TREC Form 9-13 "Unimproved Property Contract" - Texas

What Is TREC Form 9-13?

This is a legal form that was released by the Texas Real Estate Commission - a government authority operating within Texas. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on February 12, 2018;
  • The latest edition provided by the Texas Real Estate Commission;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of TREC Form 9-13 by clicking the link below or browse more documents and templates provided by the Texas Real Estate Commission.

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Download TREC Form 9-13 "Unimproved Property Contract" - Texas

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PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)
Contract Concerning
Page 1 of 9
2-12-18
(Address of Property)
UNIMPROVED PROPERTY CONTRACT
NOTICE: Not For Use For Condominium Transactions
EQUAL HOUSING
OPPORTUNITY
1. PARTIES: The parties to this contract are
(Seller)
and
(Buyer).
Seller agrees
to sell and convey to Buyer and Buyer agrees to buy from Seller the Property defined below.
2. PROPERTY: Lot
, Block
,
Addition,
City of
, County of
,
Texas, known as
(address/zip code), or as described on attached exhibit together with all rights, privileges and
appurtenances pertaining thereto, including but not limited to: water rights, claims, permits, strips
and
gores,
easements,
and
cooperative
or
association
memberships
(the
Property).
RESERVATIONS: Any reservation for oil, gas, or other minerals, water, timber, or other interests is
made in accordance with an attached addendum.
3. SALES PRICE:
A. Cash portion of Sales Price payable by Buyer at closing ............................. $
B. Sum of all financing described in the attached:
Third Party Financing Addendum,


Loan Assumption Addendum,
Seller Financing Addendum ............. $
C. Sales Price (Sum of A and B) .................................................................. $
4. LICENSE HOLDER DISCLOSURE: Texas law requires a real estate license holder w ho is a
party to a transaction or acting on behalf of a spouse, parent, child, business entity in which the
license holder owns more than 10%, or a trust for which the license holder acts as trustee or of
which the license holder or the license holder’s spouse, parent or child is a beneficiary, to notify
the other party in writing before entering into a contract of sale. Disclose if applicable:
.
5. EARNEST
MONEY:
W ithin
3
days after the Effective
Date, Buyer
must
deliver
$_______________ as earnest money to
, as escrow
agent, at
(address).
Buyer shall deliver additional
earnest money of $_______________ to escrow agent within
______ days after the Effective Date of this contract. If Buyer fails to deliver the earnest money
within the time required, Seller may terminate this contract or exercise Seller’s remedies under
Paragraph 15, or both, by providing notice to Buyer before Buyer delivers the earnest money. If
the last day to deliver the earnest money falls on a Saturday, Sunday, or legal holiday, the time to
deliver the earnest money is extended until the end of the next day that is not a Saturday,
Sunday, or legal holiday. Time is of the essence for this paragraph.
6. TITLE POLICY AND SURVEY:
A. TITLE POLICY: Seller shall furnish to Buyer at
Seller’s
Buyer’s expense an owner’s policy of
title insurance (Title Policy) issued by
(Title Company) in the amount of the Sales Price, dated at or after closing, insuring Buyer
against loss under the provisions of the Title Policy, subject to the promulgated exclusions
(including existing building and zoning ordinances) and the following exceptions:
(1) Restrictive covenants common to the platted subdivision in which the Property is located.
(2) The standard printed exception for standby fees, taxes and assessments.
(3) Liens created as part of the financing described in Paragraph 3.
(4) Utility easements created by the dedication deed or plat of the subdivision in which the
Property is located.
(5) Reservations or exceptions otherwise permitted by this contract or as may be approved by
Buyer in writing.
(6) The standard printed exception as to marital rights.
(7) The standard printed exception as to waters, tidelands, beaches, streams, and related
matters.
(8) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary
lines, encroachments or protrusions, or overlapping improvements:
(i) will not be amended or deleted from the title policy; or
(ii) will be amended to read, "shortages in area" at the expense of
Buyer
Seller.
