Farm And Ranch Contract Form PDF Details

Embarking upon the venture of buying or selling farm and ranch property in Texas unveils a complex landscape, navigated with precision by the Farm and Ranch Contract. This legally binding document, promulgated by the Texas Real Estate Commission (TREC), serves as a comprehensive guide through the intricacies of real estate transactions specific to agricultural land. The contract delineates the agreement between seller and buyer, specifying the sale and conveyance of property that encompasses not only the land itself but also a myriad of elements such as improvements, accessories, and crops, with certain exclusions and reservations. Detailed within the document are the sales price components, including cash payments and financing terms, while also addressing earnest money expectations—critical for securing the deal's seriousness. Moreover, it highlights the buyer's entitlement and procedures for property inspections and underlines the necessity of title policy acquisition for protecting against potential legal claims. Essential disclosures concerning the property's condition, potential environmental hazards, and government program involvements are mandated, ensuring transparency and informed decision-making. Additionally, the contract specifies closing conditions, possession terms, and the allocation of broker fees, thereby ensuring a complete understanding of all parties involved. This document stands as a testament to the detailed planning and regulation inherent in the transaction of Texas's agricultural lands, offering a structured pathway toward ownership and operational transitions.

QuestionAnswer
Form NameFarm And Ranch Contract Form
Form Length10 pages
Fillable?No
Fillable fields0
Avg. time to fill out2 min 30 sec
Other namestrec farm and ranch contract 2 12 18, trec form farm and ranch, texas farm and ranch contract example, fillable farm and ranch accord application

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Contract Concerning

PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)

(Address of Property)

Page 1 of 10 2-12-18

 

FARM AND RANCH CONTRACT

 

 

 

EQUAL HOUSING

1. PARTIES: The parties to this contract are

OPPORTUNITY

_

(Seller) and

 

(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”.

 

A. LAND: The land situated in the County of

, Texas,

described as follows:

 

or as described on attached exhibit, also known as

 

(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.

 

 

B. IMPROVEMENTS:

 

 

 

 

(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:

 

 

 

 

(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:

_

 

 

 

 

__

(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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

__.

EARNEST

MONEY: Within 3 days

after the Effective

Date, Buyer must deliver

 

$_________________ as earnest money to,

 

 

__________________________, as escrow agent,

at ______________________________(address). Buyer shall deliver additional earnest money of

$

 

 

to escrow agent within

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initialed for identification by Buyer

 

 

 

 

and Seller

 

 

 

 

 

TREC NO. 25-12

 

 

 

 

 

 

Contract Concerning

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 2 of 10

2-12-18

 

 

 

 

 

 

 

 

 

 

 

 

(Address of Property)

 

 

 

 

 

 

 

6. TITLE POLICY AND SURVEY:

 

 

 

 

 

 

 

 

 

 

 

 

A. TITLE POLICY: Seller shall furnish to Buyer at Seller’s Buyer’s expense an owner policy of

 

title insurance (Title Policy) issued by:

 

 

 

 

 

 

 

 

 

(Title

 

Company) in the amount of the Sales

Price, dated at or after closing, insuring Buyer

against

 

loss under the provisions of the Title Policy, subject to the promulgated exclusions (including

 

existing building and zoning ordinances) and the following exceptions:

 

 

 

(1) The standard printed exception for standby fees, taxes and assessments.

 

 

 

(2) Liens created as part of the financing described in Paragraph 3.

 

 

 

(3) Reservations or exceptions otherwise permitted by this contract or as may be approved by

 

Buyer in writing.

 

 

 

 

 

 

 

 

 

 

 

 

 

(4) The standard printed exception as to marital rights.

beaches, streams, and

related

 

(5) The

standard printed exception as

to waters, tidelands,

 

matters.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines,

 

encroachments or protrusions, or overlapping improvements:

 

 

 

 

 

 

 

(i) will not be amended or deleted from the title policy; or

 

 

 

 

 

 

 

(ii) will be amended to read, "shortages in area" at the expense of Buyer Seller.

