Contract Concerning |
PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC) |
(Address of Property) |
Page 1 of 10 2-12-18 |
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FARM AND RANCH CONTRACT |
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EQUAL HOUSING |
1. PARTIES: The parties to this contract are |
OPPORTUNITY |
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(Seller) and |
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(Buyer). Seller agrees to |
sell and convey to Buyer and Buyer agrees to buy from Seller the Property defined below. |
2. PROPERTY: The land, improvements, accessories and crops except for the exclusions and |
reservations, are collectively referred to as the “Property”. |
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A. LAND: The land situated in the County of |
, Texas, |
described as follows: |
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or as described on attached exhibit, also known as |
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(address/zip code), together with all rights, privileges, and appurtenances pertaining thereto, |
including but not limited to: water rights, claims, permits, strips and gores, easements, and |
cooperative or association memberships. |
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B. IMPROVEMENTS: |
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(1) FARM and RANCH IMPROVEMENTS: The following permanently installed and built-in items, |
if any: windmills, tanks, barns, pens, fences, gates, sheds, outbuildings, and corrals. |
(2) RESIDENTIAL IMPROVEMENTS: The house, garage, and all other fixtures and improvements |
attached to the above-described real property, including without limitation, the following |
permanently installed and built-in items, if any: all equipment and appliances, |
valances, screens, shutters, awnings, wall-to-wall carpeting, mirrors, ceiling fans, attic fans, |
mail boxes, television antennas, mounts and brackets for televisions and speakers, heating |
and air-conditioning units, security and fire detection equipment, wiring, plumbing and |
lighting fixtures, chandeliers, water softener system, kitchen equipment, garage door |
openers, cleaning equipment, shrubbery, landscaping, outdoor cooking equipment, and all |
other property owned by Seller and attached to the above described real property. |
C. ACCESSORIES: |
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(1) FARM AND RANCH ACCESSORIES: The following described related accessories: (check boxes |
of conveyed |
accessories) |
portable buildings hunting blinds |
game feeders |
livestock |
feeders and |
troughs |
irrigation equipment fuel tanks |
submersible |
pumps pressure tanks corrals gates chutes other: |
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(2) RESIDENTIAL ACCESSORIES: The following described related accessories, if any: window air conditioning units, stove, fireplace screens, curtains and rods, blinds, window shades, draperies and rods, door keys, mailbox keys, above ground pool, swimming pool equipment and maintenance accessories, artificial fireplace logs, and controls for:
(i) garages, (ii) entry gates, and (iii) other improvements and accessories.
D. CROPS: Unless otherwise agreed in writing, Seller has the right to harvest all growing crops until delivery of possession of the Property.
E. EXCLUSIONS: The following improvements, accessories, and crops will be retained by Seller and must be removed prior to delivery of possession:
____________________________________________________________________________.
F. RESERVATIONS: Any reservation for oil, gas, or other minerals, water, timber, or other interests is made in accordance with an attached addendum.
3.SALES PRICE:
A. Cash portion of Sales Price payable by Buyer at closing ................... $
B.Sum of all financing described in the attached: Third Party Financing Addendum, Loan Assumption Addendum, Seller Financing Addendum ... $
C.Sales Price (Sum of A and B) ........................................................ $
D.The Sales Price will will not be adjusted based on the survey required by Paragraph 6C. If the Sales Price is adjusted, the Sales Price will be calculated on the basis of $
per acre. If the Sales Price is adjusted by more than 10%, either party may terminate this
contract by providing written notice to the other party within __ days after the
terminating party receives the survey. If neither party terminates this contract or if the variance is 10% or less, the adjustment will be made to the amount in 3A 3B proportionately to 3A and 3B.
