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What provisions should you include in your real estate contract?

On Behalf of | Oct 13, 2023 | Real Estate Disputes |

When buying or selling a property, a real estate contract is a vital document that outlines the terms and conditions of the transaction. It serves as a legally binding agreement between the parties involved, ensuring that both the buyer and the seller understand their rights and responsibilities.

The contract should also contain some key provisions to protect the interests of all parties.


Contingencies are conditions to address in order for the contract to proceed. Common contingencies include inspections, financing and the sale of the buyer’s existing property. Clearly define the terms of each contingency, including deadlines and potential outcomes if the conditions are not met.

Default and termination

Outline the consequences of default by either party and the circumstances under which a termination of the contract can occur. This section should address remedies, such as forfeiting earnest money or pursuing legal action, in the event of a breach. 5% of real estate contracts fell through in 2022 so this is an important provision to put in the contract.

Property inspection

Specify the process and timeline for property inspections. This provision can address inspections for structural integrity, pests, environmental hazards and other relevant aspects. It should also outline how inspection results will impact the contract and whether you need repairs or credits.

Home warranty

If a home warranty is part of the sale, outline its coverage, duration and the responsibilities of both parties regarding the warranty. This provision should specify whether the seller will cover the cost of the warranty.

Incorporating these provisions into your real estate contract in Texas will help the real estate transaction to run smoothly, minimizing potential disputes and misunderstandings between the buyer and the seller.


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