Texas Real Estate Promulgated Forms
PARAGRAPH 14 - CASUALTY LOSS
Provides that in case of a casualty loss, such as fire, flood, hurricane, etc..., the seller is to restore the property to its previous condition as soon as possible. Should the seller be unable to complete such repairs without fault within the time limit, the buyer has the option of terminating the contract, extending the closing FOR UP TO 15 DAYS or accepting the property in the damaged condition with an assignment of insurance proceeds and receive a credit from the Seller for the deductible, if any, and is permitted by the Seller's insurance carrier.
PARAGRAPH 7.C - SELLER'S DISCLOSURE OF LEAD-BASED PAINT AND LEAD BASED PAINT HAZARDS
- Required by federal law for residential dwelling constructed prior to 1978
PARAGRAPH 22 - AGREEMENT OF PARTIES
- This is where all the addenda are listed which are part of the contract
PAGE 10
- Includes the blocks for documenting the receipt of:
PARAGRAPH 4 - LICENSE HOLDER DISCLOSURE (TREC 20-14 (resale))
- disclosure paragraph to disclose if a party to a transaction is a licensee or family member of a licensee
PARAGRAPH 7.E - LENDER REQUIRED REPAIRS AND TREATMENTS
- Repairs that the lender requires - Neither party is required to complete these repairs and if both parties refuse the contract terminates - 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
PARAGRAPH 15 - DEFAULT
- if buyer fails to comply with this contract, buyer will be in default, and seller may in for specific performance, seek such other relief as may be provided by law, or both, or 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 enforce specific performance, seek such other relief as may be provided by law, or both, or terminate this contract and receive the earnest money, thereby releasing both parties from the contract
PARAGRAPH 7.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 warrantees of title and the warranty is in this contract - check box 1 if the buyer excepts the property as is - check box 2 if the buyer requires repairs or treatments at the expense of seller - may need a separate addendum for repairs
PARAGRAPH 10 - POSSESSION
- 10.A is the transfer of occupancy ^ The occupancy transfer can occur upon closing and funding or after the completion of a temporary lease ^ 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 - 10.B - leases ^ Temporary lease should only be used with tenancy of 90 days or less ^ After the affective date, seller may not execute any lease (including but not limited to mineral leases) or convey any interest in the property without buyers written consent ^ If the property is subject to any lease to which seller is a party, seller shall deliver to buy her copies of the lease and any move-in condition form signed by the tenant WITHIN 7 DAYS after the effective date of the contract
PARAGRAPH 12 - SETTLEMENT AND OTHER EXPENSES
- 12.A - these expenses must be paid at or prior to closing - 12.A.1 - expenses payable by seller Include existing liens, including pre-payment penalties and recording fees; release of sellers loan liability; tax statements or certificates; preparation of deeds; 1/2 of escrow fee; and other expenses payable by seller under this contract ^ This is also where the amount is listed that the seller will be paying for the buyers expense where buyer is prohibited from paying by FHA, VA, Texas Veteran's Land Board or other governmental loan programs, and then to other buyers expense as allowed by the lender - 12.A.2 - expenses payable by buyer include appraisal fees; loan application fee; origination charges; credit reports; preparation of loan documents; interest on the notes from date of disbursement to one month prior to date 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; 1/2 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; expense incident by loan; PMI, VA Loan Funding Fee or FHA Mortgage Insurance Premium (MIP) as required by lender; and other expenses payable under contract - 12.B - If any expenses exceed an amount expressly stated in this contract for such expenses 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 Veteran's Land Board or other governmental loan program regulations
PARAGRAPH 7.H RESIDENTIAL SERVICE CONTRACTS
- Basic insurance policies for the house and who should pay for the cost of the coverage - Often called a home warranty package this is a service off and paid for by the seller to provide repairs that would be done on all major equipment in the home for one year after the closing
PARAGRAPH 18 - ESCROW
- 18.A - Escrow - 18.B - Expenses ^ At closing, the earnest money must be applied first to any cash down payment, then to buyers expenses and any excess refunded to buyer. If no closing occurs, escrow agent may require a written release of liability of the escrow agent from all parties, require payment of unpaid expenses incurred on behalf of a party, and only deduct from the earnest money the amount of unpaid expenses incurred on behalf of the party receiving the earnest money - 18.C - Demand ^ Upon termination of 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 saying to escrow agent. If either party fails to execute a release, either party may make a written demand on 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 demands from the other party WITHIN 15 days, escrow agent made 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 in 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 and Furst claims related to the disbursal of the earnest money - 18.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 damages, earnest money, reasonable attorneys fees, and all costs of suit - 18.E - Notices ^ Escrow agents 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
PARAGRAPH 6 - TITLE POLICY AND SURVEY (TREC 20-14 (1-4 resale )) PART 1
