TREC 20-11 Walkthrough?

Question

Curious if anyone has info on how to go about filling TREC 20-11 form.

So far only a few threads on BP have hit on the issue. Found a couple of search hits that emphasizes certain line items...but nothing that hits the high and low points.

I am close to getting an attorney to assist in help with the TREC. Given, this is probably the safest and smartest way to ensure the form is fully filled out before taking it to the title company but if anyone else has tips, tricks, or guides on the 20-11 it would be great to share with any other Texas investors.

Chris Feltus · Answer

Disclaimer: This should not substitute for legal advice, please consult with your RE attorney. I am not an attorney nor have I played one on TV. Now that I got that out of the way, let me try and walk you through it real quick. Hopefully this will help if you have any questions let me know. 1. Parties: Put buyer and seller obviously. If the seller has PoA the way to write this is Owner of the property signed by Person with PoA - Attorney in Fact. You will need to use this formatting for anything else that requires a signature as well. If the property is an estate, put in "Estate of Persons Name Here". 2. Property: Self explanatory get the Lot & block # from the corresponding appraisal district. 3. Sales Price: Assuming you are using cash or hard money, A. Cash portion of sale write in whatever you and the seller have agreed upon. B. 0.00, C. Sum Total. Here is an image to illustrate. 4. Financing: Draw a diagonal line through this section 5. Earnest Money: I leave this blank. If you want to put something here 1% of the sales price is pretty much standard. E.g. if the properties sales price is 75,000 put in 750 for earnest money. Earnest money is not required to have a valid contract in Texas. Recall earnest money is fully refundable during the option period. 6a Title Policy & Survey: We typically pick up the Title policy so I check seller shall furnish to buyer at BUYERS expense and then fill in my title companies information. 6b. n/a 6c. Survey: typically leave blank. That is up to you. 6d. blank Page 3 is all promulgated information, skip that 7. Property Condition: 7b. You can do two things here, have the seller fill it out with you at the table, in which case you check 7b1 buyer has received the notice. If you want the seller to send it to you or title company later check 7b2 and put in the amount of days it needs to be delivered by, typically I put in 5 but the majority of the time we fill out sellers disclosure on the spot. 7b3 This is if the property is exempt from providing a sellers disclosure notice. Texas property code states estate properties and REOs are exempt from providing a sellers disclosure. (skipping to 9 here, if I skip any numbers from this point forwards its because the paragraph doesn’t really have anything pertinent to add). 9. Closing, set the date you and the seller agree to. Notice the first sentence “The Closing of the sale will be ON OR BEFORE the ____ of __” 10. Possession: Typically check upon closing and funding. If the property is owner occupied for example then you will likely need to check the next box “according to a temporary residential lease” and you fill out that form as well. 11. Special Provisions: Disclosure here, put in writing if you are licensed professional of any sort e.g. Real Estate License, CPA, attorney etc. I also typically write in buyer to pay all normal closing costs. 12. Settlement and other expenses: line through, this is for traditional real estate 13. Proration’s: Make sure you let them know, unless you agree other wise, they will be deducted at closing the amount of taxes prorated until the current day from the first of the year. 16. Mediation: parties (checkbox) will seek to mediate before agreeing to hire attorneys on one another Notice: This is mainly for title company to contact everyone. Put in your information for buyer and sellers information 22. Agreement of parties: here you will need to check any relevant addendums. For every real estate transaction I every do I have my own Addendum I always attach so I put it in other. If the property was built PRIOR to 1978 check the box for lead based paint addendum and bring that with you as well. Note all these forms like lead based paint and sellers disclosure can be found on the TREC website. 23. Termination Option: most powerful paragraph in the whole contract. This gives you the buyer unrestricted right to exercise an option and back out of the deal if you need to. I typically put $20 for a 7-10 day option. 24. Consult an attorney: I have never filled this out for myself or a seller. Directly below consult an attorney is the executed date of the contract. Everyone signs Page 9 Broker information block, cross through that unless you’re a realtor or using a realtor. Page 9 Option fee receipt: make sure you get them to sign this as well and state how the amount for the option fee was given (cash check etc) Page 9: contract and earnest money receipt. Title company fills this out later don’t worry about it.

Account Closed · Answer

@Chris FeltusThis was SUPER helpful, and I'm so glad I found this. I'm an agent wanting to wholesale properties. I know this is a slightly older post but hopefully you can still help me! - This part:"Page 9 Broker information block, cross through that unless you’re a realtor or using a realtor."Does it still need to be filled out if I'm not representing anyone? Or would I check "Buyer only as buyer's agent" (as I'm representing myself).

Randell Fanning · Answer

Good report

Randell Fanning · Answer

good

Robert M. · Answer

Anyone who is monitoring this thread...found a good book on TRECs by James Wiedemer. His name was referenced a couple times on other threads, but up to this point I was unable to find any of his publications. A good start is Teas Real Estate Contracts 2011-2012. Here is the Amazon link...this was the best I could find since there is no ISBN. http://www.amazon.com/Texas-Real-Estate-Contracts-2011-2012/dp/B00847NNBY/ref=sr_1_2?ie=UTF8&qid=1378677437&sr=8-2&keywords=james+wiedemer

Robert M. · Answer

Chris, This is beyond helpful. Appreciate the info. Its amazing how intricate and detailed a nine page contract can really be...