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Texas Sales Contract

photo by Mike McKay

Are you thinking of selling your house?  Or maybe you are a real estate investor and looking to make an offer on a property.  Or maybe you are like one of the thousands of Texas real estate agents who are looking for an easier way to fill out your Texas sales contracts online.  If you are looking for a simple way to complete the Texas sales contract feel free to sign up for our free Texas real estate software here.   Looking for more information in general then lets start from the beginning.  In Texas the Texas sales contracts are actually provided by the Texas real estate commission.  They provide approved versions of the contracts depending on the details of the real estate transaction you are working with.  There are a number of different versions and we will briefly discuss them below.

Unimproved Property Texas Sales Contract

The unimproved property Texas sales contract is designed to be used for transactions that are related to the sale of land that has not yet been developed.  This would be residential or commercial land that does not have a structure built on it yet.  This would not include condominium properties.

1-4 Family Residential Resale Texas Sales Contract

The majority of the time in residential contracts this is the form that would be used.  This Texas sales contracts involves the sale of residential units when they are under 4 units.  This means that single family homes, as well as duplex, triplex, and quads would be included under this contract.  This does not include condominiums as there is a specific contract intended for this type of property. We actually offer a free solution to fill this out online and you can signup in 5 minutes here. New Home Incomplete Texas Sales Contract Another version of the Texas sales contract is the new home incomplete form.  This form is to be used for

New Home Incomplete Texas Sales Contract

Another version of the Texas sales contract is the New Home Incomplete form.  This form is intended to be used for transactions when you are purchasing a home that has not been constructed or completed yet.  You may be purchasing a home from plans or on spec and this would be the contract that is used.  Note that this contract should not be used for condominium pre-construction transactions and also should not be used if you are closing prior to completion of the construction.

New Home Completed Texas Sales Contract

Similar to the new home incomplete version there is a complete texas sales contract version.  This contract is intended to be used for the purchase of a new home that is completed.  Construction is not remaining but its not being resold from another owner.  This is not to be used in condominium transactions or closings prior to completion of the construction.

Farm and Ranch Texas Sales Contract

When you are looking to sell farm land or a ranch there is a specific form also provided by the State of Texas.  This form is called the Farm and Ranch Contract.  This specific form outlines items that are often a concern on a transaction like this.  There are items such as land rights, utilities and zoning that are more specific and important to a transaction involving farm and ranch land then they would be to a purchaser of a condominium.

Residential Condo Resale Texas Sales Contract

The last of the texas sales contracts is the residential condo resale version.  This form is used when buying or selling a condominium when the transaction does not include a developer or builder.  If you are buying or selling your condo to another owner this would be the version of the form you would be looking to use.

Lastly its important to understand that real estate transactions can be a complicated and expensive ordeal.  If you have concern over how to complete any one of the Texas sales contracts or exactly which version pertains to you we would advise you consult with a professional.  Our real estate form software allows you to easily work with all of the TREC forms required to buy and sell property and you can learn more here about our Texas sales contract software.

Texas Real Estate Forms

People willing to purchase or sell a home need to enter into contracts, which are legally binding on both the parties. As per Texas law, homebuyers need to sign a TREC or Texas Real Estate Form provided by the Commission unless assisted with an attorney. Each and every section of this contract is extremely important and therefore needs to be clearly understood by both the parties before signing on the dotted lines. Though the following information may not be comprehensive it will still give you an idea of the things that you can expect to see in Texas real estate forms.

photo by Jack

It’s necessary to get some expert advice before signing such an important document such as Texas real estate forms. Purchasing a home is one of the biggest decisions that an individual takes and also probably one of the biggest investments that one makes. Given this importance, it is necessary that one understands every clause before signing it.  Given the complexity and nuances, you should seek the advice of a real estate agent or an attorney in this regard.

If you are using third party financing, then both the buyer and the seller should take special note of paragraph 4(A)(2) of the Contract. This portion of the Texas Real Estate Forms offers buyers the option to choose whether they want to avail third party financing. Even if the buyer chooses not to avail the option or fails to get financing as per the standard Texas real estate forms, then he/she must fulfill the other obligations.

