Contract law for buying real estate
Im in Texas, but this pertains to any state. Is it necessary to use the real estate contract that the state provides or can you make up your own contract?
As long as both parties agree to and sign a contract, then do the provisions in that contract decide whether the contract is fully executed properly or does the state's contract override some of the provisions in the contract to which both parties have agreed and signed? So if I choose not to have an option period for the purchase of a property but instead choose to have an inspection period, and I dont pay any fee for that period, then even though the state contract says that a fee is needed for an option period, does the state say that the inspection period I got is the same as as an option period, and since no fee was paid, the inspection period was not a part of the contract?
Most Popular Reply
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
@Shashank Gokhale In probably most cases you will be able to get away with whatever you want...most people don't sue. Especially when you buy the house. However that 1-10% that get really pissed when you try to back out will take your contract to a good attorney who will beat you silly with it and wished you had used the standard one that is tried and true. You want an attorney who is very versed in real estate to write your contract if you want a new one. I think most of them will probably tell you to use the TREC 1-4, but some may be willing to take some 1000s from you to create something new.
Option period here is Texas, basically is your inspection period....however much broader than that....allows you to back out for ANY or NO reason during that time.
Most people involved in the industry in Texas ...like Title and Real Estate attorney's and lenders are familiar with the TREC 1-4 contract...but you may have to pay them more to learn your contract. My thought would be spend way more time looking at deals, sourcing deals, closing deals, than reinventing a great well functioning wheel. Focus on what matters.