Purchasing a Home in Texas: Beware of the Pitfalls in those Standard Contracts
If you are buying a home in Texas, chances are that a real estate professional licensed by the Texas Real Estate Commission (TREC) will be involved. That nearly guarantees that you will also be using form-contracts promulgated by TREC. It is no secret that these forms are seller-friendly, particularly the “One to Four Family Residential Contract” that is used on almost all resale properties in Texas.
TREC’s residential contract is used thousands of times every year with few complications. However, not every real estate transaction is the same. For example, you (as a buyer) may have some particular intended use of the property in mind, maybe a big tree house for the kids or a new detached garage or workshop in the backyard. Maybe this intended use is so important to you that you do not want the property if, for some reason, that use is forbidden by restrictive covenants, neighborhood association rules, zoning ordinances, soil conditions, or the like. Be warned. The standard TREC contract might not provide you the ability to terminate before closing if you discover that your intended use is forbidden or impracticable. In fact, the seller may be able enforce your specific performance, that is, the seller may force you into closing the deal.
These and other situations may arise where your rights are not necessarily protected by the standard TREC form. Consider speaking with one of McCleskey’s real estate attorneys about protecting your rights in your next home purchase.