When it comes to buying or selling a property, a TREC contract form is a crucial document that helps protect both parties involved. TREC stands for Texas Real Estate Commission, and the commission has developed various forms to facilitate real estate transactions in Texas.

In this article, we’ll explore the different types of TREC contract forms and their uses.

1. One to Four Family Residential Contract (Resale)

The One to Four Family Residential Contract (Resale) is the most common TREC form used in residential real estate transactions. It outlines the terms of the sale, including purchase price, closing date, and financing arrangements. It also includes contingencies such as inspection and appraisal, as well as seller’s disclosures.

2. Farm and Ranch Contract

The Farm and Ranch Contract is used for transactions involving farms, ranches, and other rural properties. It includes specific provisions related to agricultural use, mineral rights, and water sources, among other things.

3. New Home Contract (Incomplete Construction)

The New Home Contract (Incomplete Construction) is used when purchasing a newly constructed home that is not yet completed. It allows for flexibility in the completion of the home and includes specific provisions related to construction timelines and warranties.

4. New Home Contract (Completed Construction)

The New Home Contract (Completed Construction) is used when purchasing a newly constructed home that is already completed. It includes similar provisions as the One to Four Family Residential Contract (Resale), but also includes provisions related to warranties and punch list items.

5. Residential Condominium Contract (Resale)

The Residential Condominium Contract (Resale) is used for transactions involving the resale of a condominium. It includes specific provisions related to common areas, assessments, and restrictions, among other things.

6. Unimproved Property Contract

The Unimproved Property Contract is used for transactions involving vacant land or lots that have not been developed. It includes specific provisions related to zoning, utilities, and access, among other things.

In conclusion, TREC contract forms are critical documents that facilitate real estate transactions and protect both buyers and sellers. It is important to choose the appropriate form based on the type of transaction involved, and to work with a licensed real estate professional to ensure a successful transaction.