Texas Contract for Deed
Also known as Land Contract, Installment Land Agreement or Contract or Agreement for Deed Forms
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U.S. Legal Forms™, Inc. provides Texas contract for deed forms, including Contract, Assignment of Contract and other related forms. Many free forms are not valid. We provide attorneys and you with the correct valid form. Free Previews available. All forms are available in Word format.
of Property Condition - Residential
» Disclosure required for residential property. Must be provided to the purchaser prior to signing the contract and the signed disclosure attached to the contract.
Disclosure of Financing Terms - Residential
» This disclosure must be provided to the purchase before the contract is signed.
Annual Accounting Statement to Purchaser - Residential
» Seller's annual accounting statement to Purchase. Required by law.
of Cancellation by Purchase within 14 Days
» Form of notice by purchaser to cancel within 14 days. Seller must provide this form to the purchaser when the contract is signed.
of Default from Seller to Purchaser
» Required form to provide notice of default to purchaser where 40% or 48 payments not made.
of Default from Seller to Purchase where 40% or 48 payments made
» Required form to provide notice of default where purchaser has paid 40% or 48 payments on the contract.
all Texas Contract for Deed Forms - Residential
» Get all the forms above for a residential transaction.
Texas law referred to a contract for deed as an executory contract. The following applies only to a transaction involving an executory contract for conveyance of real property used or to be used as the purchaser's residence or as the residence of a person related to the purchaser within the second degree by consanguinity or affinity. A lot measuring one acre or less is presumed to be residential property. THIS SUMMARY IS NOT ALL INCLUSIVE OF THE LAWS BUT DOES PROVIDE IMPORTANT INFORMATION.
These texas laws do not apply to the following:
(a) A transaction involving the sale of state land or a sale of land by the Veterans' Land Board under an executory contract.
(b) An executory contract that provides for the delivery of a deed from the seller to the purchaser within 180 days of the date of the final execution of the executory contract.
If the purchaser of the property:
(1) is related to the seller of the property within the second degree by consanguinity or affinity; and
(2) has waived the applicability of certain sections (5.066 and 5.068-6.080) in a written agreement, then the those laws do not apply to the trasnaction. However, the laws that can be waived under this section are limited.
Default of the contract is (a) failure to make a timel payment or (b) failure to comply with a term of the contract.
A seller may enforce the remedy of rescission or of forfeiture and acceleration against a purchaser in default under an executory contract for conveyance of real property only if:
(1) the seller notifies the purchaser of:
(A) the seller's intent to enforce a remedy under this section; and
(B) the purchaser's right to cure the default within 60-days;
(2) the purchaser fails to cure the default within the 60-day period; and
(3) Section 5.066 (purchaser has paid 40% or 48 payments) does not apply.
A purchaser in default under an executory contract for the conveyance of real property may avoid the enforcement of a remedy of forfeiture by complying with the terms of the contract on or before the 60th day after the date appropiate default notice is given. The contract terms cannot modify this right.
The placement of a lien for the reasonable value of improvements to residential real estate for purposes of providing utility service to the property shall not constitute a default under the terms of an executory contract for the purchase of the real property regardless of the terms of the agreement.
If the negotiations that precede the execution of an executory contract are conducted primarily in a language other than English, the seller shall provide a copy in that language of all written documents relating to the transaction, including the contract, disclosure notices, annual accounting statements, and a notice of default required by this subchapter.
A seller may not include as a term of the executory contract a provision that:
(1) imposes an additional late-payment fee that exceeds the lesser of:
(A) eight percent of the monthly payment under the contract; or
(B) the actual administrative cost of processing the late payment;
(2) prohibits the purchaser from pledging the purchaser's interest in the property as security to obtain a loan to place improvements, including utility improvements or fire protection improvements, on the property; or
(3) imposes a prepayment penalty or any similar fee if the purchaser elects to pay the entire amount due under the contract before the scheduled payment date under the contract.
The seller shall record the executory contract, including the attached disclosure statement required by Section 5.069, as prescribed by Title 3 on or before the 30th day after the date the contract is executed. Section 12.002(c) does not apply to an executory contract filed for record under this section.
If the executory contract is terminated for any reason, the seller shall record the instrument that terminates the contract.
