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Several Texas laws require sellers to disclose information about their property prior to or at the time a sales contract is executed. Not only are sellers disclosures required by law, but they also give buyers important information, reduce risks for sellers, and lower your chances of facing a complaint or lawsuit.
Background: Under contract-for-deed dealsalso called land contracts, installment land contracts, land sales contracts, or bonds for deedthe seller agrees to turn over a homes deed only after the buyer completes a series of payments.
When used in the context of residential real estate, it is also called bond-for-title or owner financing. Usually, the purchaser will make some sort of down payment to the seller, and then make installment payments (usually on a monthly basis) over a specified time, at an agreed-upon interest rate, until the loan
A contract for deed is a type of seller financing, where the seller agrees to give possession of the property to the buyer immediately. The buyer makes payments directly to the seller, usually monthly, over a period of time agreed upon by both parties and established within the contract.
One such alternative is the contract for deed. In a contract for deed, the purchase of property is financed by the seller rather than a third-party lender such as a commercial bank or credit union.
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Sellers are required to disclose property information to the realtor and potential buyers based on state and local laws. A disclosure document details a propertys condition and what might negatively affect its value. Sellers who willfully conceal information can be sued and potentially convicted of a crime.

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