a refund of their earnest money, extend the closing date, or accept the property in its incomplete condition with an adjustment in the sales price.
What is a title policy, and who is responsible for it?

A title policy protects the buyer against any losses related to defects in the title of the property. The seller is typically responsible for providing a title policy to the buyer at their expense, ensuring that the buyer receives clear title to the property.
Can the contract be modified?

Yes, the contract can be modified, but any changes must be made in writing and signed by both parties. It is essential to document all modifications to avoid misunderstandings or disputes later on.
What should I do if I have objections to the title or survey?

If you have objections to the title or survey, you must notify the seller in writing within the specified time frame outlined in the contract. The seller is then obligated to address these objections, and if they are not resolved, you may have the option to terminate the contract.
What are the consequences of defaulting on the contract?

If either party defaults on the contract, the non-defaulting party has the right to seek remedies, which may include enforcing specific performance or terminating the contract. In the case of a buyer defaulting, the seller may retain the earnest money as liquidated damages.
Is legal advice recommended when using this contract?

Yes, it is highly recommended to seek legal advice when using the Texas Real Estate Sales Contract. Understanding the implications of the terms and conditions can help both parties protect their interests and ensure a successful transaction.

Common mistakes

Filling out the Texas Real Estate Sales Contract form can be a straightforward process, but there are common mistakes that can lead to complications. One significant error is failing to accurately identify the parties involved. The contract requires clear identification of the Seller and Buyer, including their full names and addresses. Omitting or misspelling this information can create confusion and potential legal issues down the line.

Another frequent mistake is neglecting to specify the property details correctly. The contract requires precise information about the property, including the lot, block, addition, and county. Incomplete or incorrect property descriptions can lead to disputes regarding what is being sold. Buyers and sellers must ensure that all property details match public records to avoid complications.

Additionally, many individuals overlook the financing section of the contract. It is crucial to clearly outline how the sales price will be financed. Buyers should check the appropriate boxes and provide accurate amounts for cash and financing portions. Failing to do so can result in misunderstandings about the payment structure and may jeopardize the transaction.

Finally, buyers often forget to address the earnest money deposit properly. The contract specifies the amount of earnest money that must be deposited with the escrow agent. If this deposit is not made as required, the buyer may be considered in default. Ensuring that all financial obligations are clearly stated and adhered to is essential for a smooth transaction.

Documents used along the form

The Texas Real Estate Sales Contract is a crucial document in the real estate transaction process. However, it is often accompanied by additional forms that provide essential details and protections for both buyers and sellers. Understanding these supplementary documents can help ensure a smoother transaction and clarify the obligations of each party.

Third Party Financing Addendum: This document outlines the terms and conditions related to any financing obtained through third-party lenders. It includes details about loan approval, property appraisal requirements, and the buyer's rights if the financing does not go through.
Seller Financing Addendum: If the seller is providing financing to the buyer, this addendum specifies the terms of the promissory note, including interest rates, repayment schedules, and any security interests in the property.
Property Disclosure Statement: This form requires the seller to disclose any known issues with the property, such as structural problems, environmental hazards, or past flooding. This information is vital for the buyer to make an informed decision.
Title Commitment: Issued by the title company, this document outlines the terms under which the title will be transferred. It includes information about any liens or encumbrances on the property and is essential for ensuring clear title at closing.
Residential Lease Agreement: If the buyer is to take possession of the property before closing, this agreement outlines the terms of the lease, including rental amounts and responsibilities for maintenance and utilities.

Each of these documents plays a significant role in the real estate transaction process in Texas. Familiarity with them can empower buyers and sellers, helping them navigate their obligations and rights effectively. As a result, parties can approach their transactions with confidence and clarity.

