Every residential real estate purchase in Texas runs on a standardized set of TREC Texas real estate contract forms, and the person filling one out has two jobs: pick the form that matches the property, and complete every blank correctly before anyone signs.{{mfn}}Texas Real Estate Commission. Contracts[/mfn] The Texas Real Estate Commission publishes the forms and updates them periodically, so download the current version from the TREC website before you start. An outdated form can leave provisions unenforceable.
Choosing the Right Form
TREC publishes a separate contract for each common property type. Using the wrong one creates ambiguity about warranties, inspections, and closing procedures at exactly the wrong moment.
- The One to Four Family Residential Contract (Resale) is the workhorse. It covers existing single-family homes, duplexes, triplexes, and four-plexes, and includes provisions for property condition, repairs, and existing improvements.{{mfn}}Texas Real Estate Commission. One to Four Family Residential Contract (Resale)[/mfn]
- The Residential Condominium Contract (Resale) is for resale condo units. Its language addresses common elements, association fees, and shared-ownership rules.{{mfn}}Legal Information Institute. 22 Texas Administrative Code 537.37 – Standard Contract Form TREC No. 30-17, Residential Condominium Contract (Resale)[/mfn]
- The Unimproved Property Contract is for vacant land with no existing structures. It addresses platting, access, and utility availability rather than building condition.{{mfn}}Texas Real Estate Commission. Unimproved Property Contract[/mfn]
- The New Home Contract (Completed Construction) is for newly built homes that are finished before closing. The notice on the form specifies it is not for condominium transactions or closings before construction is complete.{{mfn}}Texas Real Estate Commission. New Home Contract (Completed Construction)[/mfn]
- The New Home Contract (Incomplete Construction) is for homes still under construction when the contract is executed. It covers builder warranties and completion timelines.
Filling In the Parties and the Property
The names of the buyer and seller belong on the contract exactly as they appear on government-issued identification. A mismatch between the contract and the name on a deed or mortgage document can delay closing or create title issues later. If a party is buying through an LLC or a trust, use the entity’s full legal name and state the signer’s authority clearly.
The property line needs more than a street address. TREC contracts call for a formal legal description: the lot number, block number, and the name of the addition or subdivision as recorded in the county deed records. Pull it from the existing deed rather than reconstructing it from tax records or an MLS listing. Getting the legal description wrong is one of the fastest ways to create a title problem.
Sales Price and Financing
Paragraph 3 of the One to Four Family Residential Contract splits the sales price into two components: the cash portion the buyer pays at closing and the total financing amount. Those two figures must add up to the stated sales price.{{mfn}}Texas Real Estate Commission. TREC No. 20-17 One To Four Family Residential Contract (Resale) – Section: 3. Sales Price[/mfn]
If the buyer is using a mortgage, the contract references a Third Party Financing Addendum that spells out the loan type (conventional, FHA, VA, or USDA), the interest rate, and the term. For FHA and VA loans, federal rules require an amendatory or escape clause stating that the buyer is not obligated to close if the property appraises below the purchase price. That addendum is separate from the main contract but must be attached and signed alongside it. Seller-financed deals and loan assumptions each have their own TREC addenda.{{mfn}}Texas Real Estate Commission. TREC No. 20-17 One To Four Family Residential Contract (Resale) – Section: 3. Sales Price[/mfn]
Paragraph 5: Earnest Money and the Option Fee
Paragraph 5 handles two payments that trip up more buyers than any other part of the form. They look similar on the page and serve completely different purposes.
Earnest money is the buyer’s good-faith deposit. The amount is negotiable, and the contract requires it to be delivered to the escrow agent (usually the title company) within three days of the effective date.{{mfn}}Texas Real Estate Commission. TREC No. 20-17 One To Four Family Residential Contract (Resale) – Section: 5. Earnest Money and Termination Option[/mfn] If the buyer defaults, the seller can retain this deposit as liquidated damages under the contract’s default provisions.
The option fee buys the buyer an unrestricted right to terminate the contract for any reason during the agreed option period. The fee amount and the number of option-period days are both negotiated and written into the contract. If no dollar amount is stated or the fee is not delivered on time, the buyer loses the unrestricted termination right, and the option period effectively does not exist.{{mfn}}Texas Real Estate Commission. TREC No. 20-17 One To Four Family Residential Contract (Resale) – Section: 5. Earnest Money and Termination Option[/mfn]
Both payments must be delivered within three days of the effective date. If that third day falls on a Saturday, Sunday, or legal holiday, the deadline extends to the end of the next business day.{{mfn}}Texas Real Estate Commission. TREC No. 20-17 One To Four Family Residential Contract (Resale) – Section: 5. Earnest Money and Termination Option[/mfn] The contract treats these deadlines as strict. If the buyer fails to deliver the earnest money on time, the seller can terminate or pursue other remedies by giving notice before the buyer cures the late delivery. Mark the calendar the moment the contract is executed.
Required Disclosures
Texas law requires sellers of residential property with no more than one dwelling unit to provide buyers with a written Seller’s Disclosure Notice detailing known conditions affecting the property’s value or safety.{{mfn}}Justia. Texas Code Property Code 5.008 – Sellers Disclosure of Property Condition[/mfn] The notice covers structural systems, roofing, plumbing, electrical, HVAC, foundation, and environmental hazards, among other items.
