Content Overview
The TREC One to Four Family Residential Contract Form serves as a crucial document in real estate transactions within Texas, facilitating the sale and purchase of residential properties. This comprehensive form encompasses essential elements such as the identification of the parties involved, detailed property descriptions, and the purchase price. Additionally, it outlines critical terms and conditions, including financing arrangements, earnest money deposits, and closing procedures. Buyers and sellers alike must pay close attention to provisions regarding inspections, repairs, and disclosures, as these can significantly impact the transaction. Furthermore, the form addresses contingencies that may arise, such as the buyer’s ability to secure financing or the sale of their current home. By understanding the intricacies of this contract, individuals can navigate the complexities of real estate transactions more effectively, ensuring that their rights and obligations are clearly defined and protected.
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Initialed for identification by Buyer and Seller TREC NO. 20-18
Contract Concerning Page of 11 11-04-2024
(Address of Property)
PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)
ONE TO FOUR FAMILY RESIDENTIAL CONTRACT (RESALE)
NOTICE: Not For Use For Condominium Transactions
1. PARTIES: The parties to this contract are
(Seller) and (Buyer).
Seller agrees to sell and convey to Buyer and Buyer agrees to buy from Seller the Property defined
below.
2. PROPERTY: The land, improvements and accessories are collectively referred to as the Property
(Property).
A. LAND: Lot Block ,
Addition, City of , County of ,
Texas, known as
(address/zip code), or as described on attached exhibit.
B. IMPROVEMENTS: The house, garage and all other fixtures and improvements attached to the
above-described real property, including without limitation, the following permanently
installed and built-in items, if any: all equipment and appliances, valances, screens,
shutters, awnings, wall-to-wall carpeting, mirrors, ceiling fans, attic fans, mail boxes, television
antennas, mounts and brackets for televisions and speakers, heating and air-conditioning units,
security and fire detection equipment, wiring, plumbing and lighting fixtures, chandeliers, water
softener system, kitchen equipment, garage door openers, cleaning equipment, shrubbery,
landscaping, outdoor cooking equipment, and all other property attached to the above
described real property.
C. ACCESSORIES: The following described related accessories, if any: window air conditioning
units, stove, fireplace screens, curtains and rods, blinds, window shades, draperies and rods,
door keys, mailbox keys, above ground pool, swimming pool equipment and maintenance
accessories, artificial fireplace logs, security systems that are not fixtures, and controls for: (i)
garage doors, (ii) entry gates, and (iii) other improvements and accessories. “Controls” includes
Seller’s transferable rights to the (i) software and applications used to access and control
improvements or accessories, and (ii) hardware used solely to control improvements or
accessories.
D. EXCLUSIONS: The following improvements and accessories will be retained by Seller and
must be removed prior to delivery of possession:
.
E. RESERVATIONS: Any reservation for oil, gas, or other minerals, water, timber, or other
interests is made in accordance with an attached addendum.
3. SALES PRICE:
A. Cash portion of Sales Price payable by Buyer at closing ........................... $
The term “Cash portion of the Sales Price” does not include proceeds from borrowing of any
kind or selling other real property except as disclosed in this contract.
B. Sum of all financing described in the attached: q Third Party Financing Addendum,
q Loan Assumption Addendum, q Seller Financing Addendum .......... $
C. Sales Price (Sum of A and B) ............................................................... $
4. LEASES: Except as disclosed in this contract, Seller is not aware of any leases affecting the
Property. After the Effective Date, Seller may not, without Buyer's written consent, create a new
lease, amend any existing lease, or convey any interest in the Property. (Check all applicable
boxes)
q A. RESIDENTIAL LEASES: The Property is subject to one or more residential leases and the
Addendum Regarding Residential Leases is attached to this contract.
q B. FIXTURE LEASES: Fixtures on the Property are subject to one or more fixture leases (for
example, solar panels, propane tanks, water softener, security system) and the Addendum
Regarding Fixture Leases is attached to this contract.
q C. NATURAL RESOURCE LEASES: “Natural Resource Lease” means an existing oil and gas,
mineral, geothermal, water, wind, or other natural resource lease affecting the Property to
which Seller is a party.
q (1) Seller has delivered to Buyer a copy of all the Natural Resource Leases.
q (2) Seller has not delivered to Buyer a copy of all the Natural Resource Leases. Seller shall
provide to Buyer a copy of all the Natural Resource Leases within 3 days after the Effective
Date. Buyer may terminate the contract within _____ days after the date the Buyer
receives all the Natural Resource Leases and the earnest money shall be refunded to
Buyer.
EQUAL HOUSING
OPPORTUNITY
Initialed for identification by Buyer and Seller TREC NO. 20-18
Contract Concerning Page 2 of 11 11-04-2024
(Address of Property)
5. EARNEST MONEY AND TERMINATION OPTION:
A. DELIVERY OF EARNEST MONEY AND OPTION FEE: Within 3 days after the Effective Date, Buyer
must deliver to (Escrow Agent) at
(address): $ as earnest money and $
as the Option Fee. The earnest money and Option Fee shall be made payable to Escrow Agent
and may be paid separately or combined in a single payment.
(1) Buyer shall deliver additional earnest money of $ to Escrow Agent within
days after the Effective Date of this contract.
(2) If the last day to deliver the earnest money, Option Fee, or the additional earnest money
falls on a Saturday, Sunday, or legal holiday, the time to deliver the earnest money, Option
Fee, or the additional earnest money, as applicable, is extended until the end of the next day
that is not a Saturday, Sunday, or legal holiday.
(3) The amount(s) Escrow Agent receives under this paragraph shall be applied first to the
Option Fee, then to the earnest money, and then to the additional earnest money.
(4) Buyer authorizes Escrow Agent to release and deliver the Option Fee to Seller at any time
without further notice to or consent from Buyer, and releases Escrow Agent from liability for
delivery of the Option Fee to Seller. The Option Fee will be credited to the Sales Price at
closing.
