TREC 1-4 Family Residential Contract (Resale)
Paragraph 7.E
If lender required repairs exceed 5% of the Sale Price, Buyer may terminate the contract and receive a refund of earnest money paid.
Paragraph 7.B.(2)
If the buyer has not received the Seller's Disclosure he chooses a number of days for the Seller to provide it. If the buyer doesn't receive it within that number of days he can terminate the contract. If the Buyer receives the disclosure, the Buyer will have 7 days after receiving it to terminate for any reason.
Paragraph 18.C.
If the contract is terminated and the escrow agent receives a demand of release of earnest money from one party, they must notify the other party. If the other party does not send a written objection to the demand within 15 days, the escrow agent may disburse the earnest money to the party making the demand.
Paragraph 7.D. (1)
Buyer accepts the Property As Is.
Paragraph 7.B.(3)
A seller's disclosure is not required in a foreclosure sale, tax sale, sale by guardian, executor, or administrator, or sale by a builder of a new home that has not been lived in. A seller's disclosure is not required if the house is worth less than 5% of the price of the property.
Paragraph 5
Within 3 days after the Effective Date, BUYER must deliver earnest money to escrow agent - Time is of the essence for this paragraph
Paragraph 6C.(1)
Within _____ days after the Effective Date of this contract, Seller shall furnish to Buyer and Title Company Seller's existing survey and an Insurance T-47 A davit.
Paragraph 6.E.(6)
If the property is located in a Certificated Service area of a Utility Service Provider (a M.U.D.) the buyer must be given notice of this, disclosing to the buyer that there may be an extra charge for having water and sewer services connected.
Paragraph 11
SPECIAL PROVISIONS - Factual statements and business details applicable to the sale can be inserted here. It is prohibited by TREC rules to insert statements or business details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use.
Paragraph 7.A.
Seller at Seller's expense shall keep the utilities on during the time this contract is in effect.
Paragraph 6D
allows a buyer to choose a number of days to review both the title commitment and the survey. If the buyer is unhappy with the results of either, he has the negotiated number of days to address his/her concerns with the seller.
the HOA or POA Addendum
allows a buyer to obtain a resale certificate on a property.
Paragraph 6.E.(3)
Texas Water Code requires the Seller to deliver and the Buyer to sign the M.U.D. disclosure prior to final execution of the contract. (A buyer who has not received the M.U.D. disclosure has the right to terminate the contract.)
paragraph 4
Texas law requires a real estate license holder who is a party to a transaction or acting on behalf of a spouse, parent, or child. To notify the other party in writing before entering into a contract of sale. (Agency coupled with an interest must be disclosed)
Paragraph 3
The cash portion plus the financing = the sales price
Paragraph 24
if the parties need or want to see an attorney, an agent should send their clients to an attorney before the clients sign the contract.
the last party to sign the contract
is the party accepting the final change. the broker is responsible for filling in the effective date after the last party signs.
A seller of coastal property abutting tidally influenced water must
provide the "Addendum for Coastal Area Property." this notice tells buyers that owners may gain or lose portions of the land due to the actions of water. A seller who sells property located seaward of the Gulf Intracoastal Waterway must provide the addendum to disclose that structures must not be erected seaward of the vegetation line. If a structure is erected seaward of that line, or becomes seaward as a result of natural causes, the structure would be subject to a lawsuit by the State of Texas for removal.
Paragraph 22
review the Addenda
C. Statute of Frauds
the Statute of Frauds requires that all contracts that relate to the transfer of any interest in real estate must be in writing to be enforceable. this also applies to compensation/employment agreements, such as listings and buyer representation agreements. Verbal agreements make you a volunteer in the eyes of the courts.
Paragraph 16
the contracts require the parties to agree to mediation for dispute resolution. In mediation, a mediator hears both sides and tries to help the parties come to an agreement.
the Seller's Temporary Lease Addendum and the Buyer's Temporary Lease Addendum are for use when
the lease period is for 90 days or less.
If mediation fails
the parties may move to arbitration. the arbitrator hears both sides and then tells the parties how to proceed.
Paragraph 6B.
the title company has 20 days to provide the title commitment after they receive the sales contract.
NOTE: Speci cally paragraphs 7.D.(1), 11 and 23 should be recognized by
their number!
Paragraph 23
within this paragraph be sure to understand: the Buyer must deliver the option fee to the Seller within 3 days after the Effective Date of this contract. Day 1 of the option period is the day following the effective date of the contract. Notice to terminate this agreement by the Buyer, must be given by 5:00 pm on the date specified. the option fee is never refunded to the Buyer but may be applied to the price if the parties agree. Time is of the Essence for this paragraph.
A Seller's Disclosure of Property Condition
must be given to a buyer BEFORE HE SIGNS AN OFFER to make that offer binding on the buyer
Paragraph 15
Default - All TREC contracts have a default paragraph. this paragraph states that if either party defaults, the injured party can: sue for specific performance, seek such other relief as may be provided by law, or both, or the injured party can terminate the contract.
