This document provides an overview of key elements of contracts, real estate purchase contracts in Texas, and forms commonly used. It discusses requirements for valid contracts such as competent parties, mutual consent, consideration. It also reviews elements of purchase contracts like property descriptions, price, financing, inspections, disclosures, signatures and addenda used. Contract interpretation, types of agreements, statutory requirements are also addressed at a high-level.

2. Contracts in General
 Basic Elements of All
Contracts
› Legally Competent Parties
› Mutual Consent between the
Parties
› Genuine Assent
› Lawful Objective
› Consideration
 Discharge of Contracts
› Performance
› Release
› Mutual Rescission
› Assignment
› Novation
› Breach
 Certain Contracts Must Be In
Writing
› Texas Statute of Frauds
› Texas Property Code
Regarding Conveyances

3. Interpretation of Contracts
 Parol Evidence Rule
 Merger Clause
 Determining Conflicts in a Contract
› Contract Construed Against the Maker
 Statute of Limitations

4. Commission Agreements
 Types of Commission Agreements
 Definite Termination Dates Required
 Compensation
› Who Pays the Compensation?
› When is a Commission Earned and When is it Due?
› Collecting a Commission

5. Use of Promulgated Contract Forms
 The Unauthorized Practice of Law
 Completing Contract Forms
 Rules for Computer Generated Forms

6. Texas Purchase Contracts
 Creating a Valid Purchase Contract
› Terminating an Offer to Purchase
 Types of Purchase Contracts
› One To Four Family Residential Contract (Resale)
› Residential Condominium Contract (Resale)
› Farm and Ranch Contract
› Unimproved Property Contract
› New Home Contract (Incomplete Construction)
› New Home Contract (Completed Construction)
› Amendment to Contract

7. One To Four Family Residential Contract (Pages 1-3)
Part I
 Names and Address of the Parties to the Contract
 Description of the Property
› Non-Realty Items Addendum
 Sales Price and Earnest Money Deposit
 Financing
› Third Party Financing
› Assumption
› Seller Financing
 Title Policy and Survey

8. One To Four Family Residential Contract (Pages 1-3)
Part II
 Title Notices – Statutory Disclosures
› Notice of Title Insurance Policy
› Notice of POA Membership
› Furnishing Subdivision Information
› MUD Notice for Statutory Tax Districts
› Tide Waters - Notice of Coastal Area Property
› Seller’s Disclosure Regarding Potential Annexation
› Property Located in a Certificated Service Area of a Utility Service
Provider - CNN Notice
› Public Improvement Districts
› Disclosure of Private Transfer Fees
› Propane Gas System Service Area

9. One To Four Family Residential Contract (Pages 4-9)
Part I
 Property Condition
› Access, Inspections, and Utilities
› Seller’s Disclosure of Property Condition
› Stigmatized Property – What to Disclose
› Seller’s Disclosure of Lead-Based Paint
› Acceptance of Property Condition
› Lender Required Repairs and Treatments
› Pest Control Inspection and Certification Reports
› Environmental Matters
› Residential Service Contracts
 Brokers’ Fees
 Closing and Possession
 Settlement Expenses and Prorations

10. One To Four Family Residential Contract (Pages 4-9)
Part II
 Default
 Mediation
 Federal Tax Requirements
 Agreement of Parties
 Termination Option
 Effective Date & Signatures
› The Buyer’s Signature
› The Seller’s Signature
 Broker Information
 Receipts
› Option Fee Receipt
› Contract and Earnest Money Receipt

11. Additional Addenda, Notices & Forms
 Addendum for Sale of Other Property by Buyer
 Addendum for Back-Up Contract
 Notice of Buyer’s Termination of Contract
 Short Sale Addendum
 Notice to Prospective Buyer
 Texas Real Estate Consumer Notice Concerning Recognized
Hazards or Deficiencies
 Addendum for Release of Liability on Assumed Loan and/or
Restoration of Seller’s VA Entitlement
 Notice of Property Located Seaward of the Gulf Intracoastal
Waterway
 Seller’s Disclosure of Undersurface Pipelines