4.LICENSE HOLDER DISCLOSURE: Texas Law requires a real estate license holder w ho is a party to a transaction or acting on behalf of a spouse, parent, child, business entity in which the license holder owns more than 10%, or a trust for which the license holder acts as trustee or of which the license holder or the license holder’s spouse, parent or child is a beneficiary, to notify the other party in writing before entering into a contract of sale. Disclose if applicable:
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5. |
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__. |
EARNEST |
MONEY: Within 3 days |
after the Effective |
Date, Buyer must deliver |
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$_________________ as earnest money to, |
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__________________________, as escrow agent, |
at ______________________________(address). Buyer shall deliver additional earnest money of |
$ |
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to escrow agent within |
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days after the Effective Date of this contract. |
If |
Buyer fails to deliver |
the earnest money within |
the time required, Seller may terminate this |
contract or exercise Seller’s remedies under Paragraph 15, or both, by providing notice to Buyer |
before Buyer delivers the earnest money. If the last day to deliver the earnest money falls on a |
Saturday, Sunday, or legal holiday, the time to deliver the earnest money is extended until the end |
of the next day that is not a Saturday, Sunday, or legal holiday. Time is of the essence for this |
paragraph. |
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Initialed for identification by Buyer |
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and Seller |
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TREC NO. 25-12 |
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Contract Concerning |
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Page 2 of 10 |
2-12-18 |
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(Address of Property) |
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6. TITLE POLICY AND SURVEY: |
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A. TITLE POLICY: Seller shall furnish to Buyer at Seller’s Buyer’s expense an owner policy of |
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title insurance (Title Policy) issued by: |
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(Title |
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Company) in the amount of the Sales |
Price, dated at or after closing, insuring Buyer |
against |
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loss under the provisions of the Title Policy, subject to the promulgated exclusions (including |
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existing building and zoning ordinances) and the following exceptions: |
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(1) The standard printed exception for standby fees, taxes and assessments. |
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(2) Liens created as part of the financing described in Paragraph 3. |
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(3) Reservations or exceptions otherwise permitted by this contract or as may be approved by |
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Buyer in writing. |
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(4) The standard printed exception as to marital rights. |
beaches, streams, and |
related |
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(5) The |
standard printed exception as |
to waters, tidelands, |
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matters. |
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(6) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, |
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encroachments or protrusions, or overlapping improvements: |
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(i) will not be amended or deleted from the title policy; or |
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(ii) will be amended to read, "shortages in area" at the expense of Buyer Seller. |
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(7) The exception or exclusion regarding minerals approved by the Texas Department of |
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Insurance. |
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B. COMMITMENT: Within 20 days after the Title Company receives a copy of this contract, Seller |
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shall furnish to Buyer a commitment for title insurance (Commitment) and, at Buyer's expense, |
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legible |
copies |
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of restrictive covenants and documents evidencing exceptions in the |
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Commitment (Exception Documents) other than the standard printed exceptions. Seller |
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authorizes the Title Company to deliver the Commitment and Exception Documents to Buyer at |
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Buyer's address shown in Paragraph 21. If the Commitment and Exception Documents are not |
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delivered to Buyer within the specified time, the time for delivery will be automatically extended |
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up to 15 days or 3 days before the Closing Date, whichever is earlier. If the Commitment and |
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Exception Documents are not delivered within the time required, Buyer may terminate this |
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contract and the earnest money will be refunded to Buyer. |
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C. SURVEY: The survey must be made by a registered professional land surveyor acceptable to |
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the Title Company and Buyer’s lender(s). (Check one box only): |
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(1) Within |
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days after the Effective Date of this contract, Seller shall furnish to Buyer and |
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Title |
Company |
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Seller's existing survey of the Property and a Residential Real Property |
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Affidavit promulgated by the Texas Department of Insurance (T-47 Affidavit). If Seller fails |
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to furnish the existing survey or affidavit within the time prescribed, Buyer shall |
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obtain a new survey at Seller's expense no later than 3 days prior to Closing Date. |
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The existing survey will will not be recertified to a date subsequent to the Effective |
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Date of this contract at the expense of Buyer Seller. If the existing survey is not |
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approved by the Title Company or Buyer's lender(s), a new survey will be obtained at the |
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expense of |
Buyer Seller no later than 3 days prior to Closing Date. |
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(2) Within |
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days after the Effective Date of this contract, Buyer shall obtain a new survey |
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at Buyer’s expense. Buyer is deemed to receive the survey on the date of actual receipt or |
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the date specified in this paragraph, whichever is earlier. |
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(3) Within |