- 6.A has a box that needs to be checked for who is paying for the title policy and a blank that indicates which title company will be used. - 6.A also lists eight (8) standard exceptions to the policy that will not be covered - 6.A.(8) has a box to mark if the title policy will be amended or deleted. If the buyer's want coverage, then the box "will be" wold be marked. If it is amended or deleted then the parties must identify who is to pay for it. This "title endorsement" costs 5% of the title policy cost - Section 9 of RESPA states that no seller of real property - including national banks, REO companies, or otherwise - may dictate that a particular title company must be used in a residential transaction. A seller violation could result in seller liability to the buyer in an amount EQUAL TO THREE TIMES THE CHARGES FOR THE TITLE INSURANCE. - If the seller pays for the buyer's title insurance, the seller does have the right to select the title company
PARAGRAPH 6.E - TITLE NOTICES
- 6.E.1 is the abstract of title requirement - 6.E.2 is related to Mandatory Owner's Association Membership and the disclosures related to it. - the Restrictive Covenants are recorded in the Real Property Records of the county. Copies can be obtained from the county clerk - failure of the buyer to know such things is a lack of disclosure on the part of the licensee and clearly a violation of The Real Estate License Act - the TREC promulgated form, Addendum for Property Subject to Mandatory Membership should also be used - Section 207.003, Property Code, entitles owner to receive copies of any document related to POA - a resale certificate contains information regarding the amount and frequency of assessments as well as any lawsuits POA is a party of.
PARAGRAPH 7 PROPERTY CONDITIONS (TREC 20-14 (resale))
- 7.A ACCESS, INSPECTIONS AND UTILITIES ^ Seller shall permit buyer and buyers agent access to the property at reasonable times ^ Buyer may have the property inspected by inspector selected by buyer and license by TREC or otherwise permitted by law to make inspections ^ I just found the testing must be separately off the rise by seller in writing ^ Seller at sellers expense shell immediately cause existing utilities to be turned on and she'll keep the utilities on during the time the contract is in effect - 7.B SELLERS DISCLOSURE NOTICE PURSUANT TO £5.008, Texas Property Code ^ A statement of the items and systems a property has and whether those work properly or not * 7.B.1 States the buyer has received the notice * 7.B.2 Says the buyer has not received the notice and outlines the rights the buyer has once notice is given. Number of days after the effective date is negotiable between buyer and seller. 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 returned to buyer. If seller delivers the notice, buyer may terminate this contract for any reason within seven days after buyer receives the notice or prior to the closing, which ever first occurs, and the earnest money will be refunded * 7.B.3 States that the seller is not required to give notice under the Texas property code NOTE: One of the boxes in 7.B. must be marked. Licensee should be sure it is 7.B.1 to avoid a unilateral right to terminate for the buyer
PARAGRAPH 9 - CLOSING
- 9.A is the actual closing date - 9.B discusses what must happen at closing - 9.B.1 seller must sign and deliver general warrant deed ^ Seller must furnish tax statements or certificate showing no delinquent taxes on the property - 9.B.2 buyer must pay in good funds. Good funds are guaranteed good by some institution. A personal check is limited to $1,500 in Texas - 9.B.3 states all papers must be signed ^ Seller and buyer shall execute and deliver any notices, statements, certificates, affidavits, releases, loan documents and other documents reasonably required for the closing of the sale and the issuance of the title policy - 9.B.4 there will be no additional liens, assessments, or security interests against the property - 9.B.5 tells what happens if the property is subject to a lease ^ if the property is subject to residential lease, seller shall transfer security deposit (as defined under £92. 102, Property Code), if any, to buyer. In such an event, buyer shall deliver to the tenant a signed statement acknowledging that the buyer has acquired the property and is responsible for the returns of the security deposit, and specifying the exact dollar amount of the security deposit
PARAGRAPH 21 - NOTICES
- All notices from one party to another must be in writing and or affective one mailed to, hand-delivered at, or transmitted by fax or electronica transmission to the buyer and the seller at the information provided in this paragraph - It is very important that a licensee DOES NOT put their personal contact information here
PARAGRAPH 8 BROKER'S FEES
- All obligations of the parties for payment of brokers fees are contained in a separate written agreement - Those agreements are a listing agreement and a buyer tenant representation agreement
SIGNATURE BLOCK
- At the bottom of PAGE 8, you see the places for the buyer and seller to sign the contract. Noticed that there is NO license the information or signature is here
PARAGRAPH 23 - TERMINATION OPTION
- For nominal consideration, the receipt of which is hereby acknowledged by seller, the buyers agreement to pay seller and option fee within three days after the effective date of this contract, seller grants buyer the unrestricted right to terminate this contract by giving notice of termination to seller within a negotiable number of days after the effective date of the contract or option period - Notices under this paragraph must be given by 5:00 PM (local time where the property is located) by the date specified - If no dollar amount is stated as the option fee or if buyer fails to pay the option fee to seller within the time prescribed, this paragraph will not be a part of the contract and buyer shall not have the unrestricted right to terminate - If a buyer gives notice of termination within the time prescribed, the option fee will not be refunded; however, any earnest money will be refunded to the buyer - TIME IS OF THE ESSENCE for this paragraph and strict compliance with the time for performance is required
