Law of Contracts - 360 Training

Law of Contracts

Texas

Real Estate Sales Contracts

TREC #1200

Champions School of Real Estate

Law of Contracts

Champions School of Real Estate page - 2 Copyright 2006

Do You Know the Quality School You Are Attending?

Awards

1998 Invited to Join the National Consortium of Real Estate Schools,RealtyU,

as the Texas Real Estate School

2000 Chairman's Leadership Award, RealtyU

2001 Pinnacle Award, RealtyU

2002 PaceSetter Award, RealtyU

2001 Rita Santamaria REBAC, RealtyU, Instructor of the Year

2002 WCR Texas ChapterChampions School of Real Estate

Affiliate of the Year

2002 Sue Ikeler REBAC, RealtyU, Instructor of the Year

2003 Chairman's Award, RealtyU 2003 Pinnacle Award, RealtyU

2003 Hall of Fame Inductee Rita Santamaria NAR®, REBAC

2004 JuneReal Estate Educator's Association

Champions School of Real Estate NationwideRepresentative of topic

"How To Operate a Large Real Estate School"

2005 Pinnacle Award, RealtyU

Law of Contracts

Champions School of Real Estate Table of Contents Copyright 2006

CHAMPIONS SCHOOL OF REAL ESTATE

Law of Contracts

Texas Real Estate Sales Contracts

Table of Contents

INTRODUCTION

RULES OF THE TEXAS REAL ESTATE COMMISSION

Canons of Professional Ethics and Conduct

THE TEXAS REAL ESTATE LICENSE ACT

Practice of Law Provisions

LICENSEES ARE FIDUCIARIES

Licensees are Agents

Information About Brokerage Services

Duties of Agent to PrincipalDuties of Principal to Agent

LEGAL PRINCIPLES OF REAL ESTATE

Freehold Estate (Real Property)

Leasehold Estate

THE HOMESTEAD

Creating the Homestead

Homestead Property ExemptionCommunity and Separate Property

CONVEYANCE BY DEED

Types of Deeds

Deed ClausesRequirements for a Valid Deed

CONVEYANCE BY WILL

Wills and Descent and Distribution

9

10

11

12

1315

16

16

17

1819

20

2122

24

Law of Contracts


DEED OF TRUST

Foreclosure under the Deed of Trust

Deed of Trust to Secure Assumption

THE REAL ESTATE LIEN NOTE

Lien Defined

Types of LiensPriority of Liens

TITLE INSURANCE AND ABSTRACTS OF TITLE

Owner's Title Policy

Mortgagee's Title Policy

Abstract of Title

CONTRACTS FOR THE SALE OF REAL ESTATE

Elements of a Valid Contract

Offers, Acceptance, Termination

Provisions of ContractsProperty Description

Personal Property and Fixtures

Contracts for the Sale of Land or Contract for Deed

ARE YOU CONTRACT CORRECT?

Quiz

TRANSACTION PROCESS

Residential

Commercial

LOAN PROGRAMS

Conventional, VA, FHA

Texas Veterans Loan ProgramsLoan Payment Factors

CONTRACT CASE STUDIES

Conventional Case Study

FHA Acquisition Case StudyVA Case Study

Assumption Case Study

25

25

26

2626

27

28

29

30

31

3233

34

35

36

37

38

39

4041

42

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Law of Contracts


TEXAS SALES CONTRACTS

Summary and Reminders

FORMS FOR REFERENCE

Disclosures and Notices

Seller's Disclosure Notice — TARNotification of Intermediary Relationships Notice - TAR

For Your Protection: Get a Home Inspection (HUD)

Buyer's Walk-Through and Acceptance Form-TAROne to Four Family Residential Contract - TREC

Third Party Financing Condition Addendum - TREC

Seller Financing Addendum - TREC

Loan Assumption Addendum - TRECAmendment to the Contract - TREC

Notice of Termination of Contract - TREC

Non-Realty Items Addendum to the Contract - TAR

Addendum for Seller's Disclosure of Information on Lead-Based Paint - TREC

Information About Special Flood Areas - TARSeller's Rejection of Offer With Invitation for Submission of New Offer - TAR

Seller's Authorization to Release and Advertise Certain Information - TAR

Termination of Contract and Release of Earnest Money - TAR

Evidence of Presentation of Earnest Money Contract - TARInformation About On-Site Sewer Facility - TAR

Notice to a Purchaser of Real Property in a Water District

Notice to Prospective Buyers - TRECTexas Real Estate Consumer Notice Concerning Recognized Hazards —

TREC

Addendum for Back-Up Contract - TREC

Addendum for Property Located Seaward of Gulf Intracoastal Waterway –

TREC

Addendum for Coastal Area Property - TRECEnvironmental Assessment, Threatened or Endangered Species and Wetlands

Addendum - TREC

Request for Information from an Owner's Association - TRECResale Certificate for Mandatory Membership in Owner's Association - TREC

Addendum for Property Subject to Mandatory Membership in

Owner's Association - TREC

Release of Liability on Assumption of FHA, VA or Conventional LoanRestoration of Seller's Entitlement for VA Guaranteed Loan - TREC

Addendum for Sale of Other Property by the Buyer- TREC

Addendum Regarding Lead Based Paint - TARBuyer's Temporary Residential Lease - TREC

Seller's Temporary Residential Lease-TREC

Buyer/Tenant Representation Agreement - TARAmendment to Buyer/Tenant Representation Agreement - TAR

46

5359

60

6162

70

73

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77

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88

8990

91

92

9394

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9697

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101104

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Law of Contracts


Notice from Buyer Agent to Seller - TAR

Condominium Resale Certificate - TRECResidential Condominium Contract Resale, All Cash, Assumption - TREC

New Home Contract - Incomplete Construction - TREC

New Home Contract - Complete Construction - TREC

Unimproved Property Contract - TRECFarm and Ranch Contract - TREC

Residential Real Estate Listing Agreement - Exclusive Right to Sell - TAR

Amendment to Listing Agreement - TARTermination of Listing - TAR

Agreement Between Brokers for Residential Lease - TAR

Residential Real Estate Listing Agreement - Exclusive Right to Lease - TARResidential Lease Agreement - TAR

Registration Agreement Between Broker and Owner - TAR

LAW CONTRACTS REVIEW

113

114115

123

131

139147

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168

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Law of Contracts


INTRODUCTION

Purpose of the course:

The responsibility of understanding contract law is a licensee's primary concern in real estate sales. TheState of Texas has promulgated contracts to help the agent with the process of filling out contracts so as

not to be practicing law. The Texas Real Estate Commission (TREC) contracts in Texas are available for

its members, and all those contracts are mandatory for use. TAR® is not a licensing entity, and all of theirforms are optional.

This course will enable the agent to better understand the contracts and addenda. It will take a hands-on

approach to filling in the blanks with the correct information. This will be done successfully based on thepresentation of the instructor and the individual case studies the students will complete.

At the conclusion of this course, the agent will know the difference between TREC and TAR®. They willhave an understanding and be familiar with all of the TREC contracts. They will have self- confidence

when working with buyers and sellers by understanding correct contract procedures. The agent's

understanding of basic contract law should reduce the risk of broker and agent liability.

TEXAS REAL ESTATE

CONTRACTS

Law of Contracts


RULES OF THE TEXAS REAL ESTATE COMMISSION

Canons of Professional Ethics and Conduct for Real Estate Licensees

FIDELITY — A real estate broker or salesman, while acting as an agent for another is a fiduciary.

Special obligations are imposed when such fiduciary relationships are created. They demand:

1. that the primary duty of the real estate agent is to represent the interests of his client, and his

position, in this respect, should be clear to all parties concerned in a real estate transaction; that,

however, the agent, in performing his duties to his client, shall treat other parties to a transactionfairly;

1. that the real estate agent be faithful and observant to trust placed in him and be scrupulous and

meticulous in performing his functions;

1. that the real estate agent place no personal interest above that of his client.

INTEGRITY — A real estate broker or salesman has a special obligation to exercise integrity in the

discharge of his responsibilities, including employment of prudence and caution so as to avoidmisrepresentation, in any way, by acts of commission or omissions. COMPETENCY — It is the

obligation of a real estate agent to be knowledgeable as a real estate brokerage practitioner. He should:

1. be informed on market conditions affecting the real estate business and pledged to continuing

education in the intricacies involved in marketing real estate for others;

1. be informed on national, state and local issues and developments in the real estate industry;

1. exercise judgment and skill in the performance of his work.

Consumer Information Form 1-0 (b) Each real estate inspector or active real estate broker licensed

by the Texas Real Estate Commission shall display Consumer Information Form 1-1 in a

prominent location in each place of business the broker or inspector maintains.

Discriminatory Practices. No real estate licensee shall inquire about, respond to or facilitate

inquiries about, or make a disclosure which indicates or is intended to indicate any preference,

limitation or discrimination based on the following: race, color, religion, sex, national origin,

ancestry, familial status, or handicap of an owner, previous or current occupant, potential

purchaser, lessor, or potential lessee of real property. For the purpose of this section, handicap

includes a person who had, may have had, has or may have AIDS, HIV—related illnesses or HIV

infection as defined by the Centers for Disease Control of the United States Public Health Service.

Law of Contracts


TEXAS REAL ESTATE LICENSE ACT

Practice of Law Provisions

TEX. REV. CIV.STAT. ANN. Art 6573a, § 16 (Vernon Supp. 192)

Sec. 16

(a) A license granted under the provisions of this Act shall be suspended or revoked by the

commission on proof that the licensee, not being licensed and authorized to practice law in this

state, for a consideration, reward, pecuniary benefit, present or anticipated, direct or indirect, or incorrection with or as a part of his employment, agency or fiduciary relationship as a license, drew

a deed, note, deed of trust, will or other written instrument that may transfer or anywise affect the

title to or an interest in land, except as provided in the subsections below or advised or counseleda person as to the validity or legal sufficiency of an instrument or as the validity of title to real

estate.

(a) Notwithstanding the provisions of this Act or any other law, the completion on contract formswhich bind the sale, exchange, option, lease or rental of any interest in real property by a real

estate broker or salesman incident to the performance of the acts of a broker as defined by this

article does not constitute the unauthorized or illegal practice of law in this state, provided theforms have been promulgated for use by the commission for the particular kind of transaction

involved, or the forms have been prepared by an attorney at law licensed in this state and

approved by said attorney for the particular kind of transaction involved, or the forms have beenprepared by the property owner or prepared by an attorney and required by the property owner.

(a) A Texas Real-Estate Broker Lawyer Committee is hereby created which, in addition to other

powers and duties delegated to it, shall draft and revise contract forms capable of standardizationfor use by real estate licensees and which will expedite real estate licensees and which will

expedite real estate transactions and reduce controversies to a minimum while containing

safeguards adequate to protect the interest of the principals to the transaction.

(a) The Texas Real Estate Broker-Lawyer Committee shall have 13 members including six members

appointed by the commission and six member of the State Bar of Texas appointed by thePresident of the State Bar of Texas and one public member. The members of the committee shall

hold office for staggered terms of six years with the terms of two commission appointees and two

State Bar appointees expiring every two years. Each member shall hold office until his successor

is appointed. A vacancy for any cause shall be filled for the expired term by the agency makingthe original appointment. Appointments to the committee shall be made without regard to race,

creed, sex, religion or national origin, (e) In the best interest of the public, the commission may

adopt rules and regulations requiring real estate brokers and salesmen to use contract forms whichhave been prepared by the Texas Real Estate Broker-Lawyer Committee and promulgated by the

commission; provided, however, that the commission shall not prohibit a real estate broker or

salesman from using a contract form or forms binding the sale, exchange, option, lease or rental

on any interest in real property which have been prepared by the property owner or prepared byan attorney and required by a property owner. For the purpose of this section, contract forms

prepared by the Texas Real Estate Broker-Lawyer Committee appointed by the commission and

the State Bar of Texas and promulgated by the commission prior to the effective date of this Actshall be deemed to have been prepared the Texas Real Estate Broker-Lawyer Committee. The

commission may suspend or revoke a license issued under the provision of this article when it has

determined that the licensee failed to use a contract form as required by the commission pursuantto this section.

Law of Contracts


LICENSEES NOT PERMITTED TO PRACTICE LAW

Section 16(a) of the Texas Real Estate License Act prohibits a real estate licensee, who is not a licensed

Texas attorney, from preparing a will, deed, note, deed of trust or other written instrument that may

transfer or in any way affect the title to or an interest in land. This section further provided that the

licensee is not authorized to advise or counsel a person as to the validity or legal sufficiency of aninstrument, or concerning the validity of title to real estate.

LICENSEES USE OF PROMULGATED FORMS

Section 16(b) specifies completion of promulgated contract forms by a real estate licensee concerning the

sale, exchange, option, lease or rental of any interest in real property does not constitute the

unauthorized or illegal practice of law. Use of a form by licensees which was prepared and approved by

a licensed Texas attorney for the particular transaction involved, or a form prepared by the property

owner or prepared by an attorney and required by the property owner, is also authorized.

LICENSEES ARE AGENTS

Agency is a legal relationship based on agreement of the parties, whereby, one person, the agent, is

authorized to act for a second person, the principal.

When an agency is created, the agent becomes a fiduciary of his principal and occupies a position of trust,

confidence and good faith. Consequently, the law imposes duties and obligations, which are owed by the

broker as agent to his principal, which the broker is required faithfully to perform.In a real estate transaction, the typical agency relationship exists when the principal, or owner of real

estate, contracts with the broker for his services as agent by a listing agreement to sell the principal's real

estate for a commission. The broker, as agent, agrees to act on behalf of the seller as principal and besubject to the seller's direction and control.

A principal—broker agency may be created between the buyer and broker/agent if the agent is

representing the buyer in a transaction. A buyer representation agreement is usually signed. Texas lawprovides that the commission and who pays the broker/agent must be in writing, as well as the

termination date of the agency relationship.

INFORMATION ABOUT BROKERAGE SERVICES

Licensees are obligated to disclose agency on the first face to face meeting with a consumer. The form on

the next page is the form to be presented to either the seller or buyer. The party being presented the

agency form is asked to sign the form simply acknowledging receipt of the IABS form.

If the consumer declines to sign, make a note on the form "declined to sign", date the form and keep the

copy in the agent's files. This shows evidence the form was presented.

