Texas Contracts & Agency·Texas Contracts

4.1 - Texas Contracts

  • Valid contract elements: CALCO (Competent parties, Agreement, Legality, Consideration, in writing)
  • Contract status: valid, void, voidable, unenforceable
  • Statute of Frauds: all real estate contracts must be in writing
  • Offer/counteroffer: mirror image rule; any change = counteroffer
  • TX mandatory forms: agents MUST use TREC promulgated forms; attorneys may draft custom
  • Primary form: TREC 20-17 (One to Four Family Residential Contract)
  • Option Period: Option Fee to SELLER (non-refundable); unrestricted right to terminate; credited at closing
  • Earnest money: to ESCROW AGENT (title company); refundable under contingencies
  • Financing contingency: TREC 40-10 (Third Party Financing Addendum)
  • TX listing types: exclusive right to sell (strongest broker protection), exclusive agency, open, net

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