PARAGRAPH 6.E.10 - NOTICE OF WATER LEVEL FLUCTUATIONS
- If a person buys a property on the lake, the lake level may fluctuate
PARAGRAPH 20 - FEDERAL TAX REQUIREMENTS
- If seller is a foreign person, as defined by Internal Revenue Code and it's regulations, or if seller fails to deliver an affidavit or a certificate of non-foreign status to buy her that seller is not a foreign person, then buyer shall withhold from the sale proceeds an amount sufficient to comply with applicable tax law and deliver same to the Internal Revenue Service together with appropriate tax forms - Internal revenue service regulations require filing written reports and currency in excess of specified amounts is received in the transaction
PARAGRAPH 11 - SPECIAL PROVISIONS
- Insert only factual statement and business details applicable to the sale. TREC rules prohibit license holders from adding factual statements or business details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use - A licensee should not put items already addressed in the main body of the contract in this paragraph - If a contingency is already in the main body of the contract, do not write it here again - Too much riding runs the risk of writing something that would not be acceptable - Used to put in items that have no other paragraph addressing them - Many licensees have lost their license because they have written incorrect items in this blank - This paragraph is possibly the most frequent paragraph that result in disciplinary action against a realtor - The smart license he does not put anything in this paragraph - A real estate licensee should consult his or her broker and broker should consult a real estate attorney it is that serious
PARAGRAPH 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 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 cost equally. This paragraph does not preclude a party from seeking equitable relief from a court of competent jurisdiction
PARAGRAPH 19 - REPRESENTATIONS
- Our 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 except backup offers
PARAGRAPH 7.G - ENVIRONMENTAL MATTERS
- Outlines the dangers that certain substances in certain areas possess - Buyer is advised that the presence of wetlands, toxic substances, including asbestos and waste or other environmental hazards, or the presence of a threatened or endangered species or its habitat may affect buyers intended use of the property - If a buyer is concerned about these matters, and addendum promulgated by TREC or required by the parties should be used
EFFECTIVE DATE
- Paragraphs 5, 6, 7, 14, and 23 all tie to the effective date - It is critical that the effective date is filled in to allow all the other paragraphs in the contract to connect to this date - Far too often a real estate licensee will forget to fill in this section and as a result have an undefined contract
CLOSING DATE
- Paragraphs 6, 7, 9, 10, 12, 13, 14, 15, 18, 19, and 23 all tie to the closing date - the actual closing date is found in Paragraph 9 - Some real estate license he use the words to be determined in the blank. This action is a clear violation of the TREC rules and the practicing of law without a law license. Both violations are very serious offenses - Non-verbal agreement to extend an option or days for financing approval will place the client at rest, place the sales person at risk and place the real estate company at risk - Failure to include, use, and monitor the dates of a contract will place the licensee in a position of financial risk as well as placed the licensee in a position to receive reprimands and other disciplinary actions from the Commission
PARAGRAPH 7.F - COMPLETION OF REPAIRS AND TREATMENTS
- Seller must complete the repairs prior to closing - If seller does not do the repairs, the buyer may elect to have the contract extended so the seller can complete those repairs - At buyers election, any transferable warranty's received by seller with respect to the repairs and treatments will be transferred to buy her at buyers expense if seller fails to complete any agreed repairs and treatment 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 repairs and treatments
Paragraph 13: PRORATIONS
- Taxes for the current year, interest, maintenance fees, assessments, dues and rent 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 are not paid at or prior to closing, buyer shall pay taxes for the current year
PARAGRAPH 6.E.9 - PROPANE GAS SERVICE AREA
- This is the disclosure paragraph. If a person lives in a service area they must receive the required disclosure - If the property is located in a propane gas system service area on by distribution system retailer, seller must give the buyer a written notice as required by £141.010, Texas Utility Code. - an addendum containing the notice approved by TREC or required by the parties should be used
Paragraph 6.B - TITLE COMMITMENT
- a title commitment is necessary to disclose to a buyer what the policy will show once this transaction closes and the new owner's title policy will be issued - WITHIN 20 DAYS after the title company receives a copy of the contract, Seller shall furnish 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. - if commitment and exception documents are not delivered to Buyer with the specified time, the time for delivery will be AUTOMATICALLY EXTENDED UP TO 15 DAYS OR 3 DAYS PRIOR TO CLOSING, whichever is earlier. - if the commitment and exception documents are not delivered within the time required, Buyer may terminate the contract and the earnest will be refunded to Buyer.
