One to Four Family Residential Contract (Resale) — Page by Page

Paragraph 1 — Parties

Paragraph 2A — Land

Paragraph 2D — Exclusions

• This is the blank where you identify something attached to the property that the seller wants to keep.
• Example: if the seller wants to keep a particular chandelier that would normally stay with the house, it needs to be properly addressed here.
• Do not use this field casually for personal property or to create complicated legal provisions.

Paragraph 3 — Sales Price

• 3A — Cash portion: not simply the buyer’s down payment. It means the portion of the sales price not financed through 3B. Example: Purchase price $400,000, Loan $320,000, Cash portion $80,000.
• 3B — Financing amount: total financing covered by the attached financing addendum.
• Checkboxes: Third Party Financing Addendum (outside lender loan), Loan Assumption Addendum (buyer takes over existing loan), Seller Financing Addendum (seller finances the purchase).
• 3C — Sales Price: simply 3A + 3B = Total Sales Price.

Paragraph 4 — Leases (check all that apply)

• 4A Residential Leases — check if a tenant currently leases all or part of the property. The Addendum Regarding Residential Leases must accompany the contract.
• 4B Fixture Leases — check when something attached to the house is leased rather than owned by the seller (solar panels, propane tank, water softener, security equipment). The Fixture Lease Addendum is then used.
• 4C Natural Resource Leases — covers an existing oil and gas, mineral, geothermal, water, wind, or similar lease. (1) Seller already gave Buyer copies — check when the buyer has already received all of them. (2) Seller has NOT given Buyer all copies — check when they still need to be delivered, then fill in the buyer’s termination-review deadline (days after receiving all Natural Resource Leases).

Paragraph 5A — Earnest Money & Option Fee

• Escrow Agent — usually the title company or other authorized escrow holder. Enter the Escrow Agent name and address.
• $ Earnest Money — buyer puts money down with the escrow agent to show seriousness and to be held under the contract. It is not automatically the seller’s money.
• $ Option Fee — the amount the buyer pays for the unrestricted termination right in Paragraph 5B: "Buyer pays $___ for the right to walk away for the agreed option-period number of days." The option fee is credited to the sales price at closing.
• Additional Earnest Money — buyer delivers a second earnest-money deposit only when the parties agree to it. First blank = amount, second blank = deadline after the Effective Date.

Paragraph 5B — Option Period

• Buyer may terminate within ___ days after the Effective Date — this tells you how long the buyer’s unrestricted termination right lasts.
• Example: Effective Date = June 1, Option period = 7 days, Day 1 = June 2.
• The notice must be given by 5:00 p.m. local time where the property is located on the final day.

Paragraph 6A — Title Policy

• Seller’s expense / Buyer’s expense — answers who pays for the owner’s title policy. Check the negotiated choice.
• Title Company — enter the title company that will issue the owner’s title policy.
• Paragraph 6A(8) deals with the title-policy exception concerning survey/boundary issues. (i) Will NOT be amended/deleted — buyer accepts the normal title-policy boundary/survey exception. (ii) Will be amended to read "shortages in area" — generally gives the buyer broader title-policy protection concerning certain survey matters. Then choose who pays: Buyer or Seller.

Paragraph 6C — Survey (check ONE choice only)

• 6C(1) Seller provides an existing survey, within ___ days after Effective Date. Seller already has a survey and agrees to give it to the buyer/title company, along with the required T-47 affidavit or T-47.1 declaration. If the old survey isn’t accepted, a new survey is ordered at Seller’s or Buyer’s expense (choose who pays).
• 6C(2) Buyer obtains a new survey, within ___ days after Effective Date. Buyer orders and pays for a new survey.
• 6C(3) Seller obtains a new survey, within ___ days after Effective Date. Seller orders and pays for a brand-new survey.

Paragraph 6D — Objections

• "Prohibit the following use or activity: ___" asks whether there is a particular intended use of the property the buyer needs the title/restrictions to permit. This is not a good place for an agent to invent legal language — broker/attorney guidance may be appropriate for unusual requirements.
• Buyer must object within ___ days — creates the buyer’s deadline to object to certain title, survey, or restriction issues after receiving the required documents. Missing this deadline may waive certain objections.

Paragraph 6E(2) — HOA (check one)

• Property IS subject to mandatory HOA membership — buyer must belong to the HOA/property owners association.
• Property IS NOT subject to mandatory HOA membership — no mandatory POA/HOA membership applicable under this section.

Paragraph 6E — Required Notices

• Near the end of the title-notices section there’s a blank for notices that have been given or attached — such as certain MUD, WCID, PID, utility, water, drainage, or public-improvement district notices.

Paragraph 7B — Seller’s Disclosure (check ONE only)

• (1) Buyer HAS received Seller’s Disclosure — use when the buyer already has it.
• (2) Buyer has NOT received it — enter the number of days seller must provide it within after Effective Date. This tells the seller how many days they have to deliver it. The contract gives the buyer certain termination rights after receipt.
• (3) Seller is NOT required to provide one — only check when an applicable exemption under Texas law applies. Do not use this simply because the seller doesn’t want to complete a disclosure.

Paragraph 7D — Property Condition (check ONE only)

• (1) Buyer accepts Property "As Is" — buyer agrees to buy the property in its present condition. "As Is" does not mean the buyer loses the right to inspect or necessarily prevents later repair negotiations during the transaction.
• (2) Buyer accepts "As Is" PROVIDED Seller completes these specific repairs — the blank underneath must clearly identify the repairs/treatments the seller agrees to complete. TREC specifically says not to use vague language such as "Subject to inspection." The repairs need to be specific.

