13 Texas Contracts

Texas Promulgated Contract Forms ## Overview TREC promulgates (officially adopts) contract forms that agents must use for residential transactions. Forms are updated periodically. Always use the most current version. Required use: One-to-four family residential transactions involving a licensed agent. --- ## TREC Promulgated Contract Forms | Form | Name | |---|---| | TREC 20-17 | One to Four Family Residential Contract (Resale) | | TREC 23-18 | New Home Contract (Incomplete Construction) | | TREC 24-18 | New Home Contract (Completed Construction) | | TREC 25-14 | Farm and Ranch Contract | | TREC 30-16 | Residential Condominium Contract (Resale) | | TREC 9-16 | Unimproved Property Contract | > The One to Four Family Residential Contract (Resale) is the most commonly tested form. --- ## One to Four Family Residential Contract — Key Paragraphs ### Paragraph 1 — Parties - Full legal names of buyer(s) and seller(s) - Must match how title will be taken ### Paragraph 2 — Property - Legal description - Inclusions (fixtures that transfer): ceiling fans, built-in appliances, etc. - Exclusions: items seller is keeping (must list specifically) - Leased items (security systems, propane tanks, water softeners) — buyer assumes lease or terminates ### Paragraph 3 — Sales Price - Cash portion - Sum of financing - Total sales price ### Paragraph 4 — License Holder Disclosure - Agent discloses if they have an interest in property or know of any conflicts ### Paragraph 5 — Earnest Money - Amount - Held by: Title Company (in most TX transactions) - Must be deposited within 2 business days of contract execution - If buyer defaults: seller may keep earnest money as liquidated damages ### Paragraph…