The Contract also requires the buyer to pay an amount as earnest money or additional earnest money. This payment is made by the buyer at the initial stages of the Contract and is a way of reassuring the seller that the buyer is also interested in the property and stands the risk of losing a significant amount if the deal fails. If the buyer fails to deposit the money within a stipulated time, then the buyer would be in default and the seller can cancel the deal as per the terms of the Contract.

An important part of the home buying process is the title insurance policy, generally issued by a title insurance company.  Within the Texas real estate forms there are stipulations for how title is obtained and who pays for these costs.  Title Insurance safeguards buyers from any errors in the title search. In case the title is not as reported then the issuing company will have to reimburse the buyer and pay the amount mentioned in the title insurance document. Such a policy is intended to lower the losses suffered by the buyer owing to errors in the title made in the past.  Based on the options chosen in paragraph 6(A), the seller or the buyer needs to pay for the Policy and is compulsory in cases where third party financing is availed by the buyer.

Texas real estate forms also mention the condition of the property once the process of sale begins. These include details such as the condition of the walls, fences, floors and roof.  As always you should take the time and hire a professional to inspect the property to make sure there are no hidden deficiencies.

The buyer and the seller should carefully look into all these details before going ahead with the deal and as always consult with experts when generating Texas real estate forms.  The transactions are too complicated and costly to jeopardize a mistake that may easily have been fixed with a professional.

To learn more about our TREC Form Software Click Here.

Photo by Jack Keene

As of March 5 2014 the Texas Real Estate Commission have released one new form updated forms with two replacement forms.  Here are the details of these new TREC Forms.

New TREC Forms new release:

47-0 : Addendum for Property in a Propane Gas System Service Area  –  This is essentially a disclaimer that your property may be located in an area that uses propane gas and notice that there may be additional costs associated with getting service and connections for the property.  Its a further disclosure to protect the purchaser.

New TREC Forms Updated:

40-6 : Third Party Financing Addendum for Credit Approval

37-5 : Subdivision Information, Including Resale Certificate for Property Subject to Membership in a Property Owners’ Association

As always these updated forms are included at no additional charge and are updated in our TREC Forms library.  Learn More about our Texas Real Estate Form Filler Software.

Using TREC Contracts in Texas and Common Mistakes

Photo by Steve Snodgrass

With the housing market recovery in place, there has been a steady increase in the number of homes sold. In fact, real estate attorneys and brokers have been kept rather busy by these robust home sales. If you are a prospective home buyer in Texas, you should always discuss the specifics of a real estate contract with a real estate professional or a real estate attorney.

In Texas, the most commonly used real estate contract is the one generated and provided by TREC or the Texas Real Estate Commission and is known as the One to Four Family Residential Contract (Resale). The TREC contracts are used for most real estate transactions in Texas. Prospective buyers can print the forms from the website or may access them and easily complete the TREC contracts using Bull Forms Texas Real Estate Form software.

When generating or reviewing the TREC contracts, it is important that people pay attention to the following:

Check the names of both the buyer and the seller to find out if there are any errors in spelling.  Spelling is an easily overlooked and common problem when generating TREC contracts and other real estate contracts.

The details of the property and its location should be accurately mentioned. It is necessary to clearly mention the items that are not included in the sale. For example, the seller may not wish to sell the fixtures and therefore this should be clearly mentioned in the sales contract.

It is also important to provide a breakup of the cash and other financing portions of the sales price. The components should be added up to check whether they match with the total price decided upon by both the parties after negotiations.

TREC contracts also require the buyer to state the mode of financing. The buyer needs to state if they opt for third party financing either through an existing loan or through seller financing. If the buyer opts for third party financing, then the financing addendum available with TREC contracts should be used.

As per the TREC contracts, the buyer also needs to pay an earnest money to the title company. The buyer should try and keep the amount as minimal as possible as in case the buyer fails to meet the terms of the deal, then this amount would be paid to the seller.  Likewise its in the sellers best interest to ask for as much as possible.

There is often confusion about as to who would pay for the title policy and the survey. This is something that the buyer can discuss with an attorney or a real estate professional. There is a deadline for the same to be completed and therefore the buyer should keep a tab of this.