B. TERMINATION OPTION: For nominal consideration, the receipt of which Seller acknowledges,
and Buyer's agreement to pay the Option Fee within the time required, Seller grants Buyer the
unrestricted right to terminate this contract by giving notice of termination to Seller within
days after the Effective Date of this contract (Option Period). Notices under this
paragraph must be given by 5:00 p.m. (local time where the Property is located) by the date
specified. If Buyer gives notice of termination within the time prescribed: (i) the Option Fee will
not be refunded and Escrow Agent shall release any Option Fee remaining with Escrow Agent to
Seller; and (ii) any earnest money will be refunded to Buyer.
C. FAILURE TO TIMELY DELIVER EARNEST MONEY: If Buyer fails to deliver the earnest money
within the time required, Seller may terminate this contract or exercise Seller’s remedies under
Paragraph 15, or both, by providing notice to Buyer before Buyer delivers the earnest money.
D. FAILURE TO TIMELY DELIVER OPTION FEE: If no dollar amount is stated as the Option Fee or if
Buyer fails to deliver the Option Fee within the time required, Buyer shall not have the
unrestricted right to terminate this contract under this paragraph 5.
E. TIME: Time is of the essence for this paragraph and strict compliance with the time for
performance is required.
6. TITLE POLICY AND SURVEY:
A. TITLE POLICY: Seller shall furnish to Buyer at q Seller’s q Buyer’s expense an owner policy of
title insurance (Title Policy) issued by (Title Company)
in the amount of the Sales Price, dated at or after closing, insuring Buyer against loss under the
provisions of the Title Policy, subject to the promulgated exclusions (including existing building
and zoning ordinances) and the following exceptions:
(1) Restrictive covenants common to the platted subdivision in which the Property is located.
(2) The standard printed exception for standby fees, taxes and assessments.
(3) Liens created as part of the financing described in Paragraph 3.
(4) Utility easements created by the dedication deed or plat of the subdivision in which the
Property is located.
(5) Reservations or exceptions otherwise permitted by this contract or as may be approved by
Buyer in writing.
(6) The standard printed exception as to marital rights.
(7) The standard printed exception as to waters, tidelands, beaches, streams, and related
matters.
(8) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary
lines, encroachments or protrusions, or overlapping improvements:
q (i) will not be amended or deleted from the title policy; or
q (ii) will be amended to read, "shortages in area" at the expense of q Buyer q Seller.
(9) The exception or exclusion regarding minerals approved by the Texas Department of
Insurance.
B. COMMITMENT: Within 20 days after the Title Company receives a copy of this contract, Seller
shall furnish to Buyer a commitment for title insurance (Commitment) and, at Buyer's expense,
legible copies of restrictive covenants and documents evidencing exceptions in the Commitment
(Exception Documents) other than the standard printed exceptions. Seller authorizes the Title
Company to deliver the Commitment and Exception Documents to Buyer at Buyer's address
shown in Paragraph 21. If the Commitment and Exception Documents are not delivered to
Buyer within the specified time, the time for delivery will be automatically extended up to 15
days or 3 days before the Closing Date, whichever is earlier. If the Commitment and Exception
Documents are not delivered within the time required, Buyer may terminate this contract and
the earnest money will be refunded to Buyer.
Initialed for identification by Buyer and Seller TREC NO. 20-18
Contract Concerning Page 3 of 11 11-04-2024
(Address of Property)
C. SURVEY: The survey must be made by a registered professional land surveyor acceptable to the
Title Company and Buyer’s lender(s). (Check one box only)
q (1) Within days after the Effective Date of this contract, Seller shall furnish to Buyer and
Title Company Seller's existing survey of the Property and a Residential Real Property
Affidavit or Declaration promulgated by the Texas Department of Insurance (T-47 Affidavit
or T-47.1 Declaration). Buyer shall obtain a new survey at Seller's expense no later than 3
days prior to Closing Date if Seller fails to furnish within the time prescribed both the: (i)
existing survey; and (ii) affidavit or declaration. If the Title Company or Buyer’s lender
does not accept the existing survey, or the affidavit or declaration, Buyer shall obtain a new
survey at q Seller's q Buyer's expense no later than 3 days prior to Closing Date.
q (2) Within days after the Effective Date of this contract, Buyer may obtain a new survey
at Buyer's expense. Buyer is deemed to receive the survey on the date of actual receipt or
the date specified in this paragraph, whichever is earlier. If Buyer fails to obtain the survey,
Buyer may not terminate the contract under Paragraph 2B of the Third Party Financing
Addendum because the survey was not obtained.
q(3) Within days after the Effective Date of this contract, Seller, at Seller's expense shall
furnish a new survey to Buyer.
D. OBJECTIONS: Buyer may object in writing to defects, exceptions, or encumbrances to title:
disclosed on the survey other than items 6A(1) through (7) above; disclosed in the
Commitment other than items 6A(1) through (9) above; or which prohibit the following use or
activity: .
Buyer must object the earlier of (i) the Closing Date or (ii) days after Buyer receives the
Commitment, Exception Documents, and the survey. Buyer’s failure to object within the time
allowed will constitute a waiver of Buyer’s right to object; except that the requirements in
Schedule C of the Commitment are not waived by Buyer. Provided Seller is not obligated to
incur any expense, Seller shall cure any timely objections of Buyer or any third party lender
within 15 days after Seller receives the objections (Cure Period) and the Closing Date will be
extended as necessary. If objections are not cured within the Cure Period, Buyer may, by
delivering notice to Seller within 5 days after the end of the Cure Period: (i) terminate this
contract and the earnest money will be refunded to Buyer; or (ii) waive the objections. If
Buyer does not terminate within the time required, Buyer shall be deemed to have waived the
objections. If the Commitment or survey is revised or any new Exception Document(s) is
delivered, Buyer may object to any new matter revealed in the revised Commitment or survey
or new Exception Document(s) within the same time stated in this paragraph to make
objections beginning when the revised Commitment, survey, or Exception Document(s) is
delivered to Buyer.
