When engaging in the buying or selling of land in Texas, selecting the right contract form is crucial. For realtors, the Texas Real Estate Commission (TREC) mandates the use of specific contract forms, while other buyers and sellers have additional choices.

While you could hire an attorney for a custom contract, that option can be costly. Alternatively, state-specific purchase agreement templates from services like Rocket Lawyer or LegalZoom exist, but why pay when TREC contracts are available for free? In this guide, we’ll delve into the TREC unimproved property contract, outlining how to fill it out and when to use it effectively.

Why Opt for TREC Contract Forms?

The Texas Real Estate Commission serves as the regulatory authority for real estate agents in Texas. They provide essential contract forms that not only realtors must use but are also accessible to the general public. Here’s why we advocate for the TREC contract forms:

1. Equitable Terms: The contract is balanced to protect both buyer and seller interests.
2. Comprehensive Coverage: It comprehensively addresses most situations concerning property transactions.
3. Industry Familiarity: Real estate professionals — including title companies and lenders — widely recognize these forms, facilitating a smoother transaction process.

Understanding When to Use the TREC Unimproved Property Contract

Selecting the appropriate TREC form can be confusing, particularly with multiple contract types available for land transactions. The unimproved property contract is not suited for land with physical structures — it is specifically designed for vacant properties without any buildings or additions.

This contract is typically applied to platted property, which means it has a recorded Lot/Block legal description, differing from a metes and bounds description.

Distinguishing Between Unimproved and Farm & Ranch Contracts

TREC also offers a farm and ranch contract, which is primarily used for rural properties described via metes and bounds. The key differences include:

- Land Description: Unimproved property contracts are for platted properties, while the farm and ranch contract addresses rural land described through angles and distances.
- Specific Terms: The farm and ranch contract includes terms relevant to agricultural land, such as rights to outbuildings, fences, and other equipment that may be part of the sale.

Accessing Fillable TREC Forms

To obtain the TREC forms, you can download the blank PDF versions directly from the TREC's official resources. They have been categorized into fillable forms, allowing you to complete them electronically or print them for hand completion.

Key Sections of the Unimproved Property Contract Form

To guide you through the important sections of the Texas TREC unimproved property contract, here’s a concise breakdown:

1. Parties: Include the full legal names of the buyer and seller.
2. Property Description: Obtain the Lot, Block, and Addition information from your property tax bill or deed.
3. Sales Price: Specify cash amounts and financing details clearly.
4. Leases: Note any existing natural resource leases.
5. Earnest Money and Termination Option: Usually set at 2% of the sale price, plus an option fee if applicable.
6. Title Policy and Survey: Typically, the seller covers the title policy while buyers handle the survey costs.
7. Property Condition: Purchasers will often acquire land in its as-is condition.
8. Broker Disclosure: Disclose if any party has a stake as a broker or agent.
9. Closing Date: Confirm the title company's availability for the selected closing date.
10. Possession: The seller agrees to transfer possession upon closing.
11. Special Provisions: Use with discretion after checking relevant TREC addenda.
12. Settlement Details: Indicate who bears closing costs.
13. Property Tax Prorations: Taxes are prorated based on the closing date.
14. Casualty Clause: Outlines damages that occur before closing.
15. Default Terms: States remedies for contract breaches.
16. Dispute Resolution: Any unresolved issues go to mediation.
17. Attorney Fees: Winning parties may recover legal expenses.
18. Escrow Procedures: Details on handling earnest money.
19. Seller Representations: Seller warranties apply post-closing.
20. Federal Tax Requirements: Outlines necessary withholdings for foreign sellers.
21. Contact Notices: Full contact information benefits all parties involved.
22. Addenda Agreement: Check off all applicable addenda.
23. Legal Consultations: Advises consulting an attorney if desired.

After completing the necessary sections, both buyer and seller must sign the document. Ensure that it includes the broker’s information if applicable, and remember to finalize the option fee and earnest money receipts.

For a smooth transaction process when working with unimproved property, consider using the Texas TREC contract forms available at Landforcashmoney.com. This information, while helpful, should not be taken as legal advice. Always consult with a qualified expert for legal matters.