Is the TREC Contract Required in Texas?

If you’re wholesaling or buying property in Texas then you may find this short post helpful.

A subscriber to our YouTube asked, “Is the Texas Real Estate Commission (TREC) purchase contract absolutely necessary to wholesale, or can you use other Purchase and Sale contracts? Do you use the TREC contract just to be on the safe side? Also, would you mind sending me the TREC contract example, as well as your assignment to a buyer contract? Your channel is amazing. Keep up the good work!”

When I first started buying properties in 2015, I was most nervous about filling out and understanding the contracts. If you’re anything like me (and this subscriber) then you may find examples of a completed TREC contract and our assignment agreement helpful.

One of the great things about real estate is that there’s not just one way to achieve your goal. How I buy and wholesale properties is not the only way to do it. I want to make that very, very clear. I'm not an attorney and I did not write up these two documents myself. I would not advise anybody to write up their own contracts.

What we do is use TREC purchase agreement because it has all the necessary information. It's a standard contract issued by the Texas Real Estate Commission that has evolved over the years to fit applicable local and state laws. We use it to be on the safe side. You could have an attorney write up a purchase contract. You could write a one-page contract yourself. You could write a contract in crayon if you wanted to - it’s whatever you can get the seller to sign.

However, when you're entering into one of these contracts (this is not legal advice) it doesn't only protect the seller but it protects you as the buyer or wholesaler. There's a lot of verbiage in the TREC contract that’s been learned the hard way over many, many, many years.

A common misconception is the TREC contract is only for agents - NOT true! Anyone can use the TREC contract. It states that it's intended for agents but that doesn't mean you can't use it.

I have found it to be very fit for purpose for what we're doing. And it gives the seller, some comfort and confidence knowing we're using the standard contract that the Texas Real Estate Commission says we can use. This is the same contract agents use.

To answer your question simply - no, it’s not absolutely necessary to use to TREC contract, but we use it to be on the safe side - to protect us and the sellers.

Make sure that whatever contracts you use, you're covering your bases. I have just found it easier to use the TREC contract with a few notes in the special provisions.

I am not an attorney but I have bought a lot of houses with the TREC contract, without being an agent.

Happy investing!