The Texas Real Estate Sales Contract form is a standardized document used in real estate transactions within the state of Texas. This form outlines the terms and conditions agreed upon by the buyer and seller regarding the sale of property, including details about the property, financing, and closing procedures. To begin the process, fill out the form by clicking the button below.
Things You Should Do:
Things You Shouldn't Do:
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. )
Page 5 of
9
1 2 . SETTLEM EN T AN D OTH ER EX PEN SES:
A. The follow ing expenses m ust be paid at or pr ior t o closing:
( 1) Expenses payable by Seller ( Seller's Expenses) :
( a) Releases of exist ing liens, including prepay m ent penalt ies and recording fees;
release of
Seller ’s loan liabilit y; t ax
st at em ent s or cert ificat es; preparat ion
of deed; one- half of
escrow fee; and ot her expenses payable by Seller under t his cont ract .
( b) Seller shall also pay an am ount not t o exceed $
be applied in t he
follow ing order: Buyer’s Expenses which Buyer is prohibit ed from paying by FHA, VA,
Texas Vet erans Land Board or
ot her governm ent al loan program s,
and t hen
Buyer’s Expenses as allow ed by t he lender .
( 2) Expenses
payable by
( Buyer 's Expenses) : Appr aisal
fees;
loan applicat ion
adj ust ed originat ion charges;
credit report s; preparat ion
loan
docum ent s;
int erest on
t he not es
from dat e
of disbursem ent t o one
m ont h
prior t o
dat es
of first m ont hly
paym ent s;
recording
easem ent s
and rest rict ions;
t it le
policy
endorsem ent s required by
lender; loan - relat ed inspect ion
phot os;
am ort izat ion
schedules;
one- half of escrow fee; all prepaid it em s, including required prem ium s for flood
and hazard insurance, reserve deposit s for insurance, ad valorem t axes and special
assessm ent s;
final
com pliance inspect ion;
courier
fee;
repair inspect ion;
fee; w ire t ransfer
expenses incident
loan;
Privat e
Mort gage
I nsurance
Prem ium ( PMI ) ,
VA Loan
Funding Fee, or FHA Mort gage I nsurance
Prem ium
( MI P) as required by t he lender; and ot her expenses payable by Buyer under t his cont ract . B. I f any expense exceeds an am ount expressly st at ed in t his cont ract for such expense t o be paid by a part y, t hat part y m ay t erm inat e t his cont ract unless t he ot her part y agrees t o pay such excess. Buyer m ay not pay charges and fees expressly prohibit ed by FHA, VA, Texas Vet erans
Land Board or ot her governm ent al loan program regulat ions.
1 3 . PRORATI ON S AN D ROLLBACK TAX ES:
A. PRORATI ONS: Taxes for t he cur rent year , m aint enance fees, assessm ent s, dues and r ent s w ill be prorat ed t hrough t he Closing Dat e. The t ax prorat ion m ay be calculat ed t aking int o considerat ion any change in exem pt ions t hat w ill affect t he cur r ent year 's t axes. I f t axes for t he
current year vary from t he am ount prorat ed at
closing, t he
part ies shall adj ust
t he prorat ions
w hen t ax st at em ent s for t he current year are
available. I f
t axes are not paid
at or prior t o
closing, Buyer w ill be obligat ed t o pay t axes for t he cur r ent year .
B. ROLLBACK TAXES: I f Seller’s change in
use of t he Propert y prior t o closing or denial of a special
use valuat ion on t he Propert y result s in
addit ional t axes, penalt ies or int er est ( Assessm ent s) for
periods prior t o closing, t he Assessm ent s w ill be t he obligat ion of Seller . Obligat ions im posed by t his paragraph w ill survive closing.