 

 

(7) The exception or exclusion regarding minerals approved by the Texas Department of

 

Insurance.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B. COMMITMENT: Within 20 days after the Title Company receives a copy of this contract, Seller

 

shall furnish to Buyer a commitment for title insurance (Commitment) and, at Buyer's expense,

 

legible

copies

 

 

 

of restrictive covenants and documents evidencing exceptions in the

 

Commitment (Exception Documents) other than the standard printed exceptions. Seller

 

authorizes the Title Company to deliver the Commitment and Exception Documents to Buyer at

 

Buyer's address shown in Paragraph 21. If the Commitment and Exception Documents are not

 

delivered to Buyer within the specified time, the time for delivery will be automatically extended

 

up to 15 days or 3 days before the Closing Date, whichever is earlier. If the Commitment and

 

Exception Documents are not delivered within the time required, Buyer may terminate this

 

contract and the earnest money will be refunded to Buyer.

 

 

 

 

 

 

 

C. SURVEY: The survey must be made by a registered professional land surveyor acceptable to

 

the Title Company and Buyer’s lender(s). (Check one box only):

 

 

 

 

 

 

 

(1) Within

 

 

 

days after the Effective Date of this contract, Seller shall furnish to Buyer and

 

Title

Company

 

 

Seller's existing survey of the Property and a Residential Real Property

 

Affidavit promulgated by the Texas Department of Insurance (T-47 Affidavit). If Seller fails

 

to furnish the existing survey or affidavit within the time prescribed, Buyer shall

 

obtain a new survey at Seller's expense no later than 3 days prior to Closing Date.

 

The existing survey will will not be recertified to a date subsequent to the Effective

 

Date of this contract at the expense of Buyer Seller. If the existing survey is not

 

approved by the Title Company or Buyer's lender(s), a new survey will be obtained at the

 

expense of

Buyer Seller no later than 3 days prior to Closing Date.

 

 

(2) Within

 

 

 

 

days after the Effective Date of this contract, Buyer shall obtain a new survey

 

at Buyer’s expense. Buyer is deemed to receive the survey on the date of actual receipt or

 

the date specified in this paragraph, whichever is earlier.

 

 

 

 

 

 

 

(3) Within

 

 

 

days after the Effective Date of this contract, Seller, at Seller's expense shall

 

furnish

a new

survey to Buyer.

 

 

 

 

 

 

 

 

 

 

 

 

(4) No survey is required.

 

 

 

 

 

 

 

 

 

 

 

 

D. OBJECTIONS: Buyer may object in writing to (i) defects, exceptions, or encumbrances to title

 

disclosed on the survey other than items 6A(1) through (5) above; or disclosed in the

 

Commitment other than items 6A(1) through (7) above; (ii) any portion of the Property lying in

 

a special flood hazard area (Zone V or A) as shown on the current Federal Emergency

 

Management

Agency map; or (iii) any exceptions which prohibit the following use or activity:

 

 

 

 

 

 

 

 

. Date or (ii)

 

days after Buyer receives the

 

Buyer must object the earlier of (i) the Closing

 

 

Commitment, Exception Documents, and the survey. Buyer’s failure to object within the time

 

allowed will constitute a waiver of Buyer’s right to object; except that the requirements in

 

Schedule C of the Commitment are not waived by Buyer. Provided Seller is not obligated to

 

incur any expense, Seller shall cure any timely objections of Buyer or any third party lender

 

within 15 days after Seller receives the objections (Cure Period) and the Closing Date will be

 

extended as necessary. If objections are not cured within the Cure Period, Buyer may, by

 

delivering notice to Seller within 5 days after the end of the Cure Period: (i) terminate this

 

contract and the earnest money will be refunded to Buyer; or (ii) waive the objections. If Buyer

 

does not terminate within the time required, Buyer shall be deemed to have waived the

 

objections. If the Commitment or Survey is revised or any new Exception Document(s) is

 

delivered, Buyer may object to any new matter revealed in the revised Commitment or Survey

 

or new Exception Document(s) within the same time stated in this paragraph to make

 

objections beginning when the revised Commitment, Survey, or Exception Document(s) is

 

delivered to Buyer.

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

Initialed for identification by Buyer

 

 

 

 

 

and Seller

 

 

 

 

 

TREC NO. 25-12

 

 

 

 

 

 

 

 

Contract Concerning

 

 

 

 

 

Page 3 of 10

2-12-18

 

 

 

(Address of Property)

 

 

 

 

 

 

 

Document

 

 

Date

 

Recording Reference

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

and Seller

 

 

 

TREC NO. 25-12

 

 

 

 

Contract Concerning

 

Page 4 of 10

2-12-18

 

(Address of Property)

 

 

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.”

