When offering your home, it's just natural to wish to make as much earnings as possible. Using a realty agent makes the sale process run more efficiently, but it likewise removes from the cash you'll earn from the sale. That's why some people select to list their home as "for sale by owner," also known as FSBO.

However, be aware that offering a home independently isn't a job that can be taken lightly. It requires a ton of time, effort, and, most notably, legal savvy. If you're thinking about selling your home by owner, it's vital to have a thorough understanding of the following documents you'll require as you browse through the FSBO procedure.

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 supplies various legal documents used by real estate agents to the general public. This makes the FSBO procedure more accessible in Texas compared to lots of other states.
- Essential Documents for FSBO - Key files for FSBO in Texas consist of 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 process, such as detailing the residential or commercial property's features, disclosing prospective concerns, and informing about HOA or MUD specifics.
- Contingency-Related Forms - Contingencies protect buyers' 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 documents resolve different situations like financing approval, appraisal results, and contract modifications.
- Legal Review and Alternatives - The intricacy of legal language in these files can be difficult. It's advised to have a lawyer evaluation all agreements to avoid misunderstandings. Alternatively, house owners can decide to sell to a money buyer like AMI to bypass the trouble of dealing with these documents.

Disclaimer - The details on this page is planned for general informational purposes only and not to provide legal guidance.

How Does FSBO in Texas Differ from Most Other States?

Selling a home by owner in Texas is easier than in many other states due to the fact that access to the required materials is not restricted to licensed specialists. The Texas Real Estate Commission (TREC) has actually made various files composed by attorneys and utilized by real estate agents readily available to the basic public on their website.

Obviously, even if these files are simple to find does not necessarily mean they are simple to understand or use. It's necessary to have a firm grasp on which forms you'll require and what function each of them serves. Continue reading for a short summary of the most frequently used forms.

Basic Forms You Will (or May) Need

While different home sales might need different documents, some kinds are common or necessary throughout the board. Below are the main kinds you'll probably need.

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

1. Residential Purchase Agreement

The most important file for selling a residential or commercial property is the purchase contract. This type notes all the terms of the sale and describes the residential or commercial property's functions.

For many home sales, the One to Four Family Residential Contract (Resale) (Form ID: 20-18), also called the TREC 1-4, must be utilized, but different residential or commercial property types require various purchase arrangement types:

- - - For a recently constructed home that has not been formerly inhabited, utilize the New Home Contract (Completed Construction) (Form ID: 24-19).
- For a new home that is currently being developed, utilize the New Home Contract (Incomplete Construction) (Form ID: 23-19).
- For condos, utilize 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 extra structures, utilize the Unimproved Residential or commercial property Contract (Form ID: 9-17).

1. Seller's Disclosure Notice

In Texas, any party selling a single-family home is required to offer a seller's disclosure notice. This file details any issues or issues with a house that might impact a buyer's decision or reduce the home's worth.

The particular info that needs to be consisted of in a seller's disclosure notification may differ depending upon state or local laws. Texas, for instance, needs that a seller reveal comprehensive info on their residential or commercial property's flood history. Make sure to do plenty of research on what to consist of in your disclosure notice. If you stop working to finish this form precisely to the best of your understanding, a purchaser can file a suit against you.

There are two types of seller's disclosure notifications in Texas: one supplied 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 basic public and covers the fundamental details that requires to be disclosed according to state law. The Texas Realtors Seller's Disclosure Notice (Form ID: TAR-1406) is more detailed than the TREC document, but it is only offered to certified real estate agents.
2. HOA Addendum

In some cases, owning a home needs a property owners association (HOA) membership. If your house belongs to a mandatory HOA, you need to notify the buyer of its details 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 type notifies a purchaser that a home is in a necessary HOA and clarifies the following sights:

- - - Sometimes, the purchaser or seller will need to obtain neighborhood details detailing HOA guidelines. The HOA addendum specifies that the buyer deserves to revoke the sale if they do not receive this info in time.
- HOAs require that a little fee, understood as a transfer cost, be paid any time a home transfers ownership. While the seller traditionally spends for the transfer fee, this is not a concrete rule. The HOA addendum specifies whose responsibility it is to cover this charge.
- A home for sale in an HOA should come with a resale certificate detailing the residential or commercial property's existing status, including any guideline infractions or past-due payments. The seller typically pays this, however the HOA addendum defines if the purchaser needs to pay.