E. TITLE NOTICES:
(1) ABSTRACT OR TITLE POLICY: Broker advises Buyer to have an abstract of title covering the
Property examined by an attorney of Buyer’s selection, or Buyer should be furnished with or
obtain a Title Policy. If a Title Policy is furnished, the Commitment should be promptly
reviewed by an attorney of Buyer’s choice due to the time limitations on Buyer’s right to
object.
(2) MEMBERSHIP IN PROPERTY OWNERS ASSOCIATION(S): The Property qis qis not subject
to mandatory membership in a property owners association(s). If the Property is subject to
mandatory membership in a property owners association(s), Seller notifies Buyer under
§5.012, Texas Property Code, that, as a purchaser of property in the residential community
identified in Paragraph 2A in which the Property is located, you are obligated to be a
member of the property owners association(s). Restrictive covenants governing the use and
occupancy of the Property and all dedicatory instruments governing the establishment,
maintenance, or operation of this residential community have been or will be recorded in
the Real Property Records of the county in which the Property is located. Copies of the
restrictive covenants and dedicatory instruments may be obtained from the county clerk.
You are obligated to pay assessments to the property owners association(s). The
amount of the assessments is subject to change. Your failure to pay the
assessments could result in enforcement of the association’s lien on and the
foreclosure of the Property.
Section 207.003, Property Code, entitles an owner to receive copies of any document that
governs the establishment, maintenance, or operation of a subdivision, including, but not
limited to, restrictions, bylaws, rules and regulations, and a resale certificate from a
property owners' association. A resale certificate contains information including, but not
limited to, statements specifying the amount and frequency of regular assessments and the
style and cause number of lawsuits to which the property owners' association is a party,
other than lawsuits relating to unpaid ad valorem taxes of an individual member of the
association. These documents must be made available to you by the property owners'
association or the association's agent on your request. If Buyer is concerned about
these matters, the TREC promulgated Addendum for Property Subject to
Mandatory Membership in a Property Owners Association(s) should be used.
(3) STATUTORY TAX DISTRICTS: If the Property is situated in a utility or other statutorily
created district providing water, sewer, drainage, or flood control facilities and services,
Chapter 49, Texas Water Code, requires Seller to deliver and Buyer to sign the statutory
notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to
final execution of this contract.
Initialed for identification by Buyer and Seller TREC NO. 20-18
Contract Concerning Page 4 of 11 11-04-2024
(Address of Property)
(4) TIDE WATERS: If the Property abuts the tidally influenced waters of the state, §33.135,
Texas Natural Resources Code, requires a notice regarding coastal area property to be
included in the contract. An addendum containing the notice promulgated by TREC or
required by the parties must be used.
(5) ANNEXATION: If the Property is located outside the limits of a municipality, Seller notifies
Buyer under §5.011, Texas Property Code, that the Property may now or later be included in
the extraterritorial jurisdiction of a municipality and may now or later be subject to
annexation by the municipality. Each municipality maintains a map that depicts its
boundaries and extraterritorial jurisdiction. To determine if the Property is located within a
municipality’s extraterritorial jurisdiction or is likely to be located within a municipality’s
extraterritorial jurisdiction, contact all municipalities located in the general proximity of the
Property for further information.
(6) PROPERTY LOCATED IN A CERTIFICATED SERVICE AREA OF A UTILITY SERVICE PROVIDER:
Notice required by §13.257, Water Code: The real property, described in Paragraph 2, that
you are about to purchase may be located in a certificated water or sewer service area,
which is authorized by law to provide water or sewer service to the properties in the
certificated area. If your property is located in a certificated area there may be special costs
or charges that you will be required to pay before you can receive water or sewer service.
There may be a period required to construct lines or other facilities necessary to provide
water or sewer service to your property. You are advised to determine if the property is in a
certificated area and contact the utility service provider to determine the cost that you will
be required to pay and the period, if any, that is required to provide water or sewer service
to your property. The undersigned Buyer hereby acknowledges receipt of the foregoing
notice at or before the execution of a binding contract for the purchase of the real property
described in Paragraph 2 or at closing of purchase of the real property.
(7) PUBLIC IMPROVEMENT DISTRICTS: If the Property is in a public improvement district, Seller
must give Buyer written notice as required by §5.014, Property Code. An addendum
containing the required notice shall be attached to this contract.
(8) TRANSFER FEES: If the Property is subject to a private transfer fee obligation, §5.205,
Property Code, requires Seller to notify Buyer as follows: The private transfer fee obligation
may be governed by Chapter 5, Subchapter G of the Texas Property Code.
(9) PROPANE GAS SYSTEM SERVICE AREA: If the Property is located in a propane gas system
service area owned by a distribution system retailer, Seller must give Buyer written notice
as required by §141.010, Texas Utilities Code. An addendum containing the notice approved
by TREC or required by the parties should be used.
(10) NOTICE OF WATER LEVEL FLUCTUATIONS: If the Property adjoins an impoundment of
water, including a reservoir or lake, constructed and maintained under Chapter 11, Water
Code, that has a storage capacity of at least 5,000 acre-feet at the impoundment’s normal
operating level, Seller hereby notifies Buyer: “The water level of the impoundment of water
adjoining the Property fluctuates for various reasons, including as a result of: (1) an entity
lawfully exercising its right to use the water stored in the impoundment; or (2) drought or
flood conditions.”
(11) CERTIFICATE OF MOLD REMEDIATION: If the Property has been remediated for mold, Seller
must provide to Buyer each certificate of mold damage remediation issued under
§1958.154, Occupations Code, during the 5 years preceding the sale of the Property.
