TREC No. 30-18

Residential Condominium Contract (Resale) — Page by Page

The contract for the resale of a condominium unit — condo documents, resale certificate, right of refusal, association transfer fees, and special-assessment rules, translated into plain English.

The Big Condo-Specific Items to Watch

The biggest difference from the One-to-Four Family contract is that a condo buyer is not just buying the inside of a unit — they are also buying rights tied to the condominium declaration, common elements, limited common elements, association documents, assessments, and resale certificate.

2A Condominium UnitExactly which unit, building, project, common-element rights, and parking are being purchased?
2B DocumentsHas Buyer received the declaration, bylaws, and rules?
2C Resale CertificateHas Buyer received a current resale certificate from the Association?
2D Right of RefusalDoes anyone (the Association or another owner) have the right to buy the condo first?
12A(3) Association Transfer FeesHow much of the Association’s transfer-related fees will Buyer pay?
13 Prorations & Special AssessmentsHow are regular dues, reserves, and special assessments handled?
14 Casualty LossWho is responsible if the unit or common areas are damaged before closing?

The Easiest Way to Remember the First Page

Think through Paragraph 2 in this order:

2AWhat condo am I buying?
2BWhat are the condo's RULES?
2CWhat does the Association currently REPORT about the condo?
2DDoes anyone else have the RIGHT TO BUY FIRST?

That first page is the biggest difference between the Residential Condominium Contract and the standard One-to-Four Family Residential Contract. Note also: the regular HOA Addendum is NOT listed in Paragraph 22 of this contract — that’s because the condominium’s association documents, resale certificate, transfer fees, and association requirements are already built directly into this contract.

Page 1

Parties, Condo Description, Documents & Resale Certificate

§1 Parties

  • Seller — full legal name(s) of the seller(s). Buyer — full legal name(s) of the buyer(s).

§2A(1) Condominium Unit

  • Unit ___, in Building ___, of ___, a condominium project — the unit number, building, and official project name. Example: Unit 312, Building B, of Bayou Towers Condominium.
  • Address/ZIP, City, County — the property’s location details. The legal condo description should match the condominium declaration/plat and title information.
  • Parking areas assigned to the Unit — enter the parking spaces, garages, carports, or other assigned areas. Example: Parking Spaces 42 and 43, or Garage Unit G-12. Don’t rely on where the seller normally parks; the assignment should be supported by the condo documents/title information.

§2A(4) Exclusions

  • "The following improvements and accessories will be retained by Seller" — identifies something that would normally stay with the condo but that Seller intends to keep. Must be removed before possession is delivered.

§2B Condominium Documents (Declaration, Bylaws, Rules) — check ONE box only

  • (1) Buyer HAS received the Documents — Buyer already has them and is advised to read them before signing.
  • (2) Buyer has NOT received them — fill in days after the Effective Date for Seller to deliver them (at Seller’s expense). Buyer then gets a separate, already-printed 7-day window after receiving them to terminate by written notice, with earnest money refunded if they do.
Example: Effective Date = June 1, blank = 5 days. Seller must deliver within that period; once delivered, Buyer’s separate 7-day review clock starts.

§2C Resale Certificate — check ONE box only

  • Must be in the proper form, prepared at Seller’s expense, no more than 3 months old when delivered, and contain at least the information required by Texas Property Code §82.157.
  • (1) Buyer HAS received the Certificate — no delivery deadline needed.
  • (2) Buyer has NOT received it — fill in days after the Effective Date for Seller to deliver it. Buyer then has an already-printed 7-day window after receipt to terminate by written notice, with earnest money refunded.
  • (3) Association did not provide the Certificate — check only when Buyer has received Seller’s affidavit that Seller requested the info and the Association didn’t provide it; then Buyer and Seller agree to waive the requirement. This isn’t the same as simply skipping it.
Easy memory: Documents = rules governing the condominium. Resale Certificate = current association/unit information required by law.

§2D Right of Refusal

  • If the condo declaration gives the Association or another owner a right of first refusal, fill in the days within which Buyer must receive Association certification that Seller complied and the right was not exercised (or was waived).
  • If Buyer doesn’t receive that certification in time, or if the right is exercised, the contract terminates and earnest money is refunded.
Unusual feature: if this right of refusal applies, the Effective Date is amended to the date Buyer receives the Association’s certification — which can affect other contractual deadlines.
Page 2

Price, Leases, Earnest Money, Option & Title

§3 Sales Price

  • 3A Cash portion — the part of the price not covered by financing. Example: price $350,000, financing $280,000, cash $70,000.
  • 3B Financing — total financing amount, plus the applicable addendum: Third Party Financing, Loan Assumption, or Seller Financing.
  • 3C Sales Price — equals 3A + 3B.