The seller shall provide the purchaser with an annual statement in January of each year for the term of the executory contract. If the seller mails the statement to the purchaser, the statement must be postmarked not later than January 31.
The statement must include the following information:
(1) the amount paid under the contract;
(2) the remaining amount owed under the contract;
(3) the number of payments remaining under the contract;
(4) the amounts paid to taxing authorities on the purchaser's behalf if collected by the seller;
(5) the amounts paid to insure the property on the purchaser's behalf if collected by the seller;
(6) if the property has been damaged and the seller has received insurance proceeds, an accounting of the proceeds applied to the property; and
(7) if the seller has changed insurance coverage, a legible copy of the current policy, binder, or other evidence that satisfies the requirements of Section 5.070(a)(2).
A seller who fails to comply with Subsection (a) is liable to the purchaser for:
(1) liquidated damages in the amount of $250 a day for each day after January 31 that the seller fails to provide the purchaser with the statement; and
(2) reasonable attorney's fees.
The named insured under an insurance policy, binder, or other coverage relating to property subject to an executory contract for the conveyance of real property shall inform the insurer, not later than the 10th day after the date the coverage is obtained or the contract executed, whichever is later, of:
(1) the executory contract for conveyance and the term of the contract; and
(2) the name and address of the other party to the contract.
An insurer who disburses proceeds under an insurance policy, binder, or other coverage relating to property that has been damaged shall issue the proceeds jointly to the purchaser and the seller designated in the contract.
If proceeds under an insurance policy, binder, or other coverage are disbursed, the purchaser and seller shall ensure that the proceeds are used to repair, remedy, or improve the condition on the property.
The failure of a seller or purchaser to comply with Subsection (c) is a false, misleading, or deceptive act or practice within the meaning of Section 17.46, Business & Commerce Code, and is actionable in a public or private suit brought under Subchapter E, Chapter 17, Business & Commerce Code.
Subsection (d) does not limit either party's remedy for other false, misleading, or deceptive acts or practices actionable in a suit brought under Subchapter E, Chapter 17, Business & Commerce Code.
The seller shall transfer recorded, legal title of the property covered by the executory contract to the purchaser not later than the 30th day after the date the seller receives the purchaser's final payment due under the contract. A seller who violates this is liable to the purchaser for:
(1) liquidated damages in the amount of:
(A) $250 a day for each day the seller fails to transfer the title to the purchaser during the period that begins the 31st day and ends the 90th day after the date the seller receives the purchaser's final payment due under the contract; and
(B) $500 a day for each day the seller fails to transfer title to the purchaser after the 90th day after the date the seller receives the purchaser's final payment due under the contract; and
(2) reasonable attorney's fees.
If a person to whom a seller's property interest passes by will or intestate succession is required to obtain a court order to clarify the person's status as an heir or to clarify the status of the seller or the property before the person may convey good and indefeasible title to the property, the court in which the action is pending may waive payment of the liquidated damages and attorney's fees if the court finds that the person is pursuing the action to establish good and indefeasible title with reasonable diligence.
In this section, "seller" includes a successor, assignee, personal representative, executor, or administrator of the seller.
A disclosure required by these laws that is made by a seller's agent is a disclosure made by the seller.
The seller shall include in a separate document or in a provision
of the contract a statement printed in 14-point boldfaced type or 14-point
uppercase typewritten letters that reads substantially similar to the following:
THIS EXECUTORY CONTRACT REPRESENTS THE FINAL AGREEMENT BETWEEN THE SELLER AND PURCHASER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. _____________________ ____________________________
(Date) (Signature of Seller)
(Date) (Signature of Purchaser)
The seller shall include in immediate proximity to the space reserved
in the executory contract for the purchaser's signature a statement printed
in 14-point boldface type or 14-point uppercase typewritten letters that
reads substantially similar to the following:
YOU, THE PURCHASER, MAY CANCEL THIS CONTRACT AT ANY TIME DURING THE NEXT TWO WEEKS. THE DEADLINE FOR CANCELING THE CONTRACT IS (date). THE ATTACHED NOTICE OF CANCELLATION EXPLAINS THIS RIGHT.
The seller shall provide a notice of cancellation form to the purchaser at the time the purchaser signs the executory contract that is printed in 14-point boldface type or 14-point uppercase typewritten letters and that reads substantially similar to the following: See Cancellation Form listed above