EQUAL HOUSINGOPPO RTU N ITY

Approved by the Texas Real Estate Commission for Voluntary Use

efore working with a real estate broker, you shouldBknow that the duties of a broker depend on whomthe broker represents. If you are a prospectiveseller or landlord (owner) or a prospective buyer or

tenant (buyer), you should know that the broker who liststhe property for sale or lease is the owner’s agent. Abroker who acts as a subagent represents the owner incooperation with the listing broker. A broker who acts asa buyer’s agent represents the buyer. A broker may act asan intermediary between the parties if the partiesconsent in writing. A broker can assist you in locating aproperty, preparing a contract or lease, or obtainingfinancing without representing you. A broker is obligatedby law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER:The broker becomes the owner’s agent by entering into anagreement with the owner, usually through a written -listing agreement, or by agreeing to act as a subagent byaccepting an offer of subagency from the listing broker. Asubagent may work in a different real estate office. Alisting broker or subagent can assist the buyer but doesnot represent the buyer and must place the interests ofthe owner first. The buyer should not tell the owner’sagent anything the buyer would not want the owner toknow because an owner’s agent must disclose to theowner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER:The broker becomes the buyer’s agent by entering into anagreement to represent the buyer, usually through awritten buyer representation agreement. A buyer’s agentcan assist the owner but does not represent the ownerand must place the interests of the buyer first. The ownershould not tell a buyer’s agent anything the owner wouldnot want the buyer to know because a buyer’s agent mustdisclose to the buyer any material information known to theagent.

IF THE BROKER ACTS AS AN INTERMEDIARY:A broker may act as an intermediary between the partiesif the broker complies with The Texas Real Estate License

Act. The broker must obtain the written consent of eachparty to the transaction to act as an intermediary. Thewritten consent must state who will pay the broker and, inconspicuous bold or underlined print, set forth the broker’sobligations as an intermediary. The broker is required totreat each party honestly and fairly and to comply withThe Texas Real Estate License Act. A broker who actsas an intermediary in a transaction:

(1) shall treat all parties honestly; (2) may not disclose that the owner will accept aprice less than the asking price unless authorized inwriting to do so by the owner; (3) may not disclose that the buyer will pay a pricegreater than the price submitted in a written offerunless authorized in writing to do so by the buyer; and(4) may not disclose any confidential information orany information that a party specifically instructs thebroker in writing not to disclose unless authorized inwriting to disclose the information or required to do soby The Texas Real Estate License Act or a courtorder or if the information materially relates to thecondition of the property.

With the parties’ consent, a broker acting as anintermediary between the parties may appoint a person whois licensed under The Texas Real Estate License Actand associated with the broker to communicate with andcarry out instructions of one party and another person whois licensed under that Act and associated with the brokerto communicate with and carry out instructions of theother party.

If you choose to have a broker represent you, you should enter into a written agreement with the brokerthat clearly establishes the broker’s obligations and yourobligations. The agreement should state how and bywhom the broker will be paid. You have the right tochoose the type of representation, if any, you wish toreceive. Your payment of a fee to a broker does notnecessarily establish that the broker represents you. If youhave any questions regarding the duties andresponsibilities of the broker, you should resolve thosequestions before proceeding.

Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a questionor complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960.

Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

Information About Brokerage Services

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

Buyer, Seller, Landlord or Tenant Date

01A TREC No. OP-Kpage 12

Law of Contracts


DUTIES OF AGENT TO PRINCIPAL

In the typical real estate situation, the property owner authorizes the broker to sell or lease his real estate.

In the listing agreement the owner appoints the broker his sole and exclusive agent and the propertyowner is the principal. In the marketplace today, many buyers are requesting representation, and many

real estate salespeople are offering representation to the buyer. In the Buyer/Tenant Representation

Agreement, the buyer or tenant grants the broker the exclusive right to act as his agent. In that situation,the buyer or tenant is the principal. You are actually listing either the seller or the buyer. The forms have

different names.

By accepting the listing contract, the broker is appointed by and is working for his principal, theseller/landlord. By accepting the Buyer/Tenant Representation Agreement, the broker is appointed by and

working for his principal, the Buyer/Tenant. Below are the common law duties that the broker owes to his

principal, whether seller/landlord or buyer/tenant:

1. Loyalty

A broker must be loyal and faithful to his principal and represent the interests of his principal. He must

not obtain any secret profit or advantage from his relationship. A broker must not collect a "special fee"

for the closing of the transaction, unless he has the permission of the seller.

If he has been hired to sell real estate, the broker nor his salespeople can purchase this property from his

principal without the express permission of the owner. In the event the broker or salesperson desires topurchase property, he would insert in the sales contract the following statement and have it signed by all

the sellers:

"Notice is hereby given that Joe Broker is a duly licensed real estate

broker and is purchasing this property for his own account."

When a broker, or salesperson, owns or has interest in property, it cannot be sold without full disclosureof holding a Texas real estate license. A similar statement or declaration must be placed in a sales

contract.

A broker must not act as an agent, or intermediary, for both buyer and seller without written consent of all

parties. In order to collect commissions from both parties in a transaction, each party must know exactly

the amount of commission collected from the other party and a full disclosure of all facts.

A broker must not accept secret gifts or fees from third parties without permission of his principal.

Obviously, he could not accept a "kickback" from the inspection, the title company or mortgage company.

2. Obedience and Performance

A broker is obligated to obey all lawful instructions given to him by his principal. If the seller wants

$100,000 for his property, the listing broker may not say, "The asking price is $100,000, but why don't

you make an offer of $90,000", or, "My seller is desperate to sell this house immediately, make him a low

offer and you can steal the property." These statements may also constitute a lack of loyalty, unless theseller has authorized in writing that he will accept less than his asking price.

Law of Contracts


When representing a buyer, it would be to the buyer's disadvantage for the buyer's agent to suggest that

the buyer was willing to pay more than the price he offered. The only way that would be in the bestinterest of the buyer is in the event the buyer had given written permission to reveal the price he would

pay.

Violations of these duties will result in liability to the principal for any damages sustained. The brokercannot justify his actions by stating that he acted in good faith or was really looking after the best interest

of his client. The legal test is whether he violated his instructions. All changes in price or terms of a

listing should be in writing and signed by the sellers. All information about the position of buyer in regardto his offer should be in writing and signed by the buyer.

3. Reasonable Care

The broker must use reasonable care in handling the property of his seller. As a licensed real estate

broker, the law imposes greater liabilities on him in the performance of his profession. A broker woulduse care to see that earnest money is promptly deposited, as he would be liable for its loss. Failure to

immediately deposit a personal check could result in a loss to the seller if the purchaser stopped payment.

This would be an example of not using reasonable care.

4. Accountability

A broker may not commingle any of his funds with those of his clients. In Texas, the broker should not

commingle any funds of any kind with escrow funds taken as earnest money. Although not required by

rule, a separate management escrow is preferred to handle rental funds.

Law of Contracts


DUTIES OF PRINCIPAL TO AGENT

In a real estate transaction, whether the seller/landlord or buyer/tenant is the principal, the following

duties are owed to the broker as agent:

1. Employment for Term of Contract

In the seller's listing agreement and in the buyer/tenant representation agreement, the principal grants an

agency for a specified time. The principal is under a duty to employ the broker for the entire time. If the

agreement is canceled prior to expiration without cause, the broker may be entitled to damages (this issometimes referred to as performance).

2. Compensation

The broker is entitled to compensation agreed upon in the agency agreements. In the usual agencyagreement, the broker is not entitled to compensation or reimbursement if he does not achieve the desired

result. Time, money and energy spent have no effect on whether or not the broker is compensated. The

results for the principal must be in place.

3. Reimbursement

The principal is under a duty to reimburse the broker for all disbursements made at the request of the

seller. In rental situations, the broker expends funds to repair and maintain the property for the benefit of

the owner and he is entitled to reimbursement. If a loss is the fault of the broker, he is not entitled toreimbursement.

4. Indemnity

In the event the broker suffers loss or damage, without fault, because of the agency, he is entitled to be

indemnified.

Law of Contracts


LEGAL PRINCIPLES IN REAL ESTATE

It is necessary for the student of real estate to understand the basic rules of law. The object is to give a

short introduction into the basic rules that make up part of everyday business life. No attempt is made tobe all-inclusive.

Freehold Estate (Real Property)

Real estate consists of the land itself, improvements, appurtenances and fixtures, including air and

subsurface rights.

The owner of real estate is entitled to three distinct estates:

! the surface rights - the use and enjoyment of the land itself

! the subsurface rights - the right to all that portion beneath the surface to the center of the earth.The sale of oil and gas is an example of the sale of the subsurface estate.

! the air rights - extend upward at the property line. The condominium is an example of the sale of

the air rights.

Leasehold Estate

Generally, a lease may be either oral or written and grants an estate in the land to the tenant. The lease is

both a contract and a conveyance of interest in real estate. Under the Statute of Frauds, if the lease islonger than one year, it must be in writing to be effective.

The lease must be signed by the true owner of the property or his agent and need not be acknowledged or

recorded to be valid. The lease conveys the landlords' right to occupy the land to the tenant for the term ofthe lease. All leases must have a sufficient property description the same as a deed. If there is no written

agreement between the landlord and tenant, the duties and responsibilities of each party are governed by

the common law rules and applicable statutory provisions. A leasehold estate is non-possessory estate.

Law of Contracts


CREATING THE HOMESTEAD

Property is considered a homestead when a single adult or a family unit owns real estate within the

limitations outlined below. Most authorities agree that the claimant must have occupied the real estate tocreate a homestead. One can not voluntarily avoid the homestead status by executing a disclaimer. When

more property than is allowed under the homestead act is owned, the excess may be declared non-

homestead. The original homestead law was designed to protect only the family unit, but the present lawextends the protection to single adults. Either the family unit or a single adult may hold homestead

property.

Rural Real Estate Homestead Property

When the real estate is not located within a city, town or village, the family unit may have up to 200 acresof exempt property. The property may be in one or more parcels which need not be adjacent to each other.

A single adult may have up to 100 acres of exempt property.

Urban Real Estate Homestead Property

If the real estate is located within the boundary of a city, town or village, a family unit or a single adultperson may own a lot or lots not to exceed a maximum of ten acres at the time of designation. The amount

of improvements placed upon the homestead real estate is immaterial. One of the lots may be used to

provide a home while the second lot may be used to provide a business homestead. To be considered realestate, the property must be used for either a home or a business.

Personal Homestead Property

In addition to the real estate homestead property, a family or single adult is entitled to certain items of

personal property that are protected by the homestead exemption. The total value of the homesteadpersonal property claimed by a family unit may not exceed $60,000. The total value of the personal

property claimed by a single adult may not exceed $30,000. The valuation would be the fair market value

of the property on the date it is designated as the homestead. If the claimant has an excess amount ofpersonal property, he may select the items that will fall within the limits.

The following items are exempt as personal homestead property, subject to the maximum values:

1. Home furnishings, including family heirlooms and provisions for consumption.

1. The following which are reasonably necessary for the family or single adult: farming or ranchingimplements; tools, equipment, books and apparatus including a boat used in a trade or profession;

clothing; two firearms, athletic and sporting equipment.

1. If not held for the production of income, passenger cars and light trucks, as defined by Section 2

Uniform Act Regulation Traffic on Highways, as amended (Article 6701d, Vernon's Texas Civil

Statutes), such as a motor vehicle, 10 passengers or less, and a truck with a rating capacity of

2000 pounds or less.

Law of Contracts


1. Whether or not held for the production of income, two of the following categories of means of

travel: two animals from the following kinds with a saddle and bridle for each: horses, colts,mules and donkeys; a bicycle or motorcycle; a wagon, cart dray with reasonably necessary

harness; an automobile; a truck cab; a truck trailer; a camper truck; a dump truck; a pickup truck.

1. The following animals and forage on hand reasonably necessary for their consumption: 5 cowsand their calves, 1 breeding age bull, 20 each of hogs, sheep and goats, 50 chickens, 30 each of

turkeys, ducks, geese and guineas.

1. Household pets.

1. The cash surrender value of any life insurance policy in force for more than two years to theextent that a member of the insured person's family or a dependent of the single person claiming

the exemption is a beneficiary of the policy.

1. Current wages for personal services.

Exceptions to the Rule

All of the above property is "exempt" from creditors and can not be taken for non-payment of an ordinary

debt. The property may be taken for non-payment of the following:

(a) taxes (failure to pay taxes of any kind may cause all homestead property to be taken)

(a) mechanics' liens (correctly filed, a valid mechanic's lien may be used in foreclosure ofhomestead property)

(a) purchase money mortgages (failure to pay the mortgage used for "purchase money" may result inforeclosure)

(a) homeowner's maintenance fees (failure to pay the homeowner's association dues can result in

foreclosure)

(a) homequity loans (failure to pay additional loans borrowed against the homestead)

HOMESTEAD PROPERTY EXEMPTION

Texas has had a homestead exemption for its citizens for many years. The objective of the law was to

protect the homestead from forced sale for the non-payment of ordinary debts, regardless of the husband's

poor business management, and to prevent the husband from disposing of the homestead without thespecific permission of the wife. Only certain types of liens are enforceable against property that qualifies

as homestead. The signatures of both husband and wife are required on a homestead purchase money

contract. Both signatures are also required on a Mechanic and Materialman's (M & M) contractauthorizing work to be done on the homestead.

Law of Contracts


COMMUNITY AND SEPARATE PROPERTY

The community property concept is Spanish in origin and invokes the theory that husband and wife

equally own all property acquired by either party. The remaining property not community property is

called "separate".

Community Property

The Family Code defines community and separate property. A marriage is required for the existence of

community property. After the marriage, community property is all property acquired by either spouse,

except by gift, inheritance or recovery for personal injuries sustained by a spouse. However, any part ofthe recovery for personal injuries that is based on loss of earning capacity, such as loss wages or salary

because of inability to work, is community property. Upon death or divorce, the community property is

divided and becomes separate.

Separate Property

Separate property is all property owned before marriage and that acquired after marriage by gift,

inheritance and recovery for personal injuries, except loss of earning capacity which is community

property.