(12) REQUIRED NOTICES: The following notices have been given or are attached to this
contract (for example, utility, water, drainage, and public improvement districts):
.
Seller’s failure to provide applicable statutory notices may provide Buyer with remedies or
rights to terminate the contract.
7. PROPERTY CONDITION:
A. ACCESS, INSPECTIONS AND UTILITIES: Seller shall permit Buyer and Buyer’s agents access
to the Property at reasonable times. Buyer may have the Property inspected by inspectors
selected by Buyer and licensed by TREC or otherwise permitted by law to make inspections.
Any hydrostatic testing must be separately authorized by Seller in writing. Seller at Seller's
expense shall immediately cause existing utilities to be turned on and shall keep the utilities
on during the time this contract is in effect.
B. SELLER'S DISCLOSURE NOTICE PURSUANT TO §5.008, TEXAS PROPERTY CODE (Notice):
(Check one box only)
q (1) Buyer has received the Notice.
q (2) Buyer has not received the Notice. Within days after the Effective Date of this
contract, Seller shall deliver the Notice to Buyer. If Buyer does not receive the Notice,
Buyer may terminate this contract at any time prior to the closing and the earnest money
will be refunded to Buyer. If Seller delivers the Notice, Buyer may terminate this contract
for any reason within 7 days after Buyer receives the Notice or prior to the closing,
whichever first occurs, and the earnest money will be refunded to Buyer.
q (3) The Seller is not required to furnish the notice under the Texas Property Code.
C. SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required
by Federal law for a residential dwelling constructed prior to 1978.
D. ACCEPTANCE OF PROPERTY CONDITION: “As Is” means the present condition of the Property
with any and all defects and without warranty except for the warranties of title and the
Initialed for identification by Buyer and Seller TREC NO. 20-18
Contract Concerning Page 5 of 11 11-04-2024
(Address of Property)
warranties in this contract. Buyer’s agreement to accept the Property As Is under Paragraph
7D(1) or (2) does not preclude Buyer from inspecting the Property under Paragraph 7A, from
negotiating repairs or treatments in a subsequent amendment, or from terminating this
contract during the Option Period, if any.
(Check one box only)
q (1) Buyer accepts the Property As Is.
q (2) Buyer accepts the Property As Is provided Seller, at Seller’s expense, shall complete the
following specific repairs and treatments:
(Do not insert general phrases, such as “subject to inspections” that do not identify specific
repairs and treatments.)
E. LENDER REQUIRED REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, neither
party is obligated to pay for lender required repairs, which includes treatment for wood
destroying insects. If the parties do not agree to pay for the lender required repairs or
treatments, this contract will terminate and the earnest money will be refunded to Buyer. If
the cost of lender required repairs and treatments exceeds 5% of the Sales Price, Buyer may
terminate this contract and the earnest money will be refunded to Buyer.
F. COMPLETION OF REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, Seller shall
complete all agreed repairs and treatments prior to the Closing Date and obtain any required
permits. The repairs and treatments must be performed by persons who are licensed to
provide such repairs or treatments or, if no license is required by law, are commercially
engaged in the trade of providing such repairs or treatments. Seller shall: (i) provide Buyer
with copies of documentation from the repair person(s) showing the scope of work and
payment for the work completed; and (ii) at Seller’s expense, arrange for the transfer of any
transferable warranties with respect to the repairs and treatments to Buyer at closing. If Seller
fails to complete any agreed repairs and treatments prior to the Closing Date, Buyer may
exercise remedies under Paragraph 15 or extend the Closing Date up to 5 days if necessary for
Seller to complete the repairs and treatments.
G. ENVIRONMENTAL MATTERS: Buyer is advised that the presence of wetlands, toxic substances,
including asbestos and wastes or other environmental hazards, or the presence of a
threatened or endangered species or its habitat may affect Buyer’s intended use of the
Property. If Buyer is concerned about these matters, an addendum promulgated by TREC or
required by the parties should be used.
H. RESIDENTIAL SERVICE CONTRACTS: Buyer may purchase a residential service contract from a
provider or administrator licensed by the Texas Department of Licensing and Regulation. If
Buyer purchases a residential service contract, Seller shall reimburse Buyer at closing for the
cost of the residential service contract in an amount not exceeding $ . Buyer
should review any residential service contract for the scope of coverage, exclusions and
limitations. The purchase of a residential service contract is optional. Similar coverage
may be purchased from various companies authorized to do business in Texas.
8. BROKERS AND SALES AGENTS:
A. BROKER OR SALES AGENT DISCLOSURE: Texas law requires a real estate broker or sales
agent who is a party to a transaction or acting on behalf of a spouse, parent, child, business
entity in which the broker or sales agent owns more than 10%, or a trust for which the broker
or sales agent acts as a trustee or of which the broker or sales agent or the broker or sales
agent’s spouse, parent or child is a beneficiary, to notify the other party in writing before
entering into a contract of sale. Disclose if applicable:
.
B. BROKERS’ FEES: All obligations of the parties for payment of brokers’ fees are contained in
separate written agreements.
9. CLOSING:
A. The closing of the sale will be on or before , 20 , or within 7 days
after objections made under Paragraph 6D have been cured or waived, whichever date is later
(Closing Date). If either party fails to close the sale by the Closing Date, the non-defaulting
party may exercise the remedies contained in Paragraph 15.
B. At closing:
(1) Seller shall execute and deliver a general warranty deed conveying title to the Property to
Buyer and showing no additional exceptions to those permitted in Paragraph 6 and furnish
tax statements or certificates showing no delinquent taxes on the Property.
(2) Buyer shall pay the Sales Price in good funds acceptable to the Escrow Agent.
