TREC No. 9-18

Unimproved Property Contract — Page by Page

The contract used for the sale of unimproved land — parties, acreage price adjustments, surveys, water disclosure, and all the addenda choices, translated into plain English.

The Biggest Differences from the One-to-Four Family Contract

For this Unimproved Property Contract, pay extra attention to these areas — they are unique to land transactions and do not appear in the standard One-to-Four Family resale contract.

3D Acreage AdjustmentPurchase price can change if the survey acreage differs from the agreed acreage.

4B Natural Resource LeasesLand may be subject to mineral, water, wind, or other natural-resource leases.

6C SurveyA survey is especially important in a land transaction — boundaries and acreage must be confirmed.

6D Intended UseRestrictions or title issues may affect what the Buyer intends to do with the land.

7D Environmental MattersWetlands, hazards, and endangered species may affect use of the property.

7E Seller’s Land DisclosuresFlooding, landfill, underground tanks, wetlands, species, floodplain, and oak wilt must be disclosed.

7F Water DisclosureWells, groundwater, surface water, and water rights can be significant on unimproved land.

13B Rollback TaxesBuyer's later use of the land can potentially create additional tax assessments under the contract's allocation.

Quick Memory Guide

For writing an offer, think through the contract in this order:

1–2Who and what land?

3Price — including possible acreage adjustment

4Natural-resource leases

5Earnest money + option

6Title + survey + restrictions

7Land condition + water/environment disclosures

8Agent relationship disclosure

9Closing

11Information only — not homemade legal language

12Expenses + broker contributions

21Where notices go

22Which addenda/notices apply

Eff. DateStarts the clock

The two sections that deserve especially careful attention on unimproved land are Paragraph 3D (Acreage Adjustment) and Paragraph 7F (Seller’s Water Disclosure), because they do not appear in the same way in the standard One-to-Four Family resale contract.

Pages 1–2

Parties, Land, Price, Leases & Earnest Money

§1 Parties & §2 Property

Seller / Buyer — full legal names of who is selling and who is buying.
Lot, Block, Addition, City, County, Texas, known as (address/zip) — because this is land, correctly identifying the property matters even more than usual. If the legal description doesn’t fit, use "or as described on attached exhibit."
Reservations of oil, gas, minerals, water, timber, or other interests are handled through an attached addendum — don’t write a homemade provision here.

§3 Sales Price

3A Cash portion — the part of the price not covered by financing. Example: price $300,000, financing $200,000, cash $100,000.
3B Financing — total financing amount, plus which addendum applies: Third Party Financing, Loan Assumption, or Seller Financing.
3C Sales Price — should equal 3A + 3B.

§3D Acreage Price Adjustment

A major feature unique to land contracts. Choose WILL or WILL NOT adjust the price based on the survey.
WILL NOT — price stays the same even if actual acreage differs slightly from what’s assumed.
WILL — fill in the agreed starting acreage (e.g. 10.00 acres) and the price per acre (e.g. $25,000/acre). The difference between survey acreage and the agreed acreage, times that per-acre price, is added to or subtracted from the Sales Price.
If the adjustment exceeds 10%, either party may terminate — fill in how many days after receiving the survey the terminating party has to act (e.g. 5 days).
If no one terminates (or the variance is 10% or less), choose where the adjustment is applied: 3A (cash), 3B (financing), or proportionately to both.

Example: contract assumes 10 acres, survey shows 9.8 acres, adjustment rate is $25,000/acre → Sales Price drops by $5,000. It works in reverse too if the survey shows more acreage.

§4B Natural Resource Leases

First: Seller IS or IS NOT a party to a Natural Resource Lease (oil and gas, mineral, geothermal, water, wind, or similar).
If IS, choose: (1) Seller has already delivered all the leases to Buyer, OR (2) Seller has not — Seller must deliver them within 3 days after the Effective Date, and you fill in how many days Buyer then has to terminate after receiving them.
If Buyer properly terminates, earnest money is refunded.

§5 Earnest Money and Termination Option

Escrow Agent name and address — who holds the money.
Earnest money $______ and Option fee $______ — both generally due within 3 days after the Effective Date (extended if that day falls on a weekend/legal holiday).
5A(1) Additional earnest money — optional second deposit: dollar amount and number of days after the Effective Date it’s due.

Page 2

Option Period, Title & Survey

§5B Option Period

"Within ___ days after the Effective Date" — establishes the Option Period during which Buyer has an unrestricted right to terminate, as long as the option fee was paid on time.
Notice must be given by 5:00 p.m. local time (where the property is located) on the final day.

§6A Title Policy

Choose who pays for the owner’s title policy: Seller’s expense or Buyer’s expense.
Enter the Title Company that will issue the policy.

§6A(8) Survey/Border Exception

(i) Will NOT be amended or deleted — the standard boundary/survey exception stays as-is.
(ii) Will be amended to read "shortages in area" — then choose who pays for that endorsement: Buyer or Seller.

This concerns title-insurance coverage specifics — questions about what the endorsement actually covers should go to the title company.

§6C Survey (check one box only)

(1) Seller provides existing survey — fill in days after Effective Date for Seller to furnish the existing survey plus a T-47 Affidavit or T-47.1 Declaration. If Seller misses this, Buyer obtains a new survey at Seller’s expense no later than 3 days before closing. If the title company/lender won’t accept the old survey, choose who then pays for a new one: Seller or Buyer.
(2) Buyer obtains new survey — fill in days after Effective Date; Buyer pays. Buyer is "deemed to receive" the survey on actual receipt or the date specified, whichever is earlier. If Buyer fails to obtain it, Buyer may not terminate under Paragraph 2B of the Third Party Financing Addendum on that basis.
(3) Seller obtains new survey — fill in days after Effective Date; Seller orders and pays.

