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Commonly Asked Questions about Texas Land Contract Forms

When using owner financing in Texas, a land contract is usually used. A land contract is a legally binding document that outlines the terms of the sale and financing of the property. It specifies the purchase price, the down payment, the interest rate, and the repayment schedule.
In Texas, while buyers and sellers can draft their own real estate contract forms, it is highly advisable to seek professional assistance from legal experts, the Texas Real Estate Commission (TREC), or real estate professionals to ensure the document adheres to the intricacies of state laws and provides comprehensive
40 or 48 Rule: A buyer who defaults does have some equity protection if they have paid 40% of the sale price, paid 48 months worth of installments, or the contract has been recorded with the county. In this case, the seller must go through foreclosure instead of merely taking back the property.
If youre a realtor, you are required to use the Texas Real Estate Commission (TREC) contract forms. Other people buying or selling land in Texas have additional options. You could have an attorney draft a custom contract for you, but this may be expensive.
In summary, owner financing through a land contract can be a viable option for buying land in Texas. It can be a faster and easier process than obtaining a traditional mortgage, but buyers should be aware of the potential risks involved and do their due diligence before entering into an agreement.
The unimproved property Texas sales contract is designed to be used for transactions that are related to the sale of land that has not yet been developed. This would be residential or commercial land that does not have a structure built on it yet. This would not include condominium properties.
Farm and Ranch Contract TAR-1701: This should be used for properties where those type of details are required, inclusions important to the buyer and generally is used on larger acreage. As always, your Realtor should advise you concerning the proper contract to protect your interests.