(9) The exception or exclusion regarding minerals approved by the Texas Department of
Insurance.
B. COMMITMENT: Within 20 days after the Title Company receives a copy of this contract, Seller
shall furnish to Buyer a commitment for title insurance (Commitment) and, at Buyer's expense,
legible copies of restrictive covenants and documents evidencing exceptions in the Commitment
(Exception Documents) other than the standard printed exceptions. Seller authorizes the Title
Company to deliver the Commitment and Exception Documents to Buyer at Buyer's address
Initialed for identification by Buyer
and Seller
TREC NO. 9–13
PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)
Contract Concerning
Page 1 of 9
2-12-18
(Address of Property)
UNIMPROVED PROPERTY CONTRACT
NOTICE: Not For Use For Condominium Transactions
EQUAL HOUSING
OPPORTUNITY
1. PARTIES: The parties to this contract are
(Seller)
and
(Buyer).
Seller agrees
to sell and convey to Buyer and Buyer agrees to buy from Seller the Property defined below.
2. PROPERTY: Lot
, Block
,
Addition,
City of
, County of
,
Texas, known as
(address/zip code), or as described on attached exhibit together with all rights, privileges and
appurtenances pertaining thereto, including but not limited to: water rights, claims, permits, strips
and
gores,
easements,
and
cooperative
or
association
memberships
(the
Property).
RESERVATIONS: Any reservation for oil, gas, or other minerals, water, timber, or other interests is
made in accordance with an attached addendum.
3. SALES PRICE:
A. Cash portion of Sales Price payable by Buyer at closing ............................. $
B. Sum of all financing described in the attached:
Third Party Financing Addendum,


Loan Assumption Addendum,
Seller Financing Addendum ............. $
C. Sales Price (Sum of A and B) .................................................................. $
4. LICENSE HOLDER DISCLOSURE: Texas law requires a real estate license holder w ho is a
party to a transaction or acting on behalf of a spouse, parent, child, business entity in which the
license holder owns more than 10%, or a trust for which the license holder acts as trustee or of
which the license holder or the license holder’s spouse, parent or child is a beneficiary, to notify
the other party in writing before entering into a contract of sale. Disclose if applicable:
.
5. EARNEST
MONEY:
W ithin
3
days after the Effective
Date, Buyer
must
deliver
$_______________ as earnest money to
, as escrow
agent, at
(address).
Buyer shall deliver additional
earnest money of $_______________ to escrow agent within
______ days after the Effective Date of this contract. If Buyer fails to deliver the earnest money
within the time required, Seller may terminate this contract or exercise Seller’s remedies under
Paragraph 15, or both, by providing notice to Buyer before Buyer delivers the earnest money. If
the last day to deliver the earnest money falls on a Saturday, Sunday, or legal holiday, the time to
deliver the earnest money is extended until the end of the next day that is not a Saturday,
Sunday, or legal holiday. Time is of the essence for this paragraph.
6. TITLE POLICY AND SURVEY:
A. TITLE POLICY: Seller shall furnish to Buyer at
Seller’s
Buyer’s expense an owner’s policy of
title insurance (Title Policy) issued by
(Title Company) in the amount of the Sales Price, dated at or after closing, insuring Buyer
against loss under the provisions of the Title Policy, subject to the promulgated exclusions
(including existing building and zoning ordinances) and the following exceptions:
(1) Restrictive covenants common to the platted subdivision in which the Property is located.
(2) The standard printed exception for standby fees, taxes and assessments.
(3) Liens created as part of the financing described in Paragraph 3.
(4) Utility easements created by the dedication deed or plat of the subdivision in which the
Property is located.
(5) Reservations or exceptions otherwise permitted by this contract or as may be approved by
Buyer in writing.
(6) The standard printed exception as to marital rights.
(7) The standard printed exception as to waters, tidelands, beaches, streams, and related
matters.