(3) Seller and Buyer shall execute and deliver any notices, statements, certificates, affidavits,
releases, loan documents, transfer of any warranties, and other documents reasonably
required for the closing of the sale and the issuance of the Title Policy.
(4) There will be no liens, assessments, or security interests against the Property which will
not be satisfied out of the sales proceeds unless securing the payment of any loans
assumed by Buyer and assumed loans will not be in default.
(5) Private transfer fees (as defined by Chapter 5, Subchapter G of the Texas Property Code)
Initialed for identification by Buyer and Seller TREC NO. 20-18
Contract Concerning Page 6 of 11 11-04-2024
(Address of Property)
will be the obligation of Seller unless provided otherwise in this contract. Transfer fees
assessed by a property owners’ association are governed by the Addendum for Property
Subject to Mandatory Membership in a Property Owners Association.
10. POSSESSION:
A. BUYER’S POSSESSION: Seller shall deliver to Buyer possession of the Property in its present or
required condition, ordinary wear and tear excepted: qupon closing and funding qaccording
to a temporary residential lease form promulgated 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 to change of ownership and possession
because insurance coverage may be limited or terminated. The absence of a written
lease or appropriate insurance coverage may expose the parties to economic loss.
B. SMART DEVICES: “Smart Device” means a device that connects to the internet to enable
remote use, monitoring, and management of: (i) the Property; (ii) items identified in any Non-
Realty Items Addendum; or (iii) items in a Fixture Lease assigned to Buyer. At the time Seller
delivers possession of the Property to Buyer, Seller shall:
(1) deliver to Buyer written information containing all access codes, usernames, passwords,
and applications Buyer will need to access, operate, manage, and control the Smart
Devices; and
(2) terminate and remove all access and connections to the improvements and accessories
from any of Seller’s personal devices including but not limited to phones and computers.
11. SPECIAL PROVISIONS: (This paragraph is intended to be used only for additional informational
items. An informational item is a statement that completes a blank in a contract form, discloses
factual information, or provides instructions. Real estate brokers and sales agents are prohibited
from practicing law and shall not add to, delete, or modify any provision of this contract unless
drafted by a party to this contract or a party's attorney.)
.
12. SETTLEMENT AND OTHER EXPENSES:
A. The following expenses must be paid at or prior to closing:
(1) Seller shall pay the following expenses (Seller's Expenses):
(a) releases of existing liens, including prepayment penalties and recording fees; release of
Seller’s loan liability; tax statements or certificates; preparation of deed; one-half of
escrow fee; brokerage fees that Seller has agreed to pay; and other expenses payable
by Seller under this contract;
(b) the following amount to be applied to brokerage fees that Buyer has agreed to pay:
q$ or q _____% of the Sales Price (check one box only); and
(c) an amount not to exceed $ to be applied to other Buyer’s Expenses.
(2) Buyer shall pay the following expenses (Buyer's Expenses): Appraisal fees; loan application
fees; origination charges; credit reports; preparation of loan documents; interest on the
notes from date of disbursement to one month prior to dates of first monthly payments;
recording fees; copies of easements and restrictions; loan title policy with endorsements
required by lender; loan-related inspection fees; photos; amortization schedules; one-half
of escrow fee; all prepaid items, including required premiums for flood and hazard
insurance, reserve deposits for insurance, ad valorem taxes and special governmental
assessments; final compliance inspection; courier fee; repair inspection; underwriting fee;
wire transfer fee; expenses incident to any loan; Private Mortgage Insurance Premium
(PMI), VA Loan Funding Fee, or FHA Mortgage Insurance Premium (MIP) as required by the
lender; brokerage fees that Buyer has agreed to pay; and other expenses payable by Buyer
under this contract.
B. If any expense exceeds an amount expressly stated in this contract for such expense to be
paid by a party, that party may terminate this contract unless the other party agrees to pay
such excess. Buyer may not pay charges and fees expressly prohibited by FHA, VA, Texas
Veterans Land Board or other governmental loan program regulations.
13. PRORATIONS: Taxes for the current year, interest, rents, and regular periodic maintenance
fees, assessments, and dues (including prepaid items) will be prorated through the Closing Date.
The tax proration may be calculated taking into consideration any change in exemptions that will affect the
current year's taxes. If taxes for the current year vary from the amount prorated at closing, the parties shall
adjust the prorations when tax statements for the current year are available. If taxes are not paid at or prior to
closing, Buyer shall pay taxes for the current year.
Initialed for identification by Buyer and Seller TREC NO. 20-18
Contract Concerning Page 7 of 11 11-04-2024
(Address of Property)
14. CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty
after the Effective Date of this contract, Seller shall restore the Property to its previous condition
as soon as reasonably possible, but in any event by the Closing Date. If Seller fails to do so due to
factors beyond Seller’s control, Buyer may (a) terminate this contract and the earnest money will
be refunded to Buyer (b) extend the time for performance up to 15 days and the Closing Date will
be extended as necessary or (c) accept the Property in its damaged condition with an assignment
of insurance proceeds, if permitted by Seller’s insurance carrier, and receive credit from Seller at
closing in the amount of the deductible under the insurance policy. Seller’s obligations under this
paragraph are independent of any other obligations of Seller under this contract.
15. DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may (a)
enforce specific performance, seek such other relief as may be provided by law, or both, or (b)
terminate this contract and receive the earnest money as liquidated damages, thereby releasing
both parties from this contract. If Seller fails to comply with this contract, Seller will be in default
and Buyer may (a) enforce specific performance, seek such other relief as may be provided by
law, or both, or (b) terminate this contract and receive the earnest money, thereby releasing both
parties from this contract.
16. MEDIATION: It is the policy of the State of Texas to encourage resolution of disputes through
alternative dispute resolution procedures such as mediation. Any dispute between Seller and
Buyer related to this contract which is not resolved through informal discussion will be
submitted to a mutually acceptable mediation service or provider. The parties to the mediation
shall bear the mediation costs equally. This paragraph does not preclude a party from seeking
equitable relief from a court of competent jurisdiction.