 

 

7. PROPERTY CONDITION:

 

 

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 .

 

 

NOTICE: Buyer should determine the availability of utilities to the Property suitable to

satisfy Buyer’s needs.

 

 

B. SELLER'S DISCLOSURE NOTICE PURSUANT TO §5.008, TEXAS PROPERTY CODE (Notice):

(Check one box only)

 

 

(1) Buyer has received the Notice

 

days after the Effective Date of this

(2) Buyer has not received the Notice. Within

 

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:

.

(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

 

 

 

and Seller

 

 

 

TREC NO. 25-12

 

 

 

 

Contract Concerning

 

Page 5 of 10

2-12-18

 

(Address of Property)

 

 

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:

.

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

, 20

, 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

 

 

 

and Seller

 

 

 

TREC NO. 25-12

 

 

 

 

Contract Concerning

 

Page 6 of 10

2-12-18

 

(Address of Property)

 

 

12.SETTLEMENT AND OTHER EXPENSES:

A. The following expenses must be paid at or prior to closing:

(1)Expenses payable by Seller (Seller's Expenses):

(a)Releases of existing liens, including prepayment penalties and recording fees; release of Seller’s loan liability; tax statements or certificates; preparation of deed; one-half of

escrow fee; and other expenses payable by Seller under this contract.

(b) Seller shall also pay an amount not to exceed $to be applied in the following order: Buyer’s Expenses which Buyer is prohibited from paying by FHA, VA, Texas Veterans Land Board or other governmental loan programs, and then to other Buyer’s Expenses as allowed by the lender.

(2)Expenses payable by Buyer (Buyer's Expenses) Appraisal fees; loan application fees; origination charges; credit reports; preparation of loan documents; interest on the notes from date of disbursement to one month prior to dates of first monthly payments; recording fees; copies of easements and restrictions; loan title policy with endorsements required by lender; loan-related inspection fees; photos; amortization schedules; one-half of escrow fee; all prepaid items, including required premiums for flood and hazard insurance, reserve deposits for insurance, ad valorem taxes and special governmental assessments; final compliance inspection; courier fee; repair inspection; underwriting fee; wire transfer fee; expenses incident to any loan; Private Mortgage Insurance Premium (PMI), VA Loan Funding Fee, or FHA Mortgage Insurance Premium (MIP) as required by the lender; and other expenses payable by Buyer under this contract.

B.If any expense exceeds an amount expressly stated in this contract for such expense to be paid by a party, that party may terminate this contract unless the other party agrees to pay such excess. Buyer may not pay charges and fees expressly prohibited by FHA, VA, Texas Veterans Land Board or other governmental loan program regulations.

13.PRORATIONS AND ROLLBACK TAXES:

A.PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and rents will be prorated through the Closing Date. The tax proration may be calculated taking into consideration any change in exemptions that will affect the current year's taxes. If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year are available. If taxes are not paid at or prior to closing, Buyer shall pay taxes for the current year. Rentals which are unknown at time of closing will be prorated between Buyer and Seller when they become known.

B.ROLLBACK TAXES: If this sale or Buyer’s use of the Property after closing results in the assessment of additional taxes, penalties or interest (Assessments) for periods prior to closing, the Assessments will be the obligation of Buyer. If Assessments are imposed because of Seller’s use or change in use of the Property prior to closing, the Assessments will be the obligation of Seller. Obligations imposed by this paragraph will survive closing.

14.CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty after the Effective Date of this contract, Seller shall restore the Property to its previous condition as soon as reasonably possible, but in any event by the Closing Date. If Seller fails to do so due to factors beyond Seller’s control, Buyer may (a) terminate this contract and the earnest money will be refunded to Buyer, (b) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (c) accept the Property in its damaged condition with an assignment of insurance proceeds, if permitted by Seller’s insurance carrier, and receive credit from Seller at closing in the amount of the deductible under the insurance policy. Seller’s obligations under this paragraph are independent of any other obligations of Seller under this contract.

