The Most-Asked Questions of Clients About the TREC 1–4 Residential Contract

Buying or selling a home in Texas involves far more than signing a form. The TREC 1–4 Family Residential Contract (Resale) outlines critical duties, deadlines, and rights that affect financing, repairs, title work, inspections, and closing. Clients often bring the same urgent questions to real estate agents and title professionals—questions that require legal interpretation to avoid misunderstandings and delays.

Below are ten common questions and why attorney guidance matters.

What exactly does the option period allow me to do?

The option period gives the buyer the right to terminate the contract for any reason within that negotiated timeframe. It allows buyers to perform inspections, evaluate the property’s condition, and renegotiate terms without risking their earnest money.

What happens if the inspection reveals major issues?

Properties are usually sold on an “AS IS, WHERE IS,” basis. Inspection results can trigger negotiations for repairs, concessions, or termination. The contract provides a structure, but parties must follow deadlines and document agreements properly. Legal guidance helps clients understand what is contractually enforceable and drafts and negotiates repair/termination language.

Who pays for the survey, and what if it’s outdated?

The contract determines responsibility for obtaining the survey, establishing seller responsibilities, and closing options. If an existing survey is outdated or inaccurate, it can impact title coverage and closing timelines. Attorneys help clients navigate survey objections and coordinate updates when necessary.

Can the seller back out after accepting my offer?

Once signed, both parties are legally bound—subject to specific contract provisions. Sellers generally have fewer exit options. An attorney can clarify those limits and ensure that actions taken are compliant with the contract and state law.

What repairs is the seller obligated to make?

Obligations depend on what the contract specifies. Ambiguities or verbal promises are common sources of disputes. Attorneys ensure repair terms are clearly documented and enforceable. If the purchase is being financed, buyers have an additional out if the repairs exceed 5% of the sales price, such as in a situation where major foundation repairs are required.

How do I object to title issues, and what’s the deadline?

The contract sets strict deadlines for title objections. A key factor is determining that the permitted uses of the property do not prohibit a buyer’s desired use. Missing these deadlines can waive rights and create avoidable conflicts. Attorneys help clients understand how and when to raise objections and what remedies may apply.

What happens if my loan doesn’t get approved?

Financing contingencies protect buyers in some situations, but not all. Failure to meet financing terms can lead to forfeiture of earnest money. Legal advice helps clients understand their obligations and options when financing challenges arise.

What is included in “closing costs,” and who pays them?

Closing costs vary and depend on lender, title, and negotiated terms. Attorneys explain what costs are customary, what can be negotiated, and how contract language affects financial obligations.

What personal property conveys with the house?

The contract lists items that convey, but misunderstandings happen when buyers assume items remain that are not specified. Attorneys ensure that any personal property to be included is identified in a specific non-realty addendum to the contract.

Can I terminate if the appraisal comes in low?

Low appraisals may affect financing approval or allow for contract renegotiation. Whether termination is allowed depends on contract terms. Legal review helps clients understand their rights and avoid missteps.

Why Legal Review Matters

Each of these questions involves legal rights and contractual duties. Real estate brokers and agents are not allowed to engage in the unauthorized practice of law. They may complete the blanks in the TREC form contract but cannot give advice on the legal implications of the terms nor add additional non-factual language to the special provisions paragraph of the contract. When clients rely solely on informal explanations or assumptions, delays and disputes can follow, often affecting title work and closing timelines. An attorney can interpret the contract provisions accurately, make changes, protect client interests, and help maintain the trouble-free, consistent workflow real estate brokerages and title companies rely on.