Texas Real Estate Contract
TREC 1-4 Contract
For more info on real estate contracts, call our Texas real estate lawyer today. Anyone familiar with residential sales contracts in Texas has probably heard of the One to Four Family Residential Contract or TREC 1-4 contract. Licensed Agents and brokers use TREC 1-4 contract and other forms to represent clients during the purchase and sale of real property. But brokers and agents that are not licensed can use any method or format they wish.
If you are a real estate investor, only use a TREC 1-4 contract that has all the appropriate details, not modified contracts made popular in real estate seminars. The point here is that even if a sale and purchase of real estate seems amicable, it is still an adversarial transaction with two parties that have their own interests. So, getting an experienced negotiator is a better choice to get most of your needs met in the transaction. To learn more about trec contracts get in touch with an experienced lawyer.
What To Do If A TREC 1-4 Contract Is Inadequate
Texas Real Estate Contract Law
Striking out, inserting and adding initials with a pen may not be the neatest way to revise an inadequate real estate contract but it is legal. Another way to do revisions is to attach a special provisions addendum that has greater authority than any provisions in the contract that may seem to contradict it. An addendum is better because:
- It shows only items that need to be revised
- It presents the items to be changed on one or two pages
- Brokers and agents prefer it because the body of the TREC contract is not changed when the addendum is drafted
You could also design a custom contract if an addendum is not what you want. But agents and brokers are not comfortable with custom contracts especially if you are dealing with residential real estate.
Things Real Estate Sellers Consider
Real Estate Contracts
The main concern for a seller is that the buyer is serious and has the ability to buy the property. That is why sellers often ask for pre-approval letters and a substantial down payment with the contract. Other concerns seller have are:
- Sellers want to convey the property “as is”. That means they want to sell the property with the least extent of responsibility for repairs, legal issues and warranties except warranty titles.
- Sellers should inform buyers that due diligence is the sole responsibility of the buyer, which includes appraisal, legal advice, determining square footage and so on.
- Sellers would rather provide a survey “as is” without warranties. Buyers are free to fund another survey if the initial survey is inaccurate
- The seller should be involved in the drafting of the warranty deed
Things Buyers Consider
Texas Land Contract
Buyers need to know as much about the property as possible. They can get this information through a survey, disclosure by the seller, information from the broker, a title commitment and more. Some concerns buyers have include:
- Buyers need to know the amount of time they have to get financing for purchasing the property.
- Prepare for instances where the sellers attorney secretly adds oppressive clauses in the note or deed of trust
- Check the condition of the property to make sure all the home systems are in good condition and working order.