1 4 . CASUALTY LOSS: I f any part of t he Propert y is dam aged or dest royed by fire or ot her casualt y aft er t he effect ive dat e of t his cont ract , Seller shall rest ore t he Propert y t o it s previous condit ion as
soon as reasonably possible, but in any
event
by t he Closing Dat e. I f Seller fails t o do so due
t o fact ors beyond Seller’s cont rol, Buyer
m ay ( a)
t erm inat e t his cont ract and t he earnest m oney
w ill be refunded t o Buyer ( b) ext end t he t im e for perform ance up t o 45 days and t he Closing Dat e w ill be ext ended as necessary or ( c) accept t he Propert y in it s dam aged condit ion w it h an assignm ent of insurance proceeds and receive credit from Seller at closing in t he am ount of t he deduct ible under t he insurance policy . Seller ’s obligat ions under t his paragraph are independent of any ot her obligat ions of Seller under t his cont ract .
1 5 . D EFAULT: I f Buyer fails t o com ply w it h t his cont ract , Buyer w ill be in default , and Seller m ay ( a)
enforce specific perform ance, seek such
ot her relief as m ay be provided
by law , or bot h, or ( b)
t erm inat e t his cont ract and receive t he earnest m oney
as liquidat ed dam ages,
t hereby releasing
bot h part ies from t his cont ract . I f Seller
fails t o com ply
w it h t his cont ract
w ill be in default
and Buyer m ay ( a) enforce specific perform ance, seek such ot her relief as m ay be provided by law ,
or bot h, or ( b)
t erm inat e t his
cont r act and
r eceive t he earnest
m oney, t hereby releasing bot h
part ies from t his cont ract .
1 6 . M ED I ATI ON : I t
is t he policy
of t he St at e of
Texas t o encourage
resolut ion of disput es t hrough
alt ernat ive disput e resolut ion procedures such as m ediat ion . Subj ect t o applicable law , any disput e bet w een Seller and Buyer r elat ed t o t his cont ract w hich is not resolved t hrough inform al discussion
w ill w ill not be subm it t ed t o a m ut ually accept able m ediat ion service or provider . The part ies t o t he m ediat ion shall bear t he m ediat ion cost s equally . This paragraph does not preclude a part y from seeking equit able relief from a cour t of com pet ent j ur isdict ion .
1 7 . ATTORN EY' S FEES: A Buyer, Seller, List ing Broker, Ot her Broker, or escrow agent w ho prevails in any legal proceeding relat ed t o t his cont ract is ent it led t o recover reasonable at t orney’s fees and all cost s of such proceeding.
1 8 . ESCROW :
A. ESCROW: The escr ow agent is not ( i) a par t y t o t his cont ract and does not have liabilit y for t he perform ance or nonperform ance of any part y t o t his cont ract , ( ii) liable for int erest on t he
Page 6 of 9 12-05-2011
earnest m oney and ( iii) liable for t he loss of any earnest m oney caused by t he failure of any
financial inst it ut ion in w hich t he earnest m oney has been deposit ed
unless t he financial
inst it ut ion is act ing as escrow agent .
B. EXPENSES: At closing, t he earnest m oney m ust be applied first t o any cash dow n paym ent ,
t hen t o Buyer's Expenses and any excess refunded t o Buyer . I f no closing occurs, escrow
agent m ay: ( i) r equire a w r it t en r elease of liabilit y of t he escr ow agent
fr om all par t ies, ( ii)
require paym ent of unpaid expenses incurred on behalf of a part y, and ( iii) only deduct from t he earnest m oney t he am ount of unpaid expenses incurred on behalf of t he part y receiving t he earnest m oney .
C.DEMAND: Upon t erm inat ion of t his cont ract , eit her part y or t he escrow agent m ay send a release of earnest m oney t o each part y and t he part ies shall ex ecut e count erpart s of t he
release and deliver sam e t o t he escrow agent . I f eit her part y fails t o execut e t he release, eit her par t y m ay m ake a w r it t en dem and t o t he escrow agent for t he earnest m oney . I f only one part y m akes w rit t en dem and for t he earnest m oney, escrow agent shall prom pt ly provide a copy of t he dem and t o t he ot her part y . I f escrow agent does not receive w rit t en obj ect ion t o t he dem and from t he ot her part y w it hin 15 days, escrow agent m ay disbur se t he earnest m oney t o t he part y m aking dem and reduced by t he am ount of unpaid expenses incurred on behalf of t he part y receiving t he earnest m oney and escrow agent m ay pay t he sam e t o t he credit ors. I f escrow agent com plies w it h t he pr ovisions of t his par agr aph, each part y hereby releases escrow agent from all adverse claim s relat ed t o t he disbursal of t he earnest m oney .