§4 Leases (check all that apply)

  • 4A Residential Leases — check when the condo is subject to one or more residential leases; attach the Addendum Regarding Residential Leases.
  • 4B Fixture Leases — check when fixtures are leased (solar panels, propane tanks, water softener, security system); attach the Fixture Lease Addendum.

§5A Earnest Money & Option Fee

  • Escrow Agent name and address.
  • Earnest Money $______ and Option Fee $______ — due within 3 days after the Effective Date (extended for weekends/legal holidays).
  • Additional Earnest Money — optional second deposit: dollar amount and days after the Effective Date.

§5B Option Period

  • "Buyer may terminate within ___ days after Effective Date" — Buyer’s unrestricted termination period if the option requirements are satisfied.
  • Notice must be given by 5:00 p.m. local time where the condo is located on the final day.

§6A Title Policy

  • Choose who pays for the owner’s title policy: Seller or Buyer.
  • Enter the Title Company that will issue the policy.
Unlike some other contracts, this condo contract does not have the same survey-choice section, because condominium ownership and legal description work differently.
Page 3

Title Objections

§6C Objections

  • "Which prohibit the following use or activity: ___" — a specific use of the condo Buyer needs the title documents/restrictions to permit, if any. Be cautious about drafting custom legal language here.
  • Buyer objection deadline — fill in days after Buyer receives the Commitment and Exception Documents; Buyer must object by the earlier of the Closing Date or that stated number of days.
  • Failure to timely object generally waives Buyer’s objections, subject to the Schedule C exception stated in the form.
Page 4

Seller Disclosure, Property Condition & Home Warranty

§7B Seller's Disclosure Notice — check ONE box only

  • (1) Buyer HAS received the Seller’s Disclosure.
  • (2) Buyer has NOT received it — fill in days after Effective Date for Seller to deliver it. If never received, Buyer may terminate before closing with earnest money refunded. If delivered, Buyer may terminate for any reason within 7 days after receipt or before closing, whichever is first (already printed in).
  • (3) Seller is NOT required to provide one — only use when the Texas Property Code exemption actually applies, not just because Seller doesn’t want to fill one out.

§7C Lead-Based Paint

  • No fill-in here — reminds the parties that the federal lead-based-paint disclosure is required for a residential dwelling built before 1978. The appropriate addendum is checked later in Paragraph 22.

§7D Property Condition — check ONE box only

  • (1) Buyer accepts Property As Is — but "As Is" does not stop Buyer from inspecting, negotiating repairs later, or terminating during the Option Period.
  • (2) Buyer accepts As Is PROVIDED Seller completes specified repairs — identify the specific work; don’t write vague wording like "subject to inspections."

§7H Residential Service Contract

  • "Seller shall reimburse Buyer not exceeding $_____" toward a home warranty/residential service contract if Buyer buys one. Purchasing one is optional.
Page 5

Agent Disclosure, Closing, Possession & Condo Fees

§8 Broker or Sales Agent Disclosure

  • Fill in only when applicable — a license holder being a party, acting for certain family members, certain business entities, or certain trust relationships. Don’t manufacture a disclosure if it doesn’t apply.

§9A Closing Date

  • "On or before ___, 20___" — the contractual Closing Date, with provision for a later date if Paragraph 6 title objections require it.

§10A Possession

  • Upon closing and funding — Buyer receives possession after the sale closes and funds.
  • OR according to a temporary residential lease — used when possession happens on a different schedule under a written lease.

§10B Smart Devices

  • No checkbox, but important: at possession, Seller must provide access codes, usernames, passwords, and apps needed to control smart devices, and remove their own access from personal devices.

§11 Special Provisions

  • Reserved only for informational items — completing a blank, disclosing facts, or giving instructions. A license holder should not use this box to invent new legal obligations.

§12A(1)(b) Seller Contribution to Buyer Expenses

  • "Seller will pay up to $_____" toward Buyer’s expenses other than brokerage compensation/contributions. Example: $5,000.