According to TREC contracts, the seller should allow the buyer to carefully inspect the property and provide a disclosure regarding the condition of the property. It is important for the buyer to carefully read the disclosure and decide whether they are willing to accept the property with certain repairs.  You should also hire a licensed professional inspector to assess the property. Doing this can save a lot of money instead of waiting until you find a major repair is needed once the sale is closed.

Regardless we always recommend that you work with an attorney or real estate professional when completing any of the TREC Contracts as they are legally binding agreements that should be treated as such.

Texas real estate transactions happen every single day, which is one of the reasons the Texas Real Estate Commission, or TREC, has compiled a huge number of forms that are to be used with those transactions. You might be wondering why you should utilize the TREC Texas real estate form instead of trying to create a form yourself. There are a number of reasons why it’s beneficial to utilize the pre-created forms available through TREC.

More Efficient

It’s much more efficient and easier for you to utilize the forms available through TREC. The forms can be printed out so you can use them any time a transaction takes place. This saves a lot of time, since you’re not worrying about drafting your own form to use for the transaction. Also, when brokers create their own forms, they should be looked over by real estate attorneys to ensure that the contract is legal and binding. Texas Real Estate Commission forms have already been looked over by attorneys and are legal and binding.

Ensuring Fairness

The TREC forms are created with all parties in mind, to ensure that the transaction taking place is fair to all parties. Individuals who are about to purchase a home or take part in another transaction may take comfort in the fact that the forms they’re signing are approved by the Texas Real Estate Commission. It provides a certain level of credibility for the real estate agent. An agent who creates a form himself or herself may give the other party in the agreement a reason to hesitate.

Types of Forms Available Through the TREC

The TREC has a huge variety of forms available to suit most real estate needs. On the website are license application forms for real estate brokers, inspectors and salespersons. They also have change forms as well as moral character determination forms, inspection report forms, compliant forms, and a great number of miscellaneous forms. You should be able to find the appropriate forms no matter what transaction you’re taking part in. Of course, the TREC has all the necessary contract forms as well, such as notices to prospective buyers, unimproved property contracts, etc.

Finding the Form You Need

The forms are available on the TREC website but unfortunately they are not so easy to fill out. BULL Forms Texas provides a simple easy online real estate form tool to allow you to easily store and fill out your TREC Forms online and email them or print them directly from your computer.  Overall, it’s a good idea to use a TREC form rather than trying to create your own. That way, you can ensure that nothing is overlooked and can provide a good level of comfort for the unlicensed individuals who are participating in the transaction.

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This summer is gearing up to be one of the hottest summers in recent history. Those who live in Texas understand just how hot it can be, and just how expensive those energy bills can get. This summer, you can lower your energy bills in your house inTexas by implementing a few extra rules and procedures for you and your family.

Invest in Fans

Fans are great heat beaters, and can help lower your energy bill significantly, because they will allow you to keep your thermostat at a higher setting. Consider installing ceiling fans in bedrooms and living areas, and purchase box or oscillating fans to place in rooms to move cool air through.

Block the Sun

A huge amount of energy is used trying to cool homes, especially those with lots of windows that the sun can shine through for a long period of time throughout the day. A great way to lower your energy bill is to block that sun from shining in. There are black out curtains and shades available to do just this. After blocking the sun, you’ll see that your home is noticeably cooler during the day. Awnings are another great way to block the sun, and there are adjustable awnings available so they can be retracted when you don’t want to block the sun.

Using Appliances

Using the dryer or oven during the day can make your air conditioner work harder to keep the house cool, making your energy bill skyrocket. Cook items in a crock pot rather than the oven, and use the dryer only at night. Alternatively, you can place a clothes line outdoors to dry larger items like blankets and sheets. Wash clothes in the cold water cycle so energy isn’t used to heat the water, and make sure you have a full load before washing. Also, make sure you have a full load of dishes before running the dish washer.

Alternatives to Cooking in the Kitchen

Cooking, whether it’s on the stove top or using the oven, can really heat things up in your house. Cook out on the grill a few times a week to avoid this problem. You can also plan cold meals a couple of nights a week, such as sandwiches or microwaveable foods.

Changing Your Air Conditioner Filter

It’s important to maintain your air conditioner to keep it working properly. Residents in Texas should change their air filters at least once a month to ensure that the air can flow properly. Filters are inexpensive and when the air conditioner is properly maintained, it will work more efficiently.

