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TREC Real Estate Contract

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TREC REAL ESTATE CONTRACT

This Real Estate Contract is entered into effective as of Effective Date: by and between:

Parties

Property Identification

Purchase Terms

Purchase Price: $ payable as follows: Earnest Money $ delivered to escrow as provided below.

Earnest Money Due: If Buyer fails to timely deposit earnest money, Seller may treat the contract as terminated.

Financing

This contract is: Cash sale Conventional loan Government loan

If Buyer fails to obtain financing by the date above, Seller may terminate or accept alternative financing. Buyer must provide written notice of inability to obtain financing in accordance with the notice provisions of this contract.

Inspections and Property Condition

Buyer shall have the right to inspect the Property during an inspection period ending on Inspection Deadline: . Buyer shall deliver written notice of unsatisfactory conditions or request for repairs within that period.

Title, Survey, and Closing

Title shall be conveyed by general warranty deed, subject only to permitted exceptions. Seller shall provide at closing a standard title insurance commitment showing marketable title or title acceptable to Buyer.

Prorations, Fees and Costs

Taxes, assessments, rents, homeowner association dues, and other customary items shall be prorated as of the closing date. Buyer shall pay customary closing costs except those expressly allocated to Seller herein.

Disclosures

Lead-Based Paint: Yes No

Known Prior Damage or Repairs (flood, fire, structural): Yes No

Mold or Environmental Hazard Disclosure: Yes No

Default and Remedies

If Buyer defaults, Seller may terminate this contract and retain earnest money as liquidated damages or pursue other remedies permitted by law. If Seller defaults, Buyer may seek specific performance, damages, and other remedies permitted by law. Prevailing party is entitled to recover reasonable attorney's fees and court costs if provided by statute or contract.

Miscellaneous Provisions

Entire Agreement: This Contract, together with all addenda and exhibits, constitutes the entire agreement between the Parties and supersedes all prior negotiations and agreements. Modifications must be in writing signed by both Parties to be enforceable.

Governing Law: This Contract shall be governed by and construed in accordance with the laws of the state where the Property is located.

Notices

Notices required or permitted under this Contract shall be in writing and delivered to the address set forth for each Party in this Contract. Notice is effective upon hand delivery, confirmed electronic transmission, or three days after deposit in the U.S. mail if sent by certified mail, return receipt requested.

Acknowledgment and Certification

Each Party hereby acknowledges that they have read and understand this Contract, have had the opportunity to seek independent advice, and agree to be bound by its terms.

Buyer:

By:

Date:

Seller:

By:

Date:

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What the TREC Real Estate Contract Is

The TREC Real Estate Contract is the standardized Texas Real Estate Commission promulgated contract used to document offers, counteroffers, and agreements for the sale of residential real property in Texas. It sets out buyer and seller obligations, price and payment terms, earnest money provisions, closing and possession timing, inspections and contingency periods, title and survey requirements, and remedies for default. Licensed Texas brokers and agents commonly use TREC forms to ensure consistency with state disclosure rules and to reduce negotiation errors when creating enforceable purchase agreements.

Why Use the TREC Real Estate Contract

The TREC contract standardizes terms and reduces drafting variation, helping parties address key transaction elements—price, contingencies, closing logistics, and title obligations—in a single, widely accepted form.

Why Use the TREC Real Estate Contract

Typical Users and Parties Involved

Each participant has distinct responsibilities during execution, review, and closing; licensed agents must follow Texas real estate licensing and disclosure rules.

  • Listing agents preparing seller-facing terms and disclosures for acceptance by buyers.
  • Buyers and buyer agents submitting offers, negotiating contingencies, and arranging earnest money.
  • Title companies and lenders reviewing contract provisions to coordinate closing and vesting.

Signer Roles and Responsibilities

Buyer Representative

A licensed buyer agent completes the buyer sections, ensures earnest money delivery, coordinates inspection contingencies, and tracks contract timelines from acceptance through closing, including any amendment or termination notices.

Listing Agent / Seller

The listing agent prepares seller responses, confirms property disclosures and title status, directs distribution of executed contract copies, and coordinates with title companies and lenders for closing logistics.

Core Sections of the TREC Real Estate Contract

A professional TREC contract addresses essential transaction terms in discrete sections to reduce ambiguity and support enforceability.

Parties and Property

Identifies buyer(s), seller(s), and a precise legal or street property description; correct legal description and address prevent title and closing errors and ensure the contract applies to the intended asset.

Purchase Price & Financing

Specifies total price, down payment/earnest money amounts, financing approach (conventional, FHA, VA), lender deadlines, and seller concession language so funds and contingencies align with lender requirements.

Earnest Money & Release

Defines earnest money amount, delivery instructions, deposit deadlines, and conditions for release or forfeiture to address dispute scenarios and escrow handling by the title company or broker.

Inspections and Option Period

Sets inspection deadlines, buyer’s option period (if applicable), and cure or termination rights; clear timing controls inspection contingencies and contractual termination windows.

Title, Survey, and Closing

Allocates responsibility for title commitment reviews, survey objections, title defects, and closing location/date; precise instructions prevent last‑minute disputes and allocation of cure obligations.

Default Remedies & Notices

Outlines notice procedures, remedies for breach (specific performance, liquidated damages, termination), and the method for delivering notices, which affects enforceability and dispute resolution.