(8) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary
lines, encroachments or protrusions, or overlapping improvements:
(i) will not be amended or deleted from the title policy; or
(ii) will be amended to read, "shortages in area" at the expense of
Buyer
Seller.
(9) The exception or exclusion regarding minerals approved by the Texas Department of
Insurance.
B. COMMITMENT: Within 20 days after the Title Company receives a copy of this contract, Seller
shall furnish to Buyer a commitment for title insurance (Commitment) and, at Buyer's expense,
legible copies of restrictive covenants and documents evidencing exceptions in the Commitment
(Exception Documents) other than the standard printed exceptions. Seller authorizes the Title
Company to deliver the Commitment and Exception Documents to Buyer at Buyer's address
Initialed for identification by Buyer
and Seller
TREC NO. 9–13
Contract Concerning
Page 2 of 9
2-12-18
(Address of Property)
shown in Paragraph 21. If the Commitment and Exception Documents are not delivered to Buyer
within the specified time, the time for delivery will be automatically extended up to 15 days or 3
days before the Closing Date, whichever is earlier. If the Commitment and Exception Documents
are not delivered within the time required, Buyer may terminate this contract and the earnest
money will be refunded to Buyer.
C. SURVEY: The survey must be made by a registered professional land surveyor acceptable to the
Title Company and Buyer’s lender(s). (Check one box only)
(1) Within
days after the Effective Date of this contract, Seller shall furnish to Buyer and
Title Company Seller's existing survey of the Property and a Residential Real Property Affidavit
promulgated by the Texas Department of Insurance (T-47 Affidavit). If Seller fails to furnish
the existing survey or affidavit within the time prescribed, Buyer shall obtain a new
survey at Seller's expense no later than 3 days prior to Closing Date. I f the existing
survey or affidavit is not acceptable to Title Company or Buyer's lender(s), Buyer shall obtain a
new survey at
Seller's
Buyer's expense no later than 3 days prior to Closing Date.
(2) Within
days after the Effective Date of this contract, Buyer shall obtain a new survey
at Buyer's expense. Buyer is deemed to receive the survey on the date of actual receipt or
the date specified in this paragraph, whichever is earlier.
(3) Within
days after the Effective Date of this contract, Seller, at Seller's expense shall
furnish a new survey to Buyer.
D. OBJECTIONS: Buyer may object in writing to (i) defects, exceptions, or encumbrances to title:
disclosed on the survey other than items 6A(1) through (7) above; or disclosed in the
Commitment other than items 6A(1) through (9) above; (ii) any portion of the Property lying in
a special flood hazard area (Zone V or A) as shown on the current Federal Emergency
Management Agency map; or (iii) any exceptions which prohibit the following use or
activity:
.
Buyer must object the earlier of (i) the Closing Date or (ii)
days after Buyer receives the
Commitment, Exception Documents, and the survey. Buyer’s failure to object within the time
allowed will constitute a waiver of Buyer’s right to object; except that the requirements in
Schedule C of the Commitment are not waived. Provided Seller is not obligated to incur any
expense, Seller shall cure any timely objections of Buyer or any third party lender within 15
days after Seller receives the objections (Cure Period) and the Closing Date will be extended as
necessary. If objections are not cured within the Cure Period, Buyer may, by delivering notice to
Seller within 5 days after the end of the Cure Period: (i) terminate this contract and the earnest
money will be refunded to Buyer; or (ii) waive the objections.
If Buyer does not terminate
within the time required, Buyer shall be deemed to have waived the objections.
If the
Commitment or Survey is revised or any new Exception Document(s) is delivered, Buyer may
object to any new matter revealed in the revised Commitment or Survey or new Exception
Document(s) within the same time stated in this paragraph to make objections beginning when
the revised Commitment, Survey, or Exception Document(s) is delivered to Buyer.
E. TITLE NOTICES:
(1) ABSTRACT OR TITLE POLICY: Broker advises Buyer to have an abstract of title covering the
Property examined by an attorney of Buyer’s selection, or Buyer should be furnished with or
obtain a Title Policy.