Law of Contracts


CONVEYANCE BY DEED

The deed is a written instrument by which the owner or grantor transfers his interest in real estate to the

purchaser or grantee. The major difference in the types of deeds is in the covenants or warranties made bythe grantor.

TYPES OF DEEDS

General Warranty Deed

The most common type of deed used in Texas is the general warranty deed. It contains a general warranty

clause that warrants the title to the buyer all the way back to the sovereignty of the soil and into the futurefor an indefinite period of time. Because this warranty is a personal warranty, it is only as good as the

integrity of the person signing the deed.

Special Warranty Deed

The special warranty deed is very similar to the general warranty deed, with the exception that the grantordoes not warrant the title except as to his own ownership and possession. The special warranty deed is

created by adding the language "by, through or under me, but not otherwise" at the end of the warranty

clause. The deed is commonly used when the seller is a government agency or the seller does not want tobecome involved in controversies over the chain of title.

Warranty Deed with Vendor's Lien

A seller or vendor may sell his real property under terms where he does not receive the full purchase price

at the time of sale. The balance may be paid in later installments by the purchaser. It allows the propertyto be conveyed and is used as a form of security for the purchase money debt.

The vendor's lien is created by a clause in the deed from the seller to the buyer. In the owner-carried loan,the seller as grantor conveys the property to the buyer as grantee, but reserves a vendor's lien in the deed

as additional security for the mortgage note signed by the buyer. This note is referred to in the

consideration paragraph. The note is also secured by a deed of trust executed by the buyer. Two separate

and independent types of security for the note protect the grantor. In the more common transaction wherethe sale is made to the purchaser who borrows money from a third party lender (such as a mortgage

company), in order to pay the seller in full, the deed contains a clause transferring the vendor's lien from

the seller to the lender who advanced the money to pay the seller.

Law of Contracts


DEEDS - COMMON CLAUSES

The Habendum Clause

The habendum clause limits the quantity of the estate being transferred. In the ordinary circumstance, the

entire estate is transferred and the habendum clause is as follows:

"To have and to hold the above described premises, together with all belonging

unto the said (grantee) or (grantees) (his) or (their) heirs or assigns forever."

The Warranty Clause

The warranty clause begins with the words "and we (grantors) do hereby bind ourselves, our heirs,executors and administrators to WARRANT AND FOREVER DEFEND..." Section 5.022, Property Code

states that a warranty clause is not required in a deed. Nevertheless, most deeds, including the deed form

to convey a fee simple estate set out in the sales contract, General Warranty Deed, does include awarranty clause.

In the general warranty deed, the grantor fully warrants good and clear title to the premises. The wording

of the general warranty states that the grantors obligate themselves to warrant and forever defend the landconveyed "against every person whomsoever lawfully claiming or to claim the same or any part thereof."

The meaning of this language is the grantors warrant the title is good and clear from the "sovereignty of

the soil" to the present grantee. The grantor, in effect, warrants that the title is good against all claimants.

The grantor in the special warranty deed limits his warranty of good title only to those persons claiming

title to the property by, through or under him.

Law of Contracts


REQUIREMENTS OF A VALID DEED

Necessity for Writing

The Texas Statute of Frauds concerning deeds and leases is in section 5.021, Property Code and requires

that all deeds and leases for more than one year be in writing. The grantor or his duly authorized agent

must sign the deed. Section 5.0222, Property Code, sets out a permissive form of a deed, although nospecial form is required to transfer real estate.

The Grantor

The person transferring title to real estate in the deed is the grantor. The grantor must have legal capacity

for the deed to be effective. If the grantor had been declared legally incompetent, the deed is invalid and

his guardian must execute it. If the grantor is a corporation, it must have legal existence at the time thedeed is executed.

The Grantee

A deed is not effective unless it names an existing grantee and identifies the grantee with reasonable

certainty. Minors may accept title to real estate. Examples of identities that may have difficulty taking

title to real estate are trade names, service clubs, unincorporated churches and partnerships.

Consideration for the Deed

Consideration for the deed is usually the purchase price in money, but may be in other forms such as

exchanged property. The usual printed deed recites that conveyance is "for and in consideration of the

sum of Ten and no/100 dollars and other good and valuable consideration to the undersigned (grantor)cash in hand paid by the grantees(s) herein named..." The recitation in the deed of such consideration is

legally sufficient, regardless of the actual purchase price of the property.

A deed does not require monetary consideration to pass title to the grantees. A parent may convey realproperty as a gift to a son or daughter in consideration of the love and affection the parent has for his or

her child.

Words of Conveyance

To be effective, the deed must contain words of conveyance. The Texas words of conveyance are "grant,

sell and convey." The words of conveyance indicate the grantor's intention to make the present transfer.By using these words, the grantor warrants that he had not previously sold the same property and property

is clear of liens. The typical quitclaim deed does not contain the words of conveyance but uses "releases

and quitclaim." The habendum clause, which begins "to have and to hold," defines the quantity of theestate granted.

Signature

The deed must be signed by the grantor or his duly authorized agent. If the grantor is unable to write, his

mark, properly witnessed, is considered a valid signature. If the grantor is unable to be present, he may

appoint, in writing, another person called "attorney-in-fact" to sign on his behalf. Texas practice requiresthe power of attorney to be specific and include the legal description of the property to be transferred.

Law of Contracts


Corporations may transfer their ownership in real estate through a duly authorized officer or agent. The

board of directors of the corporation or the stockholders must authorize the officer of the corporation toexecute the deed before it will be effective. It is common practice to require the corporate seal on all

transfers of real estate in Texas.

Deed Must Be Acknowledged

The deed must be signed and acknowledged by the grantor before a notary public or two credible

subscribing witnesses. The acknowledgement is a formal declaration by the grantor that the instrumentwas executed freely and voluntarily and for the consideration therein expressed.

Deed Must Be Delivered

Transfer of ownership of the property is not effective until the grantor delivers the completed deed to the

grantee. Delivery may be made by actual or constructive delivery.

Actual delivery occurs when the grantor physically hands the deed to the grantee who accepts it.

Constructive delivery is the more common method. Usually the parties agree that an attorney, the title

company or an escrow agent will file the deed for recording and the recorded deed will be mailed to thegrantee. When the deed is recorded, it is presumed that the deed has been delivered.

Purpose and Effect of Recording

Recording of a deed is not required for the deed to be valid. Lenders will require recording of the deed as

it constitutes public notice to subsequent purchasers, creditors and all others of the existence of the deed

and its contents. Recording is also a protection for the property owner. Recordation takes effect from thetime the deed is filed with the county clerk for recording. Failure to acknowledge the deed will not

necessarily cause the deed to be void, but a deed can not be recorded in Texas without being first

acknowledged.

Recording of the deed further operates as constructive delivery of the deed and is presumptive evidence

that the deed has been delivered to and accepted by the grantee.

Law of Contracts


WILLS AND DESCENT AND DISTRIBUTION

Title to real estate may be acquired through the will of the previous owner. The will must be probated or

proven before it is effective to transfer real estate. If the owner of real estate dies without a will, his realestate will pass according to the statutes of descent and distribution. In effect, the owner permits the state

to write a will for him.

WILLS

A will is a written instrument that disposes of a person's property upon the death of the person who made

the will. In Texas, any person who has reached the age of 18 years, who has been lawfully married, orwho is a member of the armed forces may make a will. There is no requirement that a person leave any

property to his or her surviving spouse or children. Anyone can be the beneficiary of the deceased's

property.

A formal will is one drawn by an attorney and requires two witnesses. In Texas, a holographic, or hand-

written will is acceptable. A person transferring real property through a will does so through devise. An

oral will only transfers personal property. Personal property transferred by will is known as a bequest.

When a person dies with a will, he is said to have died testate. Without a will upon death, he died

intestate.

PROBATING THE WILL

If the heirs wish the will to take effect and pass the property, the will must be probated. Until it is

probated or "proven", it is worthless. If a will is not probated within four years of the date of death of themaker, it can not thereafter be probated.

Law of Contracts


DEED OF TRUST

THE TYPICAL MORTGAGE USED IN TEXAS

In a deed of trust, title to the property is transferred to a trustee as security for a debt or obligation owed

by the debtor to the beneficiary of the trust. The deed of trust is the common mortgage instrument used in

the state of Texas to protect the mortgage lender if the mortgagor defaults on the real estate lien note.

FORECLOSURE UNDER DEED OF TRUST

Section 51.002, Property Code as amended, specifies the foreclosure procedures under a deed of trust.After default, the debtor is notified that the debt has been accelerated. The trustee posts one notice of the

foreclosure sale at the courthouse door in the county in which the sale will be held. The posting must

occur 21 days prior to the sale day. A copy of this notice must be filed in the office of the county clerk. Inaddition, the lender must send written notice of the proposed sale by certified mail to each debtor at his

last known address, as shown in the lender's records, at least 20 days prior to the sale. The auction is held

on the first Tuesday of the month between the hours of 10:00 a. m. and 4:00 p.m. and the property is sold

by the trustee to the highest bidder.

The trustee conveys title to the purchaser by a trustee's deed. The proceeds of the sale are applied to pay

the trustee's fee, the balance due on the mortgage and the remainder, if any, to the debtor. There is noredemption period on a foreclosure sale under a deed of trust.

DEED OF TRUST TO SECURE ASSUMPTION

In an assumption transaction, the buyer acquires title to a property that has an existing mortgage as a lien.

As part of the consideration, the assumption buyer agrees to be personally liable for the terms and

conditions of the note assumed and the mortgage and agrees to pay the remaining balance on themortgage loan. The original mortgagor, the assumption seller, remains liable on the note if the assumption

buyer defaults. To avoid a foreclosure if the buyer defaults, the seller may wish to make the delinquent

payments that are the obligation of the buyer.

A deed of trust to secure assumption signed by the assumption buyer at the time of sale will provide the

assumption seller with the means to recover title to the property. If the buyer defaults on his obligations to

the seller, the seller may foreclose the property. The procedure for the foreclosure sale is the same as forthe usual deed of trust. If the seller is the highest bidder at the sale, the trustee executes a deed to him and

the seller is in substantially the same situation as he was before the assumption transaction.

Law of Contracts


THE REAL ESTATE LIEN NOTE

The real estate lien note is the usual form of promissory note signed by the buyer when purchasing a

home or tract of land. It is the evidence of the debt owed by the mortgagor to the mortgagee for which thedeed is given as security. If the debtor defaults on payment of the note, the trustee in the deed of trust has

power of sale to foreclose on and sell the property.

Lien Defined

A lien is the right given by our law to the lender of money to have the debt satisfied out of property

belonging to the debtor. Such a lien may give the creditor the right to sell the property of the debtorwithout his permission. In Texas, the mortgage lien is called a Deed of Trust.

Types of Liens

Liens are generally classified into two types, specific and general. The specific type of lien is placed on a

certain item such as a lien for non-payment of a new roof on your home. The mortgage lien, for example,usually affects the property mortgaged and will not affect any other property owned by the debtor. A

judgment lien will affect all real estate owned by the debtor and all his personal property. Examples of a

general lien are judgments, debts of the deceased and inheritance taxes. An IRS lien is a general lien.

Priority of Liens

The ordinary rule of priority is that each lien ranks in its order of filing with the court clerk. If three lienswere filed on the first, second and third day of the month, the first filed would be superior. It is possible to

change the priority of liens by contract between the parties. This contract is called a "subordination

agreement" and sets out the agreement that a subsequent lien is now deemed to be superior to the firstrecorded lien. Under certain situations, holders of mortgages are willing to allow others to precede them,

and, in turn, become subordinate to them.

Law of Contracts


TITLE INSURANCE

The two most common methods of determining the sufficiency of title are the abstract of title and title

insurance. Because of the time and cost disadvantages of the abstract, many purchasers of city propertyprefer to obtain a policy of title insurance. The insurance company operates under the rules of the Texas

Insurance Commission and will issue a policy guaranteeing the title to be indefeasible.

Most title companies operate their own abstract plant, using information gained from the official records.

Their own abstractors will search the title and, if it is found clear, issue a commitment to the buyer. This

instrument indicates the title is clear and the title company is willing to insure the land. The insurance

premium is a one—time fee and is regulated by the Texas Insurance Commission. In the event of loss, thetitle insurer will pay from its own funds to defend a suit against the buyer up to the policy limit. The

abstract of title or title insurance policy is not the title, it is only evidence of title.

OWNER'S TITLE POLICY

Two types of title insurance are issued in Texas:

1. the owner's policy

1. mortgagee's policy

The buyer of real estate asks for and receives the owner's title policy, guaranteeing that the property he is

purchasing has a fee simple title. The policy on its face protects a named buyer and will not protect any

subsequent purchaser of the property.

The items covered by an owner's title insurance policy include:

1) Matters of public record

1) Lack of capacity

1) Lack of authority to act

1) Lack of delivery of the instruments1) Water and mineral rights

There are 8 promulgated exclusions to the title policy. Some of the items not covered by an owner's titleinsurance policy include:

1) Discrepancies in areas and boundaries of the property shown by a true survey

1) Rights of parties in possession1) Losses beyond the policy limits

1) Restrictive covenants affecting the property

1) Taxes for current and subsequent years1) Existing building and zoning ordinances

1) Any exceptions or reservations contained in the deed

1) Liens created as part of the financing agreement

The title insurance company is responsible for facts in all the public records and liable for its errors. The

title insurer is not responsible, unless a special fee is paid, for survey mistakes or miscalculations of

acreage. If renters occupy the property, the Title Company is not responsible for their removal, eitherbefore or after closing.

Law of Contracts


MORTGAGEE'S TITLE INSURANCE POLICY

The second type of insurance policy commonly issued by title companies is the mortgagee's policy.

Before the mortgagee is willing to loan money on the real estate, the mortgagee must know that the

buyer's title will be good and the lender will have a good first lien on the property. If a prior lien is

overlooked, the new lien would be secondary to the one recorded first. In most cases, the owner's titlepolicy and mortgagee's policy are issued at the same time.

BROKER'S OBLIGATIONS AS TO TITLE

The Texas Real Estate License Act requires the broker to advise the buyers that they should have the title

to the real estate verified by one of two methods:

1. Obtain an abstract and have the buyer's own attorney search it or,

1. Obtain a policy of title insurance

WHO PAYS?

