Texas Real Estate Contract: Different Types and Key Terms to Include
Quick Facts — Real Estate Contract Lawyers (Texas)
- Avg cost to draft a Real Estate Purchase Agreement: $880.00
- Avg cost to review a Real Estate Purchase Agreement: $460.00
- Lawyers available: 60 Texas real estate lawyers
- Clients helped: 57 recent real estate contract projects in Texas
- Avg lawyer rating: 4.93 (6 reviews)
What is a Texas Real Estate Contract?
A Texas real estate contract, also known as a residential purchase and sale agreement, is a legally binding contract that is entered into by a buyer and a seller to facilitate a real estate sale. It is common for buyers and sellers to hire realtors and real estate agents to help with the transaction, but it is also possible to complete the sale on your own.
The contract is initiated when a buyer provides the seller with a valid offer in writing. If the seller accepts the offer, the two parties will negotiate the real estate contract terms that will govern the sale. The contract becomes legally binding and enforceable when it is signed by both parties as long as it adheres to all applicable real estate and contract law.
Common Texas Real Estate Contracts
The most common Texas real estate contracts are those approved by the Texas Real Estate Commission, or TREC. There are several types of TREC contracts, and each contract has a different purpose.
- Standard Residential Purchase Agreement (1-4 family). The most commonly used form because it is for the purchase and sale of residential homes under four units. This form can be used for single family homes, duplexes, triplexes, and quads.
- Condominium Purchase Agreement. Used for buying or selling condominiums when the sale does not include developers and builders.
- Farm and Ranch. Used when selling a farm or ranch, this contract includes clauses relating to land rights, zoning, and other issues that are more specific to farm and ranch land.
- New Home Contract (completed construction). Used when purchasing and newly built and finished home. This home has not been previously owned by another homeowner.
- New Home Contract (incomplete construction). Used when purchasing a home that has not been constructed or completed. Closing will occur after the home is completed and this form should not be used for condos or when the closing date is set prior to completion of the home.
Can Anyone Use a TREC Contract?
Yes. TREC contracts are available for public use so anyone buying or selling a house is free to utilize these contract forms. These forms however were created and approved by the Texas Real Estate Commission and were meant to be used by licensed real estate brokers and agents who are trained to correctly complete these forms. Any mistakes on these forms could lead to an invalid real estate contract and a financial loss.
If you are buying or selling a property, it is highly recommended that you consult with a licensed realtor or real estate attorney to assist in the transaction. A professional can walk you through the process and ensure you understand all the terms of the real estate contract.
4 Essential Elements of a Texas Real Estate Contract
In Texas, the 4 essential elements that make a real estate contract valid and legally binding include:
- A valid offer and acceptance of the offer
- A legal purpose for the contract
- Mutual assent or agreement between the parties
- Consideration
Real estate contracts must also be in writing and signed by both parties before they are considered valid and binding.
Is Texas a Buyer Beware State?
In Texas, the principle of “buyer beware” only applies to multi-family properties. When selling a single-family home, sellers are required to provide the buyer with a seller’s disclosure notice and other state required disclosures.
When selling a multi-family property, the buyer does not have the protections of required disclosures. The buyer is responsible to do their due diligence and have the property inspected for defects before agreeing to finalize the sale.
Frequently Asked Questions
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Meet some of our Texas Real Estate Contract Lawyers
Max K.
Transactional attorney with experience in drafting, reviewing and negotiating contracts, licenses, leases, general business practices and dispute resolution. Licensed in Nevada, California and New York. I never charge for phone calls - happy to chat. www.linkedin.com/in/maxkelner
"I have been attempting to find an attorney for this project for months. I am extremely thankful I connected with Max and that he delivered."
Morgan S.
Corporate Attorney that represents startups, businesses, investors, VC/PE doing business throughout the country. Representing in a range of matters from formation to regulatory compliance to financings to exit. Have a practice that represents both domestic and foreign startups, businesses, and entrepreneurs. Along with VC, Private Equity, and investors.
"Morgan was very detailed in his response and explanations. He showed me red flags, potential solutions, and where problems may occur. He explained some high risk clauses that did not make sense and I should not accept. Overall, Morgan saved me from bad business deal when I flagged his concerns to the counterparty. Thanks Morgan!"
Ivan B.
I grew up in Beaumont, Texas. I attended Baylor University for college and the The University of Texas School of Law for law school. I gained extensive experience in many areas of transactional law through my former position as corporate counsel at National Western Life Insurance Company and my current position as an Associate at Nance & Simpson, LLP.
"Ivan is an excellent attorney, very meticulous, thorough, and incredibly fast. He pays close attention to every detail and makes sure everything is done right. I really appreciate his efficiency and professionalism. Highly recommend."
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Mark P.