If a Title Policy is furnished, the Commitment should be promptly
reviewed by an attorney of Buyer’s choice due to the time limitations on Buyer’s right to
object.
(2) MEMBERSHIP IN PROPERTY OWNERS ASSOCIATION(S): The Property
is
is not subject to
mandatory membership in a property owners association(s). If the Property is subject to
mandatory membership in a property owners
association(s), Seller notifies Buyer under
§5.012, Texas Property Code, that, as a purchaser of property in the residential community
identified in Paragraph 2 in which the Property is located, you are obligated to be a member
of the property owners association(s). Restrictive covenants governing the use and
occupancy of the Property and all dedicatory instruments governing the establishment,
maintenance, and operation of this residential community have been or will be recorded in
the Real Property Records of the county in which the Property is located. Copies of the
restrictive covenants and dedicatory instruments may be obtained from the county clerk. You
are obligated to pay assessments to the property owners association(s). The
amount of the assessments is subject to change. Your failure to pay the
assessments could result in enforcement of the association’s lien on and the
foreclosure of the Property.
Section 207.003, Property Code, entitles an owner to receive copies of any document that
governs the establishment, maintenance, or operation of a subdivision, including, but not
limited to, restrictions, bylaws, rules and regulations, and a resale certificate from a property
owners' association. A resale certificate contains information including, but not limited to,
statements specifying the amount and frequency of regular assessments and the style and
cause number of lawsuits to which the property owners' association is a party, other than
lawsuits relating to unpaid ad valorem taxes of an individual member of the association.
These documents must be made available to you by the property owners' association or the
association's agent on your request.
If Buyer is concerned about these matters, the TREC promulgated Addendum for
Property Subject to Mandatory Membership in a Property Owners Association
should be used.
Initialed for identification by Buyer
and Seller
TREC NO. 9–13
Contract Concerning
Page 3 of 9
2-12-18
(Address of Property)
(3) STATUTORY TAX DISTRICTS: If the Property is situated in a utility or other statutorily
created district providing water, sewer, drainage, or flood control facilities and services,
Chapter 49, Texas Water Code, requires Seller to deliver and Buyer to sign the statutory
notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to
final execution of this contract.
(4) TIDE WATERS:
If the Property abuts the tidally influenced waters of the state, §33.135,
Texas Natural Resources Code, requires a notice regarding coastal area property to be
included in the contract.
An addendum containing the notice promulgated by TREC or
required by the parties must be used.
(5) ANNEXATION: If the Property is located outside the limits of a municipality, Seller notifies
Buyer under §5.011, Texas Property Code, that the Property may now or later be included in
the extraterritorial jurisdiction of a municipality and may now or later be subject to
annexation by the municipality. Each municipality maintains a map that depicts its
boundaries and extraterritorial jurisdiction. To determine if the Property is located within a
municipality’s extraterritorial jurisdiction or is likely to be located within a municipality’s
extraterritorial jurisdiction, contact all municipalities located in the general proximity of the
Property for further information.
(6) PROPERTY LOCATED IN A CERTIFICATED SERVICE AREA OF A UTILITY SERVICE PROVIDER:
Notice required by §13.257, Water Code: The real property, described in Paragraph 2, that
you are about to purchase may be located in a certificated water or sewer service area,
which is authorized by law to provide water or sewer service to the properties in the
certificated area. If your property is located in a certificated area there may be special costs
or charges that you will be required to pay before you can receive water or sewer service.
There may be a period required to construct lines or other facilities necessary to provide
water or sewer service to your property. You are advised to determine if the property is in a
certificated area and contact the utility service provider to determine the cost that you will be
required to pay and the period, if any, that is required to provide water or sewer service to
your property. The undersigned Buyer hereby acknowledges receipt of the foregoing notice
at or before the execution of a binding contract for the purchase of the real property
described in Paragraph 2 or at closing of purchase of the real property.