The owner's title policy is generally purchased by the seller for the buyer's benefit. The Mortgagee's titlepolicy is generally purchased by the buyer for the lender's benefit. However, the owner's title policy is a

negotiated item, either may pay. If the buyer pays the owner's title policy, under RESPA rules, the buyer

gets to choose the title company.

Law of Contracts


ABSTRACT OF TITLE

The two most common methods of determining the sufficiency are the abstract of title and title insurance.

The abstract is a written history, in brief form, of all instruments and happenings that may affect the title.The abstractor will copy all the deed, mortgages, releases, marriages, deaths, lawsuits, tax assessments

and divorces in a booklet form. They are generally in chronological order starting with the sovereignty of

the soil or the first owner.

Of utmost importance is the chain of title, from one owner to the next, down to the present owner and

date. If the instruments do not show such a chain, the title is said to have a break in the chain of title. The

abstractor is a trained professional and is liable for his negligence in the event an important point isoverlooked. The abstractor does not give any opinion as to the sufficiency of the title, as this is the

responsibility of the examining attorney.

The examining attorney is usually employed by the buyer to give his opinion as to the sufficiency of the

title and will examine the abstract carefully for its legal consequences. If the attorney feels the evidence

before him represents a good title, he will report to his client in the form of a written opinion, stating anyobjections he may have. If an available abstract on the property is only a few years old, the abstractor may

only need to continue the abstract down to the present date.

This process protects the buyer, but, unfortunately, is time consuming and expensive. It is still usedextensively for farm and ranch property, and, in some areas of Texas, for city property.

Law of Contracts


CONTRACTS FOR THE SALE OF REAL ESTATE

Four essential elements must exist for a contract to be created. They are:

1) competent parties

1) legal subject matter

1) consideration1) mutual assent (offer and acceptance)

Competent Parties

The general rule of law is that all parties to a contract have read it and understand it. This is true even if

they are "slow" or are illiterate. Certain persons do not have full contractual capacity. These are minors,mentally insane persons and those under the influence of drugs or alcohol.

Minors are defined by the Texas Family Code as people who have not yet attained the age of 18 years.Contracts executed by a minor are generally considered to be voidable at the option of the minor.

Therefore, anyone who contracts with a minor always contracts with the possibility that the minor may

choose to void his contract. However, when the minor achieves legal age, it then becomes valid and

binding.

Contracts with the mentally insane can be either void or voidable. If the person has been judged to be

insane, the contract is void because the person never had the capacity to enter into the contract. Whensuch a judgment has not been made, however, and the contracting party is attempting to prove insanity,

mental infirmity, senility or mental retardation, the contract becomes voidable at the option of the

informed party, their agent or guardian.

Legal Subject Matter

A contract for an illegal purpose is void and the law treats the contract as if it were never created.(Example: A contract on someone's life has an illegal purpose, therefore it is a void contract.)

Consideration

Consideration is often thought of as money or goods exchanged by the parties. However, it is defined as

something of value given in exchange for a promise. In a unilateral contract, only one party makes a

promise and the other party completes his half of the contract by performance. In some respects, a listingagreement might be thought of as an example because only one party (the seller) makes a promise. He

conditionally promises to pay a commission if the broker produces a ready, willing and able buyer, but

the other party (the broker) does not promise to sell the property. He accepts the offer (promise to paycommission) when he secures a ready, willing and able buyer because this is the performance that meets

the offer.

Mutual Assent

Mutual assent is an essential prerequisite to the formation of a contract. There must have been a "meeting

of the minds" (offer and acceptance) between the parties. The determination of mutual assent is usually aquestion of fact and is completed by the process of offer and acceptance.

Law of Contracts


Offers

The one making the offer is called the offerer. The one to whom the offer is made is the offeree. To be

effective, the offer must meet certain legal requirements. It must be:

1) communicated to a specific offeree1) intended to be a serious offer

1) definite and certain enough to be accepted by the offeree

It must also be specific so that the offeree, in exercising his power of acceptance, knows exactly what he

is accepting. In most real estate situations, the offer is usually completed upon the purchaser submitting

the earnest money contract to the seller.

Acceptance

In determining whether or not there was an effective acceptance of the contract, the points generallyconsidered are those of intent, the manner of acceptance, and the timeliness of the acceptance and whether

or not that acceptance was unconditional.

The manner of acceptance is also important. There must not have been any jest or proposed change in the

offeree's mind or in the manner in which he accepted the offer. The offeree must also have been the party

to whom the offer was made and not someone who simply overheard the offer being made. Anyacceptance that is not acceptance of the whole offer becomes a counter offer.

Termination of Offers

If an offer has been made, it can be terminated prior to acceptance by the offeree due to:

1) the acts of the parties or1) operation of law

Acts of the parties depend on the conduct of the offerer and offeree. The offer, if no time is specified,

remains open for a reasonable time and the offeree may accept this offer within the reasonable timeperiod. If there is a specified time period, the offer terminates when the time period is expired. "This offer

is in effect until midnight (Month, date, year)."

Operation of law may terminate an offer. The law terminates the offer upon the death of the offerer or

offeree, prior to the acceptance, bankruptcy of either party, or a change in the law that renders the contract

illegal.

Sales Contract Default Remedies

"If Buyer fails to comply with this contract, Buyer shall be in default, and Seller may either (a) enforcespecific 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 is unable without fault to make any non-casualty repairs or deliver the Commitmentwithin the time allowed, Buyer may either terminate this contract and receive the Earnest Money as the

sole remedy or extend the time for performance up to 15 days and the Closing Date shall be extended as

necessary.

Law of Contracts


If seller fails to comply with this contract for any other reason, Seller shall be in default and Buyer may

either: (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."

PROVISIONS OF SALES CONTRACTS

1. There must be a written instrument.

1. The instrument must be signed by the party to be charged.

1. There must be evidence of intent to convey an interest in the real estate some time in thefuture. One party offers to give his money and the other party offers to convey his interest in

some real estate at a future date. (Consideration)

1. There must an identifiable grantor and grantee. The grantor and grantee must be competent.

1. The subject matter to be conveyed must be identifiable (Proper Legal Description).

Law of Contracts


THE PROPERTY DESCRIPTION

An adequate legal description of the property is an important element of the deed (contract). One should

be able to take the description from the deed (deed) and go right to the land itself and identify the actualproperty. An absolute necessity in the description is the county in which the land is located. Some hold

that a street address is not a sufficient description to support a legal instrument. There are four basic

methods of describing land: (1) Metes and Bounds (2) Monuments (3) Rectangular Survey (4) Lot andBlock.

Of the four, only two are actually used in Texas; metes and bounds for property outside the city, and lot

and block for neighborhoods and property within the city.

1. Metes and Bounds

"Metes" generally refers to distance while "bounds" refers to boundary lines. Thus, a metes and

bounds description will give the distance and boundary lines of the tract of land. The surveyor

prepares these figures, usually referred to as "calls". He will pick a point of beginning. If theparcel is a square or rectangle, there will be four "calls", but if it is irregular with eight sides, it

will have eight "calls". Some tracts of land may have dozens or more "calls". The many sided plot

of land must have a single point for the beginning and ending of the description.

1. Monuments

Surveyors use benchmarks placed at strategic points throughout the county and use these asreference points. A square tract of land could be described by four monuments at its four corners.

1. Rectangular Survey

This system of land description is based upon principal meridians and base lines. Principal

meridians are north and south lines. Base lines are east and west.

1. Lot and Block

This method describes a parcel of land by reference to lot and block numbers that appear on asurveyed map or plat of the subdivided land which has been recorded with the county clerk. The

map or plat has been drawn to scale by a surveyor and shows all lots, streets, alleys and

easements. The description includes the volume and page of the plat pertaining to the designated

lot. All information concerning the lot shown on the recorded plat is incorporated by reference inthe deed description.

Law of Contracts


ADDITIONAL ITEMS IN THE SALE

PERSONAL PROPERTY

Personal property is all the property that is not real estate. Personal property is often called "chattel" and

is usually considered movable property. Personal property should be transferred with a document called a

"Bill of Sale". The agreement for the sale of personal property should be kept separate from the salescontract.

Items of personal property that are so attached to realty as to become real estate are called "fixtures".

FIXTURES

There are three methods used in determining fixtures:

1. Mode of Attachment The most common method of making personal property part of the real

estate is to attach it firmly in place. If the property is removed and it damages the real estate, itshould have remained with the property as part of real property. This is also known as the

"annexation test."

1. Fitness or Adaptation to Use Items such as mini blinds or a hot water heater, are not firmlyattached to the house, but have been held to be real estate because they are fitted and adapted to

use therein.

1. Intention of the Parties The buyers and sellers may determine by agreement that certain

described items of property are realty and pass with the sale. This is done by specifying in the

written real estate sales contract that such items are included in the transaction. Intention of theparties is the most important test to determine if the item is real property. It is sometimes

determined by a judge in a court of law.

AVOIDING PROBLEMS AND MISUNDERSTANDING

Real estate brokers should be especially careful to avoid controversies over real and personal property. Byincluding in the contract the items that might create problems, trouble can be avoided. Having the buyers

"walk through" the property prior to closing will help as well.

Remedies, if fixtures are removed: (1) notify the seller and ask that the fixtures be returned or (2) take theissue to court, usually a J.P. court, where the parties often represent themselves and it is less costly.

Law of Contracts


CONTRACT FOR SALE OF LAND

Substantial real estate is sold under what is sometimes called a "contract for deed", "contract of sale" or

"land contract". In reality, it is a method of financing real estate as it creates an effective lien by notgiving the buyer a deed until some future date. The contract will contain all the necessary facts regarding

the transaction including sales price, payment schedule, interest rate, agreement to repairs and others.

Title does not transfer. The buyer is literally under contract to buy and often takes possession of theproperty.

If a lender (mortgagee) is involved, the seller of a contract for deed financing agreement should notify

him.

To protect the purchaser, the contract should be recorded in the county courthouse in the county where the

property is located.

DISADVANTAGES OF CONTRACT FOR SALE OF LAND

There are advantages to the seller, and serious disadvantages to the buyer. If the seller dies, becomes

divorced, is declared bankrupt or disappears prior to the time he has agreed to give a deed, the buyer has

problems. The buyer may have paid on the property for the full period, only to discover that the seller hasnot, at any time, had good title to the property. During the period the buyer is faithful in making his

payments, the seller may borrow money by creating a mortgage on the property. Should he fail to make

the payments on this mortgage, the buyer's equity is eliminated.

Law of Contracts



1. An oral contract for sale is enforceable in a court of law. T F

1. The buyer is entitled to have his earnest money refunded if he does not T F

qualify for his loan.

1. TAR is the licensing authority in Texas for real estate licensees. T F

1. The seller must disclose the condition of his property to a potential T F

purchaser only if he lists his property with a real estate broker.

1. When presenting multiple offers, the first offer submitted to the listing T F

agent must be worked first by the seller.

1. If a buyer offers full price and terms pursuant to the listing agreement, the T F

seller is obligated to sell.

1. An agent, with full disclosure to all parties, may give part of his T F

commission to a buyer or tenant in a transaction.

1. A verbal agreement (usually done on the telephone) on a contract of sale T F

is binding on all the parties.

1. All listing agreements must have a definite termination date. T F

1. A Buyer's Temporary Lease or a Seller's Temporary Lease may not T Fbe used for more than a 90 day tenancy.

1. A Buyer/Tenant Representation Agreement must have a definite T F

termination date.

1. A buyer has an automatic three day (72 hour) time period to break out of the T F

real property contract.

1. TREC has a standard Buyer/Tenant Representation Agreement. T F

Law of Contracts


THE SALES PROCESS – RESIDENTIAL

! Agent meets with buyer

! Buyer is "pre-qualified" or pre-approved by loan officer

! Buyer acknowledges the IABS form

! Agency is determined by the parties and reduced to writing

! Agent shows properties to buyer

! Agent writes offer for buyer on seller's property

! Selling agent delivers offer to listing agent

! Listing agent presents buyer's offer to seller

! Negotiations begin

! Contract negotiations are completed and agreed to by all parties

! Contract and earnest money is delivered to title company

Title is opened and G. F. number is assigned

Title examination is done

Title commitment is issued

! Buyer makes loan application

Lender sends out verificationsCredit report is ordered

Appraisal is done

! Buyer has property inspections done Buyer gets loan approval Survey is ordered

! Buyer and Seller close on property when all contract requirements are completed

Lender delivers money on buyer's behalf

Seller delivers deed to buyer

Buyer receives possession of the property at fundingSeller receives the sale proceeds

Brokers receive commissions

Law of Contracts


THE SALES PROCESS – COMMERCIAL

! Agent meets buyer/tenant

! Buyer/tenant acknowledges the IABS form

! Agency is determined by the parties and reduced to writing

! Agent shows property to buyer/tenant

! Letter of Intent is written (non-binding offer)

! Negotiation of major points of concern per "letter" form

! Reduce to sales contract form with earnest money attached (attorney involvement)

! Contract and earnest money is delivered to title company

Title is opened and GF number is assigned

Title examination is done

Title commitment is issued

! Buyer makes loan application with lender and/or gives credit information to landlord.

Lender has appraisal done.

! Lender has survey done

! Buyer/tenant has property inspections done; Environmental Site Assessment Feasibility study

is done and demographics are gathered

! Renegotiate and/or remedy the problems from the inspections

! Sales Contract goes "hard"

! Default and remedies

Seller retains earnest money or buyer is returned earnest moneyLiquidated damages paid to non-defaulting party by defaulting party

Suit for specific performance

! Buyer and Seller close on property

All contract requirements have been completedLender delivers money on buyer's behalf

Seller delivers deed to buyer

Buyer receives possession of the property at funding

Seller receives the sale proceedsBrokers receive commissions

Law of Contracts


LOAN PROGRAMS

Requirements Conventional VA FHA

Default Insurance PMI required with

less than 20% down

guaranteed Annual

premium+MIP

Down Payment 3% -5% minimum $0 ***See below

Maximum Loan $417,000

FNMA/FHLMC

$417,000 $200,160 max. *****

Interest Rate Market Market Market

Discount Points Negotiable Negotiable Negotiable

Qualifying Ratios 28%-36%

*GMI

41% and

Residual Income

33%-43%

*GMI

Days to Close 20 days 30 days 30 days

Eligible Borrowers anyone * *veteran anyone

Origination Fee VA

Funding Fee

Negotiable Negotiable Negotiable

Occupancy Owner or Non — Owner Owner Owner

*Gross Monthly Income

**VA loans originated after 3/1/88 and FHA loans originated after 12/15/89 must have lender approval before theycan be assumed.