By keeping these tips in mind, you can beat the heat in Texas and keep your home cooler and your energy bills lower.  The cost of your real estate taxes, real estate insurance and mortgage are enough.  These tips can help keep your expenses down.

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Individuals living in or relocating to Texas are often faced with an important question: should they rent a home or purchase a home. There are benefits to each, and it’s important to fully consider both options before deciding on which route is best for you.

The Cost of Rent is Rising

One thing individuals are noticing more and more is that the cost of rent is increasing at a steady pace. In fact, in many places in Texas, renters will pay more per month than an individual paying a house note. The average cost to rent a 3 bedroom home in Texas is well over $1,000 per month. Even a small, 1 bedroom home or apartment can cost over $700. Individuals are growing tired of throwing their money out each month to have nothing to show for it at the end of the year whereas those who are purchasing a home are putting their money toward something that will soon belong to them.

Lower Interest Rates Make Buying Easier

Currently, the interest rates are down, making it easier for individuals to purchase Texas real estate without spending a fortune each month in interest rates. This means that more people are able to purchase a home than in the past decade. This, combined with rising rent costs, is making more individuals lean toward home ownership rather than renting a home. Lower interest rates mean smaller monthly payments and an overall lower price for the majority of homes on the market.

Owning a Home Gives You More Options

Individuals who own their home have more options than those who are renting. Each choice, from painting the living room to putting a pool in the backyard, must be approved by the home owner if you’re a renter. However, if you own the home, you’re entitled to do whatever you want with the property. For families who plan on living in one place in Texas long-term, owning a home is often the best option.

Renting is Unpredictable

While renting has it’s benefits (such as no maintenance), it also has its downfalls. For instance, if you’re renting a home and the owner decides to sell, he or she can give you a 30-day notice and that’s it – you have to find another place to live. This is something you obviously don’t have to worry about if you own your own home.

Owning a Home is an Investment

Perhaps the biggest benefit of owning a home is the investment aspect. Most individuals want a home that they can leave to their children, and renters aren’t able to do this. Those who own a home and want to purchase another have the option of renting out one of their homes for a steady monthly income source. Or, they can improve the home and sell it for a profit.

Overall, the benefits of owning a home in Texas are outstanding and there has never been a better time to purchase a home. Interest rates are low and terms can be adjusted to best suit your individual needs.

Whether you’re thinking of becoming a Texas real estate broker, or you want to make sure your Texas real estate broker is qualified, it’s important to understand the specific state requirements. A trained specialist has information and knowledge that those who are untrained do not have access to, and this is advantageous for the broker, as well as his or her clients.

Real Estate Salesperson

Before an individual can take the Texas broker’s exam, they must be an active real estate salesperson, including having their license, for at least 2 full years. Without being a practicing, licensed real estate salesperson, individuals cannot obtain their broker license.

Training Hours

In addition to having a Texas state real estate salesperson license, individuals must have at least 900 hours of education, including 270 hours in core subjects. Core hours do not include MCE (mandatory continuing education) hours. However, for the remainder of the hours required, both MCE and SAE courses count. In some cases, obtaining a college degree can provide individuals with more than 600 hours.

When to Take Courses

Individuals can take courses at any time while waiting to take the Texas real estate broker’s exam. However, it’s important to count the hours properly, as different types of courses are counted differently. For instance, online courses are additional hours that count toward the total hours needed, and home study courses count too. The best time to take the courses is during the required 2 years as a real estate salesperson.

Additional Information

For individuals who have been licensed real estate salespersons in states other than Texas, the requirement is to have at least 2 years’ experience as a real estate salesperson in the months directly preceding taking the broker exam. A copy of the course transcripts or college transcripts will be required in order to take the Texas real estate broker exam.

Costs

In order to take the Texas real estate broker exam, the original application which is required by all applicants costs approximately $360. In addition to that, there is a $10 fee called a Recovery Trust Account that is required by all applicants. In some cases, individuals will need to pay a fee for a background check prior to the test.

Overall, the process to become a real estate broker in Texas isn’t difficult, especially for those who are already qualified real estate professionals. The most difficult aspect of the process is waiting the required two years. However, the experience gained during this two years is important and can help with the future career of the Texas real estate broker.