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days after the Effective Date of this contract, Seller, at Seller's expense shall |
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furnish |
a new |
survey to Buyer. |
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(4) No survey is required. |
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D. OBJECTIONS: Buyer may object in writing to (i) defects, exceptions, or encumbrances to title |
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disclosed on the survey other than items 6A(1) through (5) above; or disclosed in the |
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Commitment other than items 6A(1) through (7) above; (ii) any portion of the Property lying in |
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a special flood hazard area (Zone V or A) as shown on the current Federal Emergency |
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Management |
Agency map; or (iii) any exceptions which prohibit the following use or activity: |
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. Date or (ii) |
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days after Buyer receives the |
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Buyer must object the earlier of (i) the Closing |
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Commitment, Exception Documents, and the survey. Buyer’s failure to object within the time |
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allowed will constitute a waiver of Buyer’s right to object; except that the requirements in |
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Schedule C of the Commitment are not waived by Buyer. Provided Seller is not obligated to |
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incur any expense, Seller shall cure any timely objections of Buyer or any third party lender |
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within 15 days after Seller receives the objections (Cure Period) and the Closing Date will be |
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extended as necessary. If objections are not cured within the Cure Period, Buyer may, by |
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delivering notice to Seller within 5 days after the end of the Cure Period: (i) terminate this |
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contract and the earnest money will be refunded to Buyer; or (ii) waive the objections. If Buyer |
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does not terminate within the time required, Buyer shall be deemed to have waived the |
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objections. If the Commitment or Survey is revised or any new Exception Document(s) is |
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delivered, Buyer may object to any new matter revealed in the revised Commitment or Survey |
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or new Exception Document(s) within the same time stated in this paragraph to make |
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objections beginning when the revised Commitment, Survey, or Exception Document(s) is |
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delivered to Buyer. |
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E. EXCEPTION DOCUMENTS: Prior to the execution of the contract, Seller has provided Buyer with |
copies of the Exception Documents listed below or on the attached exhibit. Matters reflected in |
the Exception Documents listed below or on the attached exhibit will be permitted exceptions in |
the Title Policy and will not be a basis for objection to title: |
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Initialed for identification by Buyer |
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and Seller |
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TREC NO. 25-12 |
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Contract Concerning |
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Page 3 of 10 |
2-12-18 |
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(Address of Property) |
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Document |
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Date |
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Recording Reference |
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F. SURFACE LEASES: Prior to the execution of the contract, Seller has provided Buyer with copies of written leases and given notice of oral leases (Leases) listed below or on the attached exhibit. The following Leases will be permitted exceptions in the Title Policy and will not be a basis for objection to title:
G. TITLE NOTICES:
(1) ABSTRACT OR TITLE POLICY: Broker advises Buyer to have an abstract of title covering the Property examined by an attorney of Buyer’s selection, or Buyer should be furnished with or obtain a Title Policy. If a Title Policy is furnished, the Commitment should be promptly reviewed by an attorney of Buyer’s choice due to the time limitations on Buyer’s right to object.
(2) STATUTORY TAX DISTRICTS: If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 49, Texas Water Code, requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to final execution of this contract.
(3) TIDE WATERS: If the Property abuts the tidally influenced waters of the state, §33.135, Texas Natural Resources Code, requires a notice regarding coastal area property to be included in the contract. An addendum containing the notice promulgated by TREC or required by the parties must be used.
(4) ANNEXATION: If the Property is located outside the limits of a municipality, Seller notifies Buyer under §5.011, Texas Property Code, that the Property may now or later be included in the extraterritorial jurisdiction of a municipality and may now or later be subject to annexation by the municipality. Each municipality maintains a map that depicts its boundaries and extraterritorial jurisdiction. To determine if the Property is located within a municipality’s extraterritorial jurisdiction or is likely to be located within a municipality’s extraterritorial jurisdiction, contact all municipalities located in the general proximity of the Property for further information.
(5) PROPERTY LOCATED IN A CERTIFICATED SERVICE AREA OF A UTILITY SERVICE PROVIDER: Notice required by §13.257, Water Code: The real property, described in Paragraph 2, that you are about to purchase may be located in a certificated water or sewer service area, which is authorized by law to provide water or sewer service to the properties in the certificated area. If your property is located in a certificated area there may be special costs or charges that you will be required to pay before you can receive water or sewer service. There may be a period required to construct lines or other facilities necessary to provide water or sewer service to your property. You are advised to determine if the property is in a certificated area and contact the utility service provider to determine the cost that you will be required to pay and the period, if any, that is required to provide water or sewer service to your property. The undersigned Buyer hereby acknowledges receipt of the foregoing notice at or before the execution of a binding contract for the purchase of the real property described in Paragraph 2 or at closing of purchase of the real property.
(6) PUBLIC IMPROVEMENT DISTRICTS: If the Property is in a public improvement district, §5.014, Property Code, requires Seller to notify Buyer as follows: As a purchaser of this parcel of real property you are obligated to pay an assessment to a municipality or county for an improvement project undertaken by a public improvement district under Chapter 372, Local Government Code. The assessment may be due annually or in periodic installments. More information concerning the amount of the assessment and the due dates of that assessment may be obtained from the municipality or county levying the assessment. The amount of the assessments is subject to change. Your failure to pay the assessments could result in a lien on and the foreclosure of your property.
