The Texas purchase agreement is a legal document signed between the seller and the buyer to determine the conditions under which the seller will sell and the buyer will purchase a certain item.
You should use the purchase agreement when selling or buying any item with a purchase price higher than $500. However, if you are making a more complex transfer, like the sale and purchase of company shares, real estate, or a motor vehicle, you should make the purchase agreement regardless of the purchase price.
Texas Purchase and Sale Agreement Form
The seller and buyer will draft the purchase agreement to provide all the details of their transaction, prevent any misunderstandings and disputes in the future, or provide the preconditions that must be met before the parties can move forward with the transaction.
The Texas purchase agreement usually includes information about the seller and buyer, a description of the item, the purchase price, details about the financing, contingencies, and other terms and conditions connected to the sale.
The Texas purchase agreement is also known as:
Other Names for Texas Purchase and Sale Agreement Form
Texas purchase and sale agreement
Texas sale and purchase agreement
Texas sale and purchase contract
Texas purchase and sales contract
However, it all refers to one document that provides the terms and conditions for the property transfer in Texas.
Purchase Agreement Texas Laws & Requirements
If the transferred property is categorized as a single-family property, the seller is obliged to disclose the condition of the property to the buyer and inform them about any defects that the property might have.
For other types of properties, Texas follows the “caveat emptor” or “buyer beware” principle. This means that the seller is not required to make any disclosures about the property's condition. Therefore, it is recommended that the buyer hire a professional to inspect the property.
Purchase Agreement Required Disclosures in Texas
Here, you can find the list of disclosures that must be included in the Texas purchase agreement template:
Lead-Based Paint Disclosure: According to 42 U.S. Code § 4852d, the seller is obliged to notify the buyer about the presence of the lead-based paint hazard on the property. This requirement applies to all properties built before 1978 and to properties with known lead-based paint hazards.
Texas Real Estate Commission Seller’s Disclosure Notice: Used for single-family home sales. The seller must fill out this form and inform the buyer about the property’s condition. (§ 5.008)
Common Types of Purchase Agreements in Texas
This section provides all the types of purchase agreement forms used in Texas:
Variety of Purchase Agreement
Residential real estate purchase agreement. Used for determining the conditions for selling and purchasing a house, apartment, or other kinds of property used for residential purposes.
Commercial real estate purchase agreement. Parties use it for transferring ownership over office space, warehouses, manufacturing facilities, and other kinds of commercial properties.
Vehicle purchase agreement. You can use it for the purchase and sale of cars, motorcycles, trucks, and other kinds of motor vehicles. Also known as the motor vehicle bill of sale.
Business purchase agreement. Used for providing terms and conditions for transferring the company's shares.
Land purchase agreement. You can use it to provide terms and conditions for the transfer of agricultural, residential, commercial, or other kinds of land in Texas.
Purchase Agreement in Texas FAQ
Yes, a purchase agreement is a legally binding document in Texas. The document becomes legally binding only after both the seller and the buyer sign it.
Yes, a Texas sales agreement needs to state the purchase price. The reason for this is that the purchase price is the main obligation of the buyer, and the document won’t have any legal effect without it.
No, purchase and sales agreements in Texas don’t need to be notarized since the document doesn’t transfer any legal rights between the seller and the buyer.
Yes, the seller can back out of the Texas purchase agreement without compensating the buyer if the buyer fails to meet the contingencies set out in the document.