17. ATTORNEY'S FEES: A Buyer, Seller, Listing Broker, Other Broker, or Escrow Agent who prevails
in any legal proceeding related to this contract is entitled to recover reasonable attorney’s fees
and all costs of such proceeding.
18. ESCROW:
A. ESCROW: The Escrow Agent is not (i) a party to this contract and does not have liability for the
performance or nonperformance of any party to this contract, (ii) liable for interest on the
earnest money and (iii) liable for the loss of any earnest money caused by the failure of any
financial institution in which the earnest money has been deposited unless the financial
institution is acting as Escrow Agent. Escrow Agent may require any disbursement made in
connection with this contract to be conditioned on Escrow Agent’s collection of good funds
acceptable to Escrow Agent.
B. EXPENSES: At closing, the earnest money must be applied first to any cash down payment,
then to Buyer's Expenses and any excess refunded to Buyer. If no closing occurs, Escrow Agent
may: (i) require a written release of liability of the Escrow Agent from all parties before
releasing any earnest money; and (ii) require payment of unpaid expenses incurred on behalf
of a party. Escrow Agent may deduct authorized expenses from the earnest money payable to a
party. “Authorized expenses” means expenses incurred by Escrow Agent on behalf of the party
entitled to the earnest money that were authorized by this contract or that party.
C. DEMAND: Upon termination of this contract, either party or the Escrow Agent may send a
release of earnest money to each party and the parties shall execute counterparts of the
release and deliver same to the Escrow Agent. If either party fails to execute the release, either
party may make a written demand to the Escrow Agent for the earnest money. If only one
party makes written demand for the earnest money, Escrow Agent shall promptly provide a
copy of the demand to the other party. If Escrow Agent does not receive written objection to
the demand from the other party within 15 days, Escrow Agent may disburse the earnest
money to the party making demand reduced by the amount of unpaid expenses incurred on
behalf of the party receiving the earnest money and Escrow Agent may pay the same to the
creditors. If Escrow Agent complies with the provisions of this paragraph, each party hereby
releases Escrow Agent from all adverse claims related to the disbursal of the earnest money.
D. DAMAGES: Any party who wrongfully fails or refuses to sign a release acceptable to the Escrow
Agent within 7 days of receipt of the request will be liable to the other party for (i) damages;
(ii) the earnest money; (iii) reasonable attorney's fees; and (iv) all costs of suit.
E. NOTICES: Escrow Agent’s notices will be effective when sent in compliance with Paragraph 21.
Notice of objection to the demand will be deemed effective upon receipt by Escrow Agent.
19. REPRESENTATIONS: All covenants, representations and warranties in this contract survive
closing. If any representation of Seller in this contract is untrue on the Closing Date, Seller will be
in default. Unless expressly prohibited by written agreement, Seller may continue to show the
Property and receive, negotiate and accept back up offers.
20. FEDERAL REQUIREMENTS: If Seller is a "foreign person,” as defined by Internal Revenue Code
and its regulations, or if Seller fails to deliver an affidavit or a certificate of non-foreign status to
Buyer that Seller is not a "foreign person,” then Buyer shall withhold from the sales proceeds an
amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue
Service together with appropriate tax forms. Internal Revenue Service regulations require filing
written reports if currency in excess of specified amounts is received in the transaction.
Initialed for identification by Buyer and Seller TREC NO. 20-18
Contract Concerning Page 8 of 11 11-04-2024
(Address of Property)
q
q
q
q
q
q
q
q
q
q
q
q
Third Party Financing Addendum
Seller Financing Addendum
Addendum for Property Subject to
Mandatory Membership in a Property
Owners Association
Buyer’s Temporary Residential Lease
Loan Assumption Addendum
Addendum for Sale of Other Property by
Buyer
Addendum for Reservation of Oil, Gas
and Other Minerals
Addendum for "Back-Up" Contract
Addendum for Coastal Area Property
Addendum for Authorizing Hydrostatic
Testing
Addendum Concerning Right to
Terminate Due to Lender’s Appraisal
Environmental Assessment, Threatened
or Endangered Species and Wetlands
Addendum
q
q
q
q
q
q
q
q
q
q
Seller’s Temporary Residential Lease
Short Sale Addendum
Addendum for Property Located Seaward
of the Gulf Intracoastal Waterway
Addendum for Seller's Disclosure of
Information on Lead-based Paint and
Lead-based Paint Hazards as Required by
Federal Law
Addendum for Property in a Propane Gas
System Service Area
Addendum Regarding Residential Leases
Addendum Regarding Fixture Leases
Addendum containing Notice of Obligation
to Pay Improvement District Assessment
Addendum for Section 1031 Exchange
Other (list):
22. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and
cannot be changed except by their written agreement. Addenda which are a part of this contract
are (Check all applicable boxes):
21. NOTICES: All notices from one party to the other must be in writing and are effective when
mailed to, hand-delivered at, or transmitted by fax or electronic transmission as follows:
23. CONSULT AN ATTORNEY BEFORE SIGNING: TREC rules prohibit real estate brokers and sales
agents from giving legal advice. READ THIS CONTRACT CAREFULLY.
Buyer's
Attorney is:
Seller's
Attorney is:
Phone:
( )
Phone:
( )
Fax:
( )
Fax:
( )
E-mail:
E-mail:
To Buyer at:
To Seller at:
Phone:
( )
Phone:
( )
E-mail/Fax:
E-mail/Fax:
E-mail/Fax:
E-mail/Fax:
With a copy to Buyer’s agent at:
With a copy to Seller’s agent at:
Initialed for identification by Buyer and Seller TREC NO. 20-18
Contract Concerning Page 9 of 11 11-04-2024
(Address of Property)
EXECUTED the day of , 20 (Effective Date).