15.DEFAULT: If Buyer fails to comply w ith this contract, Buyer w ill be in default, and Seller may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby releasing both parties from this contract.

16.MEDIATION: It is the policy of the State of Texas to encourage resolution of disputes through alternative dispute resolution procedures such as mediation. Any dispute between Seller and Buyer related to this contract which is not resolved through informal discussion will be submitted to a mutually acceptable mediation service or provider. The parties to the mediation shall bear the mediation costs equally. This paragraph does not preclude a party from seeking equitable relief from a court of competent jurisdiction.

17.ATTORNEY'S FEES: A Buyer, Seller, Listing Broker, Other Broker, or escrow agent w ho prevails in any legal proceeding related to this contract is entitled to recover reasonable attorney’s fees and all costs of such proceeding.

Initialed for identification by Buyer

 

 

 

and Seller

 

 

 

TREC NO. 25-12

 

 

 

 

Contract Concerning

 

Page 7 of 10

2-12-18

 

(Address of Property)

 

 

18.ESCROW:

A. ESCROW: The escrow agent is not (i) a party to this contract and does not have liability for the performance or nonperformance of any party to this contract, (ii) liable for interest on the earnest money and (iii) liable for the loss of any earnest money caused by the failure of any financial institution in which the earnest money has been deposited unless the financial institution is acting as escrow agent.

B. EXPENSES: At closing, the earnest money must be applied first to any cash down payment, then to Buyer's Expenses and any excess refunded to Buyer. If no closing occurs, escrow agent may: (i) require a written release of liability of the escrow agent from all parties, (ii) require payment of unpaid expenses incurred on behalf of a party, and (iii) only deduct from the earnest money the amount of unpaid expenses incurred on behalf of the party receiving the earnest money.

C. DEMAND: Upon termination of this contract, either party or the escrow agent may send a release of earnest money to each party and the parties shall execute counterparts of the release and deliver same to the escrow agent. If either party fails to execute the release, either party may make a written demand to the escrow agent for the earnest money. If only one party makes written demand for the earnest money, escrow agent shall promptly provide a copy of the demand to the other party. If escrow agent does not receive written objection to the demand from the other party within 15 days, escrow agent may disburse the earnest money to the party making demand reduced by the amount of unpaid expenses incurred on behalf of the party receiving the earnest money and escrow agent may pay the same to the creditors. If escrow agent complies with the provisions of this paragraph, each party hereby releases escrow agent from all adverse claims related to the disbursal of the earnest money.

D. DAMAGES: Any party who wrongfully fails or refuses to sign a release acceptable to the escrow agent within 7 days of receipt of the request will be liable to the other party for (i) damages;

(ii) the earnest money; (iii) reasonable attorney's fees; and (iv) all costs of suit.

E.NOTICES: Escrow agent's notices will be effective when sent in compliance with Paragraph 21. Notice of objection to the demand will be deemed effective upon receipt by escrow agent.

19.REPRESENTATIONS: All covenants, representations and w arranties in this contract survive closing. If any representation of Seller in this contract is untrue on the Closing Date, Seller will be in default. Unless expressly prohibited by written agreement, Seller may continue to show the Property and receive, negotiate and accept back up offers.

20.FEDERAL TAX REQUIREMENTS: If Seller is a "foreign person,” as defined by Internal Revenue Code and its regulations, or if Seller fails to deliver an affidavit or a certificate of non- foreign status to Buyer that Seller is not a "foreign person,” then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. Internal Revenue Service regulations require filing written reports if currency in excess of specified amounts is received in the transaction.

21.NOTICES: All notices from one party to the other must be in w riting and are effective when mailed to, hand-delivered at, or transmitted by fax or electronic transmission as follows:

To Buyer

 

To Seller

at:

 

at:

Phone:

(

)

 

 

 

 

Phone:

(

)

 

 

Fax:

(

)

 

 

 

 

Fax:

(

)

 

 

E-mail:

 

 

 

 

 

 

E-mail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initialed for identification by Buyer

 

 

 

and Seller

 

 

 

 

TREC NO. 25-12

 

 

 

 

 

 

Contract Concerning

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 8 of 10 2-12-18

 

 

 

 

 

 

 

 

 

 

