TREC One to four family residential contract PDF Template

The TREC One to Four Family Residential Contract Form is a standardized document used in Texas real estate transactions for the sale of single-family homes and up to four-family units. This form outlines the rights and responsibilities of both buyers and sellers, ensuring a clear understanding of the terms involved in the transaction. To begin the process, please fill out the form by clicking the button below.

Article Guide

When navigating the complex world of real estate transactions in Texas, understanding the TREC One to Four Family Residential Contract Form is essential for both buyers and sellers. This comprehensive document serves as the foundation for most residential property sales in the state, detailing key elements such as the purchase price, financing options, and important deadlines. It outlines the responsibilities of each party, ensuring clarity in the transaction process. Additionally, the form includes provisions for earnest money, inspections, and disclosures, protecting the interests of everyone involved. By familiarizing yourself with this contract, you can better prepare for a smooth and successful real estate experience, whether you are purchasing your first home or selling a cherished family property.

TREC One to four family residential contract Preview

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

(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)

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

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:

To Buyer at:

To Seller at:

Phone:

( )

Phone:

( )

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

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

↓ TREC One to four family residential contract

File Properties

Fact Name	Description
Purpose	The TREC One to Four Family Residential Contract form is used for the sale of residential properties with one to four units in Texas.
Governing Law	This contract is governed by Texas law, specifically the Texas Real Estate Commission (TREC) regulations.
Standardization	The form is standardized by TREC to ensure clarity and uniformity in real estate transactions.
Components	The contract includes sections on property details, financing, closing, and various contingencies.
Usage	Real estate agents and brokers commonly use this form to facilitate residential property transactions in Texas.

Instructions on Utilizing TREC One to four family residential contract

Filling out the TREC One to Four Family Residential Contract form is an essential step in the home-buying process. This document will guide you through the necessary information to ensure a smooth transaction. Follow these steps carefully to complete the form accurately.

Obtain the form: Ensure you have the latest version of the TREC One to Four Family Residential Contract form, which can be found on the Texas Real Estate Commission website or obtained from a licensed real estate agent.
Identify the parties: Fill in the names of the buyer(s) and seller(s) in the appropriate sections. Ensure the names are spelled correctly and match the legal documents.
Property description: Provide a detailed description of the property being sold, including the address and any relevant legal descriptions.
Sales price: Clearly state the agreed-upon sales price for the property. This should be a specific dollar amount.
Earnest money: Indicate the amount of earnest money the buyer will deposit, along with the name of the escrow agent or title company handling the transaction.
Financing details: Specify the type of financing the buyer will use, whether it’s conventional, FHA, VA, or another type. Include any pertinent terms related to the financing.
Closing date: Enter the proposed closing date for the transaction. This is the date when the ownership of the property will officially transfer.
Contingencies: List any contingencies that must be met before the sale can proceed, such as home inspections, financing approvals, or the sale of the buyer's current home.
Additional provisions: If there are any special agreements or conditions, include them in the additional provisions section. Be clear and concise.
Signatures: Ensure all parties sign and date the contract. Each party should receive a copy of the signed contract for their records.

Once you have completed the form, review it carefully to ensure all information is accurate and complete. Errors or omissions can lead to complications down the road. After verification, proceed with the next steps in your real estate transaction, such as submitting the contract to the title company or your real estate agent.

Important Facts about TREC One to four family residential contract

What is the TREC One to Four Family Residential Contract Form?

The TREC One to Four Family Residential Contract Form is a standardized legal document used in Texas for the sale of residential properties that contain one to four dwelling units. It provides a framework for the transaction, detailing the rights and obligations of both buyers and sellers. This form is designed to facilitate the buying and selling process by ensuring that all necessary terms are addressed clearly and comprehensively.

Who uses the TREC One to Four Family Residential Contract Form?

This contract form is primarily used by real estate agents, brokers, and attorneys involved in residential real estate transactions in Texas. Buyers and sellers also utilize this form to formalize their agreement. It is important for all parties to understand the terms outlined in the contract to ensure a smooth transaction.

What are the key components of the contract?

The contract includes several critical components, such as the purchase price, financing details, property description, closing date, and any contingencies. Additionally, it addresses issues like inspections, repairs, and the allocation of costs associated with the transaction. Each section is designed to protect the interests of both parties involved.

How does the contract address contingencies?

Contingencies are specific conditions that must be met for the contract to remain valid. The TREC form includes sections where buyers can specify contingencies related to financing, inspections, and the sale of another property. If these conditions are not satisfied, the buyer may have the right to terminate the contract without penalty.

Can the contract be modified after it is signed?

