Buying or selling a home can be quite challenging. Some states are easier than others. The key to making a real estate transaction simple is learning what needs to occur to be successful. Texas is lucky, not only do they have the TEXAS ASSOCIATION OF REALTORS (TAR) which provides any member of a local REALTOR board, but the Texas Real Estate Commission (TREC) has provided anyone with a set of forms that are easily accessible for use in a transaction.
To help with providing an education on Texas real estate transactions, we wanted to provide a little more background on some of the key documents used on a Texas document with their corresponding form numbers.
KEY PURCHASE AGREEMENTS AND ADDENDUMS
- One to Four Family Residential Contract (Resale) – Also known as TREC 20-14, this is the residential purchase agreement used by most buyers when purchasing a home in Texas.
- New Home Contract (Completed Construction) – Also known as TREC 24-15, this is the purchase agreement for new construction that has already been completed.
- New Home Contract (Incomplete Construction) – Also known as TREC 23-15, this is the purchase agreement for new construction that has not yet been completed.
- Addendum Concerning Right to Terminate Due to Lender’s Appraisal – Also known as TREC 49-1, this is used If the purchase is contingent on the home appraising at or above the purchase price, this is the form used to cancel
- Addendum for “Back-Up” Contract – Also known as TREC 11-7, this is used when a potential buyer wishes to be a back-up buyer in the event the primary buyer cancels.
- Amendment to Contract – Also known as TREC 39-8, this is used when terms of the purchase agreement are modified.
- Addendum for Authorizing Hydrostatic Testing – Also known as TREC 20-14.
- Addendum for Coastal Area Property – Also known as TREC 33-2.
- Addendum for Property in a Propane Gas System Service Area – Also known as TREC 47-0.
- Addendum for Property Located Seaward of the Gulf Intercoastal Waterway – Also known as TREC 34-4.
- Addendum for Property Subject to Mandatory Membership in a Property Owners Association – Also known as TREC 36-8.
- Addendum for Release of Liability on Assumed Loan and/or Restoration of Seller’s VA Entitlement – Also known as TREC 12-3.
- Addendum for Reservation of Oil, Gas and Other Minerals – Also known as TREC 44-2.
- Addendum for Sale of Other Property by Buyer – Also known as TREC 10-6.
- Addendum for Seller’s Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law – Also known as TREC OP-L, this is federally mandated for all homes built before 1978.
- Buyer’s Walk Through and Acceptance Form – Also known as TAR-1925, this is a form provided for buyer’s to perform a final walk-through to ensure the property is in the same (or better) shape than when the purchase agreement was established.
- Seller’s Disclosure Notice – Also known as TREC OP-H, this is by far the most important agreement a seller will provide. This is where sellers disclose any known issues with the property which provides buyers insight into where they should focus their time during the inspection period.
- Third Party Financing Addendum – Also known as TREC 40-8, this is used when buyer is using financing other than seller financing to purchase the property.
- Notice to Prospective Buyer – Also known as TREC OP-C, this is a notice to buyer’s encouraging them to hire professional inspection services.
- Property Inspection Report – Also known as TREC REI 7-5, this is the report page for a professional property inspection report.