Memory trick: C1 = Seller already has one, C2 = Buyer orders + pays, C3 = Seller buys a new one.

§6D Objections

"Exceptions which prohibit the following use or activity: ___" — identify a specific intended use Buyer is concerned about, if any; don’t invent complicated legal-use language here.
Buyer must object by the earlier of the Closing Date or a stated number of days after receiving the Commitment, Exception Documents, and survey (e.g. 5 days).
Failing to object on time generally waives Buyer’s right to object, except for Schedule C requirements.

Page 3

Title Notices

§6E(2) HOA / POA Membership

Property IS or IS NOT subject to mandatory membership in a Property Owners Association.
If IS, the required statutory notice about assessments and potential lien/foreclosure risk is printed into the contract, and the contract recommends using the TREC HOA Addendum if Buyer is concerned about those matters.

Page 4

Agricultural District & Property Condition

§6E(8) Texas Agricultural Development District

Property IS or IS NOT located in a Texas Agricultural Development District — a factual status question.

§7B Acceptance of Property Condition (check one only)

(1) Buyer accepts Property As Is — Buyer takes the land in its present condition. "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 specific repairs/treatments — identify the exact agreed work. The form specifically warns: do not write vague phrases like "subject to inspections."

§7E Seller’s Disclosure

(1) Flooding with a material adverse effect on use — IS / IS NOT aware.
(2) Pending or threatened litigation, condemnation, or special assessment — IS / IS NOT aware.
(3) Environmental hazards materially/adversely affecting the property — IS / IS NOT aware.
(4) Dumpsite, landfill, or underground tanks/containers, current or previous — IS / IS NOT aware.
(5) Wetlands affecting the property — IS / IS NOT aware.
(6) Threatened or endangered species/habitat — IS / IS NOT aware.
(7) Floodplain — IS / IS NOT aware; if IS, also choose wholly or partly.
(8) Oak wilt on trees located on the property — IS / IS NOT aware.
If Seller checks "is aware" for any item, an explanation must be provided (attach extra sheets if needed).

Page 5

Water Disclosure, Broker Disclosure & Closing

§7F Seller’s Water Disclosure (check one box only)

(1) Buyer HAS received Seller’s Water Disclosure — no deadline blank needed.
(2) Buyer has NOT received it — fill in days after Effective Date for Seller to deliver it. If Seller never delivers it, Buyer may terminate any time 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 (the 7 days are already printed in).
(3) Seller is NOT required to provide it — only available when all five printed conditions are true (no water well, no pond/lake/tank, no surface-water-rights certificate, no severed/sold/leased groundwater rights, AND water comes only from the utility named in item (e)). Fill in that sole water provider (City, MUD, WSC, or private company).

Don’t check (3) unless every one of the printed conditions actually applies.

§8 Broker or Sales Agent Disclosure

Fill in only if the broker/agent has a relationship the law requires disclosing — e.g., being a party, or acting for a spouse, parent, child, certain business entities, or certain trusts.

§9 Closing

"On or before ___, 20___" — the contractual Closing Date. Closing may also occur within 7 days after Paragraph 6D objections are cured/waived, if that’s later.

§11 Special Provisions

Reserved only for informational items — things that complete a blank, disclose facts, or give instructions.
Agents may not add, delete, or modify contractual provisions here unless drafted by a party or their attorney.

Easy rule: facts and instructions only — never homemade legal clauses.

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

"Seller will pay up to $______" toward Buyer’s Expenses — not counting brokerage compensation or Paragraph 12B contributions. Example: $7,500.

Page 6

Brokerage Compensation

§12B(1) Seller Contribution Toward Buyer’s Broker

Check if Seller is contributing, then choose either a dollar amount or a percentage of the Sales Price.
Example: Seller contributes $5,000, or Seller contributes 2%.

§12B(2) Buyer Contribution Toward Seller’s Broker

Same concept, opposite direction — Buyer contributes a dollar amount or percentage toward the compensation Seller owes Seller’s broker.
These contributions don’t replace the parties’ separate written broker-compensation agreements.

Page 7

Notices

§21 Notices

To Buyer(s) — address, phone(s), email(s).
To Seller(s) — address, phone(s), email(s).
To Buyer’s Agent — address, phone, email.
To Seller’s Agent — address, phone, email.
Notices must be in writing and delivered by one of the methods specified in this paragraph.

Page 8

Addenda and Notices Checklist

§22 Agreement of Parties — check all applicable boxes

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/Threatened or Endangered Species/Wetlands.
Statutory Disclosures/Notices: Propane Gas System Service Area, Seaward of Gulf Intracoastal Waterway, Coastal Area Property, plus a blank to list utility/water/drainage/public improvement/other district notices given or attached.
Other: HOA Addendum, Non-Realty Items Addendum, Back-Up Contract Addendum, Reservation of Oil/Gas/Other Minerals, or Other (identify).
Only check documents that are actually being used — on a vacant/unimproved tract, several of these (like leases) may simply not apply.

§23 Attorneys

Buyer’s Attorney and Seller’s Attorney — name, phone, fax, email for each, if involved. Don’t invent information if no attorney is involved.

Page 9

Effective Date & Signatures

Execution

"EXECUTED the ___ day of ______, 20___ (Effective Date)" — Broker fills in the date of final acceptance. This date starts many contractual deadlines — it is NOT automatically the date Buyer or Seller first signed.
Signature lines for Buyer, Buyer (if a second buyer), Seller, and Seller (if a second seller).

Want the original PDF handy?

Open the actual TREC form alongside this plain-English guide.