It is the opinion of some that the seller has the easier side of the Texas Residential Sales Contract. I disagree. A Texas Realtor may tell you that in order for a seller to be certain that the buyer is a serious, obtain pre-approval letter from the buyer with a contract. In addition, a sufficient earnest money check should accompany the contract.
In addition, the Seller may typically have the following concerns:
1.) Specific Performance. The sales contract has certain remedies for the buyer in the event the seller defaults. One of the remedies is specific performance. If the seller is sued for specific performance, the buyer may file a lis pendens with the real property records that could prevent sale of the property to anyone else. Therefore, consider striking out specific performance as a remedy.
2.) Content of Legal Documents. Too often, title companies and sellers use “standard documents” in the real estate transaction and closing. The seller may want to exercise control over the content of the contract and warranty deed. Consider including “as-is” language in the contract and the warranty deed. There is a section in the deed that often is entitled “Exceptions to Conveyance and Warranty.” The seller may want to expand this to include “all matters of which Grantee has actual or constructive notice and all matters excepted from coverage in any owner´s title insurance policy issued to Grantee in connection with this conveyance.”
3.) “As-Is.” Sellers often would like to sell the real estate in “as is” condition and to do so without responsibility for repairs or any representations or warranties. While the Sellers may want to sell “as is” the buyers may not want to purchase with that provisions. However, it is a seller’s market and buyer can always conduct their due diligence. The seller will want to avoid the liability of selling property with a potential dangerous conduction that may result in a personal injury. Real Estate investors sometimes find themselves in lawsuits as the result of a wrongful death claim do to an injury on the real property.
4.) Buyer Due Diligence. The seller will often include in the sales contract that the responsibility of due diligence duties rest on the buyer. This includes obtaining inspections, determination of square footage, an appraisal, legal advice, just to name a few).
If you have additional questions, feel free to contact a Houston Real Estate Lawyer.
– Article By Richard Weaver