TREC Form 24-15 "New Home Contract (Completed Construction)" - Texas

What Is TREC Form 24-15?

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 18, 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 24-15 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 24-15 "New Home Contract (Completed Construction)" - Texas

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Contract Concerning
PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)
Page of 10
2-12-18
(Address of Property)
NEW HOME CONTRACT
(Completed Construction)
NOTICE: Not For Use For Condominium Transactions or Closings Prior to Completion of Construction
EQUAL HOUS-
ING OPPOR-
TUNITY
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: (i) improvements,
fixtures and all other property located thereon; and (ii) all rights, privileges and appurtenances
thereto, including but not limited to: permits, easements, and cooperative and association
memberships. All property sold by this contract is called 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 MO NEY: W i t h i n 3 d a y s a f t e r t h e E f f e c t i v e D a t e , B u y e r 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 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 improvement:
(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
Initialed for identification by Buyer
and Seller
TREC NO. 24-15
Contract Concerning
PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)
Page of 10
2-12-18
(Address of Property)
NEW HOME CONTRACT
(Completed Construction)
NOTICE: Not For Use For Condominium Transactions or Closings Prior to Completion of Construction
EQUAL HOUS-
ING OPPOR-
TUNITY
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: (i) improvements,
fixtures and all other property located thereon; and (ii) all rights, privileges and appurtenances
thereto, including but not limited to: permits, easements, and cooperative and association
memberships. All property sold by this contract is called 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 MO NEY: W i t h i n 3 d a y s a f t e r t h e E f f e c t i v e D a t e , B u y e r 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 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 improvement:
(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
Initialed for identification by Buyer
and Seller
TREC NO. 24-15
Contract Concerning
Page 2 of 10
2-12-18
(Address of Property)
at Buyer's address 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. If 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 defects, exceptions, or encumbrances to title:
disclosed on the survey other than items 6A(1) through (7) above; disclosed in the
Commitment other than items 6A(1) through (9) above; or 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 by Buyer. 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 2A 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.
Initialed for identification by Buyer
and Seller
TREC NO. 24-15
Contract Concerning
Page 3 of 10
2-12-18
(Address of Property)
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.
(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) 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.
(9) 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.
(10) 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.
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. 24-15
Contract Concerning
Page 4 of 10
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. WARRANTIES: Except as expressly set forth in this contract, a separate writing, or provided by
law, Seller makes no other express warranties. Seller shall assign to Buyer at closing all
assignable manufacturer warranties.
D. INSULATION: As required by Federal Trade Commission Regulations, the information relating
to the insulation installed or to be installed in the Improvements at the Property is: (check only
one box below)

(1) as shown in the attached specifications.

(2) as follows:
(a) Exterior walls of improved living areas: insulated with
insulation to a thickness of
inches which yields an R-Value of
.
(b) Walls in other areas of the home: insulated with
insulation to a thickness of
inches which yields an R-Value of
.
(c) Ceilings in improved living areas: insulated with
insulation to a thickness of
inches which yields an R-Value of
.
(d) Floors of improved living areas not applied to a slab foundation: insulated with
insulation to a thickness of
inches
which yields an R-Value of
.
(e) Other insulated areas: insulated with
insulation to a
thickness of
inches which yields an R-Value of
.
All stated R-Values are based on information provided by the manufacturer of the insulation.
E. LENDER REQUIRED REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, neither
party is obligated to pay for lender required repairs, which includes treatment for wood
destroying insects. If the parties do not agree to pay for the lender required repairs or
treatments, this contract will terminate and the earnest money will be refunded to Buyer. If
the cost of lender required repairs and treatments exceeds 5% of the Sales Price, Buyer may
terminate this contract and the earnest money will be refunded to Buyer.
F. COMPLETION OF REPAIRS, TREATMENTS, AND IMPROVEMENTS: Unless otherwise agreed in
writing: (i) Seller shall complete all agreed repairs, treatments, and improvements (Work)
prior to the Closing Date; and (ii) all required permits must be obtained, and Work must be
performed by persons who are licensed to provide such Work or, if no license is required by
law, are commercially engaged in the trade of providing such Work. At Buyer’s election, any
transferable warranties received by Seller with respect to the Work will be transferred to Buyer
at Buyer’s expense. If Seller fails to complete any agreed Work 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 Work.
G. 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.
H. SELLER’S DISCLOSURE: 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.
I. RESIDENTIAL SERVICE CONTRACTS: Buyer may purchase a residential service contract from a
residential service company licensed by TREC. If Buyer purchases a residential service
contract, Seller shall reimburse Buyer at closing for the cost of the residential service contract
in an amount not exceeding $
. Buyer should review any residential service
contract for the scope of coverage, exclusions and limitations. The purchase of a residential
service contract is optional. Similar coverage may be purchased from various
companies authorized to do business in Texas.
8. BROKERS' FEES: All obligations of the parties for payment of brokers’ fees are contained in
separate written agreements.
Initialed for identification by Buyer
and Seller
TREC NO. 24-15
Contract Concerning
Page 5 of 10
2-12-18
(Address of Property)
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, ordinary wear and tear excepted:
upon closing and funding
according to a
temporary residential lease form promulgated by TREC or other written lease required by the parties.
Any possession by Buyer prior to closing or by Seller after closing which is not authorized by a
written lease will establish a tenancy at sufferance relationship between the parties. Consult your
insurance agent prior to change of ownership and possession because insurance coverage
may be limited or terminated. The absence of a written lease or appropriate insurance
coverage may expose the parties to economic loss.
B. Leases: 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.
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, lease or other form has been promulgated by TREC for mandatory
use.)
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, 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 will be obligated to pay taxes for the current year.
Initialed for identification by Buyer
and Seller
TREC NO. 24-15
Page of 10