Required Information and Compliance Points

Party Names: Full legal names
Property ID: Legal description or street address
Dates: MM/DD/YYYY format
Earnest Money: Amount and deposit instructions
Signatures: Typed or handwritten signature
Governing Law: State selection (Texas typical)

Step-by-Step: Completing a TREC Real Estate Contract

Follow these ordered steps to produce a complete, enforceable contract that aligns with TREC form expectations and reduces post-acceptance issues.

  • 01
    Prepare Parties: Enter full legal names and contact details.
  • 02
    Set Price & Terms: Specify purchase price, financing, and earnest money.
  • 03
    Define Deadlines: Fill inspection, option, and closing dates precisely.
  • 04
    Sign and Distribute: Obtain signatures from all parties and circulate executed copies.

How to Customize and Complete the Contract Online

Configure a digital workflow to collect signatures, attach addenda, and route copies to title and lender automatically.

Field Configuration
Signature Field Require signer name and date
Initials Field Place on each page needing initials
Conditional Addenda Show addenda only when selected
Routing Auto-send to title and lender

Digital Signing and eSubmission Capabilities

Ensure the provider supports ESIGN/UETA compliance, detailed audit logs, and common integrations used by brokers and title companies.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • Authentication: Email link, SMS code, KBA options
  • File formats: PDF, DOCX, HTML supported

Where to Send the Executed TREC Contract

After full execution, send copies to parties that need the contract for closing and recordkeeping.

  • Seller and Buyer: Each receives an executed copy immediately
  • Listing Brokerage: Retain original for broker file
  • Title Company: Provide contract and earnest money instructions
  • Lender: Send copy for loan underwriting

Common Contract Deadlines to Track

Key dates in a TREC contract determine inspection, financing, termination, and closing rights; track them precisely to preserve contractual options.

Option Period End:

Buyer’s right-to-terminate deadline

Inspection Deadline:

Last day to request repairs or terminate

Earnest Money Due:

Date earnest money must be deposited

Title Objection Deadline:

Final date to object to title issues

Closing Date:

Actual date for transfer of ownership

Notarization and Witness Flow for Texas Real Estate

For many Texas real estate transactions, notarization and witness requirements depend on what document is being recorded rather than the purchase contract itself.

01

Purchase Contract Signing

No notarization required for contract validity

02

Deed Execution

Deeds normally require notary acknowledgement

03

POA Use

Durable POA may need notarization and witnesses

04

Affidavits

Often require notary and possible witness

05

Remote Online Notary

Allowed where state RON law permits

06

Recording Rules

County recorder enforces acknowledgment form

07

Witness Counts

Varies for deeds in some states

08

Title Company Checks

Title review flags notarization gaps

Key Transaction Milestones

Monitor these stages from offer to closing to ensure contractual rights and timelines are preserved at each milestone.

01

Offer Submission

Buyer presents written offer to seller

02

Acceptance

Seller accepts or counters the offer

03

Due Diligence

Buyer completes inspections and surveys

04

Closing

Funds exchanged and deed recorded

Penalties and Risks if the Contract Is Incorrect

Contract Void Risk: May render agreement unenforceable
Earnest Money Forfeiture: Buyer can lose deposit
Title Defects: Delays or additional cure costs
Financing Failure: Deal termination due to loan denial
Breach Litigation: Damages and legal fees
Recording Rejection: Deed not accepted by recorder

Common Mistakes to Avoid

  • Incomplete legal description or wrong parcel ID leading to title objections.
  • Incorrect or late earnest money deposits missing contract deadlines.
  • Ambiguous contingency language causing disputes over repairs or credits.
  • Failure to serve required notices or adhere to specified delivery methods.

eSignature Vendor Comparison for Real Estate Workflows

Compare common vendor pricing and capabilities relevant to high-volume real estate transactions; signNow is shown first per table conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-World Examples of Online Execution

These examples illustrate typical benefits and considerations when executing real estate documents online.

Martin Properties

Tim Martin led online closings for multiple Texas deals using secure e-signatures.

  • Rapid mobile signing reduced turnaround times significantly.
  • Result: consistent compliance with state form language, reliable audit trails, and fewer in-person appointments required to complete offers and closings.

Optica Ventures

Brian Fitzgibbons described adopting online signing for investor-related property contracts.

  • The team valued a straightforward interface for external parties.
  • Outcome: document workflows integrated with existing systems, improving customer experience while preserving required transactional records and signatures.

Practical Tips for Accurate, Efficient Completion

Adopt consistent procedures to reduce errors and maintain compliance across transactions.

Use Exact Legal Names
Always input party names exactly as shown on government ID or title records; consistent naming prevents vesting and recording problems and reduces title exceptions during closing.
Track Deadlines Rigorously
Record option, inspection, earnest money, and financing deadlines in a shared calendar; missed dates can trigger automatic contract terminations or forfeiture of deposits.
Attach Required Addenda
Include all required TREC addenda (financing, HOA, environmental) at execution time to avoid post-acceptance amendments that complicate lender or title review.
Maintain Audit Trails
Use a platform that preserves timestamps, IP addresses, and signer authentication evidence to support enforceability under ESIGN (15 U.S.C. ch. 96) and UETA where applicable.

Frequently Asked Questions about the TREC Real Estate Contract

Answers to common questions about execution, electronic signing, notarization, and post‑execution steps for TREC contracts.


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