Paperwork Needed To Sell A House

When selling your home, it's just natural to desire to make as much revenue as possible. Using a realty representative makes the sale procedure run more efficiently, however it also eliminates from the money you'll earn from the sale. That's why some individuals pick to note their home as "for sale by owner," likewise known as FSBO.


However, be aware that offering a home independently isn't a job that can be ignored. It needs a heap of time, effort, and, most notably, legal savvy. If you're considering offering your home by owner, it's vital to have an extensive understanding of the following documents you'll require as you browse through the .


Key points from this post:


- FSBO in Texas is Accessible - Selling a home by owner in Texas is assisted in by the Texas Real Estate Commission (TREC), which provides numerous legal files used by real estate agents to the general public. This makes the FSBO process more accessible in Texas compared to numerous other states.
- Essential Documents for FSBO - Key files for FSBO in Texas include the Residential Purchase Agreement, Seller's Disclosure Notice, HOA Addendum, Lead-based Paint Addendum, and MUD Notice. Each of these serves a particular function in the sale procedure, such as detailing the residential or commercial property's functions, revealing prospective concerns, and notifying about HOA or MUD specifics.
- Contingency-Related Forms - Contingencies safeguard purchasers' rights in property deals. Common contingency-related forms include the Third-Party Financing Addendum, Right to Terminate Due to Appraisal, and Amendment to Contract Addendum. These files attend to various situations like financing approval, appraisal outcomes, and contract changes.
- Legal Review and Alternatives - The complexity of legal language in these files can be challenging. It's suggested to have a lawyer review all agreements to avoid misunderstandings. Alternatively, house owners can opt to offer to a cash purchaser like AMI to bypass the trouble of managing these documents.


Disclaimer - The info on this page is meant for general informational purposes just and not to provide legal recommendations.


How Does FSBO in Texas Differ from Most Other States?


Selling a home by owner in Texas is simpler than in lots of other states due to the fact that access to the necessary materials is not restricted to certified professionals. The Texas Real Estate Commission (TREC) has actually made numerous files written by attorneys and used by real estate agents available to the basic public on their website.


Obviously, even if these documents are simple to find does not necessarily mean they are easy to understand or use. It's necessary to have a firm grasp on which forms you'll need and what purpose each of them serves. Continue reading for a short overview of the most frequently pre-owned types.


Basic Forms You Will (or May) Need


While different home sales may need numerous files, some types are common or necessary throughout the board. Below are the main types you'll more than likely need.


Note - The below form links and variation numbers were last verified and updated in January 2025.


1. Residential Purchase Agreement


The most important file for selling a residential or commercial property is the purchase agreement. This form lists all the conditions of the sale and describes the residential or commercial property's features.


For most home sales, the One to Four Family Residential Contract (Resale) (Form ID: 20-18), likewise referred to as the TREC 1-4, should be used, however different residential or commercial property types require different purchase arrangement types:


- - - For a recently developed home that has not been previously inhabited, use the New Home Contract (Completed Construction) (Form ID: 24-19).
- For a new home that is presently being built, utilize the New Home Contract (Incomplete Construction) (Form ID: 23-19).
- For condos, use the Residential Condominium Contract (Resale) (Form ID 30-17).
- For rural farm and cattle ranch residential or commercial properties, use the Farm and Ranch Contract (Form ID: 25-16).
- For land with no structures or other additional structures, utilize the Unimproved Residential or commercial property Contract (Form ID: 9-17).


1. Seller's Disclosure Notice


In Texas, any celebration selling a single-family home is needed to provide a seller's disclosure notice. This file details any issues or problems with a home that could impact a purchaser's decision or decrease the home's value.


The specific info that should be consisted of in a seller's disclosure notification may differ depending on state or local laws. Texas, for instance, needs that a seller disclose detailed information on their residential or commercial property's flood history. Make certain to do lots of research study on what to consist of in your disclosure notification. If you fail to complete this form accurately to the best of your understanding, a buyer can submit a suit against you.


There are 2 types of seller's disclosure notices in Texas: one provided by the Texas Real Estate Commission (TREC) and one provided by the Texas Association of Realtors (TAR). The TREC's Seller's Disclosure Notice (Form ID: 55-0) is available to the general public and covers the standard information that requires to be divulged according to state law. The Texas Realtors Seller's Disclosure Notice (Form ID: TAR-1406) is more detailed than the TREC file, however it is just available to certified real estate agents.
2. HOA Addendum


In some cases, owning a home needs a house owners association (HOA) subscription. If your house is part of a necessary HOA, you should notify the buyer of its information with the TREC's Addendum for Residential or commercial property Subject to Mandatory Membership in a Residential Or Commercial Property Owners Association (Form ID: 37-5).