(Address of Property)

 

 

 

 

 

 

 

 

 

 

 

 

 

22.AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and

 

cannot be changed except by their written agreement. Addenda which are a part of this contract

 

are (check all applicable boxes):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Party Financing Addendum

Environmental Assessment, Threatened or

 

Seller Financing Addendum

Endangered Species and Wetlands

 

Addendum

 

 

 

 

 

 

 

 

 

 

Addendum for Property Subject to Mandatory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seller’s Temporary Residential Lease

 



 

 

 

 

 

 

 

 

Membership in a Property Owners

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Association

 

 

 

 

 

 

Short Sale Addendum

 

 

Buyer’s Temporary Residential Lease

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Addendum for Property Located Seaward

 



 

 

 

 

 

 

of the Gulf Intracoastal Waterway

 

 

 

 

Loan Assumption Addendum

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Addendum for Seller's Disclosure of

 

 

 

 

Addendum for Sale of Other Property by

 

 

 

 

 

 

 

 

 

 

 

-

based Paint and Lead

 



 

 

 

 

 

 

Information on Lead

 

 

Buyer

 

 

 

 

 

 

-based Paint Hazards as Required by

 

Addendum for "Back-Up" Contract

Federal Law

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Addendum for Coastal Area Property

Addendum for Property in a Propane Gas

 

 

 

 

System Service Area

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Addendum for Authorizing Hydrostatic

Other (list): _______________________

 

 

Testing

 

 

 

 

 

 

 

_________________________________

 

Addendum Concerning Right to Terminate

 

_________________________________

 

 

Due to Lender’s Appraisal

 

_________________________________

 

 

 

__________________________________________

 

 

 

 

Addendum for Reservation of Oil, Gas and

 

__________________________________________

 

Other Minerals

 

 

 

 

 

 

23.TERMINATION OPTION: For nominal consideration, the receipt of

w hich is hereby

 

acknowledged by Seller, and Buyer's agreement to pay Seller $

 

 

 

 

 

 

 

 

(Option Fee)

 

within 3 days after the Effective Date of this contract, Seller grants Buyer the unrestricted right to

 

terminate this contract by giving notice of termination to Seller within

 

 

 

 

days after the

 

Effective Date of this contract (Option Period). Notices under this paragraph must be given by

 

5:00 p.m. (local time where the Property is located) by the date specified. If no dollar amount is

 

stated as the Option Fee or if Buyer fails to pay the Option Fee to Seller within the time

 

prescribed, this paragraph will not be a part of this contract and Buyer shall not have the

 

unrestricted right to terminate this contract. If

Buyer gives

notice of termination within the time

 

prescribed, the Option Fee will not be refunded; however, any earnest money will be refunded to

 

Buyer. The Option Fee will will not be credited to the Sales Price at closing. Time is of the

 

essence for this paragraph and strict compliance with the time for performance is

 

required.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24.CONSULT AN ATTORNEY BEFORE SIGNING: TREC rules prohibit real estate license holders

 

from giving legal advice. READ THIS CONTRACT CAREFULLY.

 

 

 

 

 

 

 

 

 

 

 

 

 

Buyer's

 

 

 

 

 

 

Seller's

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attorney is:

 

 

 

 

 

 

 

Attorney is:

 

 

 

 

 

 

 

 

 

 

 

 

 

Phone:

 

(

 

)

 

 

 

Phone:

 

(

)

 

 

 

 

 

 

 

 

 

 

 

Fax:

 

(

 

)

 

 

 

Fax:

 

 

(

)

 

 

 

 

 

 

 

 

 

 

 

E-mail:

 

 

 

 

 

 

E-mail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXECUTED the

 

day of

 

 

 

 

 

 

, 20

 

 

(Effective Date).

 

 

 

 

(BROKER: FILL

IN THE

DATE OF FINAL ACCEPTANCE.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Buyer

Seller

Buyer

Seller

The form of this contract has been approved by the Texas Real Estate Commission. TREC forms are intended for use only by trained real estate license holders. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not intended for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, (512) 936-3000 (http://www.trec.texas.gov) TREC NO. 25-12. This form replaces TREC NO. 25-11.

