Understanding the Texas Real Estate Contract: What You're Actually Signing

After thousands of transactions, I still see buyers and sellers surprised by what's in their contract. So let's break down the Texas Real Estate Commission residential contract in plain English.

This isn't a casual document. This is a legally binding contract with real consequences if either party doesn't follow through. Understanding what you're signing protects you and sets realistic expectations.

Earnest Money: Your Skin in the Game

Purchase price is obvious, but look at earnest money. That's your skin in the game. In our market, $1,000–$2,000 is typical, but on higher-priced homes it might be more. This money goes hard (non-refundable) after your option period ends.

The Option Period: Your Inspection Window

In Texas, you negotiate how long this is — typically 7–10 days — and you pay a small fee for it (usually $100–$200). During this time, you can terminate for any reason and get your earnest money back. After it expires, you're committed.

Financing Contingency

Your contract specifies your financing contingency. If you can't get financing approved within the specified timeframe, you can walk away. But you better actually be trying to get financed — this isn't a loophole for buyer's remorse.

Closing Date

This matters more than people realize. Miss the closing date without an amendment, and you might be in default. Real consequences.

Seller Disclosures

In Texas, sellers must disclose known issues. Read these carefully. If something major was disclosed and you proceed anyway, you can't come back later claiming you didn't know.

You Deserve to Understand Every Word

I walk every single client through their contract before they sign. This isn't just paperwork — this is you legally committing to one of the biggest financial transactions of your life. You deserve to understand every word.