***FHA Loans are determined by first calculating the maximum loan amount on the sales price then subtracting that

amount from the sales price to determine the buyer's down payment, which excludes closing costs. The down

payment is based on a fixed percentage of the lesser of the property sales price or appraised value. Two categories

are considered for calculating an FHA loan amount:

97.75% for houses over $50,000 98.75% for houses $50,000 and less

A borrower is required to pay cash of at least 3 per cent of acquisition cost, and can include closing costs or a portion

of them.

****A borrower does not go to the FHA or VA for loan application. They go to a bank or mortgage company to

make application.

*****200,160 in standard areas and up to 362, 790 in high cost areas.

Law of Contracts


TEXAS VETERANS LOAN PROGRAMS

Residency Requirement

To be considered a Texas Veteran, the only residency requirement is that a Veteran live in Texas for at

least one year immediately prior to filing an application with the Texas Veterans Land Board, or that the

Veteran entered the service while a bona fide resident of Texas. This program is unrelated to the federalVA program. Many veterans who do not qualify for the federal VA program will qualify for the Texas

programs.

Housing Assistance Program

The Texas Veterans Housing Assistance Program offers eligible Texas Veterans up to $240,000 to use

toward the purchase of a veteran's primary residence. Interest rates are normally 1% below market rates.Additional discounts are available depending upon the veteran’s disability status and for shorter-term

loans.

The qualified Texas Veteran will must qualify for and obtain a VA, FHA, or Conventional loan from one

of the many approved lenders throughout the state. The primary difference between the Texas Veterans

loan and any other FHA/VA/Conventional loan is that the loan is purchased by the Veterans Land Board

at a lower rate.

Home Improvement Program

The Veterans Home Improvement Program lends eligible Texas Veterans up to $25,000 for up to 15 years

to make improvements to existing homes. The minimum loan amount is $4,000. If the loan is $7,500 or

less, the maximum term of the loan will be 10 years. No down payment is required and all loans are FHATitle 1 insured loans.

Land Loans

This program offers eligible Texas Veterans a maximum $60,000, fixed rate, 30-year loan to buy a

minimum of 1 acre. There is no prepayment penalty on this loan. The Veterans Land Board requires a

down payment of 5% and a survey of the land.

Texas Veteran may have one of each of the above loans at the same time, and may use the program as

many times as they want.

For more information on these programs, call 1-800-252-VETS, or visit the website of the General Land

Office at www.texasveterans.com

Law of Contracts


Law of Contracts


CONVENTIONAL CASE STUDY

Sellers: Raul Hernandez and wife, Maria E. Hernandez

Buyers: Alan B. Smith, a single man, and Katherine D. Hill, a single woman, as tenants in

common.

Property: 26 Riverbend Ct., High Mountain, Texas, 73407. Lot 21, Block 6, Section 3' Kings River

Valley Addition, Johnson County, Texas. The house was built in 1976.

Sales Price: $130,000.

Exclusions from the sale: Seller will exclude the antique brass light fixture in the kitchen. Buyer

has recently received the HOA resale certificate.

Financing and Closing Costs: The buyers will apply for a 90% conventional loan, with PMI.

The loan is 30 years, fixed rate of 7.75% +1+1. Buyer will pay the discount point. Loan application to be within 5 days after the

effective date of the contract and loan approval will be within 30

days.

Earnest Money and Title Policy: A $5,000 personal check made out to First Land Title, 1234 Red

Maple Dr., High Mountain. The seller has agreed to pay for the

title policy.

Seller concessions: Seller will furnish, at closing, a residential service contract not to exceed

$399.00.

Broker's Fees: The seller will pay 7% of the sales price as real estate commission to Lone Star,

Realtors, and the listing agent is Jane Long. The listing broker agreed to split the

commission evenly with Homefinders, Inc., and their agent, Marcus Thompson represented the buyer.

Closing and Possession: Closing will be on or before January 1, 2000. Possession will be at funding. Survey: The survey is a lender requirement and will be a

buyer's expense.

Attorneys: None.

Additional information: Mandatory Homeowners Association fees of $360 per year are paid to

TRAC Management. TRAC Management will require a transfer fee of $75 on the day of closing. An option fee of $100 creates an option period

of 10 days. The option fee will be credited to the buyer at closing. Prior

to making an offer, the buyer received the Seller's Disclosure of PropertyCondition. The effective date of the contract is November 22, 1999.

Law of Contracts


FHA CASE STUDY

Sellers: Brandon Wayne May and his wife, Gayle Elaine May

Buyer: Rosa M. Chang, femme sole, and her brother, Donald Chang, baron sole

Property: 4545 Lighthouse Lane, Port Victoria, Texas, 79826, more commonly known as Lot 37, Block 3, Sandcastle Estates, Cabeza County, Texas. The house was built in 1984.

Sales Price and Financing: Agreed to sales price is $117,000. The loan is a 30 year, FHA 203B, 7

1/2% + 1+ 1/2. The Changes will apply within 3 days for their loan and the seller will pay the discount. Loan approval should be within 45 days.

The buyers will pay the amount of closing costs required by FHA. The

mortgage insurance is to be added to the amount of the loan.

Earnest Money and Title Policy: An earnest money amount of $1,000 was agreed to and a

personal check was made out to Sand Dollar Title, 3770 Bay Area Blvd., Port Victoria.

Broker's fees: The listing broker, Coastal Properties, Inc., will receive an 8% listing

commission and will divide evenly with Waterway Investments, Inc. The listing agent is Marlene Crawford, and representing the buyer is Daniel L. Nichols.

Exclusions: The sellers have excluded from the sale, the curtains in their daughter's room and the swing set and fort in the backyard.

Closing and Possession: Closing will be on or before April 2, 2000 and possession will be at funding.

Effective date: The effective date of the contract is February 14, 2000.

Attorney: The buyers will be represented by Racehorse Haynes of Houston and Mr. Haynes will require 3 days to review the survey.

Additional information: The property is not managed by a homeowner's association. The Changesdo have a concern about Port Victoria being in the migratory path of so

many species of birds and want to be certain that none of the birds are of

endangered species. The seller has agreed the buyers, at their expense,

will have the proper assessments made. An option period was created for10 days and was created with an option fee of $200.00. The buyers did

not receive the Seller's Disclosure of Property Condition prior to

contracting and gave the sellers 3 days to furnish the notice. The buyers have a property to sell at 223 Redfish Dr., Port Victoria, but have priced

it below market to enable them to buy the property on Lighthouse Lane.

Law of Contracts


VA CASE STUDY

Buyers: George and Barbara Bush

Sellers: James Carter and his wife, Rosalynn Carter

Property: 1700 Pennsylvania Ave., Houston, Texas 77027. Lot 5, Block 8, White House Oaks, Harris County, Texas.

Sales Price and Financing: Sales price is $350,000. George Bush has had his full VA entitlement

restored to him. His VA loan will be a 30 year fixed rate at 7.25 +1+1.The seller will not pay discount points, but will pay all closing costs for

the loan, including the funding fee.

Earnest Money and Title Policies: $5,000 earnest money is deposited with First USA Title at 1776

Freedom Way, Houston, Texas. Seller will pay for the owner's

title policy.

Closing and Possession: Closing will be on or before May 31, 2000. The Bushes have agreed that

the Carters will retain possession for 14 days after closing and prior to

the Bushes taking possession. The buyers and sellers have agreed that theCarters will pay $500 per day occupancy and will have $50,000 withheld

from their proceeds at closing to be disbursed on their move-out of

Pennsylvania Ave.

Effective date of contract: The effective date of the contract is April 1, 2000.

Attorneys: Buyers attorney is James Baker and sellers attorney is Henry Kissinger.

Brokers Fee's: Listing broker, Executive Premier Properties, Inc, agent Rob Mosbacher, selling

broker, Prestigious Homes, and representing the buyer, agent Lynn Wyatt. Total fee of 10% to be divided equally between the brokers.

Other information: Homeowner's Association fees are $15,000 per year and are paid to Lavish Land Management Company. The home was built in 1976. The buyers plan to have the

home carefully inspected, and have agreed to take the home as is. The sellers

have agreed to repair the marble statue fountain in the front of the home and to

replace the curved drive in the back. The buyer's received the Seller's Disclosure of Property Condition prior to making their offer.

Law of Contracts


ASSUMPTION CASE STUDY

Sellers: Colonel Sherman Potter and Mildred Potter

Buyers: Hawkeye Pierce and wife, Margaret Hoolihan

Property: 458 Video Plaza, Beverly Hills, Texas 75057. Lot 9, Block 6, Hollywood Heights, Orange County, Texas

Sales Price: $195,000

Financing and Closing Costs: The buyers will assume the existing first lien of $56,000 at 6 YA

%. The loan was originated in 1977, when the Potters built the

home. The sellers will carry a second lien of $99,000 at 8 % amortized for 10 years and will not be assumable. The payments

will" be made monthly to the Potters. The buyers agreed to

furnish the sellers with credit reports and verification of employment within 15 days.

Earnest Money and Title Policies: Pierce will give his $10,000 personal check as earnest money to

The Stars Title Company at Hollywood and Vine, Beverly Hills, Texas. The Stars Title Company will issue the owner's and

mortgagee's title policies. The owner's title policy will be paid by

the seller.

Closing and Possession: Closing will be on or before September 29, 2000.

Effective date of the contract: August 31, 2000.

Attorneys: The sellers will be represented by Charles Winchester III, and the buyers will be

represented by Radar O'Reilley.

Additional Information: The existing lien is held by MASH Mortgage and the current payment is

$726 monthly. Mandatory HOA fees are $400 per year payable to Chaparral Management Co. and a $75 transfer fee will be required. The

seller has agreed, at seller's expense, to have a survey done and the buyer

will have 12 days to object to discrepancies or concerns. The Seller's

Disclosure of Property Condition was delivered to the buyer within 5 days of the effective date of the contract. An option fee of $650 created

an option period of 15 days. There will be a transfer fee of $300.00.

Broker's Fees: The listing broker, We Are Vets, Inc., (License 338456, 1347 Memorial Dr.,

Beverly Hills, Texas, 75057, phone 891-287-1966, fax 891-287-1967) will

receive a 5 V2 % listing commission. Their listing agent, Maxwell Klinger, will receive 65%. We Are Vets, Inc. is dividing their listing Commission evenly with

Homes of the Brave, Realtors, (License 567954, 1776 Union Ave., Beverly Hills,

Texas 75058, phone 891-324-9000, fax 891-324- 9001) and their agent, B.J.

Honeycutt, represented the buyers.

Law of Contracts


TEXAS SALES CONTRACTS

SUMMARY AND REMINDERS

On May 1, 2006 real estate agents in Texas must use the new TREC forms for 1-4 Family

Residential Contract (Resale). To help with the understanding of the contracts and their

separate paragraphs the following summary of significant changes and paragraph

reminders are provided for you. It is not intended to be all encompassing.

Paragraph numbers and their contents in this summary are specific to the One to Four Family Residential

Contract (Resale) 02-13-06. Paragraph numbers and contents of other forms may vary, based on the

particular transaction for which the form is intended. Although many items are identical in all the forms,licensees should be familiar with, and have knowledge of all of them.

Paragraph 1 List the seller’s names and buyer’s legal names as they will appear on all documents andclosing instruments. Types of ownership or relationships should be identified, i.e., LLP,

LLC, tenants in common, joint tenants and partnerships. When the buyer is a single man,

include the words “a single man, when the buyer is a single woman, include the words “a

single woman”, when husband and wife are purchasing property together, use the words“and wife” or “and husband” between their names. Et ux is an older, outdated phrase

meaning “and wife”. Someone purchasing as a sole proprietor may sometimes purchase

using a DBA, “Doing Business As”, or assumed name.

Paragraph 2 Identifies the legal description and address of the property to be conveyed, Lot and Block

and Addition. Be sure to add the zip code and county where the property is located. Any

fixtures, or other items retained by the seller should be noted here at the Exclusions

paragraph, which is listed “removed prior to delivery of possession”. Personal propertyitems purchased by buyer from seller should be listed on a separate agreement called a

Bill of Sale. The paragraph refers to “Accessories” which are collectively referred to as

the “Property” and are a part of the real property sale. Mailbox keys were added to thenew form. Permanently installed and built-in items have been set in bold print.

Paragraph 3 Identifies down payment, amount financed, and total price of the Property. A + B = C

always!!! (Even on FHA financing.) This is where an “all cash” sale is identified.

Paragraph 4 By checking the appropriate box, the buyer acknowledges the type of financing desired.Buyer must satisfy the lender’s underwriting requirements or the earnest money will be

refunded to the buyer. The contract is subject to the approval described in the Third Party

Financing Condition Addendum. A buyer who has been pre-approved for a loan may

make the contract subject only to the Property satisfying the lender’s loan requirements.If the buyer checks (4A2) and does not get loan approval, he has forfeited his earnest

money. The Third Party Financing Addendum would not be used in this case. For

Assumption or Seller Financing, the TREC Addenda must be used as well. (THE TERM“DAYS” IN ALL FORMS REFERS TO CALENDAR DAYS).

Paragraph 5 Earnest money amount, the title company and address where the money is being held are

identified. Additional earnest money, generally, is not necessary. Contracting with a

homebuilder to build is an example of an appropriate situation for additional earnest

Law of Contracts


money. If the buyer fails to deposit earnest money as agreed, the buyer is in default. (An

NSF check!)

Paragraph 6 Title Policy and Survey expenses are negotiable. The Title Company has 20 days to

furnish a Commitment to the Buyer for Title Insurance. Under OBJECTIONS, Buyer

may object to any matters that might prohibit a certain use or activity of the property,

e.g., installation of satellite dish, operating a business out of the home, parking of an RVwithin view of the street, etc. There are 8 exceptions in the Title Policy listed of record.