D.DAMAGES: Any part y w ho w rongfully fails or refuses t o sign a release accept able t o t he escrow agent w it hin 7 days of receipt of t he request w ill be liable t o t he ot her part y for liquidat ed dam ages in an am ount equal t o t he sum of: ( i) t hree t im es t he am ount of t he
earnest m oney; ( ii) t he earnest m oney; ( iii) reasonable at t orney's fees; and ( iv) all cost s of suit .
E. NOTI CES: Escrow agent 's not ices w ill be effect ive w hen sent in com pliance w it h Paragraph 21 . Not ice of obj ect ion t o t he dem and w ill be deem ed effect ive upon receipt by escrow agent .
1 9
. REPRESEN TATI ON S: All covenant s,
represent at ions and w arrant ies in t his cont ract survive
closing. I f any represent at ion of Seller in t his cont ract is unt rue on t he Closing Dat e, Seller w ill
be in default .
Unless expressly prohibit ed by w rit t en agreem ent , Seller
m ay cont inue t o show
t he Propert y and receive, negot iat e and accept back up offers.
2 0
. FED ERAL TAX REQUI REM EN TS: I f Seller is a " foreign person,” as defined by applicable law, or
if Seller fails t o deliver an affidavit t o Buyer t hat Seller is not a " foreign person,” t hen Buyer shall
w it hhold from
t he sales proceeds an am ount sufficient t o com ply w it h
applicable t ax law and
deliver t he sam e t o t he I nt ernal Revenue Service t oget her w it h appropr iat e t ax for m s. I nt er nal
Revenue Service regulat ions require
filing w rit t en
report s if currency
excess of specified
am ount s is received in t he t ransact ion .
2 1
. N OTI CES: All
not ices from one part y
t o t he ot her
m ust be in w rit ing
are effect ive w hen
m ailed t o, hand- deliver ed at , or t ransm it t ed by facsim ile or elect ronic t ransm ission as follow s:
To Bu y e r a t :
To Se lle r a t :
Telephone:
(
)
Facsim ile:
E- m ail:
Page 7 of 9
2 2 . AGREEM EN T OF PARTI ES:
This cont ract
cont ains t he ent ire agr eem ent
of t he part ies and
cannot be changed except by
t heir w rit t en
agreem ent . Addenda w hich
are a part
of t his
cont ract are ( check all applicable boxes) :
Third Party Financing Addendum for Credit Approval
Seller Financing Addendum
Addendum for Pr oper t y Subj ect t o Mandat ory Mem bership in a Propert y Ow ners Associat ion
Buyer’s Tem porary Resident ial Lease
Loan Assum pt ion Addendum
Addendum for Sale of Ot her Pr oper t y by Buyer
Addendum for Reser vat ion of Oil, Gas and Ot her Minerals
Addendum for " Back - Up" Cont r act
Addendum for Coast al Area Pr oper t y
Environm ent al Assessm ent , Threat ened or Endangered Species and Wet lands Addendum
Seller’s Tem por ary Resident ial Lease
Shor t Sale Addendum
Addendum for Propert y Locat ed Seaw ard of t he Gulf I nt racoast al Wat erw ay
Ot her ( list ) :
2 3 . TERM I N ATI ON OPTI ON : For nom inal consider at ion, t he receipt
of which is hereby
acknow ledged by Seller , and Buyer's agreem ent t o pay Seller $
( Opt ion Fee)
w it hin 2 days aft er t he effect ive dat e of t his cont ract , Seller grant s Buyer t he unrest rict ed right t o
t er m inat e t his cont r act by giving not ice of t er m inat ion t o Seller w it hin
days aft er t he
effect ive dat e of t his cont ract ( Opt ion Period) . I f no dollar am ount is st at ed as t he Opt ion Fee or
if
Buyer fails t o pay t he Opt ion Fee t o Seller w it hin t he t im e prescribed, t his paragraph w ill not be
part of t his cont ract and Buyer shall not have t he unrest rict ed right t o t er m inat e t his cont r act .