The disclosure must be delivered on or before the effective date. If the seller enters the contract without providing it, the buyer may terminate for any reason within seven days after finally receiving it.{{mfn}}Justia. Texas Code Property Code 5.008 – Sellers Disclosure of Property Condition[/mfn] Certain transfers are exempt from the requirement, including foreclosure sales, transfers by court order, and transfers between spouses or family members. Confirm whether an exemption applies before skipping the form.
Homes built before 1978 trigger a separate federal requirement. Sellers and their agents must provide buyers with a lead-based paint disclosure form, any known records or reports of lead hazards, and the EPA pamphlet “Protect Your Family from Lead in Your Home.”{{mfn}}US EPA. Protect Your Family from Lead in Your Home – Real Estate Disclosure[/mfn] Both parties sign and date the disclosure, and the agent keeps copies for three years. The EPA updated the pamphlet in January 2026 to reflect new dust-lead action levels; agents using older versions should include the EPA’s supplemental document.{{mfn}}US EPA. Protect Your Family from Lead in Your Home – Real Estate Disclosure[/mfn] The requirement applies regardless of whether lead hazards are actually known to exist.
Addenda to Attach
The base contract rarely stands alone. Most transactions need one or more TREC addenda attached at execution.
- The Third Party Financing Addendum is required whenever the buyer is obtaining a loan. It specifies the loan type, amount, interest rate, and the deadline for the buyer to obtain credit approval.
- The Addendum for Property Subject to Mandatory Membership in a Property Owners Association is required when the property is in an HOA. It addresses the buyer’s right to receive and review the association’s governing documents, financial statements, and resale certificate.{{mfn}}Texas Real Estate Commission. Addendum for Property Subject to Mandatory Membership in a Property Owners Association[/mfn]
- The Seller Financing Addendum is used when the seller is carrying part or all of the note. It covers loan terms, default provisions, and creditworthiness requirements.
- The Addendum for Sale of Other Property by Buyer makes the purchase contingent on the buyer closing on a separate property first.
Mineral rights deserve special attention in Texas. The standard contract includes a section on reservations. Confirm whether the seller is conveying or reserving mineral interests. In parts of the state with active drilling, sellers often reserve mineral rights while waiving surface-use rights, keeping the subsurface resources without the ability to drill on the property. If mineral rights are being partially or fully reserved, spell out the specifics in the contract or a separate addendum rather than leaving it to a generic checkbox.
Signing and the Effective Date
Once all blanks are filled and the addenda are attached, every party signs and initials each page where indicated. The contract becomes binding when the last party to accept communicates that acceptance to the other party or their agent. The broker then fills in the “Effective Date,” which is the date that final communication occurred, not the date the broker happens to write it in. A blank effective-date line does not void an otherwise executed contract, but it creates confusion because virtually every performance deadline in the document counts forward from that date.
Fill out the form on the fillable PDFs from the TREC website or through integrated transaction software. Address every blank. Enter “N/A” or “none” where a provision does not apply rather than leaving it empty, because an unaddressed blank invites disputes about what the parties actually agreed to.
Deadlines That Follow the Effective Date
Almost every clock in the contract starts on the effective date. Getting that date wrong by even a day shifts every downstream obligation.
- Earnest money and option fee delivery: within three days.{{mfn}}Texas Real Estate Commission. TREC No. 20-17 One To Four Family Residential Contract (Resale) – Section: 5. Earnest Money and Termination Option[/mfn]
- Option period: the negotiated length written into Paragraph 5, commonly seven to ten days. Inspections happen inside this window. The option fee is not refundable but credits toward the purchase price if the deal closes.
- Financing approval deadline: the date in the Third Party Financing Addendum. If the buyer cannot obtain financing by then, they may terminate and recover the earnest money.
- Title commitment review, survey delivery, and closing dates: each is written into the contract itself. Paragraph 6 covers the title policy, and Paragraph 6C addresses the survey, including who pays and when it must be delivered.
Read every deadline the day the contract becomes effective, put each one on a calendar with a day’s buffer, and treat the Paragraph 5 delivery requirements as non-negotiable, because the contract treats them that way.
If Someone Defaults
The TREC contract addresses what happens when either side fails to perform. If the buyer defaults, the seller can terminate and retain the earnest money as liquidated damages, or pursue other legal remedies including a lawsuit for specific performance (a court order forcing the buyer to close). A seller who chooses to keep the earnest money as liquidated damages generally gives up the right to sue for additional losses beyond that amount.
If the seller defaults, the buyer can also pursue specific performance. Because courts treat every piece of real estate as unique, specific performance is more commonly available in real estate disputes than in other contract litigation. The buyer can also seek damages for expenses incurred in reliance on the contract.
The standard TREC contract includes a mediation clause. Before filing a lawsuit related to the contract, the parties agree to attempt mediation in the county where the property is located. Mediation is not binding unless both sides agree to a settlement, but skipping it when the contract requires it can affect a party’s ability to recover attorney fees later. Texas law allows the prevailing party in a breach-of-contract action to recover reasonable attorney fees, and the TREC contract reinforces that right.
The most common disputes involve missed deadlines, disagreements over repair obligations after inspection, and late delivery of earnest money.{{mfn}}Texas Real Estate Commission. TREC No. 20-17 One To Four Family Residential Contract (Resale) – Section: 5. Earnest Money and Termination Option[/mfn] Most are avoidable if the effective date and the Paragraph 5 clock are respected from the first day.