There are three choices for the survey: Seller or Buyer to provide at their individual

expense, or the use of the existing survey, if the lender and title company agree.

Mandatory Owner’s Association Membership is recognized here. The notices andrestrictive covenants and foreclosure issues of a homeowner’s association is given.

STATUTORY TAX DISTRICTS for water, sewer, drainage, flood control notices are

disclosed and if this applies to a buyer, he is obligated to sign the tax rate and bondedindebtedness notice of the district prior to contract execution. The TIDE WATERS

notice regarding coastal area property and the use of the TREC Addendum for such a

property is mandatory. The ANNEXATION notice is to inform buyers that their Propertymay now or later be subject to an annexation by a municipality. This generally means if

they are within an “ETJ” they will become part of a city and subject to additional taxes.

Paragraph 6C(1) clarifies that if the seller fails to deliver the existing survey and

residential real property affidavit within the time required, the buyer may obtain a newsurvey no later than three days before the closing date at the seller’s expense.

Paragraph 6D requires the buyer to Object not later than the earlier of the closing dated or

the negotiated number of days after buyer received the commitment, exception

documents and the survey. Provided Seller does not incur any expense to the provisionthat requires the seller to cure the timely objections of the buyer or any third party lender.

Paragraph 6E(2) if a buyer is concerned, the TREC Addendum for Property Subject to

Mandatory Membership in an Owner’s Association should be used.

Paragraph 6E(6 and 7) gives notice that a seller of property located in a certificatedservice area of a utility service provider must give to a buyer and another statutorily

required notice that a seller of property in a public improvement district (PID) must

provide notice to a buyer.

Paragraph 7 Property Condition paragraph is to allow buyers to have inspections performed on the

property by licensed TREC inspectors. The Seller’s Disclosure should be received by the

buyer prior to making an offer. The buyer can back out up to 7 days after receiving the

notice or prior to closing whichever occurs first. The notice of LEAD-BASED PAINT ishere, and if the property were built prior to 1978 the required Addendum must

accompany the contract. 7D states the buyer accepts the property in its present condition,

provided the seller completes the specific repairs the buyer lists. Lender required repairs,if any, must be a negotiated expense item between the parties. If the lender repairs

exceed 5% of the sales price, buyer may terminate the contract. Seller must complete all

repairs prior to closing, or the closing date may be extended up to 15 days to completerepairs.

Law of Contracts


Environmental Matters are listed as a notice to buyer. If the buyer is concerned that any

of these might affect his use of the property, the TREC Environmental Addendum ismandatory use.

RESIDENTIAL SERVICE CONTRACTS are home warranties. If the buyer purchases a

home warranty, he is to be reimbursed by the Seller at closing for an amount listed in the

contract. This does not mean the buyer is automatically entitled to a warranty. It is anegotiated item.

Paragraph 8 Selling broker’s commission is on page 8 of the contract; the total amount of the

commission agreed to be paid by the seller is on the listing agreement.

Paragraph 9 The closing date may be extended up to 7 days, when necessary, after curing objectionsto the Commitment or Survey. Buyer to bring “good funds” to closing and Seller to bring

a General Warranty Deed to Buyer to convey title to the property. The Seller may

continue to show and accept back up offers on his property. All warranties andrepresentations survive the closing.

Paragraph 10 Possession should be given when the seller receives his proceeds. A Seller’s Temporary

Residential Lease form should be used if the seller occupies the property 90 days or less

after closing, and a Buyer’s Temporary Residential Lease form should be used if thebuyer occupies the property 90 days or less prior to closing. Seller shall deliver the

property in its present condition. Two boxes with one to check: possession will take

place upon funding, or upon the signing of a lease.

Paragraph 11 Special Provisions is only for factual business details or statements not addressed in

the contract form, and for which there is no TREC promulgated addendum, lease or other

mandatory form.

Paragraph 12 Buyer’s and seller’s expenses and settlement costs are stated. Even though printed in theform to be paid by one party or the other, they are negotiable.

12A(1)(a) shows the typical seller’s expenses at or prior to closing. 12A. (b) are expenses

the seller is willing to pay on the buyer’s behalf. Expenses the buyer is not allowed to

pay on an FHA Financing, or other governmental loan program, or just expenses theseller and buyer have negotiated that the seller will pay for the buyer. 12A(2)(a) Typical

buyer expenses are explained here including Loan Fees; these include loan origination,

discount fees, buy-down fees, and commitment fees. 12A(2)(b) include other expensesthe buyer can be liable for at closing. 12B. Buyer shall pay PMI, MIP, or VA Funding

Fee per the requirement of the lender. 12C. If any of these listed expenses exceeds what

the party agreed to pay, the contract will terminate, UNLESS the other party agrees to

pay the excess.

Paragraph 13 Pro rations are calculated through the day of closing for taxes, insurance, maintenance

fees and rents, if any.

Tax pro rations may be calculated to take into consideration any change in exemptionsthat will affect the current year’s taxes.

Law of Contracts


Paragraph 14 A fire or other casualty loss does not release the buyer from the contract. The seller has

until closing to bring the property back to its prior condition. Or the buyer can accept theproperty in its damaged condition and the seller assign the insurance proceeds to the

buyer. The buyer can terminate and receive his earnest money if the seller cannot

perform. The loss is a problem for the seller, since the seller has not transferred title.

Paragraph 15 Default remedies, for both buyer and seller are outlined. Buyer and Seller have theavailability of Suit for Specific Performance, or seek other relief from a court, or release

each other from the contract, generally with the earnest money retained by the seller.

Paragraph 16 The dispute resolution issue is brought up with the seller and buyer checking a box to

agree to mediation, will or will not. The cost of the mediation issue will be sharedequally. This paragraph does not cause the parties to give up their right to go to court.

The TREC Mediation Addendum is no longer available. This paragraph takes its place.

Paragraph 17 Attorney’s fees and court costs are paid by a non-prevailing party.

Paragraph 18 Uncontested forfeited earnest money can be disbursed by the escrow agent. The

escrow agent will give a 15-day notice to other party before disbursing the earnest

money. The escrow agent will reduce the amount of the earnest money if there are

unpaid expenses incurred on behalf of the party receiving the earnest money. The escrowagent is not a party to the contract and does not pay interest on the earnest money deposit.

Paragraph 18C provides that upon termination of the contract, either party may send a

release to the other party and the escrow agent and the parties will execute theappropriate documents and return them to the escrow agent. If one party makes demand

on the escrow agent for the return of the earnest money, the escrow agent should send the

demand to the other party. If the other party does not object within 15 days, the escrow

agent may disburse the earnest money to the demanding party.

Paragraph 18D provides that if a party wrongfully refuses or wrongfully fails to sign a

release, the party entitled to the earnest money is entitled to liquidated damages of three

times the amount of the earnest money.

Paragraph 19 Representations: If any are untrue on the day of closing, the buyer may terminate thecontract and receive the earnest money.

Paragraph 20 A seller is a foreign person if he has no social security card or green card. If he is a

foreign person, the escrow agent will withhold 10% of the sales proceeds, until the IRSallows release of the money to the seller. This applies to sales prices over $300,000;

however, some title companies collect the 10% on any sale by a foreign person seller.

The contract says buyer has the obligation to do this but in reality the escrow agent

provides this service.

Paragraph 21 Notices are to be in writing. Facsimile notices are effective as well as hand-

delivered, or mailed notices and e-mail notices are acceptable.

Paragraph 22 Check the applicable Addenda that should be a part of this agreement.

Law of Contracts


Paragraph 23 Termination Option: For an Option Fee ($) the buyer has the unrestricted right to

terminate this contract by giving notice of termination. (Written Notice) The option feemay be paid within two days after the effective date of the contract. If the buyer fails to

timely pay the option fee, the buyer will not have an option under the contract. The

option fee is non-refundable if notice is given by buyer to terminate within the option

period. However, the earnest money is refundable to the buyer. If the buyer does notterminate his contract with the seller during the option period and continues to closing,

the option money is to either be credited to the sales price or simply given to the seller.

The use of the boxes will note the choice of the parties. There must be $ for there to be

an option. The contract also states both blanks must be filled in.

Paragraph 24 Licensees cannot give legal advice Consult an Attorney. If the parties used an attorney,the attorney would sign on these blanks with their contact information filled in.

The execution date is in this paragraph. When the last party signs, and all changes

have been initialed by both parties, the date of final acceptance is filled in.

Page 8 is a “Courtesy Page”.

Seller’s Receipt: A place for the Option Fee to be acknowledged by seller. The listing agent may

sign on behalf of their principal.

Broker Information and Ratification of Fee: Other broker is the selling broker, the one representingthe buyer, either as a buyer’s agent or a subagent. Notice of agency once again is

disclosed by the listing broker disclosing if they worked in an intermediary status, or

strictly as a seller’s representative. It is the broker’s license number that goes here, not

the agent’s license number.

Receipt: The escrow agent will fill out this part of the form when title is “opened” by the delivery

of the contract to the title company. Either agent may open title.

Third Party Financing Condition Addendum (TREC Promulgated):

! Buyer must make every reasonable effort to obtain financing approval.! Financing approval under the addendum does not include approval of the property.

! If financing cannot be obtained within _______days, this contract will terminate and

the earnest money returned to buyer.! Check applicable boxes: Conventional, Texas Veteran’s Housing Assistance Program

Loan, FHA Insured, VA Guaranteed Financing with the VA Notice to Buyer stating

that if the Certificate of Reasonable Value is less than the sales price of the propertythe buyer may cancel the sale and get his earnest money. The seller can reduce the

sales price to the CRV value and the sale will continue to go through. The buyer can

pay the difference in cash if he chooses.

For a complete summary of all contract forms go to

www.trec.state.tx.us/formslawspubs/forms/forms-contracts.asp

FORMS FOR

REFERENCE

Law of Contracts


Samples of

TREC

TAR®

FormsRemember: TREC forms are for use by all licensees. TAR® forms are for TAR®

Realtor® members only. Per the request of TAR®, all TAR® forms have "sample"written across the front page so they may not be reproduced by non-TAR® members.

(TAR-1406) 4-26-04 Page 1 of 4

SELLER’S DISCLOSURE NOTICE

©Texas Association of REALTORS®, Inc. 2004

Section 5.008, Property Code requires a seller of residential property of not more than one dwelling unit to deliver a Seller’s Disclosure Notice to a buyer on or before the effective date of a contract. This form complies with and contains additional disclosures which

exceed the minimum disclosures required by the Code.

CONCERNING THE PROPERTY AT

THIS NOTICE IS A DISCLOSURE OF SELLER’S KNOWLEDGE OF THE CONDITION OF THE PROPERTY AS OF THE DATE SIGNED BY SELLER AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THE BUYER MAY WISH TO OBTAIN. IT IS NOT A WARRANTY OF ANY KIND BY SELLER, SELLER’S AGENTS, OR ANY OTHER AGENT. Seller ❑ is ❑ is not occupying the Property. If unoccupied (by Seller), how long since Seller has occupied the Property? ❑ or ❑ never occupied the Property Section 1. The Property has the items marked below: (Mark Yes (Y), No (N), or Unknown (U).)

Note: This notice does not establish which items will or will not be conveyed. The terms of a contract will determine which items will and will not be conveyed.

Item Y N U Item Y N U Item Y N UCable TV Wiring Gas Lines (Nat/LP) Pool Heater Carbon Monoxide Det. Hot Tub Public Sewer System Ceiling Fans Intercom System Rain Gutters Cooktop Microwave Range/Stove Dishwasher Outdoor Grill Roof/Attic Vents Disposal Oven Sauna Exhaust Fans Patio/Decking Spa Fences Plumbing System Trash Compactor Fire Detection Equip. Pool TV Antenna French Drain Pool Equipment Washer/Dryer Hookup Gas Fixtures Pool Maint. Accessories Window Screens Item Y N U Additional Information Central A/C ❑ electric ❑ gas number of units: ________ Wall/Window AC Units number of units: ______________ Attic Fan(s) if yes, describe:________________________________________ Evaporative Coolers number of units: __________ Central Heat ❑ electric ❑ gas number of units: _________ Other Heat if yes describe: ________________________________________ Fireplace & Chimney ❑ woodburning ____ (no.) ❑ mock ____ (no.) ❑ other: _______ Carport ❑ attached ❑ not attached Garage ❑ attached ❑ not attached Garage Door Openers number of units: _______ number of remotes: _________ Satellite Dish & Controls ❑ owned ❑ leased from ________________________________ Security System ❑ owned ❑ leased from ________________________________ Water Heater ❑ electric ❑ gas ❑ other:_________ number of units: _______ Water Softener ❑ owned ❑ leased from ________________________________ Underground Lawn Sprinkler ❑ automatic ❑ manual areas covered:____________________ Septic / On-Site Sewer Facility if yes, attach Information About On-Site Sewer Facility (TAR-1407)

page 53

Concerning the Property at

(TAR-1406) 4-26-04 Page 2 of 4

Water supply provided by: ❑ city ❑ well ❑ MUD ❑ co-op ❑ unknown ❑ other: Was the Property built before 1978? ❑ yes ❑ no ❑ unknown (If yes, complete, sign, and attach TAR-1906 concerning lead-based paint hazards). Roof Type: Age: (approximate) Is there an overlay roof covering on the Property (shingles or roof covering placed over existing shingles or roof covering)? ❑ yes ❑ no ❑ unknown Are you (Seller) aware of any of the items listed in this Section 1 that are not in working condition, that have defects, or are need of repair? ❑ yes ❑ no If yes, describe (attach additional sheets if necessary): Section 2. Are you (Seller) aware of any defects or malfunctions in any of the following?: (Mark Yes (Y) if you are aware and No (N) if you are not aware.) Item Y N Item Y N Item Y NBasement Floors Sidewalks Ceilings Foundation / Slab(s) Walls / Fences Doors Interior Walls Windows Driveways Lighting Fixtures Other Structural Components Electrical Systems Plumbing Systems Exterior Walls Roof If the answer to any of the items in Section 2 is yes, explain (attach additional sheets if necessary): Section 3. Are you (Seller) aware of any of the following conditions: (Mark Yes (Y) if you are aware and No (N) if you are not aware.) Condition Y N Condition Y NAluminum Wiring Previous Roof Repairs Asbestos Components Other Structural Repairs Diseased Trees: ❑ oak wilt ❑ _____________ Radon Gas Endangered Species/Habitat on Property Settling Fault Lines Soil Movement Hazardous or Toxic Waste Subsurface Structure or Pits Improper Drainage Underground Storage Tanks Intermittent or Weather Springs Unplatted Easements Landfill Unrecorded Easements Lead-Based Paint or Lead-Based Pt. Hazards Urea-formaldehyde Insulation Encroachments onto the Property Water Penetration Improvements encroaching on others’ property Wetlands on Property Located in 100-year Floodplain Wood Rot Present Flood Insurance Coverage (If yes, attach TAR-1414)

Active infestation of termites or other wood-destroying insects (WDI)

Previous Flooding into the Structures Previous treatment for termites or WDI Previous Flooding onto the Property Previous termite or WDI damage repaired Previous Fires Termite or WDI damage needing repair Previous Foundation Repairs

page 54


(TAR-1406) 4-26-04 Page 3 of 4

If the answer to any of the items in Section 3 is yes, explain (attach additional sheets if necessary): Section 4. Are you (Seller) aware of any item, equipment, or system in or on the Property that is in need of repair, which has not been previously disclosed in this notice? ❑ yes ❑ no If yes, explain (attach additional sheets if necessary): Section 5. Are you (Seller) aware of any of the following (Mark Yes (Y) if you are aware. Mark No (N) if you are not aware.)

