You must remember the following writing requirements and disclosures when drawing up a purchase contract. These requirements are generally about the type of information you must include in the agreement. Without this information, you might find your agreement invalid in the law’s eyes.
Four (4) elements ensure a contract is legally binding according to laws in Texas. There must be a valid offer and acceptance of that offer in the document.
The contract must have a legal purpose as per the laws of Texas.
There must be mutual consent between the parties when they sign the agreement.
Consideration of the contract and offer must happen before they accept it.
Besides the above elements, you must add the following crucial pieces of information. Names of parties, along with their registered addresses and contact details
The property’s legal description
Purchase price of the property
The closing date by which the property is transferred after both parties sign the lease
Earnest money deposit is generally 1% to 2% of the purchase price in Texas
Inspection and appraisal rights and reports
Title and property insurance
Texas is also a partial “Buyer Beware” state. It’s otherwise known as the Caveat Emptor policy. If the property is multi-family, then the buyer is purchasing it “as is” without the seller disclosing specific defects.
If it’s a single-family property, sellers must disclose any defects and the required disclosures beforehand.
Both parties must sign the lease and be legally capable of doing so. Without the signature of both parties, the lease won’t be valid in a court of law.
Besides the above terms, Texas law also requires various disclosures. However, these legal disclosures aren’t always applicable to the contract. It depends on the type of property, its age, and where it’s located in the state.
Lead-Based Paint: Houses older than 1978 might have used lead-based paint. If so, the seller must disclose its presence to the buyer.
Seller’s Disclosure Notice: This disclosure is only applicable to single-family homes. The seller must state any damages or defects on the property to the buyer. It must also be before or on the date the buyer signs this agreement.
Property Located Seaward of the Gulf Intracoastal Waterway Disclosure: Buyers of properties situated seaward of the Gulf Intracoastal Waterway must receive this notice. It informs them of the erosion and economic impacts of purchasing a property there.
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The Texas Real Estate Purchase Agreement is a legally binding contract that delineates the terms and conditions governing the sale of real property in the state of Texas. This agreement typically encompasses essential details, including the purchase price, closing date, earnest money deposit, and contingencies agreed upon by the buyer and seller during the course of the real estate transaction.
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