1. Lead-based Paint Addendum

Lead-based paint is an extremely harmful substance that can trigger serious illness when its dust is released into the air. While this type of paint was prohibited for domestic usage in 1978, houses constructed before this ban might still contain it. For this reason, federal law requires that sellers submit a lead-based paint addendum when offering a home constructed before 1978.

Sellers of homes developed before the lead-based paint ban should 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 Local Utility District (MUD) is a subdivision that provides services including water, sewage, drain, and other energies. If you sell a home in a MUD, you need to provide the purchaser a MUD notice. This document notes any additional taxes or charges the house owner should pay to live in the MUD.

There are three different MUD notices included in Texas Water Code Section 49.452:

- - - Use the notification in 49.452(c) for a MUD situated within city limitations.
- Use the notice in 49.452(b) for a MUD that lies beyond city limits, however within the city's jurisdiction.
- Use the notification in 49.452(d) for a MUD that does not satisfy the above criteria.

Common Contingency-Related Forms

A contingency is a provision in a property contract detailing particular conditions that need to be satisfied. If these conditions are not met, the agreement is not binding, and the buyer can end the sale without consequences.

Contingencies are required to protect purchasers' rights, and many buyers will just participate in an agreement which contains several contingencies. Here are the documents you'll need for a few of the most common contingencies:

1. Third-Party Financing Addendum

Most purchasers need a mortgage to purchase a home. If their mortgage lending institution doesn't approve their loan, they will have no other way to finance the purchase. This is why the third-party funding addendum is included in lots of sales agreements.

The TREC's Third Party Financing Addendum (Form ID: 40-11) defines the type of loan(s) the purchaser is looking for and highlights their duty to do everything in their power to obtain financing. It also enters into more detail on requirements for FHA and VA loans and clarifies that the agreement is contingent on the lender approving both the buyer and the residential or commercial property.
2. Right to Terminate Due to Appraisal

If an appraisal exposes that a home deserves less than what the seller is charging, it can cause the buyer to lose interest, and the mortgage lending institution could reject the buyer's financing. The TREC's Addendum Concerning Right to Terminate Due to Lender's Appraisal (Form ID: 49-1) secures the buyer from paying too much in this occasion.

The document states that if a home is evaluated to be worth less than its price and the seller refuses to reduce the rate appropriately, the purchaser has the right to end the agreement.
3. Amendment to Contract Addendum

Sometimes a purchaser and seller will concur to make modifications to their preliminary purchase agreement after it has actually been carried out. Such modifications might include:

- - - - Changing the asking price after an inspection brings brand-new concerns to light
- Changing a deadline, like the closing date
- Requiring that the seller make repairs before the sale
- Updating the contract to show that the purchaser has paid the seller a choice fee
- Correcting a misspelled name in the original agreement

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

1. Other Contingency Forms

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

Make certain to inspect the TREC's full list of Contract Addenda for any kinds that might apply to your particular scenario.

Get a Legal Review

The files connected above were created by attorneys, and the language used in them may be difficult for the typical individual to comprehend. Even if you believe you understand everything, there's the possibility that you have actually misinterpreted something crucial that might result in legal difficulty later.

It's always a good idea to have a legal representative review any contracts before you sign them to guarantee there are no misunderstandings-especially if you're not working with a real estate agent who has experience with these legal files.

Want to Skip the Paperwork?

Dealing with all the files when selling a house can be challenging for a homeowner to manage by themselves. You can always conserve yourself from this trouble and offer to a cash buyer, like AMI. Contact us today for a no-obligation money offer. We'll look after all the needed documents for you, making your home sale go quickly and efficiently.

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