I f Buyer
gives not ice of
t erm inat ion w it hin t he t im e prescribed, t he Opt ion Fee
w ill not be
refunded;
how ever, any
earnest m oney w ill be refunded t o Buyer . The Opt ion Fee
w ill
not be credit ed t o t he Sales Price at closing. Tim e is of t h e e sse n ce for t h is pa r a gr a ph
st r ict com plia n ce w it h t h e t im e for pe r for m a n ce is r e qu ir e d .
2 4 . CON SULT AN ATTORN EY: TREC rules prohibit real est at e licensees from giving legal advice. READ THI S CONTRACT CAREFULLY. I f you do not under st and t he effect of t his cont r act , consult an at t orney BEFORE signing.
Buyer's
Seller's
At t orney is:
Page 8 of 9 12-05-2011
EX ECUTED t h e
da y of
, 2 0
( EFFECTI V E D ATE) .
( BROKER: FI LL I N TH E D ATE OF FI N AL ACCEPTAN CE. )
This cont ract is subj ect t o Chapt er 27 of t he Texas Proper t y Code. The pr ovisions of t hat
chapt er m ay
affect your
right t o recover
dam ages arising from a const ruct ion defect .
y ou h av e
a com plain t
con cer n in g
const r uct ion defect and t hat defect has not
been correct ed as
m ay be required by
law or
by cont ract , you
m ust provide t he
not ice
required by Chapt er 27 of t he Texas Propert y Code t o t he cont ract or by cert ified m ail, ret urn r eceipt r equest ed, not lat er t han t he 60t h day
before t he
dat e
you
file
suit
recover
dam ages in
court
law
init iat e
arbit rat ion .
The
m ust
refer
27of t he Texas Proper t y Code and m ust describe t he const ruct ion defect . I f r equest ed
by t he cont ract or, you
m ust provide
cont ract or an opport unit y
t o inspect
and cure
t he defect as provided by Sect ion
27. 004
t he Texas Propert y Code.
The for m of t his cont r act has been appr oved by t he Texas Real Est at e Com m ission. TREC for m s ar e int ended for use only by t r ained r eal est at e licensees. No r epr esent at ion is m ade as t o t he legal validit y or adequacy of any pr ovision in any spe- cific t r ansact ions. I t is not int ended for com plex t r ansact ions. Texas Real Est at e Com m ission, P. O. Box 12188, Aust in, TX 78711 - 2188, ( 512) 936 - 3000 ( ht t p: / / w w w . t r ec. t exas. gov ) TREC NO. 23 - 12 . This for m r eplaces TREC NO. 23 - 11 .
Page 9 of 9 12-05-2011
BROKER I N FORM ATI ON
Ot her Br ok er Fir m
License No.
r epr esent s
Buyer only as Buy er ’s agent
Seller as List ing Br oker ’s subagent
Licensed Super v isor of Associat e
Telephone
Associat e
Ot her Br ok er 's Addr ess
Facsim ile
Cit y
St at e
Zip
Associat e Em ail Address
List ing Br oker Fir m
Seller and Buy er as an int er m ediar y
Seller only as Seller ’s agent
List ing Associat e
List ing Br oker ’s Office Addr ess
List ing Associat e’s Em ail Addr ess
Selling Associat e
Selling Associat e’s Office Addr ess
Selling Associat e’s Em ail Addr ess
List ing Broker has agreed t o pay Ot her Brokerof t he t ot al sales price w hen t he List ing Broker’s
fee is received. Escrow agent is aut horized and direct ed t o pay ot her Broker from List ing Broker’s fee at closing.
OPTI ON FEE RECEI PT
Receipt of $
( Opt ion Fee) in t he for m of
is acknow ledged.
Seller or List ing Broker
Dat e
CON TRACT AN D EARN EST M ON EY RECEI PT
Receipt of Cont r act and $
Earnest Money in t he form of
Escr ow Agent :
Dat e:
By:
Em ail Addr ess
Telephone (
Address
Facsim ile: (
Texas Surplus Lines Association - Taxpayers can find additional information online about insurance taxes.
