Texas One to Four Family Residential Contract - Resale - All Cash, Assumption, Third Party Conventional or Seller Financing
Understanding this form
The One to Four Family Residential Contract (Resale) is a legally binding agreement used in real estate transactions involving the sale and purchase of residential properties with various financing options. This form specifically addresses transactions involving all cash, assumption of existing loans, third-party conventional financing, or seller financing. It is important to note that this form is not intended for condominium transactions, making it distinct from other residential contracts. As such, it serves to protect the interests of both the seller and the buyer while outlining terms clearly and comprehensively.
Key parts of this document
- Parties involved: Identifies the seller and the buyer.
- Property details: Describes the specific property being sold.
- Sales price: Outlines the total sales price and payment methods.
- Financing options: Specifies cash, assumption, or other financing types.
- Earnest money provision: Details required deposits and handling instructions.
- Closing and possession terms: Defines when closing occurs and possession is transferred.
When to use this document
This form should be used when buying or selling residential properties that fall within the one to four family classification. It is particularly relevant for transactions that involve all cash, the assumption of existing loans, or alternative financing methods like seller financing. If you are a buyer looking to negotiate terms with a seller or a seller preparing to list your property, this form provides a clear framework for your agreement.
Who this form is for
- Home buyers purchasing one to four family residential properties.
- Home sellers looking to sell their residential properties.
- Real estate agents or brokers assisting clients with property transactions.
- Individuals involved in real estate investment transactions.
How to prepare this document
- Identify the parties: Enter the full names of the buyer and seller.
- Specify the property: Provide the property address and other characteristics.
- Outline the financing details: Indicate how the buyer will finance the purchase.
- Define the sales price: Clearly state the total amount to be paid and any earnest money.
- Include closing details: Set the closing date and terms for possession of the property.
Notarization guidance
This form must be notarized to be legally valid. US Legal Forms provides secure online notarization powered by Notarize, allowing you to complete the process through a verified video call.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Avoid these common issues
- Failing to specify all financing details and options.
- Not including required disclosures related to property conditions.
- Incorrectly filling out the property description or address.
- Omitting signatures or failing to date the contract appropriately.
Benefits of using this form online
- Convenience: Download and complete the form at your convenience.
- Editability: Easily make changes or additions to suit your specific transaction.
- Reliability: Offers access to attorney-drafted templates ensuring legal integrity.
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FAQ
Paragraph 11 special provisions calls for: Insert only factual statements and business details to the sale. TREC prohibits licensee from adding factual statements for business detail where to contract addendum lease or other form has been promulgated by TREC for mandatory use.
The seller financing addendum outlines the terms at which the seller of the property agrees to loan the money to the buyer in order to purchase their property.Once complete, this addendum should be signed and attached to the purchase agreement made between the parties.
How much are closing costs in Texas? Though all the taxes, fees, lender charges and insurance add up, generally neither party pays 100% of all the closing costs. Instead, the seller will typically pay between 5% to 10% of the sales price and the buyer will pay between 3% to 4% in closing costs.
Typically, you as the seller will pay between 1% and 3% compared to buyers who pay between 3% and 4% of closing costs. It's good to note however, that even though you luck out and avoid the brunt of closing costs, you as the seller will still have to cover commission costs which can add on as much as an additional 6%.
Complete the addendum, including your name, the purchaser's name and a description of the property. Include the type of financing that you are providing, such as first mortgage, second mortgage or deed of trust. List the terms of the loan.
The real estate commission is usually the biggest fee a seller pays 5 percent to 6 percent of the sale price. If you sell your house for $250,000, say, you could end up paying $15,000 in commissions. The commission is split between the seller's real estate agent and the buyer's agent.
The third (3rd) party financing addendum is attached to a sales contract that outlines the terms of a loan (e.g., conventional, FHA, VA) that is agreeable to the buyer in order to close on the property. The sales contract is usually contingent upon the buyer receiving the loan as detailed in the addendum.
Sellers often pay for part or all the buyer's closing costs. For home buyers struggling to come up with their down payment, moving expenses and closing costs, asking the seller to cover these expenses is a great way to minimize your out-of-pocket expenses. Lenders can also pay your closing costs.
Closing costs are paid according to the terms of the purchase contract made between the buyer and seller. Usually the buyer pays for most of the closing costs, but there are instances when the seller may have to pay some fees at closing too.