(7) TEXAS AGRICULTURAL DEVELOPMENT DISTRICT: The Property is is not located in a Texas Agricultural Development District. For additional information contact the Texas Department of Agriculture
(8) TRANSFER FEES: If the Property is subject to a private transfer fee obligation, §5.205, Property Code, requires Seller to notify Buyer as follows: The private transfer fee obligation may be governed by Chapter 5, Subchapter G of the Texas Property Code.
(9) PROPANE GAS SYSTEM SERVICE AREA: If the Property is located in a propane gas system service area owned by a distribution system retailer, Seller must give Buyer written notice as required by §141.010, Texas Utilities Code. An addendum containing the notice approved by TREC or required by the parties should be used.
(10)NOTICE OF WATER LEVEL FLUCTUATIONS: If the Property adjoins an impoundment of water, including a reservoir or lake, constructed and maintained under Chapter 11, Water Code,
Initialed for identification by Buyer |
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and Seller |
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TREC NO. 25-12 |
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Contract Concerning |
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Page 4 of 10 |
2-12-18 |
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(Address of Property) |
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that has a storage capacity of at least 5,000 acre-feet at the impoundment’s normal |
operating level, Seller hereby notifies Buyer: “The water level of the impoundment of water |
adjoining the Property fluctuates for various reasons, including as a result of: (1) an entity |
lawfully exercising its right to use the water stored in the impoundment; or (2) drought or |
flood conditions.” |
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7. PROPERTY CONDITION: |
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A. ACCESS, INSPECTIONS AND UTILITIES: Seller shall permit Buyer and Buyer’s agents access to |
the Property at reasonable times. Buyer may have the Property inspected by inspectors selected |
by Buyer and licensed by TREC or otherwise permitted by law to make inspections. Any |
hydrostatic testing must be separately authorized by Seller in writing. Seller at Seller's expense |
shall immediately cause existing utilities to be turned on and shall keep the utilities on during |
the time this contract is in effect . |
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NOTICE: Buyer should determine the availability of utilities to the Property suitable to |
satisfy Buyer’s needs. |
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B. SELLER'S DISCLOSURE NOTICE PURSUANT TO §5.008, TEXAS PROPERTY CODE (Notice): |
(Check one box only) |
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(1) Buyer has received the Notice |
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days after the Effective Date of this |
(2) Buyer has not received the Notice. Within |
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contract, Seller shall deliver the Notice to |
Buyer. |
If Buyer does not receive the Notice, |
Buyer may terminate this contract at any time prior to the closing and the earnest money |
will be refunded to Buyer. If Seller delivers the Notice, Buyer may terminate this contract for |
any reason within 7 days after Buyer receives the Notice or prior to the closing, whichever |
first occurs, and the earnest money will be refunded to Buyer. |
(3) The Texas Property Code does not require this Seller to furnish the Notice. |
C. SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by |
Federal law for a residential dwelling constructed prior to |
1978. |
D. ACCEPTANCE OF PROPERTY CONDITION: “As Is” means the present condition of the Property with any and all defects and without warranty except for the warranties of title and the warranties in this contract. Buyer’s agreement to accept the Property As Is under Paragraph 7D
(1)or (2) does not preclude Buyer from inspecting the Property under Paragraph 7A, from negotiating repairs or treatments in a subsequent amendment, or from terminating this contract during the Option Period, if any.
(Check one box only)
(1) Buyer accepts the Property As Is.
(2) Buyer accepts the Property As Is provided Seller, at Seller’s expense, shall complete the following specific repairs and treatments:
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(Do not insert general phrases, such as “subject to inspections,” that do not identify specific repairs and treatments.)
E. COMPLETION OF REPAIRS: Unless otherwise agreed in writing: (i) Seller shall complete all agreed repairs and treatments prior to the Closing Date; and (ii) all required permits must be obtained, and repairs and treatments must be performed by persons who are licensed to provide such repairs or treatments or, if no license is required by law, are commercially engaged in the trade of providing such repairs or treatments. At Buyer’s election, any transferable warranties received by Seller with respect to the repairs will be transferred to Buyer at Buyer’s expense. If Seller fails to complete any agreed repairs prior to the Closing Date, Buyer may exercise remedies under Paragraph 15 or extend the Closing Date up to 5 days if necessary for Seller to complete repairs.
F. LENDER REQUIRED REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, neither party is obligated to pay for lender required repairs, which includes treatment for wood destroying insects. If the parties do not agree to pay for the lender required repairs or treatments, this contract will terminate and the earnest money will be refunded to Buyer. If the cost of lender required repairs and treatments exceeds 5% of the Sales Price, Buyer may terminate this contract and the earnest money will be refunded to Buyer.
