Texas TREC Single Family Purchase Contract

5 Replies

Hello BP Community!

I am a budding buy and hold investor in San Antonio, Texas. Wanting to buy SFR.

When buying properties (non-mls, no agents) i gather i need to use the standard TREC forms for 1-4 Family Residential purchase. A couple Questions:

  1. what addenda are needed to be submitted to the title co. along with the contract itself, if any?
  2. Are there any tips for filling the form(s) out?  Some of it seems straightforward, but other parts I'm unsure if it applies to all deals, deals using agents, etc.
  3. Should the form be filled out prior to meeting with sellers or after there has been some discussion and a verbal offer has been made?

I want to buy my first deal very soon and i seem to be getting hung up on the paperwork.

Thanks,

1.   The addendums are created to meet the needs of all types of situations, so there's no "one size fits all" answer.    Best bet it to read all the addendums mentioned referenced in the TREC 1-4 unit contract, and be aware of certain others such as the septic system disclosure.

2.  Read any contract you're a party to thoroughly.   If you don't understand it, get help from an attorney or other competent party.   You have an aversion to using agents, yet this is an area where agents can add a lot of value.

3. It's a balance between striking while the iron is hot vs. wasting a lot of time on contracts which won't ever come to fruition.   Bringing a computer w/ an electronic signature system is a nice middle ground.

I'm really not averse to using an agent, I'm just not sure of their applicability to purchasing a non-mls property from a motivated seller directly. My understanding is that they have no place in this transaction (or so I've been told). Furthermore, I could easily retain an agent for informational purposes, but this is rather fruitless for them since I wouldn't be using them ( again, unless I'm mistaken).

So I need to basically ask an attorney to walk me through the contract and explain what all I need to do for such a transaction?

You do not need an attorney, you do not need to use the trec contract. Instead of paying an attorney, read through the contract and see what it says. The contract simply says who is doing what. Thats it. It is not a secret document that needs to be deciphered by an attorney. 

What price are you paying, write it down. When are you paying, who is paying for the title policy, who is paying for the survey, who is paying for what and when??

The TREC contract can be somewhat daunting for some people. Its 9 pages and then you have addendums. WOW. I do use it sometimes, but you can usually write up the terms with your seller and take that to the title company. If they have questions, you and the seller can add an addendum to your contract. Keep it simple.

ps @Miles Stanley and anyone else, hope to see you at the meeting tonight

Thanks for the reply Rick. I'm really not trying to beat a dead horse here but you're right, in a way it is daunting especially not having done this before. i have read though the TREC form and just felt it was a good start to use an already-established document to purchase homes. From the feedback i keep receiving, i get the impression in could almost walk into the title company with the offer and details written in a napkin and, as long as its signed with an earnest money check, i can start closing. It just sounds insane to me...

as an engineer, i work in an industry where the written formal contract means everything and it just seems strange to enter into the purchase of a property with such a simple form of agreement.

Thanks,

Updated over 4 years ago

For what its worth, in my experience (at least in engineering), nobody cares about the contract until something bad happens or there is a dispute. Hence my apprehension.

Thanks for the reply @Rick Pozos . I'm really not trying to beat a dead horse here but you're right, in a way it is daunting especially not having done this before. i have read though the TREC form and just felt it was a good start to use an already-established document to purchase homes. From the feedback i keep receiving, i get the impression in could almost walk into the title company with the offer and details written in a napkin and, as long as its signed with an earnest money check, i can start closing. It just sounds insane to me...

as an engineer, i work in an industry where the written formal contract means everything and it just seems strange to enter into the purchase of a property with such a simple form of agreement.

Do you have a sample offer and contract for a typical SFR purchase with financing i could see (possibly)??

Thanks,