What does a Texas real estate purchase agreement cost? If you are buying or selling real estate in Texas, you may be asking this question. Let’s explore this question and review some general information about real estate purchase agreements and what terms they should include.
Based on ContractsCounsel’s marketplace data, the average cost of a Texas real estate purchase agreement is $649.03.
How Much Does a Texas Real Estate Purchase Agreement Cost?
A Texas real estate purchase agreement is a legal contract that outlines the terms and conditions of the sale of real estate. It is executed by the seller and the buyer, and it includes certain terms and provisions that each party must meet before the sale can be finalized.
Texas real estate laws require a purchase agreement for every real estate sale. This contract must be drafted correctly, and the terms can drastically effect a real estate deal. For this reason, parties involved in buying or selling real estate often choose to hire a real estate attorney to draft the purchase agreement and assist with the transaction.
What is the Purpose of a Real Estate Purchase Agreement?
A real estate purchase agreement is used to show the parties’ intention to go through with the sale. It protects the interests of both parties throughout the escrow process and creates a smooth selling process.
When a real estate purchase agreement is signed, the sale is not finalized. The contract contains contingencies, or conditions, that must be met by both parties before the transfer of property can officially take place at closing.
If either party fails to meet the specified contingencies or otherwise breaches the terms of the purchase agreement, the un-breaching party may back out of the sale without legal repercussions.
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What’s Included in a Texas Real Estate Purchase Agreement
There are several types of Texas real estate purchase agreements, and each contract will include different information. The most common terms found in a purchase agreement include:
- Party information. The names, addresses, and contact information of the parties entering the contract.
- Property description. The property address, lot number, block number, and county where the property is located.
- Exclusions. Any property or fixtures the seller does not wish to sell or include in the transaction.
- Sales Price. The amount the buyer has agreed to pay for the property and method of payment.
- Leases. Whether the property is affected by any leases including residential leases, fixture leases, or natural resource leases.
- Earnest money deposit. A deposit to show the buyer’s commitment to the sale. The purchase agreement lists the deposit amount required and who will hold the deposit (usually an escrow agent).
- Title and policy survey. A contingency that requires the seller to produce a clean title free of liens or encumbrances.
- Property condition. A disclosure of any known issues or defects about the property and whether the buyer accepts the property “as is” or if the seller is required to make repairs.
- Additional contingencies. Any other conditions that must be met before the sale can be completed like financing, home inspection, or agreed upon repairs.
- Closing Date. The day that the deal will be finalized.
Many purchase agreements include additional clauses like information about escrow agents, attorney’s fees, casualty loss, and other special provisions. If you are unsure what information your purchase agreement should include, it is best to contact an experienced real estate attorney.
Texas Real Estate Purchase Agreement Drafting
Texas real estate purchase agreements are complicated legal documents and must be drafted correctly to protect the buyer and the seller throughout the buying process. The seller is typically responsible for providing the contract and many sellers choose to hire an attorney to draft the purchase agreement.
A real estate lawyer will know what needs to be included in the contract and the laws that govern real estate transactions in Texas. An attorney can draft a legally enforceable real estate purchase agreement that protects both the buyer and the seller throughout the transaction and transfer of property.
Texas Real Estate Purchase Agreement Review
If the seller provides the real estate contract, the buyer should consider hiring an attorney to review the agreement before signing it. Contracts generally favor the drafting party, so it is important for a buyer to have their own attorney to ensure the contract is fair and the buyer is protected.
An experienced real estate lawyer can review the terms of the contract and make sure that the buyer is protected. The lawyer will also explain the contract to the buyer if they are confused about any terms.
Texas Real Estate Purchase Agreement Drafting Cost
If you hire a lawyer to draft a real estate purchase agreement in Texas, you will incur legal fees. Your lawyer may charge a consultation fee, drafting fees, and for their time at the closing if they attend.
ContractsCounsel’s marketplace data shows Texas real estate purchase agreement drafting costs to be $750.00.
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Texas Real Estate Purchase Agreement Review Cost
If you choose to hire an attorney to review the real estate purchase agreement, you will be responsible for your own legal fees. The lawyer will charge for their time spent reviewing the contract and consultations with their client. It is also common for lawyers to attend the closing and this will incur costs as well.
ContractsCounsel’s marketplace data shows the average real estate purchase agreement review costs in Texas are $500.00.
How Do Texas Lawyers Charge for a Real Estate Purchase Agreement?
Hourly Rates for Texas Real Estate Purchase Agreements
Real estate lawyers in Texas usually bill clients using an hourly rate fee structure. Under this fee agreement, the attorney will keep track of their time working on the case. Under an hourly rate agreement, lawyers can also bill for travel time and for any hours their staff spend working on the case.
After closing, the lawyer will provide their client with a bill for the total hours spent working on their case.
ContractsCounsel’s marketplace data shows the average hourly rate for a Texas real estate lawyer is $200 - $350 per hour.
Flat Fee Rates for Texas Real Estate Purchase Agreements
When a lawyer is hired for a specific task like reviewing a real estate purchase agreement, they may choose to bill their client using a flat fee rate because it is a simpler billing structure.
The lawyer will estimate the number of hours the project will take to complete then quote an appropriate flat rate price for all legal services. It is important that a client understands what is included in a flat fee rate. Additional services like negotiating the contract or attending closing could incur additional legal fees.
ContractsCounsel’s marketplace data shows the average flat fee rate for a real estate purchase agreement in Texas is $649.03.
Get Help with a Texas Real Estate Purchase Agreement
Do you need help with a Texas real estate purchase agreement project? If so, post a project in ContractsCounsel's marketplace to receive flat fee bids from real estate lawyers who are licensed to practice law in Texas and can handle your project. All lawyers on the ContractsCounsel's platform are vetted by our team to make sure you are provided with top-tier service.