Yes, the TREC One to Four Family Residential Contract can be modified after it has been signed, but both parties must agree to any changes. Modifications should be documented in writing and signed by all parties involved to ensure clarity and enforceability. Verbal agreements are not sufficient to alter the terms of the contract.

What happens if either party breaches the contract?

If either party fails to fulfill their obligations under the contract, it is considered a breach. The non-breaching party may seek remedies, which could include specific performance, monetary damages, or termination of the contract. The specific remedies available will depend on the nature of the breach and the terms outlined in the contract.

Is there a standard timeline for closing?

The TREC contract typically specifies a closing date, which is negotiated between the buyer and seller. While there is no universal timeline, it is common for closing to occur within 30 to 60 days after the contract is executed. Factors such as financing and inspections can influence this timeline, so flexibility may be necessary.

What should buyers and sellers do before signing the contract?

Before signing the contract, both buyers and sellers should thoroughly review the document and ensure they understand all terms and conditions. It is advisable to consult with a real estate professional or legal advisor to clarify any uncertainties. Additionally, conducting inspections and obtaining financing pre-approval can help facilitate a smoother transaction.

Where can I obtain the TREC One to Four Family Residential Contract Form?

The TREC One to Four Family Residential Contract Form can be obtained from the Texas Real Estate Commission's website or through licensed real estate professionals. It is important to use the most current version of the form to ensure compliance with Texas real estate laws and regulations.

Common mistakes

When filling out the TREC One to Four Family Residential Contract form, many individuals make common mistakes that can lead to confusion or legal issues. Understanding these pitfalls is essential for a smooth transaction.

One frequent error is leaving the property description incomplete. Buyers and sellers often assume that a simple address suffices. However, the contract requires a detailed description of the property, including any improvements or fixtures. Omitting this information can create disputes later on.

Another mistake involves failing to specify the closing date. Many people overlook this crucial detail, thinking it is implied. Without a clear closing date, both parties may have different expectations, leading to frustration and potential delays.

Inaccurate financial details are also a common issue. Buyers sometimes misstate their financing terms or overlook the inclusion of earnest money. This can complicate the transaction and may even jeopardize the buyer's position.

Additionally, neglecting to check the option period can be problematic. Buyers often forget to include an option fee or fail to specify the duration of the option period. This oversight can limit the buyer's ability to conduct necessary inspections and assessments.

Another mistake is not addressing contingencies. Some individuals assume that contingencies, such as financing or inspection, are understood. However, clearly stating these conditions in the contract is vital to protect both parties' interests.

Misunderstanding the role of earnest money can also lead to issues. Some buyers think that earnest money is merely a formality. In reality, it serves as a demonstration of good faith and can affect the transaction if not handled correctly.

People often overlook the importance of signatures and dates. A contract is not valid without the proper signatures of all parties involved. Failing to date the contract can also create ambiguity regarding when the agreement was made.

Another common error is not consulting with a real estate professional. Many individuals attempt to navigate the contract process independently. Without expert guidance, they may miss critical details that could protect their interests.

Finally, misunderstanding the implications of the "as-is" clause can lead to significant problems. Buyers may assume that "as-is" means they cannot negotiate repairs. However, it is essential to clarify what this clause entails to avoid future disputes over property conditions.

Documents used along the form

The TREC One to Four Family Residential Contract is a crucial document in real estate transactions. However, several other forms and documents often accompany it to ensure a smooth process. Here’s a list of commonly used forms that you might encounter alongside the TREC contract.

Seller’s Disclosure Notice: This document provides potential buyers with information about the property’s condition, including any known issues or defects. It helps buyers make informed decisions.
Lead-Based Paint Disclosure: Required for homes built before 1978, this form informs buyers about the potential hazards of lead-based paint. It ensures compliance with federal regulations.
Option Fee Receipt: This receipt confirms that the buyer has paid an option fee to secure the right to terminate the contract within a specified period. It protects the buyer's interests during the option period.
Third Party Financing Addendum: If the buyer is obtaining financing, this document outlines the terms of the loan. It details how the financing will affect the sale and what happens if the buyer cannot secure it.
Title Commitment: This document is issued by a title company and outlines the terms of the title insurance policy. It ensures that the buyer receives clear ownership of the property.
Closing Disclosure: Provided before closing, this form details all the final costs associated with the purchase. It allows buyers to review their financial obligations and ensures transparency in the transaction.

These forms and documents work together with the TREC One to Four Family Residential Contract to facilitate a successful real estate transaction. Understanding each one can help you navigate the process with confidence.