Y N ❑ ❑ Room additions, structural modifications, or other alterations or repairs made without necessary

permits or not in compliance with building codes in effect at the time.

❑ ❑ Homeowners’ associations or maintenance fees or assessments. If yes, complete the following: Name of association: Manager’s name: Phone: Fees or assessments are: $ per and are: ❑ mandatory ❑ voluntary Any unpaid fees or assessment for the Property? ❑ yes ($ ___) ❑ no If the Property is in more than one association, provide information about the other associations

below or attach information to this notice.

❑ ❑ Any common area (facilities such as pools, tennis courts, walkways, or other) co-owned in undivided interest with others. If yes, complete the following:

Any optional user fees for common facilities charged? ❑ yes ❑ no If yes, describe:

❑ ❑ Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property.

❑ ❑ Any lawsuits or other legal proceedings directly or indirectly affecting the Property.

❑ ❑ Any death on the Property except for those deaths cause by: natural causes, suicide, or accident unrelated to the condition of the Property.

❑ ❑ Any condition on the Property which materially affects the health or safety of an individual.

❑ ❑ Any repairs or treatments, other than routine maintenance, made to the Property to remediate environmental hazards such as asbestos, radon, lead-based paint, urea-formaldehyde, or mold.

If yes, attach any certificates or other documentation identifying the extent of the remediation (for example, certificate of mold remediation or other remediation).

If the answer to any of the items in Section 5 is yes, explain (attach additional sheets if necessary): Section 6. Do you (Seller) have a survey of the Property available for review?: ❑ yes ❑ no If yes, a copy of the survey ❑ is ❑ is not attached.

page 55


(TAR-1406) 4-26-04 Page 4 of 4

Section 7. Within the last 4 years, have you (Seller) received any written inspection reports from persons who regularly provide inspections and who are either licensed as inspectors or otherwise permitted by law to perform inspections? ❑ yes ❑ no If yes, attach copies and complete the following: Inspection Date Type Name of Inspector No. of Pages

Note: A buyer should not rely on the above-cited reports as a reflection of the current condition of the Property. A buyer should obtain inspections from inspectors chosen by the buyer.

Section 8. Check any tax exemption(s) which you (Seller) currently claim for the Property: ❑ Homestead ❑ Senior Citizen ❑ Disabled ❑ Disabled Veteran ❑ Agricultural ❑ Wildlife Management

❑ Other: ❑ Unknown Section 9. Have you (Seller) ever received proceeds for a claim for damage to the Property (for example, an insurance claim or a settlement or award in a legal proceeding) and not used the proceeds to make the repairs for which the claim was made? ❑ yes ❑ no If yes, explain: Seller acknowledges that the statements in this notice are true to the best of Seller’s belief and that no person, including the broker(s), has instructed or influenced Seller to provide inaccurate information or to omit any material information. Signature of Seller Date Signature of Seller Date Printed Name: Printed Name: NOTICES TO BUYER: The Texas Department of Public Safety maintains a database that the public may search, at no cost, to determine if registered sex offenders are located in certain zip code areas. To search the database, visit www.txdps.state.tx.us. For information concerning past criminal activity in certain areas or neighborhoods, contact the local police department. If you are basing your offers on square footage, measurements, or boundaries, you should have those items independently measured to verify any reported information. This Seller’s Disclosure Notice was completed by Seller as of the date signed. The brokers have relied on this notice as true and correct and have no reason to believe it to be false or inaccurate. YOU ARE ENCOURAGED TO HAVE AN INSPECTOR OF YOUR CHOICE INSPECT THE PROPERTY. The undersigned Buyer acknowledges receipt of the foregoing notice. Signature of Buyer Date Signature of Buyer Date Printed Name: Printed Name:

page 56

(TAR-2508) 4-26-04 Page 1 of 2

INFORMATION ABOUT PROPERTY INSURANCE FOR A BUYER OR SELLER

USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED.


A. The availability and the affordability of property insurance may affect both the buyer and the seller.

Typically a buyer will seek to insure the property. Most mortgage lenders require that the property be insured in an amount not less than the loan amount. The failure to obtain property insurance at or before closing may delay the transaction or cause it to end, either of which can impose both inconvenience and cost to both the buyer and the seller.

B. There are a number of factors that affect the availability and affordability of insurance.

(1) The level of coverage will significantly affect the cost of insurance. There are several levels of insurance coverage. For example: (a) a policy may cover the replacement cost of the improvements and the replacement cost of many

personal items in the property in the event of most casualties; (b) a policy may cover only the cash value of the improvements and exclude many casualties; or (c) a policy may cover casualties and costs between the two noted extremes under (a) and (b).

(2) Coverage levels and prices vary from company to company. There are many insurance companies conducting business in Texas who offer a variety of insurance products at various prices. (a) One insurance company may refuse to insure a particular property or person while another

insurance company may elect to do so. (b) One insurance company may charge a significantly lower premium than another insurance

company for the same or similar coverage. (c) Generally, each insurance company has specific guidelines by which it prices its insurance policies.

The following are examples of criteria that an insurance company may use in evaluating an application for insurance. The criteria vary from company to company.

(1) Past claims filed against the property to be insured in the 5 years preceding the application. (2) Past claims filed by the applicant to be insured in the 5 years preceding the application. (3) The applicant’s insurance credit score. (4) The past relationship between the insurance company and the applicant. (5) The physical characteristics of the property such as condition, age, location, or construction

materials. C. Most insurance companies participate in the Comprehensive Loss Underwriting Exchange (CLUE)

and obtain a CLUE report to evaluate the claims history of the property and the applicant. (1) Most insurance companies contribute information about claims to an insurance industry database

known as CLUE (a registered trademark of Equifax, Inc.). An insurance company obtains a CLUE report when evaluating an application for insurance.

(2) A CLUE report contains information about the claims history of the property and of the applicant for

insurance. (a) The CLUE report contains only data and does not inform the buyer or seller whether insurance is or

is not available or at what cost. (b) Insurance companies use the CLUE report in different ways. (c) It is best to speak with an insurance agent with respect to how the information in a particular CLUE

report affects the affordability and availability of insurance.

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Information about Property Insurance for a Buyer or Seller

(TAR-2508) 4-26-04 Page 2 of 2

(3) While CLUE reports are generally accurate, there may be errors in the reports. (a) An event may be listed as a claim even though the insurance company did not pay any proceeds

(for example, the cost of repair did not exceed the deductible or an inquiry may be incorrectly classified as a claim).

(b) Federal law permits a person to challenge inaccurate information. One may contact the administrator of the CLUE report (ChoicePoint, Inc.) to correct information in a CLUE report.

(3) A property owner may, for a fee, obtain the CLUE report on his or her property through companies such

as ChoicePoint, Inc. (www.choicepoint.com or www.choicetrust.com), A-Plus (800-709-8842) or other companies, most of whose services are accessible via the Internet. An owner may also contact the Equifax Insurance Consumer Center at 800-456-6004.

D. Promptly after entering into a contract to buy a property in Texas, the buyer should take the

following steps to avoid delays in closing and to avoid additional costs. If the buyer has the option to terminate the contract, the buyer should make sure that the buyer and

the insurance agent have completed the following steps before the option expires. (1) Contact one or more insurance agents. (a) The buyer should discuss the various levels of coverage with an insurance agent and ask questions

that are necessary so the buyer understands the levels of available coverage. (b) Insurance agents can provide applicants with written summaries of the various coverage levels. (c) Basic summaries are available at the websites noted in Paragraph E. (2) Submit an application for insurance with the insurance agent of the buyer’s choice. (a) Applying for insurance promptly after entering into a contract to buy a property helps avoid

surprises or delays in closing the transaction. (b) Prompt application permits the buyer time to evaluate various coverage levels and prices. (c) Delaying the application for insurance may limit opportunities to obtain the most suitable coverage

and may limit opportunities to address any unforeseen problems or delays in obtaining coverage. (d) In recent years, many transactions have been delayed or terminated because of problems

associated with obtaining insurance. (3) Ask for written confirmation from the insurance agent that the insurance company: (a) has received the application; (b) has reviewed the applicant’s CLUE report; and (c) has conducted all necessary reviews to issue a policy at the particular price quoted (some

insurance companies may ask for specific information or may wish to inspect the property). (4) Verify that the insurance coverage the buyer chooses is acceptable to the buyer’s lender. E. If one is not able to obtain insurance at a reasonable price or more information is needed, contact

the Texas Department of Insurance (www.helpinsure.com or www.tdi.state.tx.us ). Receipt acknowledged by: Signature Signature

page 58

(TAR-1409) 1-7-04 Page 1 of 1

INTERMEDIARY RELATIONSHIP NOTICE USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED.


To: (Seller or Landlord) and (Prospect) From: (Broker’s Firm) Re: (Property) Date: A. Under this notice, “owner” means the seller or landlord of the Property and “prospect” means the above-

named prospective buyer or tenant for the Property. B. Broker’s firm represents the owner under a listing agreement and also represents the prospect under a

buyer/tenant representation agreement. C. In the written listing agreement and the written buyer/tenant representation agreement, both the owner and

the prospect previously authorized Broker to act as an intermediary if a prospect who Broker represents desires to buy or lease a property that is listed by the Broker. When the prospect makes an offer to purchase or lease the Property, Broker will act in accordance with the authorizations granted in the listing agreement and in the buyer/tenant representation agreement.

D. Broker ❑ will ❑ will not appoint licensed associates to communicate with, carry out instructions of, and

provide opinions and advice during negotiations to each party. If Broker makes such appointments, Broker appoints:

to the owner; and

to the prospect. E. By acknowledging receipt of this notice, the undersigned parties reaffirm their consent for broker to act as

an intermediary. F. Additional Information: (Disclose material information related to Broker’s relationship to the parties, such as

personal relationships or prior or contemplated business relationships.) The undersigned acknowledge receipt of this notice Seller or Landlord Date Prospect Date Seller or Landlord Date Prospect Date

page 59

form HUD-92564-CN (12/04)

U.S. Department of Housing and Urban Development (HUD)

Federal Housing Administration (FHA)

OMB Approval No: 2502-0538 (exp. 06/30/2006)

For Your Protection: Get a Home InspectionName of Buyer (s) _________________________________________________________________________________________________________

Property Address _________________________________________________________________________________________________________

_________________________________________________________________________________________________________

Why a Buyer Needs a Home Inspection

A home inspection gives the buyer more detailed information about the overall condition of the home prior to purchase. In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home to:

evaluate the physical condition: structure, construction, and mechanical systems; identify items that need to be repaired or replaced; and estimate the remaining useful life of the major systems, equipment, structure, and finishes.

Appraisals are Different from Home Inspections

An appraisal is different from a home inspection. Appraisals are for lenders; home inspections are for buyers. An appraisal is required to:

estimate the market value of a house; make sure that the house meets FHA minimum property standards/requirements; and make sure that the house is marketable.

FHA Does Not Guarantee the Value or Condition of your Potential New Home

If you find problems with your new home after closing, FHA can not give or lend you money for repairs, and FHA can not buy the home back from you.

Radon Gas Testing

The United States Environmental Protection Agency and the Surgeon General of the United States have recommended that all houses should be tested for radon. For more information on radon testing, call the toll-free National Radon Information Line at 1-800-SOS-Radon or 1-800-767-7236. As with a home inspection, if you decide to test for radon, you may do so before signing your contract, or you may do so after signing the contract as long as your contract states the sale of the home depends on your satisfaction with the results of the radon test.

Be an Informed Buyer

It is your responsibility to be an informed buyer. Be sure that what you buy is satisfactory in every respect. You have the right to carefully examine your potential new home with a qualified home inspector. You may arrange to do so before signing your contract, or may do so after signing the contract as long as your contract states that the sale of the home depends on the inspection.

I/we understand the importance of getting an independent home inspection. I/we have considered this before signing a contract with the seller for a home. Furthermore, I/we have carefully read this notice and fully understand that FHA will not perform a home inspection nor guarantee the price or condition of the property.

______ I/We choose to have a home inspection performed.

I/We choose not to have a home inspection performed.

X X

Signature & Date Signature & Date

page 60

(TAR-1925) 4-26-04 Page 1 of 1

BUYER’S WALK-THROUGH AND ACCEPTANCE FORM

USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED. ©Texas Association of REALTORS®, Inc. 2004

CONCERNING THE PROPERTY AT

NOTICE TO BUYER: The contract provides that the Seller will deliver possession of the Property to the Buyer in the same condition as on the date the contract was executed; normal wear and tear excepted and subject to any agreed repairs being completed. Before closing, the Buyer should verify that the condition of the Property meets the terms of the contract. A. Inspections:

(1) The Property was inspected by an inspector or inspectors of Buyer’s choice. Buyer has reviewed the inspection report(s).

(2) Buyer has chosen not to have the Property inspected.

B. Before Closing Walk-Through:

(1) Buyer has walked through and reviewed the Property before closing on .