(BROKER: FILL IN THE DATE OF FINAL ACCEPTANCE.)
Buyer
Seller
Buyer
Seller
The form of this contract has been approved by the Texas Real Estate Commission. TREC forms are
intended for use only by trained real estate license holders. No representation is made as to the legal
validity or adequacy of any provision in any specific transactions. It is not intended for complex
transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, (512) 936-3000
(http://www.trec.texas.gov) TREC NO. 20-18. This form replaces TREC NO. 20-17.
Initialed for identification by Buyer and Seller TREC NO. 20-18
Contract Concerning Page 10 of 11 11-04-2024
(Address of Property)
BROKER INFORMATION
(Print name(s) only. Do not sign)
Disclosure: Pursuant to a previous, separate agreement, Listing Broker has agreed to pay Other Broker a fee
(q $______________ or q _____% of the Sales Price). This disclosure is for informational purposes and does
not change the previous agreement between brokers to pay or share a commission.
Other Broker Firm License No.
Listing Broker Firm License No.
represents q Buyer only as Buyer’s agent
q Seller as Listing Broker’s subagent
represents q Seller and Buyer as an intermediary
q Seller only as Seller’s agent
Associate’s Name License No.
Listing Associate’s Name License No.
Associate’s Email Address Phone
Listing Associate’s Email Address Phone
Licensed Supervisor of Associate License No.
Licensed Supervisor of Listing Associate License No.
Other Broker's Address Phone
Listing Broker’s Office Address Phone
City State Zip
City State Zip
Selling Associate’s Name License No.
Selling Associate’s Email Address Phone
Licensed Supervisor of Selling Associate License No.
Selling Associate’s Office Address
City State Zip
Team Name
Team Name
Team Name
Form Specifications
| Fact Name | Description |
|---|---|
| Purpose | The TREC One to Four Family Residential Contract is used for the sale of residential properties in Texas. |
| Governing Law | This contract is governed by Texas state law. |
| Parties Involved | The contract involves a buyer and a seller, both of whom must be identified in the document. |
| Property Description | A detailed description of the property being sold must be included in the contract. |
| Contingencies | The contract allows for various contingencies, such as financing or inspections, to protect the buyer. |
| Closing Process | The contract outlines the timeline and procedures for closing the sale, including any required disclosures. |
TREC One to four family residential contract: Usage Guidelines
Filling out the TREC One to Four Family Residential Contract form is an important step in the home buying process. After gathering the necessary information, you will complete various sections of the form to ensure all details are accurately represented. This guide will help you through the process step by step.
- Begin with the date. Write the date you are filling out the form at the top.
- Enter the names of the parties involved. This includes the buyer and seller. Make sure to include full legal names.
- Fill in the property address. Provide the complete address of the property being sold.
- Specify the purchase price. Clearly state the amount the buyer is offering for the property.
- Detail the financing terms. Indicate how the buyer plans to pay for the property, whether it’s through cash, a loan, or another method.
- Complete the option period. Indicate how many days the buyer has to conduct inspections or other due diligence.
- Fill in the closing date. Specify when the transaction will be finalized.
- Include any additional terms. If there are specific conditions or agreements, write them in this section.
- Sign and date the form. Both parties must sign and date the contract to make it valid.
After completing these steps, review the form for accuracy. Make sure all information is correct and legible. Both parties should keep a copy of the signed contract for their records.
Your Questions, Answered
What is the TREC One to Four Family Residential Contract Form?
The TREC One to Four Family Residential Contract Form is a standardized document used in Texas for the sale of residential properties. It is designed for transactions involving one to four family dwellings, including single-family homes, townhouses, and condominiums. This form helps ensure that all essential terms of the sale are clearly outlined, protecting both the buyer and the seller throughout the process.
Who uses the TREC One to Four Family Residential Contract Form?
This contract form is primarily used by real estate agents, buyers, and sellers in Texas. When a property is being sold, the real estate agent will often prepare this contract to facilitate the transaction. It provides a framework for negotiations and helps both parties understand their rights and obligations.
What are the key components of the contract?
The contract includes several important sections, such as the property description, sales price, financing details, and closing date. It also addresses contingencies, which are conditions that must be met for the sale to proceed, such as inspections and financing approval. Each section is designed to cover critical aspects of the transaction, ensuring clarity and reducing the risk of misunderstandings.
Can the contract be modified?
Yes, the TREC One to Four Family Residential Contract Form can be modified, but any changes must be agreed upon by both parties. It is essential to document any modifications clearly, as they can affect the enforceability of the contract. If significant changes are made, consider consulting a real estate professional or attorney to ensure that the modifications are legally sound.
What happens if a party breaches the contract?
If either the buyer or seller fails to fulfill their obligations under the contract, it is considered a breach. The non-breaching party may have several options, including seeking damages or specific performance, which means asking the court to enforce the terms of the contract. It’s crucial to understand the implications of a breach, as it can lead to legal disputes and additional costs.
Is it necessary to have a lawyer review the contract?
While it is not legally required to have a lawyer review the TREC One to Four Family Residential Contract Form, it is highly advisable. A lawyer can help identify any potential issues, ensure that your interests are protected, and provide guidance throughout the transaction. Having legal support can bring peace of mind and help navigate any complexities that may arise during the process.
Common mistakes
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Failing to include the correct property address. This is a critical piece of information that must be accurate to avoid confusion or disputes.
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Not providing a legal description of the property. A legal description is necessary to clearly define the property being sold.
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Overlooking the importance of initialing changes. If any terms are modified, both parties must initial those changes to ensure they are acknowledged.
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Using incorrect or outdated contract forms. Always ensure that you are using the most current version of the TREC form to comply with regulations.