PARAGRAPH 6.E.3- STATUTORY TAX DISTRICTS
- also known as MUD, these are water and sewer providers not owned by the city and fees can go unmonitored - 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 the final execution of contract
PARAGRAPH 6.E.7 - PUBLIC IMPROVEMENTS DISTRICTS
- areas where improvements are being made and buyer may be assessed taxes to pay for these improvements - £5.014, Property Code, requires seller to notify buyer tax assessment obligation to a municipality or county for an improvement project undertaken by a public improvement district under Chapter 372, Local Government Code.
PARAGRAPH 6.C- SURVEY
- discusses the survey and who is to perform that survey -survey must be performed by a registered professional land surveyor acceptable to the Title Company and Buyer's lender(s) - states that the owner will provide the survey and an affidavit that the survey is correct. If the survey cannot be used, the boxes indicate who will pay for a new survey. - if the seller cannot locate the survey, the buyer can purchase a survey and require the seller to pay for it. The listing licensee must protect his client by making sure the seller has a survey and can locate it prior to signing the contract, - the affidavit is a disclosure statement by the seller that no changes have been made on the property that could affect the survey. - when the survey is presented to the buyer, the T-47 affidavit that is signed and notarized must accompany it. - if the survey or affidavit is not given to the buyer within the days noted, buyer shall obtain a new survey at the seller's expense. The title company is NOT to get the affidavit filled out at closing - Paragraph 6.C.2 states the buyer will pay for a new survey - Paragraph 6.C.3 states that the seller will pay for and furnish a new survey to the buyer
PARAGRAPH 6.E.5 - ANNEXATION
- discusses the taking in of Extraterritorial Jurisdictions (ETJ) to grow a city. - once annexed the new addition has all the benefits of being in a city but also has all the taxes - £5.011, Texas Property Code states 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
PARAGRAPH 6.D - OBJECTIONS
- gives the buyer the right to object to certain items but not to others. - this paragraph also allows buyer to determine if they have a special use for the property, such as a home-based business or the buyer wants to put in a swimming pool. If either of these is denied, buyer can terminate. - there is a small blank that needs a number in it giving the buyer a certain number of days to object. THERE IS NOT STANDARD NUMBER but the buyer should not need much time one they receive documents to review them. - buyer's failure to object within the time allowed will constitute a waiver of Buyer's right to object; except that the requirements incur any expense - 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 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 the 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 - anytime the use of the property is not a typical use, the licensee should note the use in this paragraph
PARAGRAPH 6.E.8 - TRANSFER FEES
- if the property is subject to a private transfer fee obligation, £5.205, Property Code, requires seller to notify buyer that the transfer fee may be governed by Chapter 5, Subchapter G of the Texas Property Code - private transfer fees before June 17, 2011 must file a "Notice of Private Transfer Fee Obligation" to continue collecting the fee and must re-file every 3 years - private transfer fees created after June 17, 2011 are not binding and enforceable - disclosure of fee is required in this paragraph - THE LAW DOES NOT: ^ affect valuable consideration given to a seller for mineral rights as long as that amount was paid once and the agreement did not bind subsequent owners to pay the fee ^ prohibit the payment of a commission to a real estate broker. ^ affect any interest charges or fees required by a lender under the agreement of a mortgage loan ^ prohibit the collection of rent and additional fees that are in a lease or sublease agreement ^ prohibit the payment of an option fee to possibly purchase a property or for a right if first refusal to an individual ^ keep the government from charging a fee for recording a document indicating a transfer of ownership of the property ^ affect a fee that may be paid for transfer of club membership related to real estate ^ prohibit a fee being paid to a tax exempt organization as long as the group uses the funds to benefit the property by maintaining the property, building and repairing improvements on the property, or providing activities that help the quality of life, such as cultural, educational, charitable, recreational, environmental, and conservation activities - Buyer must be informed in writing of the fee obligation - An agreement between seller and buyer to attempt in the transfer fee is void - If this was violated by the person that is to receive the transfer fee, the state attorney general may seek a court injunction to restrict the collection of the fee and may ask for civil penalties. The financial penalties may not exceed TWO TIMES the amount of the transfer fee - If the court decides that the person receiving the fees violated this chapter of the law what the frequency that shows a pattern, the court could include a civil penalty not to exceed $250,000. The collected funds would be deposited in the general revenue fund of the state