I represent a diverse mix in a vast array of specialties, including litigation, contracts, compliance, business and financial strategies, and emerging industries. Credit for this foundation of strength goes to those who taught me. Skilled professors and professionals fostered my powerful educational and professional background. Prior to law school, I earned dual Bachelor’s degrees in Business Administration & Accounting from Peru State College. I received a Master of Business Administration degree from Chadron State College. My ambitions did not stop there. While working full time as a Senior Accountant for the University of Missouri, Columbia, I achieved the lifelong goal of becoming a licensed Certified Public Accountant (CPA). Mizzo provided excellent opportunities and amazing experiences. Managing over $50M in government and private research funding was a gift. As a high ranking professional in the Department of Research, I was given priceless insight into the greatest scientific, journalistic, medical, and legal minds in the world. My passion for successful growth did not, and has not stopped. I graduated summa cum laude (top 3%) with a Doctorate in Law, emphasizing in urban, land use and environmental/toxic tort law from the University of Missouri, Kansas City. This success lead to invaluable experiences of serving as Hon. Brian C. Wimes' judicial clerk for the U.S. District Court for the W. D. of Missouri, as a staff editor/writer for UMKC Law Review, and as a litigation and transactional attorney with Lathrop GPM (fka Lathrop & Gage). My professional and personal network is expansive, with established relationships throughout the U.S. and overseas. Although I engage in legal practice all over the country, I maintain law licenses in Missouri, Kansas, and Nebraska. Federally, I hold licenses in the W.D. and E.D. of Missouri and the District of Nebraska. To offer extra value, efficiency, and options, I maintain a CPA license and am obtaining a real-estate brokerage license.
"I contacted Parachini Law after I had sent multiple unanswered information requests a third party. Mark not only send out a record request to the address specified, but also sent out additional requests at other possible business addresses to ensure the request was received. As a result, I finally received the information I was looking for. The firm was very professional to work with."
Michael A.
A veteran real estate attorney with experience ranging from drafting and negotiating land development agreements, to purchase and sale and lease agreements for multifamily and large commercial proects.
"Enjoyed working with Michael. He answered all my questions and gave a through feedback on the contract. Highly recommend him."
October 9, 2023
Jordan P.
I am a licensed Texas attorney based in Temple with experience in family law, landlord-tenant disputes, real estate matters, and contract litigation. I previously practiced for nearly four years with a litigation firm in Killeen, where I handled a wide range of civil cases from intake through trial. I now operate my own practice and take on select freelance projects that align with my skill set and client needs.
Amy F.
As a lawyer of 27 years, I have a great deal of experience handling many different types of legal projects. Starting with a simple estate plan or the purchase of a personal residence, and moving all the way to complex estate plans and real estate transactions. I regularly advise small business owners and real estate investors.
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Real Estate
Real Estate Contract
Georgia
WHAT ARE YOUR FEES TO PERFORM QUIT CLAIM DEED COMPLETE BUTTS COUNTY GEORGIA 30233
SON AND EX
Meghan T.
Hi. The cost for my practice to prepare a Quit Claim Deed is $99. The Cost for me to handle the closing is $250 plus recording fees. These costs apply for any county within the state of Georgia. Let me know if you have any more questions. Meghan K Thomas
Real Estate
Real Estate Contract
New York
Can you purchase or refinance under a land contract?
I’ve been living here for 2 years. Currently have been working with my credit union and they are having a terrible time trying to understand the legalities of my land contract first off, and secondly they just don’t seem to know what they are doing. It’s been over 8 months, 4 different loan officers and I’m once again waiting for someone else to help finish this thing out. It’s only $60,000 with a $120,000 appraisal. So, as of now I am stuck paying 2.5x monthly under this land contract than I was promised would be an easy mortgage process. So any guidance in the right direction would be very helpful. It’s a New York home. 20 yr fixed, no balloon, with a (brace yourself) 12% apr. HELP ME PLEASE! One month I’m being told to authorize a credit check for a first time homebuyer grant method of mortgaging this property. The next it’s authorizing it for a refinance. I do have earnest money deposits for over $3,000 and another $3000 paid towards principal under this land contract also.
Jane C.
I suggest you speak with a New York real estate attorney. That attorney needs to review the documents related to the transaction.
Real Estate
Real Estate Contract
Illinois
what is better to buy land or rent for construction in US?
we are a construction company from Ukraine, we are planning to build a cottage town in the USA
T. Phillip B.
I suppose it doesn't matter if you have the lease giving you permission and the lease is long enough to justify the building expense when you won't own it. But I'd buy the land so you could eventually sell the property with the building on it.
Real Estate
Real Estate Contract
Georgia
How many years does a quick claim become effective?s
Number of years for quick claim to be effect ive
Meghan T.
A quit claim deed is effective upon execution so long as the deed is dated as of the date of signature. Execution means that the deed is signed, in front of a witness and a notary. The witness and notary must also sign the deed. Finally, the deed must be recorded. This means that the deed must be submitted to the Superior Court recording office of the County in which the property sits. Please let me know if you have any questions. Thanks, Meghan K Thomas
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ContractsCounsel User
Purchasing a building in New York with seller finance. Created a business with this model looking for long term Attorney.
Location: New Jersey
Turnaround: Less than a week
Service: Drafting
Doc Type: Real Estate Purchase Agreement
Number of Bids: 3
Bid Range: $225 - $1,500
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