Common Provisions In Your Residential Purchase and Sale Contract

 Posted on February 10, 2025 in Real Estate Law

Whether you are buying or selling a single-family home, condo, or townhome, the real estate purchase and sale agreement will govern the terms of the transaction. If a real estate purchase and sale agreement is not well-drafted it can expose you to potential issues, costs, and disputes.

Whether it is your first time buying or selling residential property in Texas, or even if you have done so before, being familiar with and understanding the significance of common real estate purchase and sale agreement terms is crucial to protecting your interests in the transaction. Familiarity with these clauses can also help you understand some key areas where you might be able to negotiate. An experienced Texas residential real estate attorney can ensure that your residential real estate sale and purchase agreement safeguards your rights. 

Identifying the Parties and Property

Although the most basic parts of the contract, these sections are important to clarify the essential details of the transaction and ensure there are no errors. These sections usually include the full names and contact details of the buyer and seller as well as a detailed description of the property details such as its address, legal boundaries, and other elements of the property such as easements. 

Purchase Price, Payment Terms, Deposit

Purchase and sale contracts will lay out the purchase price and the payment method, whether that is financing, cash, or a combination of the two. These sections will describe the deposit amount and detail payment deadlines. 

Contingencies

Contingencies are conditions that must be fulfilled for the transaction to proceed. They protect the parties by giving buyers and sellers an opportunity to back out of the deal if certain important contingencies are not met. For example, an appraisal contingency allows the buyer to walk away if the home is appraised below a certain price required by the lender. An inspection contingency likewise allows the buyer to walk away (and often receive their deposit back) if a home inspection reveals certain major issues. 

Warranties

When a seller provides warranties, they provide assurance about the condition of the property and their legal ownership of it. For example, a property condition warranty might guarantee that the property is free of any major defects that have not been disclosed. A title warranty may warrant that the seller has free and clear title of the property including any mineral rights. 

Seller’s Disclosure

The seller will disclose any defects they know about and the responsibilities the parties have agreed the seller will bear to repair these defects. 

Closing Costs

A purchase and sale agreement will detail who is responsible for the closing costs including attorneys’ fees, title insurance, and taxes. 

Contact a Hill County, TX Residential Real Estate Attorney

At Cain & Kiel Law we represent purchasers and sellers in residential real estate transactions. Our experienced Hood County, TX real estate purchase and sale agreement attorneys know the law and have the skills to guide you through the purchase or sale of your property. Call our offices at 817-645-1717 for a professional consultation today.