Similar forms

The TREC One to Four Family Residential Contract form is a widely used document in real estate transactions in Texas. It shares similarities with several other documents in the real estate field. Below is a list of eight documents that have comparable features or purposes:

Residential Lease Agreement: This document outlines the terms and conditions under which a landlord rents property to a tenant. Like the TREC contract, it includes essential details such as rental amount, duration, and responsibilities of both parties.
Purchase Agreement: This document is used in various states for the sale of residential properties. It details the terms of the sale, including price and contingencies, similar to the TREC contract.
Option to Purchase Agreement: This contract gives a tenant the right to purchase the property at a later date. It shares the structure of the TREC contract, specifying terms and conditions related to the purchase option.
Real Estate Listing Agreement: This document is used by sellers to hire a real estate agent. It includes terms of representation and commission, similar to how the TREC contract outlines the roles of buyers and sellers.
Seller's Disclosure Notice: This document requires sellers to disclose known issues with the property. It complements the TREC contract by ensuring buyers are informed, reflecting the transparency emphasized in the TREC form.
Financing Addendum: This document outlines specific financing terms agreed upon by the buyer and seller. It is similar to the TREC contract in that it addresses financial obligations and contingencies.
Homeowners Association (HOA) Agreement: This document details the rules and regulations of an HOA. Like the TREC contract, it informs buyers of responsibilities and fees associated with property ownership.
Property Management Agreement: This contract outlines the responsibilities of a property manager. Similar to the TREC contract, it defines the scope of services and obligations of the parties involved.

Dos and Don'ts

When filling out the TREC One to Four Family Residential Contract form, it is essential to adhere to certain guidelines to ensure accuracy and compliance. Below is a list of things you should and shouldn't do during this process.

Things You Should Do:

Read the entire contract carefully before filling it out.
Provide complete and accurate information for all parties involved.
Consult with a real estate agent or attorney if you have questions.
Use clear and concise language when describing terms and conditions.
Ensure all signatures are obtained where required.

Things You Shouldn't Do:

Do not leave any sections blank unless instructed otherwise.
Avoid using abbreviations or shorthand that may cause confusion.
Do not alter the contract without consulting a professional.
Refrain from making assumptions about legal terms or conditions.

Misconceptions

Understanding the TREC One to Four Family Residential Contract Form can be challenging. Here are nine common misconceptions that people often have about this important document:

It’s only for real estate agents.
This form is not just for real estate agents. Homebuyers and sellers can also use it. It serves as a standard agreement that outlines the terms of the sale.
Once signed, it can’t be changed.
While the contract is binding once signed, it can be amended. Both parties must agree to any changes in writing.
All terms are negotiable.
While many terms can be negotiated, some are standard and must be adhered to, such as certain legal requirements and disclosures.
It’s the same in every state.
This form is specific to Texas and may differ from contracts used in other states. Always check local regulations for accuracy.
It protects only the seller.
In reality, the contract is designed to protect both parties. It outlines the rights and responsibilities of buyers and sellers alike.
It’s a simple document.
Though it may seem straightforward, the contract contains many details that require careful consideration. Misunderstanding any part can lead to issues later.
Signing means you’re committed to the sale.
While signing does indicate intent, there are contingencies that can allow either party to back out under certain conditions.
It covers everything related to the sale.
The contract addresses many aspects, but not all. Additional agreements may be necessary for specific issues like repairs or financing.
Real estate attorneys are unnecessary.
Even though the contract is standardized, consulting a real estate attorney can provide valuable insights and help avoid pitfalls.

Being informed about these misconceptions can empower both buyers and sellers. Understanding the nuances of the TREC One to Four Family Residential Contract Form can lead to a smoother transaction.

Key takeaways

When working with the TREC One to Four Family Residential Contract Form, it’s important to understand several key aspects to ensure a smooth transaction. Here are some essential takeaways:

Understand the Purpose: This contract is designed for the sale of residential properties that include one to four family units. Familiarity with its structure is crucial.
Review All Sections: The form contains multiple sections. Each one addresses different aspects of the transaction, including property details, financing, and closing procedures.
Clear Identification: Clearly identify the parties involved, including the buyer and seller. Accurate names and contact information help avoid confusion.
Specify Property Details: Include specific details about the property, such as the address, legal description, and any included fixtures or appliances.
Understand Contingencies: Pay attention to any contingencies, such as financing or inspection clauses, as these can impact the closing process.
Timelines Matter: Be aware of the deadlines for various actions, including earnest money deposits and inspection periods. Meeting these timelines is essential for a successful transaction.
Consult with Professionals: It’s advisable to work with real estate agents or legal professionals who can provide guidance on filling out the form correctly.
Keep Copies: Always keep a copy of the signed contract for your records. This ensures you have access to all agreed-upon terms should any issues arise later.

By keeping these takeaways in mind, you can navigate the TREC One to Four Family Residential Contract Form more effectively, ensuring a smoother home buying or selling experience.