§12A(3) Association Transfer Fees — major condo-specific blank

  • "Buyer shall pay Association fees, deposits, reserves and other charges resulting from transfer of the Property not to exceed $_____, and Seller pays any excess."
  • Example: Buyer cap = $750. If qualifying charges are $600, Buyer pays $600. If they are $1,100, Buyer pays up to $750 and Seller pays the $350 excess.
This cap does NOT include regular periodic maintenance fees/assessments/dues prorated under Paragraph 13, or the costs/fees addressed under Paragraph 2 (Documents/Certificate).

§12B Broker Compensation Contributions

  • 12B(1) Seller contributes toward Buyer’s broker compensation — dollar amount or percentage of Sales Price.
  • 12B(2) Buyer contributes toward Seller’s broker compensation — dollar amount or percentage.
  • These don’t replace the parties’ separate written broker-compensation agreements.
Page 6

Condo Prorations, Special Assessments & Casualty Loss

§13 Prorations

  • Regular periodic condominium maintenance fees, assessments, and dues are prorated through closing.
  • Cash reserves from regular condominium assessments for deferred maintenance or capital improvements are NOT credited back to Seller.
  • Any special condominium assessment due and unpaid at closing is Seller’s obligation.
Example: monthly HOA dues are prorated between Buyer and Seller; Seller does not get a credit just because reserve funds remain with the association; a special assessment unpaid at closing is Seller’s responsibility.

§14 Casualty Loss

  • Different from a normal house because some parts of the condo may be Seller’s responsibility while others are the Association’s.
  • Damage to something Seller alone must maintain — normal casualty provisions apply.
  • Damage to Common Elements or Limited Common Elements appurtenant to the Unit — Buyer has special notice/termination rights, since the association (not Seller) may be responsible for restoring common property.
Page 7

Notices & Addenda

§21 Notices

  • Buyer — address, phone(s), email(s). Seller — address, phone(s), email(s).
  • Buyer's Agent — address, phone, email. Seller's Agent — address, phone, email.

§22 Agreement of Parties — check every applicable document actually attached

  • Financial: Third Party Financing, Sale of Other Property by Buyer, Right to Terminate Due to Lender’s Appraisal, Seller Financing, Section 1031 Exchange, Short Sale, Loan Assumption, Release of Liability/Restoration of VA Entitlement.
  • Leases: Residential Leases, Fixture Leases, Buyer’s Temporary Residential Lease, Seller’s Temporary Residential Lease.
  • Additional Tests and Reports: Hydrostatic Testing, Environmental Assessment/Endangered Species/Wetlands.
  • Statutory Disclosures: Lead-Based Paint, Propane Gas System Service Area, Seaward of Gulf Intracoastal Waterway, Coastal Area Property, plus a blank for utility/water/drainage/public improvement/other district notices.
  • Other: Non-Realty Items Addendum, Back-Up Contract Addendum, or Other (identify).
Notice: the regular HOA Addendum is NOT listed here — the condo’s association documents, resale certificate, transfer fees, and association requirements are already built directly into this contract.
Page 8

Attorneys, Effective Date & Signatures

Attorneys & Execution

  • Buyer's Attorney and Seller's Attorney — name, phone, fax, email for each, if involved.
  • "EXECUTED the ___ day of ______, 20___ (Effective Date)" — Broker fills in the date of final acceptance. This date starts many contractual deadlines and is NOT automatically the date Buyer or Seller first signed.
  • Signature lines for Buyer, Buyer, Seller, Seller.
Page 9

Broker Contact Information

Print names only — do not sign

  • Seller's Broker — Broker Firm, address, firm license number, associate’s name/team/email/phone/license, licensed supervisor and their phone/license.
  • Buyer's Broker — same information for the brokerage representing Buyer.
  • Intermediary — used when the same brokerage represents both Buyer and Seller; complete brokerage info plus separate associate info for Seller and for Buyer, including licensing/supervisor details.
Page 10

Escrow Receipts

Completed by the Escrow Agent/title company after actual receipt

  • Contract Receipt — records when Escrow Agent received the executed contract.
  • Additional Earnest Money Receipt — amount, form of payment, plus receipt/contact information.
  • Earnest Money Receipt — amount, form of payment, Escrow Agent, received by, email, date/time, address, phone, city, state, ZIP, fax.
  • Option Fee Receipt — amount, form of payment, Escrow Agent, date.

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