Residential Service Contract

• Seller shall reimburse Buyer not exceeding $___ — Seller agrees to contribute up to this amount toward a home warranty/residential service contract. It does not mean the buyer must purchase one.

Paragraph 8A — Broker/Sales Agent Disclosure

• This blank is only used when the special relationship described in the paragraph exists — for example a broker or agent being a party or acting for certain close relatives/entities covered by the statute.
• Plain English: "Does a licensed real estate person involved have a relationship/ownership interest that Texas law requires them to disclose?" If not applicable, don’t invent a disclosure.

Paragraph 9A — Closing Date

• "Closing will be on or before __________, 20__" is the contractual closing deadline — buyer and seller are agreeing to complete the transaction by this date, subject to the contract’s provisions regarding certain extensions.

Paragraph 10 — Possession (check the applicable choice)

• Upon closing and funding — most straightforward: buyer gets possession once the transaction has actually closed and funded.
• According to a temporary residential lease — used when the buyer moves in before closing, or the seller remains after closing. Usually requires the appropriate written temporary residential lease.

Paragraph 11 — Special Provisions

• Think: FACTS and instructions — not homemade legal clauses.
• This area is intended for additional informational items, such as factual information, instructions, or information completing another blank.
• A broker or sales agent should not use this box to practice law by drafting a new contractual legal obligation. If the parties want custom legal language, that is attorney territory.

Paragraph 12A(1)(b) — Seller Contribution to Buyer’s Expenses (commonly called the "Seller Closing Contribution")

• Seller will pay up to $___ toward Buyer’s Expenses. Seller agrees to help buyer pay allowable closing costs/expenses up to this dollar amount — separate from brokerage compensation under the newer form.
• This is commonly referred to as the "Seller Closing Contribution." It covers buyer-side closing costs (lender fees, title, prepaid items, etc.) up to the stated dollar cap.

Overview

• The revised TREC 20-19 form separates brokerage compensation from other buyer expenses.

Paragraph 12B(1)

• Seller will pay toward the compensation Buyer owes Buyer’s broker. Choose $___ or ___% of Sales Price.
• Example: Seller contributes $5,000 toward the buyer’s obligation to pay the buyer’s broker, OR seller contributes 2% of the sales price toward it.
• This is the box used in the vast majority of transactions — roughly 99% of the time the seller pays toward the buyer-broker compensation here. It is extremely rare that 12B(2) should be checked instead.

Paragraph 12B(2)

• Buyer will pay toward the compensation Seller owes Seller’s broker. Choose $___ or ___% of Sales Price.

Paragraphs 13–20

• These paragraphs generally contain contractual rules rather than blanks for the parties to negotiate on this form.

Paragraph 21 — Notices

• This section is extremely important because it tells everyone where official contract notices can be sent.
• Buyer — fill in Buyer address, phone number(s), email(s).
• Buyer’s Agent — fill in agent’s contact/address information, phone, email.
• Seller — fill in Seller address, phone number(s), email(s).
• Seller’s Agent — fill in agent’s address/contact information, phone, email.

Paragraph 22 — Which other documents are part of this deal?

• You check every addendum or notice that actually applies and is being made part of the contract.

Financial

Leases

Tests and Reports

Statutory Disclosures

• Lead-Based Paint — generally applicable to covered pre-1978 residential property.
• Propane Gas System Service Area.
• Property Seaward of Gulf Intracoastal Waterway.
• Coastal Area Property.
• There is also a blank to list applicable utility/water/drainage/public improvement district notices.

Other

• Mandatory HOA Addendum
• Non-Realty Items Addendum
• Back-Up Contract Addendum
• Reservation of Oil, Gas and Other Minerals
• Other: ______ — identifies another document actually attached and made part of the contract.

Paragraph 23 — Attorneys

• Buyer Attorney: name, phone, fax, email.
• Seller Attorney: name, phone, fax, email.
• These are simply the parties’ attorneys’ contact information when applicable.

One of the most important blanks in the entire contract

• "EXECUTED the _____ day of _________, 20___ (Effective Date)" — BROKER: FILL IN THE DATE OF FINAL ACCEPTANCE.
• Do not automatically use the buyer’s signature date or seller’s signature date.
• The Effective Date is the date of final acceptance after the requirements for contract formation/communication have occurred.
• It starts the clock for many deadlines, including: earnest money, option period, survey deadlines, financing deadlines, title matters, and disclosures.

Signatures

• Buyer signs
• Second Buyer signs, if applicable
• Seller signs
• Second Seller signs, if applicable

Overview

• The new TREC 20-19 reorganizes the broker-information page. You complete the section that matches the actual representation.

Seller’s Broker

• Broker Firm, Broker address, Broker Firm License Number, Associate’s Name, Team Name (if applicable), Associate Email, Associate Phone, Associate License Number, Licensed Supervisor, Supervisor phone, Supervisor license number.
• This section identifies the brokerage representing the seller only.

Buyer’s Broker

• Same information, but for the brokerage representing the buyer only.

Intermediary

• Check/use this portion if one brokerage represents both Seller and Buyer as an intermediary.
• Then identify: Broker Firm, Firm address/license, Associate appointed or working with Seller (contact/license/supervisor), Associate appointed or working with Buyer (contact/license/supervisor).