Texas Builder - Assignments of warranties related to manufactured products ensure coverage for appliances and fixtures.
Lien Waiver Example - The release ensures that the property owner can freely use their property after payment.
When engaging in a real estate transaction in Texas, the Texas Real Estate Sales Contract form serves as a foundational document. However, several other forms and documents often accompany this contract to ensure all aspects of the transaction are adequately addressed. Below is a brief overview of five key documents that are commonly used alongside the Texas Real Estate Sales Contract.
These documents work in conjunction with the Texas Real Estate Sales Contract to create a comprehensive framework for the transaction. Each form plays a vital role in protecting the interests of both buyers and sellers, facilitating a smoother process from negotiation to closing.
Filling out the Texas Real Estate Sales Contract form can be a complex task, and many individuals make common mistakes that can lead to complications down the line. One frequent error occurs when parties fail to accurately identify themselves in the contract. It is crucial to clearly state the names of both the seller and the buyer. Omitting or misspelling names can create confusion and legal issues later.
Another common mistake is neglecting to provide a complete and accurate property description. The contract requires specific details about the property, including the lot, block, and addition. If this information is incomplete or incorrect, it can complicate the transaction and potentially lead to disputes over property boundaries or ownership.
Many buyers also overlook the importance of detailing the sales price. It is essential to break down the sales price into cash portions and financing amounts. Failing to do so can lead to misunderstandings regarding the total amount due at closing, which can create tension between the parties involved.
Inadequate attention to the financing section is another mistake. Buyers often check the wrong boxes or fail to provide the necessary details about third-party financing or seller financing. This oversight can affect the buyer's ability to secure the necessary funds for the purchase, leading to delays or even contract termination.
Another critical area where errors occur is in the earnest money section. Buyers sometimes forget to specify the amount of earnest money or the escrow agent's details. This omission can jeopardize the buyer’s position in the transaction and may result in default if the earnest money is not deposited as required.
Buyers frequently misunderstand the title policy and survey requirements. They may not realize that the seller is responsible for providing a title policy and that the buyer must obtain a survey. Not addressing these details can lead to significant issues regarding property ownership and boundaries.
Additionally, failing to address objections regarding title defects in a timely manner is a common pitfall. Buyers must be vigilant about reviewing the title commitment and survey and must raise any objections within the specified timeframe. Missing this deadline can result in waiving the right to object, potentially leading to unexpected issues post-closing.
Lastly, many individuals neglect to consult with legal or real estate professionals before submitting the contract. This oversight can lead to misunderstandings about the terms and conditions of the contract. Seeking professional advice can help ensure that all parties understand their rights and obligations, ultimately facilitating a smoother transaction.
This form is specifically designed for residential properties and is not suitable for condominiums or transactions that occur before the completion of construction.
Earnest money is a crucial part of the agreement. Buyers must deposit a specified amount with an escrow agent upon signing the contract to show their commitment to the purchase.
Buyers who fail to meet the terms of the contract may be considered in default, which could lead to losing their earnest money or facing other legal repercussions.
Closing costs are typically shared between the buyer and seller. The contract outlines which party is responsible for specific expenses, and these can vary based on negotiations.
Sellers are not required to offer a warranty unless explicitly stated in the contract. The agreement may include specific terms regarding warranties, but these are not standard.
Any assumption of financing must be agreed upon by the seller and documented in the contract. The seller has the right to approve or deny such arrangements.
The contract includes stipulations regarding the property's condition and requires sellers to complete improvements as outlined in the construction documents. Buyers have the right to inspect the property before closing.
Title insurance is an important part of the transaction. The seller is required to provide an owner’s policy of title insurance to protect the buyer against potential title issues.
Any changes to the contract must be agreed upon by both the buyer and seller. Modifications should be documented in writing to avoid disputes later.
Completing the Texas Real Estate Sales Contract form requires careful attention to detail. This document outlines the terms of the sale between the buyer and seller, ensuring that both parties understand their obligations and rights. Below are the steps to fill out the form effectively.
Once the form is completed, both parties should review it carefully to confirm that all information is accurate. The next steps involve submitting the signed contract to the escrow agent and preparing for the closing process.