When offering your home, it's only natural to wish to make as much revenue as possible. Using a property representative makes the sale procedure run more efficiently, but it also takes away from the money you'll earn from the sale. That's why some individuals select to list their home as "for sale by owner," also called FSBO.

However, know that selling a home separately isn't a job that can be taken lightly. It requires a lots of time, effort, and, most importantly, legal savvy. If you're considering offering your home by owner, it's critical to have a thorough understanding of the following files you'll need as you navigate through the FSBO process.

Key points from this article:

- FSBO in Texas is Accessible - Selling a home by owner in Texas is assisted in by the Texas Real Estate Commission (TREC), which provides various legal files used by real estate agents to the public. This makes the FSBO procedure more accessible in Texas compared to numerous other states.
- Essential Documents for FSBO - Key documents 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 specific purpose in the sale procedure, such as detailing the residential or commercial property's features, divulging possible issues, and notifying about HOA or MUD specifics.
- Contingency-Related Forms - Contingencies protect purchasers' rights in realty transactions. Common contingency-related kinds consist of the Third-Party Financing Addendum, Right to Terminate Due to Appraisal, and Amendment to Contract Addendum. These documents attend to different scenarios like financing approval, appraisal results, and agreement amendments.
- Legal Review and Alternatives - The intricacy of legal language in these documents can be challenging. It's advised to have an attorney evaluation all contracts to avoid misconceptions. Alternatively, property owners can opt to offer to a money buyer like AMI to bypass the trouble of handling these files.

Disclaimer - The details on this page is intended for general informational purposes only and not to supply legal recommendations.

How Does FSBO in Texas Differ from Most Other States?

Selling a home by owner in Texas is much easier than in numerous other states since access to the needed products is not restricted to licensed professionals. The Texas Real Estate Commission (TREC) has made different documents composed by legal representatives and used by real estate agents available to the public on their website.

Of course, simply because these documents are simple to discover doesn't always suggest they are easy to comprehend or make use of. It's important to have a firm grasp on which forms you'll need and what purpose each of them serves. Continue reading for a quick introduction of the most typically pre-owned types.

Basic Forms You Will (or May) Need

While different home sales might require numerous files, some types prevail or necessary across the board. Below are the primary kinds you'll probably need.

Note - The listed below type links and version numbers were last confirmed and upgraded in January 2025.

1. Residential Purchase Agreement

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

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

- - - For a recently developed home that has not been formerly inhabited, utilize the New Home Contract (Completed Construction) (Form ID: 24-19).
- For a new home that is presently being built, use 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 ranch residential or commercial properties, use the Farm and Ranch Contract (Form ID: 25-16).
- For land with no buildings or other extra structures, use the Unimproved Residential or commercial property Contract (Form ID: 9-17).

1. Seller's Disclosure Notice

In Texas, any party offering a single-family home is required to provide a seller's disclosure notice. This file details any problems or problems with a house that could affect a purchaser's decision or decrease the home's value.

The specific details that must be consisted of in a seller's disclosure notification might vary depending upon state or local laws. Texas, for example, needs that a seller divulge detailed information on their residential or commercial property's flood history. Make sure to do plenty of research on what to consist of in your disclosure notification. If you stop working to finish this type properly to the very best of your understanding, a buyer can submit a lawsuit versus you.

There are two kinds 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 offered to the public and covers the standard info that needs to be revealed according to state law. The Texas Realtors Seller's Disclosure Notice (Form ID: TAR-1406) is more comprehensive than the TREC document, but it is just offered to licensed real estate agents.
2. HOA Addendum

In some cases, owning a home needs a house owners association (HOA) subscription. If your house belongs to a compulsory 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 type notifies a buyer that a home is in a necessary HOA and clarifies the following sights:

- - - In some cases, the purchaser or seller will require to get subdivision information detailing HOA rules. The HOA addendum states that the purchaser can revoke the sale if they do not receive this information in time.
- HOAs need that a small charge, referred to as a transfer fee, be paid any time a home transfers ownership. While the seller typically spends for the transfer charge, this is not a concrete guideline. The HOA addendum defines whose responsibility it is to cover this cost.
- A home for sale in an HOA need to feature a resale certificate detailing the residential or commercial property's existing status, including any guideline offenses or past-due payments. The seller typically pays this, but the HOA addendum defines if the buyer requires to pay.

1. Lead-based Paint Addendum

Lead-based paint is a highly harmful substance that can cause extreme health issue when its dust is released into the air. While this type of paint was banned for domestic usage in 1978, homes built before this ban might still include it. For this factor, federal law needs that sellers fill out a lead-based paint addendum when offering a home developed before 1978.

Sellers of homes developed before the lead-based paint ban need to complete 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 Municipal Utility District (MUD) is a subdivision that provides services consisting of water, sewage, drain, and other utilities. If you sell a home in a MUD, you should give the purchaser a MUD notification. This file lists any extra taxes or charges the property owner must pay to reside in the MUD.

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

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

Common Contingency-Related Forms

A contingency is a clause in a realty contract describing specific conditions that need to be fulfilled. If these conditions are not fulfilled, the contract is not binding, and the buyer can terminate the sale without repercussions.

Contingencies are needed to secure purchasers' rights, and most purchasers will just get in into a contract that consists of one or more contingencies. Here are the documents you'll need for a few of the most typical contingencies:

1. Third-Party Financing Addendum

Most purchasers need a mortgage to purchase a home. If their mortgage lending institution does not approve their loan, they will have no chance to finance the purchase. This is why the third-party financing addendum is included in lots of sales agreements.

The TREC's Third Party Financing Addendum (Form ID: 40-11) specifies the kind of loan(s) the buyer is obtaining and highlights their obligation to do whatever in their power to acquire funding. It likewise goes into further detail on requirements for FHA and VA loans and clarifies that the agreement is contingent on the lending institution authorizing 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 trigger the buyer to lose interest, and the mortgage loan provider could reject the purchaser'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 file specifies that if a home is evaluated to be worth less than its price and the seller declines to reduce the cost accordingly, the purchaser has the right to 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 performed. Such changes might consist of:

- - - - Changing the market price after an examination brings brand-new concerns to light
- Changing a due date, like the closing date
- Requiring that the seller make repair work before the sale
- Updating the contract to reflect that the buyer has actually paid the seller an option charge
- Correcting a misspelled name in the initial agreement

These changes and any others require 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 available for contingencies. Many other situations may require additional paperwork, such as a purchase contingent on the sale of another home, a seller leaseback, or a brief sale.

Be sure to check the TREC's complete list of Contract Addenda for any kinds that might use to your particular scenario.

Get a Legal Review

The files connected above were developed by lawyers, and the language used in them might be challenging for the average individual to comprehend. Even if you believe you comprehend whatever, there's the possibility that you have actually misinterpreted something crucial that could lead to legal difficulty later on.

It's always smart to have an attorney evaluation any contracts before you sign them to make sure there are no misunderstandings-especially if you're not working with a real estate agent who has experience with these legal files.

Wish to Skip the Paperwork?

Dealing with all the files when selling a home can be hard for a property owner to manage on their own. You can always save yourself from this trouble and sell to a cash purchaser, like AMI. Get in touch with us today for a no-obligation cash offer. We'll look after all the essential documentation for you, making your home sale go quickly and efficiently.

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