G. ENVIRONMENTAL MATTERS: Buyer is advised that the presence of wetlands, toxic substances, including asbestos and wastes or other environmental hazards, or the presence of a threatened or endangered species or its habitat may affect Buyer’s intended use of the Property. If Buyer is concerned about these matters, an addendum promulgated by TREC or required by the parties should be used.
H. SELLER’S DISCLOSURES: Except as otherwise disclosed in this contract, Seller has no knowledge of the following:
(1)any flooding of the Property which has had a material adverse effect on the use of the Property;
(2)any pending or threatened litigation, condemnation, or special assessment affecting the Property;
(3)any environmental hazards that materially and adversely affect the Property;
(4)any dumpsite, landfill, or underground tanks or containers now or previously located on the Property;
(5)any wetlands, as defined by federal or state law or regulation, affecting the Property; or
(6)any threatened or endangered species or their habitat affecting the Property.
Initialed for identification by Buyer |
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and Seller |
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TREC NO. 25-12 |
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Contract Concerning |
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Page 5 of 10 |
2-12-18 |
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(Address of Property) |
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I.RESIDENTIAL SERVICE CONTRACTS: Buyer may purchase a residential service contract from a residential service company licensed by TREC. If Buyer purchases a residential service contract,
Seller shall reimburse Buyer at closing for the cost of the residential service contract in an
amount not exceeding $. Buyer should review any residential service contract
for the scope of coverage, exclusions and limitations. The purchase of a residential service contract is optional. Similar coverage may be purchased from various companies authorized to do business in Texas.
J. GOVERNMENT PROGRAMS: |
The Property is subject to the government programs listed below |
or on the attached exhibit: |
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Seller shall provide Buyer with copies of all governmental program agreements. Any allocation or proration of payment under governmental programs is made by separate agreement between the parties which will survive closing.
8.BROKERS' FEES: All obligations of the parties for payment of brokers’ fees are contained in separate written agreements.
9.CLOSING:
A. The closing of the sale will be on or before |
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, or within 7 days |
after objections made under Paragraph 6D have been cured or waived, whichever date is later (Closing Date). If either party fails to close the sale by the Closing Date, the non-defaulting party may exercise the remedies contained in Paragraph 15.
B. At closing:
(1)Seller shall execute and deliver a general warranty deed conveying title to the Property to Buyer and showing no additional exceptions to those permitted in Paragraph 6, an assignment of Leases, and furnish tax statements or certificates showing no delinquent taxes on the Property.
(2)Buyer shall pay the Sales Price in good funds acceptable to the escrow agent.
(3)Seller and Buyer shall execute and deliver any notices, statements, certificates, affidavits, releases, loan documents and other documents reasonably required for the closing of the sale and the issuance of the Title Policy.
(4)There will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds unless securing the payment of any loans assumed by Buyer and assumed loans will not be in default.
(5)If the Property is subject to a residential lease, Seller shall transfer security deposits (as defined under §92.102, Property Code), if any, to Buyer. In such an event, Buyer shall deliver to the tenant a signed statement acknowledging that the Buyer has acquired the Property and is responsible for the return of the security deposit, and specifying the exact dollar amount of the security deposit.
10.POSSESSION:
A. Buyer’s Possession: Seller shall deliver to Buyer possession of the Property in its present or required condition, ordinary wear and tear excepted: upon closing and funding according to a temporary residential lease form promulgated by TREC or other written lease required by the parties. Any possession by Buyer prior to closing or by Seller after closing which is not authorized by a written lease will establish a tenancy at sufferance relationship between the parties. Consult your insurance agent prior to change of ownership and possession because insurance coverage may be limited or terminated. The absence of a written lease or appropriate insurance coverage may expose the parties to economic loss.
B.Leases:
(1)After the Effective Date, Seller may not execute any lease (including but not limited to mineral leases) or convey any interest in the Property without Buyer’s written consent.
(2)If the Property is subject to any lease to which Seller is a party, Seller shall deliver to Buyer copies of the lease(s) and any move-in condition form signed by the tenant within 7 days after the Effective Date of the contract.
11.SPECIAL PROVISIONS: (Insert only factual statements and business details applicable to the sale. TREC rules prohibit license holders from adding factual statements or business details for which a contract addendum or other form has been promulgated by TREC for mandatory use.)
Initialed for identification by Buyer |
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and Seller |
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TREC NO. 25-12 |
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