Similar forms

Texas Residential Lease Agreement: Similar to the Texas Real Estate Sales Contract, this document outlines the terms between a landlord and tenant for renting a property. Both documents detail the responsibilities of each party and include specifics about payments and property conditions.
Texas Option Contract: This document provides a buyer the right to purchase a property within a specified timeframe. Like the sales contract, it sets out the terms and conditions, including price and deadlines, but focuses on the option to buy rather than an immediate sale.
Texas Commercial Lease Agreement: This agreement governs the rental of commercial properties. Similar to the sales contract, it defines the rights and obligations of landlords and tenants, including rent, maintenance, and lease duration, tailored for business use.
Texas Seller Financing Addendum: This addendum is used when a seller finances part of the purchase price. It complements the sales contract by specifying the terms of financing, much like how the sales contract outlines the purchase price and payment methods.
Texas Third Party Financing Addendum: This document is used when a buyer obtains a loan from a lender. It details the financing terms, similar to how the sales contract includes financing options and requirements for the buyer to secure funding.

Dos and Don'ts

When filling out the Texas Real Estate Sales Contract form, there are several important considerations to keep in mind. Here’s a list of things you should and shouldn't do:

Do ensure that all parties' names are correctly spelled and clearly identified.
Do provide accurate property details, including the address and legal description.
Do specify the sales price and terms of financing clearly to avoid confusion.
Do review all terms thoroughly before signing to ensure understanding.
Don't leave any sections blank; incomplete forms can lead to legal issues.
Don't ignore deadlines for deposits or other obligations outlined in the contract.

Misconceptions

Misconception 1: The Texas Real Estate Sales Contract is only for residential properties.

This form can also be used for certain types of commercial transactions, as long as the property meets the criteria outlined in the contract.

Misconception 2: Once signed, the contract cannot be changed.

In fact, parties can negotiate and amend the contract, but all changes must be documented in writing and agreed upon by both parties.

Misconception 3: The earnest money deposit is non-refundable.

Earnest money can be refunded under specific circumstances, such as if the buyer fails to secure financing or if the property does not meet lender requirements.

Misconception 4: Title insurance is optional.

While it is technically optional, it is highly recommended to protect buyers against potential title issues that could arise after the purchase.

Misconception 5: Buyers can inspect the property at any time without permission.

Access to the property must be granted by the seller, and reasonable notice should be provided for inspections.

Misconception 6: The contract guarantees the property will be in perfect condition upon closing.

The contract includes provisions for repairs and conditions, but it does not guarantee perfection. Buyers should conduct thorough inspections.

Misconception 7: All financing options are available to all buyers.

Financing options depend on the buyer’s financial situation and lender requirements, which may vary widely.

Misconception 8: The seller is responsible for all closing costs.

Closing costs are typically shared between the buyer and seller, and specific expenses are outlined in the contract.

Misconception 9: The contract does not allow for contingencies.

Contingencies can be included in the contract, such as financing or inspection contingencies, to protect the buyer's interests.

Misconception 10: Once a closing date is set, it cannot be changed.

The closing date can be adjusted if both parties agree, especially if there are delays in financing or other unforeseen issues.

Key takeaways

Understand the Parties Involved: The Texas Real Estate Sales Contract clearly identifies the seller and buyer. Both parties must agree to the terms outlined in the contract for the sale to proceed.
Property Details are Crucial: Ensure that the property description is complete and accurate. This includes the lot, block, addition, city, and county. Any improvements or fixtures should also be noted.
Sales Price Breakdown: The contract requires a detailed breakdown of the sales price, including cash and financing components. Make sure to fill in all sections accurately to avoid confusion later.
Earnest Money Deposit: Upon signing the contract, the buyer must deposit earnest money with an escrow agent. This shows commitment to the purchase and is a critical step in the process.
Title Policy and Survey Requirements: The seller must provide a title policy and, depending on the agreement, a survey of the property. Buyers should review these documents carefully to identify any potential issues.
Closing Procedures: The closing date is vital. Both parties must be prepared to fulfill their obligations, including signing necessary documents and transferring funds. Delays can lead to complications, so stay organized.