(7) PUBLIC IMPROVEMENT DISTRICTS:
If the Property is in a public improvement district,
§5.014, Property Code, requires Seller to notify Buyer as follows: As a purchaser of this
parcel of real property you are obligated to pay an assessment to a municipality or county for
an improvement project undertaken by a public improvement district under Chapter 372,
Local Government Code. The assessment may be due annually or in periodic installments.
More information concerning the amount of the assessment and the due dates of that
assessment may be obtained from the municipality or county levying the assessment. The
amount of the assessments is subject to change. Your failure to pay the assessments could
result in a lien on and the foreclosure of your property.
(8) TEXAS AGRICULTURAL DEVELOPMENT DISTRICT: The Property
 is
 is not located in a
Texas Agricultural Development District. For additional information, contact the Texas
Department of Agriculture.
(9) TRANSFER FEES: If the Property is subject to a private transfer fee obligation, §5.205,
Property Code requires Seller to notify Buyer as follows: The private transfer fee obligation
may be governed by Chapter 5, Subchapter G of the Texas Property Code.
(10) PROPANE GAS SYSTEM SERVICE AREA: If the Property is located in a propane gas system
service area owned by a distribution system retailer, Seller must give Buyer written notice as
required by §141.010, Texas Utilities Code. An addendum containing the notice approved by
TREC or required by the parties should be used.
(11) NOTICE OF WATER LEVEL FLUCTUATIONS: If the Property adjoins an impoundment of water,
including a reservoir or lake, constructed and maintained under Chapter 11, Water Code,
that has a storage capacity of at least 5,000 acre-feet at the impoundment’s normal
operating level, Seller hereby notifies Buyer: “The water level of the impoundment of water
adjoining the Property fluctuates for various reasons, including as a result of: (1) an entity
lawfully exercising its right to use the water stored in the impoundment; or (2) drought or
flood conditions.”
7. PROPERTY CONDITION:
A. ACCESS, INSPECTIONS AND UTILITIES: Seller shall permit Buyer and Buyer’s agents access to
the Property at reasonable times. Buyer may have the Property inspected by inspectors
selected by Buyer and licensed by TREC or otherwise permitted by law to make inspections.
Seller at Seller's expense shall immediately cause existing utilities to be turned on and shall
keep the utilities on during the time this contract is in effect.
NOTICE: Buyer should determine the availability of utilities to the P roperty suitable to
satisfy Buyer’s needs.
B. ACCEPTANCE OF PROPERTY CONDITION: “As Is” means the present condition of the Property
with any and all defects and without warranty except for the warranties of title and the
warranties in this contract. Buyer’s agreement to accept the Property As Is under Paragraph
7B (1) or (2) does not preclude Buyer from inspecting the Property under Paragraph 7A, from
negotiating repairs or treatments in a subsequent amendment, or from terminating this
contract during the Option Period, if any.
Initialed for identification by Buyer
and Seller
TREC NO. 9–13
Contract Concerning
Page 4 of 9
2-12-18
(Address of Property)
(Check one box only)

(1) Buyer accepts the Property As Is.

(2) Buyer accepts the Property As Is provided Seller, at Seller’s expense, shall complete the
following specific repairs and treatments:
________________________________________________________________________.
(Do not insert general phrases, such as “subject to inspections” that do not identify specific
repairs and treatments.)
C. COMPLETION OF REPAIRS: Unless otherwise agreed in writing: (i) Seller shall complete all
agreed repairs and treatments prior to the Closing Date; and (ii) all required permits must be
obtained, and repairs and treatments must be performed by persons who are licensed to
provide such repairs or treatments or, if no license is required by law, are commercially
engaged in the trade of providing such repairs or treatments.
At Buyer’s election, any
transferable warranties received by Seller with respect to the repairs and treatments will be
transferred to Buyer at Buyer’s expense. If Seller fails to complete any agreed repairs and
treatments prior to the Closing Date, Buyer may exercise remedies under Paragraph 15 or
extend the Closing Date up to 5 days, if necessary, for Seller to complete repairs and
treatments.