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Neglecting to specify the closing date. A clear closing date is essential for both parties to understand when the transaction will be finalized.
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Failing to disclose contingencies properly. If there are conditions that must be met for the sale to proceed, they should be clearly stated in the contract.
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Not including necessary addendums. If there are additional agreements or stipulations, these should be attached to the contract to ensure they are legally binding.
Documents used along the form
The TREC One to Four Family Residential Contract is a key document in real estate transactions in Texas. However, several other forms and documents are often used alongside it to ensure a smooth process. Here are some important ones to consider:
- Seller's Disclosure Notice: This document requires the seller to disclose any known issues with the property. It helps buyers understand the condition of the home before making a purchase.
- Lead-Based Paint Disclosure: For homes built before 1978, this form informs buyers about the potential presence of lead-based paint. It is crucial for protecting the health of future occupants.
- Residential Service Contract: Often called a home warranty, this contract covers repairs and replacements of home systems and appliances. It provides peace of mind to buyers after the purchase.
- Option Fee and Period Agreement: This document allows the buyer to secure the right to purchase the property for a specified time. It typically includes a fee paid to the seller for this option.
- Financing Addendum: This form outlines the terms of the buyer’s financing. It details the type of loan and any contingencies related to obtaining financing.
- Closing Disclosure: Provided before closing, this document outlines the final terms of the loan, including costs and fees. It ensures that both parties are informed about the financial aspects of the transaction.
Using these documents in conjunction with the TREC One to Four Family Residential Contract can help facilitate a clear and effective real estate transaction. Each form serves a specific purpose and contributes to a smoother process for both buyers and sellers.
Similar forms
The TREC One to Four Family Residential Contract form shares similarities with several other real estate documents. Each of these documents serves a specific purpose in real estate transactions, providing structure and clarity. Below is a list of six documents that are comparable to the TREC form:
- Purchase Agreement: This document outlines the terms and conditions under which a buyer agrees to purchase a property. It includes details about the purchase price, closing date, and contingencies, similar to the TREC form.
- Lease Agreement: A lease agreement specifies the terms under which a tenant can occupy a property. Like the TREC form, it includes essential details such as duration, payment terms, and responsibilities of both parties.
- Listing Agreement: This document is used by real estate agents to represent sellers. It details the agent's duties, commission structure, and property details, paralleling the TREC form's comprehensive nature.
- Seller’s Disclosure Notice: This notice informs potential buyers of any known issues with the property. It complements the TREC form by ensuring transparency and protecting both parties in the transaction.
- Option Agreement: An option agreement grants a buyer the right to purchase a property within a specified time frame. It shares similarities with the TREC form in outlining rights and obligations during the option period.
- Financing Addendum: This document outlines the financing terms for a property purchase. It can be attached to the TREC form to clarify the financial aspects of the transaction, much like other addenda that may accompany real estate contracts.
Dos and Don'ts
When completing the TREC One to Four Family Residential Contract form, it is important to adhere to specific guidelines to ensure accuracy and compliance. Below is a list of things to do and avoid during this process.
Things to Do:
- Read the entire contract carefully before filling it out.
- Provide accurate and complete information in all required fields.
- Use clear and legible handwriting or type the information if possible.
- Consult with a real estate professional if you have questions about the form.
- Sign and date the contract in the designated areas.
Things to Avoid:
- Do not leave any required fields blank.
- Avoid using abbreviations or shorthand that may cause confusion.
- Do not make changes to the contract without proper authorization.
- Refrain from signing the contract until all parties have agreed to the terms.
Misconceptions
The TREC One to Four Family Residential Contract Form is an important document in real estate transactions, but several misconceptions often arise regarding its use and implications. Here are six common misconceptions and clarifications for each:
- It is only for new homes. Many believe that this contract is exclusively for new constructions. In reality, it applies to both new and existing homes.
- It guarantees a sale. Some think that signing this contract guarantees the sale of the property. However, the contract is a framework for negotiations and does not ensure that the sale will go through.
- It is a one-size-fits-all document. Many assume that the TREC contract is the same for every transaction. In truth, it can be customized to fit the specific needs and terms agreed upon by both parties.
- It covers all aspects of the transaction. Some individuals believe that this contract addresses every detail of the sale. While it covers many important elements, additional agreements may be necessary for specific situations.
- It is only for real estate agents to use. There is a misconception that only licensed real estate agents can use this contract. In fact, buyers and sellers can also utilize it when they are representing themselves.
- Signing means you cannot back out. Many think that once they sign the contract, they are locked in. However, there are contingencies and clauses that allow parties to withdraw under certain conditions.
Understanding these misconceptions can lead to better-informed decisions when navigating real estate transactions.
Key takeaways
When dealing with the TREC One to Four Family Residential Contract, it’s essential to understand its key components and how to fill it out correctly. Here are some important takeaways:
- Understand the Purpose: This contract is used for the sale of residential properties in Texas. It outlines the terms agreed upon by the buyer and seller.
- Read the Entire Document: Before signing, ensure that you read and understand all sections. Each part contains important information that affects the transaction.
- Fill Out All Required Fields: Incomplete forms can lead to misunderstandings or legal issues. Make sure to fill in all necessary details, including names, addresses, and property descriptions.
- Be Clear About Contingencies: Specify any contingencies, such as financing or inspection requirements. This protects both parties if certain conditions are not met.
- Review Dates and Deadlines: Pay attention to important dates, like the option period and closing date. Missing deadlines can complicate the transaction.
- Consider Professional Help: If you’re unsure about any part of the contract, consult with a real estate agent or attorney. They can provide valuable insights and guidance.
- Keep a Copy: After signing, keep a copy of the completed contract for your records. This ensures you have access to the agreed terms throughout the process.
By paying attention to these key aspects, you can navigate the TREC One to Four Family Residential Contract more effectively and ensure a smoother transaction.