1 / 16

Texas Real Estate Sales Contracts

Chapter 8. Texas Real Estate Sales Contracts. In This Chapter. You will be introduced to real estate contracts, especially Texas promulgated forms. Purpose of Sales Contracts.

hector-garza
Download Presentation

Texas Real Estate Sales Contracts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 8 Texas Real Estate Sales Contracts

  2. In This Chapter You will be introduced to real estate contracts, especially Texas promulgated forms.

  3. Purpose of Sales Contracts • Allows time to ascertain that the parties can each perform the terms of the agreement which are written and signed promises to perform.

  4. Earnest Money Contracts • Must be in writing. • Must be signed by parties to be charged. • Must be evidence to convey an interest. • Must have identifiable vendor & vendee. • Must identify property to be conveyed.

  5. Texas real estate agent must use standard forms promulgated by TREC - available at www.TREC.state.tx.us

  6. What is in Contracts? • Provision for buyer’s earnest money deposit • Buyer’s offer to purchase • Acceptance of the offer by seller • Provisions for payment of broker fees • Instructions to closing agent • Possession details

  7. “time is of the essence” This is a legal term which means the time limits set by the contract must be faithfully observed or the contract is voidable by the non-defaulting party. Due to the legal nature of this term, it should not be used by the real estate agent!

  8. Disclosures • Federal Clauses • Negotiation • Rollback Taxes • Pipelines • Lead Based Paint

  9. LEAD-BASED PAINT IN HOUSINGApproximately three-quarters of the nation's housing built before 1978 contains some lead-based paint. Federal law requires that before a buyer or tenant becomes obligated under a contract for sale or lease the seller or landlord must disclose the possibility lead based paint and lead based paint hazards and provide available reports along with the pamphlet “Protect Your Family From Lead in Your Home.”

  10. TYPE OF HOUSING NOT COVERED • Housing built after 1977 • (Congress chose not to cover post-1977 housing because the CPSC banned the use of lead-based paint for residential use in 1978). • Zero-bedroom units such as efficiencies. • Leases for less than 100 days or short-term rentals. • Housing for the elderly (unless children live there). • Housing for the handicapped (unless children live there). • Rentals free of lead & inspected by a certified inspector. • Foreclosure sales.

  11. More Disclosures • Water districts • Annexation • Property owner’s association • Property Located in a Certificated Service Area of Utility Service Provider • Public Improvement District

  12. Practicing Law • The job of the real estate agent is to determine the business details of the transaction and not to practice law! • A real estate license is not a license to practice law.

  13. Other Methods • Option Contracts • Installment Contracts • Repossession • Lease with Option to Buy • Right of First Refusal • Exchange Agreements • delayed Exchanges • 45 days to identify property • 180 to complete purchase • Must use intermediary

  14. Possible Trading Combinations

  15. Key Terms • “As Is” • Counteroffer • Default • Earnest money deposit • Equitable title • Installment contract • Lease-option • Right of first refusal • Tax-deferred exchange • “Time is of the essence”

More Related