D. ENVIRONMENTAL MATTERS: Buyer is advised that the presence of wetlands, toxic substances,
including asbestos and wastes or other environmental hazards, or the presence of a threatened
or endangered species or its habitat may affect Buyer’s intended use of the Property. If Buyer is
concerned about these matters, an addendum promulgated by TREC or required by the parties
should be used.
E. SELLER’S DISCLOSURES: Except as otherwise disclosed in this contract, Seller has no
knowledge of the following:
(1) any flooding of the Property which has had a material adverse effect on the use of the
Property;
(2) any pending or threatened litigation, condemnation, or special assessment affecting the
Property;
(3) any environmental hazards that materially and adversely affect the Property;
(4) any dumpsite, landfill, or underground tanks or containers now or previously located on the
Property;
(5) any wetlands, as defined by federal or state law or regulation, affecting the Property; or
(6) any threatened or endangered species or their habitat affecting the Property.
8. BROKERS' FEES: All obligations of the parties for payment of brokers ’ fees are contained in
separate written agreements.
9. CLOSING:
A. The closing of the sale will be on or before
, 20
, or within 7 days
after objections made under Paragraph 6D have been cured or waived, whichever date is later
(Closing Date). If either party fails to close the sale by the Closing Date, the non-defaulting
party may exercise the remedies contained in Paragraph 15.
B. At closing:
(1) Seller shall execute and deliver a general warranty deed conveying title to the Property to
Buyer and showing no additional exceptions to those permitted in Paragraph 6 and furnish
tax statements or certificates showing no delinquent taxes on the Property.
(2) Buyer shall pay the Sales Price in good funds acceptable to the escrow agent.
(3) Seller and Buyer shall execute and deliver any notices, statements, certificates, affidavits,
releases, loan documents and other documents reasonably required for the closing of the
sale and the issuance of the Title Policy.
(4) There will be no liens, assessments, or security interests against the Property which will not
be satisfied out of the sales proceeds unless securing the payment of any loans assumed by
Buyer and assumed loans will not be in default.
10. POSSESSION:
A. Buyer’s Possession: Seller shall deliver to Buyer possession of the Property in its present or
required condition upon closing and funding.
B. Leases:
(1) After the Effective Date, Seller may not execute any lease (including but not limited to
mineral leases) or convey any interest in the Property without Buyer’s written consent.
(2) If the Property is subject to any lease to which Seller is a party, Seller shall deliver to Buyer
copies of the lease(s) and any move-in condition form signed by the tenant within 7 days
after the Effective Date of the contract.
11. SPECIAL PROVISIONS: (I nsert only factual statements and business details applicable
to the sale. TREC rules prohibit license holders from adding factual statements or business details
for which a contract addendum or other form has been promulgated by TREC for mandatory use.)
Initialed for identification by Buyer
and Seller
TREC NO. 9–13
Contract Concerning
Page 5 of 9
2-12-18
(Address of Property)
12. SETTLEMENT AND OTHER EXPENSES:
A. The following expenses must be paid at or prior to closing:
(1)Expenses payable by Seller (Seller's Expenses):
(a) Releases of existing liens, including prepayment penalties and recording fees; release of
Seller’s loan liability; tax statements or certificates; preparation of deed; one-half of
escrow fee; and other expenses payable by Seller under this contract.
(b) Seller shall also pay an amount not to exceed $
to be applied in the
following order: Buyer’s Expenses which Buyer is prohibited from paying by FHA, VA,
Texas Veterans Land Board or other governmental loan programs, and then to other
Buyer’s Expenses as allowed by the lender.