PARAGRAPH 24 - CONSULT AN ATTORNEY
- includes the date the contract was executed (final acceptance) and includes buyer and seller attorney info as well as names and signatures of buyers and sellers
PARAGRAPH 6.E.6 - PROPERTY LOCATED IN A CERTIFIED SERVICE AREA OF A UTILITY SERVICE PROVIDER
- newer subdivisions are being added faster than the utility service can be provided and the buyer needs to know that these services may not be available for a while - notice is required by £13.257, Water Code that states that the 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 area and there may be special costs or charges required before receiving service - buyer must acknowledge receipt of notice AT OR BEFORE the execution of a binding contract or at closing of the real property
PARAGRAPH 5 - EARNEST MONEY (TREC 20-14 (resale))
- paragraph that allows the buyer to demonstrate his "good faith" - time is of the essence for this paragraph - delivery time of additional money to escrow agent is negotiable - if buyer fails to deliver earnest month within the time required, Seller may terminate or exercise Seller's remedies under Paragraph 15, or both, by providing notice buyer to before buyer delivers earnest money
PARAGRAPH 6.E.4 - TIDE WATERS
- related to areas on the coast where tides can actually change the property lines - an addendum must be used
PARAGRAPH 3 - SALES PRICE (TREC 20-14 (1-4 resale))
- where the offer of money is made - enter down payment, loan amount and the sales price - 3.A is the down payment - 3.B is the loan amount and the type of addendum to be used needs to be checked if not all cash - 3.C is the sales price (3.A + 3.B should always equal 3.C)
PARAGRAPH 2 - PROPERTY (TREC 20-14 (1-4 Resale))
-identifies the property to be sold and the items that go with it. Be sure to identify the property correctly. - PARAGRAPH 2.A - the property is to be described by Lot, Block and subdivision. If the property cannot be described as such and uses a form of Metes & Bounds, abstract or other variations, licensee may need a note that a further description is located on an addendum attached to the contract. - Enter the legal description of the property included address - PARAGRAPH 2.B & 2.C - state that the included items must be permanently installed and built-in items ("if any") and accessories can be easily removed. Any exceptions are listed under 2.D Exclusions -PARAGRAPH 2.D - indicates items seller plans to keep and not sell with the property. Misuse of the contract could result in disciplinary action as well as possible financial liability.
One to Four Family Residential Contract (Resale) (TREC 20-14)
10 page contract document outlining the details of the purchase. Has 24 paragraphs: 1. Where parties are identified 2. Identifies property to be sold and the items that go with the property 3. Where offer of money is made 4. License holder disclosure 5. Earnest money 6. Title Policy and Survey 7. Deals with condition of property and inspections 8. Addresses the commission agreements and broker fees are separate written agreements 9. Closing or consummation of the transaction 10. Transfer of occupancy 11. Special provisions 12, 13, 14, 15, 18, 19 and 23 all tie to the closing date. (actual closing date is found in paragraph 9) 16. Mediation 17. Attorney's fees 20. Federal Tax Requirements 21. Notices 22. Agreement of parties (list of addenda) 23. Termination option 24. Consult an attorney before signing Also has broker information and fee receipts
PARAGRAPH 1 - PARTIES ( TREC 20-14 (1-4 resale)
Parties: - DO NOT put anything on either line other then the names and the relationship. To add anything further could constitute a practice of law. - DO NOT put the effects of the title if one of the party dies; that is to be left for a will - In the State of Texas only the first initial or first name and the last name are required. - One to Four Family means this contract cannot be used for any transaction over four families or for apartment complexes with hundreds of families - Residential means not commercial. Commercial contracts are typically drawn up by the attorneys. There are NO TREC PROMULGATED FORMS FOR COMMERCIAL SALES - Resale means no new construction. There is a different TREC form to use for selling new construction - Not for Use for Condominium Transactions. There is a different TREC form for condo transactions
PAGE 9
There is a block for entering information about the brokers for both parties, as well as information about the agents involved in the transaction
PARAGRAPH 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 attorneys fees and all costs of this proceeding
