What contracts do I have to use in Texas ?

Question

Guy Gimenez · Answer

With no disrespect meant, if you don't know about contracts how will you know to draft them properly. Remember, the gurus make wholesaling sound like a cake walk...it isn't. You're dealing with what most people would consider their largest investment, you're often dealing with heirship issues, foreclosure, etc. You should really consider building the right relationships that allow you to partner with and learn from an experienced investor so you don't do something illegal that can come back to haunt you for years to come. Your reputation is all you'll leave this world with...don't screw it up by thinking real estate investing is as easy as walking the dog.

Bret Allen · Answer

TREC contracts and TREC addendums are not required unless you are using licensed real estate agent.  Even then, an agent can use a non-TREC form or clause if the client insists or if it is drafted by an attorney.  Title companies like the TREC contracts because they cover the basics needed to close the transaction i.e., sales price, responsibility for certain fees, timelines to cancel, responsibility for default, earnest money/option disputes, etc.

I think the TREC contracts are a good start -- but that should not stop you from being creative or adding investor friendly clauses/addendum to the contract.  Again, unless you are a real estate agent, you can use any form you like to make an offer.

Disclosure: Bret Allen is an attorney licensed in Texas and California but he is not your attorney. The information shared here is for general education purposes only and does not create an attorney client relationship. You should seek the advice of your own attorney before making any decisions from information found here.

Guy Gimenez · Answer

I've used the TREC forms since I began investing in 2000 and never had a problem with them...not even once. In fact, it's the most used contract form in Texas for residential properties and if you really understand the form and how to present it, it's the easiest form to get the seller to accept.

Fred Heller · Answer

If you're not a real estate agent there are no specific contracts required for transactions. But my advice is that it would be foolish to wade into that pool without first having a real estate attorney draft a contract for you.

Ronald Rohde · Answer

Sounds like you want a one page MOU, then a standard comprehensive contract.

What contracts do I have to use in Texas ?

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