(2) Expenses payable by Buyer (Buyer's Expenses): Appraisal fees; loan application fees;
origination charges; credit reports; preparation of loan documents; interest on the notes
from date of disbursement to one month prior to dates of first monthly payments;
recording fees; copies of easements and restrictions; loan title policy with endorsements
required by lender; loan-related inspection fees; photos; amortization schedules; one-half
of escrow fee; all prepaid items, including required premiums for flood and hazard
insurance, reserve deposits for insurance, ad valorem taxes and special governmental
assessments; final compliance inspection; courier fee; repair inspection; underwriting fee;
wire transfer fee; expenses incident to any loan; Private Mortgage Insurance Premium
(PMI), VA Loan Funding Fee, or FHA Mortgage Insurance Premium (MIP) as required by the
lender; and other expenses payable by Buyer under this contract.
B. If any expense exceeds an amount expressly stated in this contract for such expense to be
paid by a party, that party may terminate this contract unless the other party agrees to pay
such excess. Buyer may not pay charges and fees expressly prohibited by FHA, VA, Texas
Veterans Land Board or other governmental loan program regulations.
13. PRORATIONS AND ROLLBACK TAXES:
A. PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and
rents will be prorated through the Closing Date. The tax proration may be calculated taking
into consideration any change in exemptions that will affect the current year's taxes. If taxes
for the current year vary from the amount prorated at closing, the parties shall adjust the
prorations when tax statements for the current year are available. If taxes are not paid at or
prior to closing, Buyer shall pay taxes for the current year.
B.
additional
Assessments
closing,
the Assessments will be the obligation of Buyer. If Assessments are imposed because of
Seller’s use or change in use of the Property prior to closing, the Assessments will be the
obligation of Seller. Obligations imposed by this paragraph will survive closing.
14. CASUALTY LOSS: I f any part of the P roperty is dam aged or destroyed by fire or other
casualty after the Effective Date of this contract, Seller shall restore the Property to its previous
condition as soon as reasonably possible, but in any event by the Closing Date. If Seller fails to
do so due to factors beyond Seller’s control, Buyer may (a) terminate this contract and the
earnest money will be refunded to Buyer (b) extend the time for performance up to 15 days and
the Closing Date will be extended as necessary or (c) accept the Property in its damaged
condition with an assignment of insurance proceeds, if permitted by Seller’s insurance carrier,
and receive credit from Seller at closing in the amount of the deductible under the insurance
policy. Seller’s obligations under this paragraph are independent of any other obligations of Seller
under this contract.
15. DEFAULT: I f Buyer fails to comply w ith this contract, Buyer w ill be in default, and Seller
may (a) enforce specific performance, seek such other relief as may be provided by law, or both,
or (b) terminate this contract and receive the earnest money as liquidated damages, thereby
releasing both parties from this contract. If Seller fails to comply with this contract, Seller will be
in default and Buyer may (a) enforce specific performance, seek such other relief as may be
provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby
releasing both parties from this contract.
16. MEDIATION: I t is the policy of the State of Texas to encourage resolution of disputes
through alternative dispute resolution procedures such as mediation. Any dispute between Seller
and Buyer related to this contract which is not resolved through informal discussion will be
submitted to a mutually acceptable mediation service or provider. The parties to the mediation
shall bear the mediation costs equally. This paragraph does not preclude a party from seeking
equitable relief from a court of competent jurisdiction.
17. ATTORNEY'S FEES: A Buyer, Seller, Listing Broker, Other Broker, or escrow agent w ho
prevails in any legal proceeding related to this contract is entitled to recover reasonable
attorney’s fees and all costs of such proceeding.
18. ESCROW:
A. ESCROW: The escrow agent is not (i) a party to this contract and does not have liability for
the performance or nonperformance of any party to this contract, (ii) liable for interest on the
earnest money and (iii) liable for the loss of any earnest money caused by the failure of any
financial institution in which the earnest money has been deposited unless the financial
institution is acting as escrow agent.
B. EXPENSES: At closing, the earnest money must be applied first to any cash down payment,
then to Buyer's Expenses and any excess refunded to Buyer. If no closing occurs, escrow
Initialed for identification by Buyer
and Seller
TREC NO. 9–13
Page of 9