This kind informs a buyer that a home is in a compulsory HOA and clarifies the following points of interest:


- - - In some cases, the buyer or seller will need to obtain neighborhood info detailing HOA rules. The HOA addendum specifies that the purchaser has the right to back out of the sale if they do not receive this information in time.
- HOAs require that a small cost, known as a transfer cost, be paid at any time a home transfers ownership. While the seller traditionally pays for the transfer charge, this is not a concrete guideline. The HOA addendum specifies whose duty it is to cover this fee.
- A home for sale in an HOA need to include a resale certificate detailing the residential or commercial property's present status, including any rule infractions or past-due payments. The seller typically pays this, however the HOA addendum defines if the purchaser requires to pay.


1. Lead-based Paint Addendum


Lead-based paint is an extremely hazardous substance that can trigger extreme health issue when its dust is released into the air. While this type of paint was banned for property use in 1978, houses constructed before this ban may still contain it. For this factor, federal law needs that sellers complete a lead-based paint addendum when selling a home developed before 1978.


Sellers of homes built before the lead-based paint ban must finish the TREC's Addendum for Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law (Form ID: OP-L).
2. MUD Notice


A Community Utility District (MUD) is a neighborhood that supplies services including water, sewage, drainage, and other utilities. If you offer a home in a MUD, you must give the purchaser a MUD notice. This document notes any extra taxes or fees the house owner must pay to reside in the MUD.


There are 3 various MUD notifications consisted of in Texas Water Code Section 49.452:


- - - Use the notification in 49.452(c) for a MUD situated within city limits.
- Use the notice in 49.452(b) for a MUD that is located outside of city limitations, but within the city's jurisdiction.
- Use the notification in 49.452(d) for a MUD that does not fulfill the above criteria.


Common Contingency-Related Forms


A contingency is a provision in a real estate contract detailing specific conditions that require to be met. If these conditions are not met, the agreement is not binding, and the purchaser has the right to terminate the sale without repercussions.


Contingencies are required to protect buyers' rights, and most purchasers will only participate in a contract which contains one or more contingencies. Here are the documents you'll need for some of the most typical contingencies:


1. Third-Party Financing Addendum


Most buyers require a mortgage to acquire a home. If their mortgage lender does not approve their loan, they will have no other way to finance the purchase. This is why the third-party financing addendum is consisted of in many sales contracts.


The TREC's 3rd party Financing Addendum (Form ID: 40-11) specifies the kind of loan(s) the purchaser is looking for and highlights their responsibility to do everything in their power to acquire funding. It also goes into more information on requirements for FHA and VA loans and clarifies that the contract is contingent on the lending institution approving both the buyer and the residential or commercial property.
2. Right to Terminate Due to Appraisal


If an appraisal exposes that a home is worth less than what the seller is charging, it can cause the buyer to lose interest, and the mortgage lending institution could deny the buyer's financing. The TREC's Addendum Concerning Right to Terminate Due to Lender's Appraisal (Form ID: 49-1) safeguards the purchaser from overpaying in this event.


The file states that if a home is appraised to be worth less than its price and the seller refuses to reduce the rate appropriately, the buyer can terminate the agreement.
3. Amendment to Contract Addendum


Sometimes a buyer and seller will consent to make modifications to their initial purchase contract after it has been executed. Such modifications might consist of:


- - - - Changing the market price after an examination brings new issues to light
- Changing a deadline, like the closing date
- Requiring that the seller make repair work before the sale
- Updating the contract to reflect that the purchaser has paid the seller an alternative cost
- Correcting a misspelled name in the original agreement


These modifications and any others need to be resolved in the TREC's Amendment to Contract (Form ID: 39-10).


1. Other Contingency Forms


While the kinds listed above are the most frequently used, they are far from the only documents available for contingencies. Many other scenarios might require extra documentation, such as a purchase contingent on the sale of another home, a seller leaseback, or a brief sale.


Make certain to check the TREC's full list of Contract Addenda for any kinds that may apply to your particular circumstance.


Get a Legal Review


The documents connected above were developed by attorneys, and the language used in them may be tough for the average person to comprehend. Even if you believe you understand everything, there's the possibility that you've misinterpreted something important that could result in legal trouble later on.


It's constantly wise to have a lawyer evaluation any contracts before you sign them to ensure there are no misunderstandings-especially if you're not dealing with a real estate agent who has experience with these legal documents.


Want to Skip the Paperwork?


Handling all the documents when selling a home can be challenging for a property owner to manage by themselves. You can constantly save yourself from this inconvenience and offer to a cash buyer, like AMI. Connect with us today for a no-obligation money deal. We'll look after all the needed documentation for you, making your home sale go quickly and smoothly.


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