Initialed for identification by Buyer

and Seller

TREC NO. 25-12

 

 

 

Listing Broker: By:

Contract Concerning

 

Page 9 of 10

2-12-18

 

(Address of Property)

 

 

 

 

 

 

RATIFICATION OF FEE

Listing Broker has agreed to pay Other Broker ____________________________________ of the total Sales

Price when Listing Broker’s fee is received. Escrow Agent is authorized and directed to pay Other Broker from Listing Broker’s fee at closing.

Other Broker:

By:

BROKER INFORMATION AND AGREEMENT FOR PAYMENT OF BROKERS' FEES

Other Broker

 

License No.

 

 

 

Associate’s Name

 

License No.

 

 

 

Associate’s Email Address

 

Phone

 

 

 

Licensed Supervisor of Associate

 

License No.

 

 

 

Other Broker’s Office Address

 

Phone

 

 

 

City

State

Zip

represents Buyer only as Buyer’s agent Seller as Listing Broker’s subagent

 

Listing or Principal Broker

 

License No.

 

 

 

 

 

Listing Associate’s Name

 

License No.

 

 

 

 

 

 

Listing Associate’s Email Address

 

Phone

 

 

 

 

 

Licensed Supervisor of Listing Associate

License No.

 

 

 

 

 

 

Listing Broker’s Office Address

 

Phone

 

 

 

 

 

 

City

State

Zip

 

 

 

 

 

 

Selling Associate

 

License No.

 

 

 

 

 

 

Selling Associate’s Email Address

 

Phone

 

 

 

 

 

Licensed Supervisor of Selling Associate

License No.

 

 

 

 

 

 

Selling Associate’s Office Address

 

 

 

 

 

 

 

 

City

State

Zip

 



represents

Seller only

Buyer only

 

 

Seller and Buyer as an intermediary

Upon closing of the sale by Seller to Buyer of the Property described in the contract to which this fee agreement is attached: (a) Seller Buyer will pay Listing/Principal Broker a cash fee of $_

or % of the total Sales Price; and (b) Seller Buyer will pay Other Broker a cash fee of $_____________ or % of the total Sales Price. Seller/Buyer authorizes and directs Escrow Agent to

pay the brokers from the proceeds at closing.

Brokers' fees are negotiable. Brokers' fees or the sharing of fees between brokers are not fixed, controlled, recommended, suggested or maintained by the Texas Real Estate Commission.

_________________________________________________

________________________________________________

Seller

Buyer

Seller

 

Buyer

Do not sign if there is a separate written agreement for payment of Brokers' fees.

 

 

 

Initialed for identification by Buyer

and Seller

TREC NO. 25-12

Contract Concerning

 

Page 10 of 10

2-12-18

 

(Address of Property)

 

 

 

 

 

 

 

 

 

 

OPTION FEE RECEIPT

 

 

 

 

 

Receipt of $

 

 

(Option Fee) in the form of

 

 

 

 

 

 

is acknowledged.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seller or Listing Broker

 

 

 

 

 

 

 

 

 

 

 

Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNEST MONEY RECEIPT

 

 

 

 

Receipt of $

 

 

 

Earnest Money in the form of

 

 

 

 

 

is acknowledged.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Escrow Agent

 

 

Received by

Email Address

Date/Time

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Address

 

 

 

 

 

 

 

 

 

 

 

Phone

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City

 

 

State

 

 

Zip

 

 

Fax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONTRACT RECEIPT

 

 

 

 

Receipt of the Contract is acknowledged.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Escrow Agent

 

 

Received by

 

Email Address

Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Address

 

 

 

 

 

 

 

 

 

 

 

Phone

 

 

 

 

 

 

 

 

 

 

 

 

 

City

 

 

State

 

 

Zip

 

Fax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADDITIONAL EARNEST MONEY RECEIPT

 

 

 

 

 

Receipt of $

 

 

 

additional Earnest Money in the form of

 

 

 

 

 

 

is acknowledged.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Escrow Agent

 

 

Received by

 

Email Address

Date/Time

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Address

 

 

 

 

 

 

 

 

 

 

 

Phone

 

 

 

 

 

 

 

 

 

 

 

 

 

City

 

 

State

 

 

Zip

 

Fax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initialed for identification by Buyer

and Seller

TREC NO. 25-12

 

 

 

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