(2) Buyer chooses not to walk through or review the Property before closing. C. Acceptance: Buyer accepts the Property in its present condition. NOTICE TO BUYER: The brokers have no knowledge of any defects in the Property other than what has been disclosed in the Seller’s Disclosure Notice or other written information the brokers may have provided. The brokers have no duty to inspect the property for unknown defects. It is the Buyer’s responsibility to have inspections completed. Buyer Date Buyer Date

page 61

TREC NO. 20-7

Contract Concerning Page of 8 02-13-06(Address of Property)

PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)

ONE TO FOUR FAMILY RESIDENTIAL CONTRACT (RESALE) NOTICE: Not For Use For Condominium Transactions

EQUAL HOUSING OPPORTUNITY

1. PARTIES: (Seller) agrees to sell and convey to (Buyer) and Buyer agrees to buy from Seller the Property described below.

2. PROPERTY: A. LAND: Lot Block , Addit ion,

City of , County of , Texas, known as (address/zip code), or as described on attached exhibit.

B. IMPROVEMENTS: The house, garage and all other fixtures and improvements attached to the above-described real property, including without limitation, the following permanently installed and built-in items, if any: all equipment and appliances, valances, screens, shutters, awnings, wall-to-wall carpeting, mirrors, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system and equipment, heating and air-conditioning units, security and fire detection equipment, wiring, plumbing and lighting fixtures, chandeliers, water softener system, kitchen equipment, garage door openers, cleaning equipment, shrubbery, landscaping, outdoor cooking equipment, and all other property owned by Seller and attached to the above described real property.

C. ACCESSORIES: The following described related accessories, if any: window air conditioning units, stove, fireplace screens, curtains and rods, blinds, window shades, draperies and rods, controls for satellite dish system, controls for garage door openers, entry gate controls, door keys, mailbox keys, above ground pool, swimming pool equipment and maintenance accessories, and artificial fireplace logs.

D. EXCLUSIONS: The following improvements and accessories will be retained by Seller and removed prior to delivery of possession: .

The land, improvements and accessories are collectively referred to as the “Property”.

3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer at closing.................. $ B. Sum of all financing described below (excluding any loan funding

fee or mortgage insurance premium)........................................... $ C. Sales Price (Sum of A and B)...................................................... $

4. FINANCING: The portion of Sales Price not payable in cash will be paid as follows: (Check applicable boxes below) Ç A. THIRD PARTY FINANCING: One or more third party mortgage loans in the total amount of

$ (excluding any loan funding fee or mortgage insurance premium). (1) Property Approval: If the Property does not satisfy the lenders' underwriting

requirements for the loan(s), this contract will terminate and the earnest money will be refunded to Buyer.

(2) Financing Approval: (Check one box only) Ç (a) This contract is subject to Buyer being approved for the financing described in

the attached Third Party Financing Condition Addendum. Ç (b) This contract is not subject to Buyer being approved for financing and does not

involve FHA or VA financing. Ç B. ASSUMPTION: The assumption of the unpaid principal balance of one or more promissory

notes described in the attached TREC Loan Assumption Addendum. Ç C. SELLER FINANCING: A promissory note from Buyer to Seller of $ ,

secured by vendor's and deed of trust liens, and containing the terms and conditions described in the attached TREC Seller Financing Addendum. If an owner policy of title insurance is furnished, Buyer shall furnish Seller with a mortgagee policy of title insurance.

5. EARNEST MONEY: Upon execution of this contract by both parties, Buyer shall deposit $ as earnest money with , as escrow agent, at (address). Buyer shall deposit additional earnest money of $ with escrow agent within days after the effective date of this contract. If Buyer fails to deposit the earnest money as required by this contract, Buyer will be in default.

6. TITLE POLICY AND SURVEY: A. TITLE POLICY: Seller shall furnish to Buyer at ÇSeller’s ÇBuyer’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

page 62

TREC NO. 20-7

Contract Concerning Page 2 of 8 02-13-06(Address of Property)

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 4. (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. Buyer, at Buyer’s expense, may have the exception amended to read, "shortages in area".

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 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 the Closing Date, whichever is earlier.

C. SURVEY: The survey must be made by a registered professional land surveyor acceptable to the Title Company and any lender. (Check one box only) Ç (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 (Affidavit). If the existing survey or Affidavit is not acceptable to Title Company or Buyer's lender, Buyer shall obtain a new survey at Ç Seller's Ç Buyer's expense no later than 3 days prior to Closing Date. 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.

Ç (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.

Ç (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 (8) above; or which prohibit the following use or activity: . Buyer must object not later than (i) the Closing Date or (ii) days after Buyer receives the Commitment, Exception Documents, and the survey, whichever is earlier. 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 the timely objections of Buyer or any third party lender within 15 days after Seller receives the objections and the Closing Date will be extended as necessary. If objections are not cured within such 15 day period, this contract will terminate and the earnest money will be refunded to Buyer unless Buyer waives the objections.

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) MANDATORY OWNERS' ASSOCIATION MEMBERSHIP: The Property Ç is Ç is not subject to mandatory membership in an owners' association. If the Property is subject to mandatory membership in an owners' association, Seller notifies Buyer under §5.012, Texas Property Code, that, as a purchaser of property in the residential community in which the Property is located, you are obligated to be a member of the owners' association. Restrictive covenants governing the use and occupancy of the Property and a dedicatory instrument 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 instrument may be obtained from the county clerk. You are obligated to pay

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TREC NO. 20-7


assessments to the owners' association. 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 the Property. If Buyer is concerned about these matters, the TREC promulgated Addendum for Property Subject to Mandatory Membership in an Owner's 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.

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 turn on existing utilities for inspections.

B. SELLER'S DISCLOSURE NOTICE PURSUANT TO §5.008, TEXAS PROPERTY CODE (Notice): (Check one box only) Ç (1) Buyer has received the Notice. Ç (2) Buyer has not received the Notice. Within days after the effective date of this

contract, Seller shall deliver the Notice to Buyer. If Buyer does not receive the Notice, Buyer may terminate this contract at any time prior to the closing and the earnest money will be refunded to Buyer. If Seller delivers the Notice, Buyer may terminate this contract for any reason within 7 days after Buyer receives the Notice or prior to the closing, whichever first occurs, and the earnest money will be refunded to Buyer.

Ç (3) The Seller is not required to furnish the notice under the Texas Property Code. C. SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by

Federal law for a residential dwelling constructed prior to 1978. D. ACCEPTANCE OF PROPERTY CONDITION: Buyer accepts the Property in its present condition;

provided Seller, at Seller’s expense, shall complete the following specific repairs and treatments:

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

page 64

TREC NO. 20-7


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 AND TREATMENTS: Unless otherwise agreed in writing, Seller shall complete all agreed repairs and treatments prior to the Closing Date. All required permits must be obtained, and repairs and treatments must be performed by persons who are licensed or otherwise authorized by law to provide 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 do so and receive reimbursement from Seller at closing. The Closing Date will be extended up to 15 days, if necessary, to complete repairs and treatments.

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. 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.

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 required of them by this contract, the Commitment or law necessary for the closing of the sale and the issuance of the Title Policy.

C. Unless expressly prohibited by written agreement, Seller may continue to show the Property and receive, negotiate and accept back up offers.

D. All covenants, representations and warranties in this contract survive closing.

10. POSSESSION: Seller shall deliver to Buyer possession of the Property in its present or required condition, ordinary wear and tear excepted: Ç upon closing and funding Ç 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.

11. SPECIAL PROVISIONS: (Insert only factual statements and business details applicable to the sale. TREC rules prohibit licensees from adding factual statements or business details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use.)

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TREC NO. 20-7


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 Housing Assistance Program 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): (a) Loan origination, discount, buy-down, and commitment fees (Loan Fees). (b) Appraisal fees; loan application fees; 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; mortgagee 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; and other expenses payable by Buyer under this contract.

B. Buyer shall pay Private Mortgage Insurance Premium (PMI), VA Loan Funding Fee, or FHA Mortgage Insurance Premium (MIP) as required by the lender.

C. 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 Housing Assistance Program or other governmental loan program regulations.

13. 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.

14. CASUALTY LOSS: If any part of the Property is damaged 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 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: If Buyer fails to comply with this contract, Buyer will 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, due to factors beyond Seller’s control, Seller fails within the time allowed to make any non-casualty repairs or deliver the Commitment, or survey, if required of Seller, Buyer may (a) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (b) terminate this contract as the sole remedy and receive the earnest money. If Seller fails to comply with this contract for any other reason, 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: It 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 Çwill Çwill not 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: The prevailing party in any legal proceeding related to this contract is entitled to recover reasonable attorney’s fees and all costs of such proceeding incurred by the prevailing party.

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TREC NO. 20-7


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 agent may require payment of unpaid expenses incurred on behalf of the parties and a written release of liability of escrow agent from all parties.

C. DEMAND: Upon termination of this contract, either party or the escrow agent may send a release of earnest money to each party and the parties shall execute counterparts of the release and deliver same to the escrow agent. If either party fails to execute the release, either party may make a written demand to the escrow agent for the earnest money. If only one party makes written demand for the earnest money, escrow agent shall promptly provide a copy of the demand to the other party. If escrow agent does not receive written objection to the demand from the other party within 15 days, escrow agent may disburse the earnest money to the party making demand reduced by the amount of unpaid expenses incurred on behalf of the party receiving the earnest money and escrow agent may pay the same to the creditors. If escrow agent complies with the provisions of this paragraph, each party hereby releases escrow agent from all adverse claims related to the disbursal of the earnest money.

D. DAMAGES: Any party who wrongfully fails or refuses to sign a release acceptable to the escrow agent within 7 days of receipt of the request will be liable to the other party for liquidated damages of three times the amount of the earnest money.

E. NOTICES: Escrow agent's notices will be effective when sent in compliance with Paragraph 21. Notice of objection to the demand will be deemed effective upon receipt by escrow agent.

19. REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Buyer and (b) assumed loans will not be in default. If any representation of Seller in this contract is untrue on the Closing Date, Seller will be in default.

20. FEDERAL TAX REQUIREMENTS: If Seller is a "foreign person,” as defined by applicable law, or if Seller fails to deliver an affidavit to Buyer that Seller is not a "foreign person,” then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. Internal Revenue Service regulations require filing written reports if currency in excess of specified amounts is received in the transaction.

21. NOTICES: All notices from one party to the other must be in writing and are effective when mailed to, hand-delivered at, or transmitted by facsimile or electronic transmission as follows:

To Buyer at:

Telephone: ( ) Telephone: ( )

Facsimile: ( ) Facsimile: ( )

E-mail: E-mail:

To Seller at:

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Initialed for identification by Buyer and Seller TREC NO. 20-7


Ç Seller Financing Addendum Ç Environmental Assessment, Threatened or Endangered Species and Wetlands Addendum

Ç Loan Assumption Addendum Ç Addendum for "Back-Up" Contract Ç Buyer’s Temporary Residential Lease Ç Addendum for Coastal Area Property Ç Seller's Temporary Residential Lease Ç Addendum for Property Located Seaward of

the Gulf Intracoastal Waterway Ç Addendum for Sale of Other Property

by Buyer Ç

Addendum for Release of Liability on Assumption of FHA, VA, or Conventional Loan Restoration of Seller’s Entitlement for VA Guaranteed Loan

Ç Addendum for Seller's Disclosure of Information on Lead-based Paint and Lead-based Paint Hazards as Required by Federal Law

Ç

Other (list):

Ç Third Party Financing Condition Addendum

Ç Addendum for Property Subject to Mandatory Membership in an Owners' Association

23. TERMINATION OPTION: For nominal consideration, the receipt of which is hereby acknowledged by Seller, and Buyer's agreement to pay Seller $ (Option Fee) within 2 days after the effective date of this contract, Seller grants Buyer the unrestricted right to terminate this contract by giving notice of termination to Seller within days after the effective date of this contract. If no dollar amount is stated as the Option Fee or if Buyer fails to pay the Option Fee within the time prescribed, this paragraph will not be a part of this contract and Buyer shall not have the unrestricted right to terminate this contract. If Buyer gives notice of termination within the time prescribed, the Option Fee will not be refunded; however, any earnest money will be refunded to Buyer. The Option Fee Çwill Çwill not be credited to the Sales Price at closing. Time is of the essence for this paragraph and strict compliance with the time for performance is required.

24. CONSULT AN ATTORNEY: Real estate licensees cannot give legal advice. READ THIS CONTRACT CAREFULLY. If you do not understand the effect of this contract, consult an attorney BEFORE signing.

EXECUTED the day of , 20 (EFFECTIVE DATE). (BROKER: FILL IN THE DATE OF FINAL ACCEPTANCE.)

Buyer Seller

Buyer Seller

Buyer's Attorney is:

Seller's Attorney is:


Facsimile: ( ) ( )

E-mail: E-mail:

Facsimile:

The form of this contract has been approved by the Texas Real Estate Commission. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not intended for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us) TREC NO. 20-7. This form replaces TREC NO. 20-6.

22. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement. Addenda which are a part of this contract are (Check all applicable boxes):

page 68



CONTRACT AND EARNEST MONEY RECEIPT

Receipt of ÇContract and Ç$ Earnest Money in the form of is acknowledged. Escrow Agent: Date: By: Email Address Telephone ( ) Address Facsimile: ( ) City State Zip

OPTION FEE RECEIPT Receipt of $ (Option Fee) in the form of is acknowledged. Seller or Listing Broker Date

BROKER INFORMATION AND RATIFICATION OF FEE

Listing Broker has agreed to pay Other Broker of the total sales price when Listing Broker’s fee is received. Escrow Agent is authorized and directed to pay Other Broker from Listing Broker’s fee at closing.

Other Broker License No. Listing Broker License No.

represents Ç Buyer only as Buyer’s agent

Ç Seller as Listing Broker’s subagent

represents Ç Seller and Buyer as an intermediary

Ç Seller only as Seller’s agent

Associate Telephone Listing Associate Telephone

Broker's Address Listing Associate’s Office Address Facsimile

City State Zip City State Zip

Facsimile Email Address

Email Address Selling Associate Telephone

Selling Associate’s Office Address Facsimile

City State Zip

Email Address

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02-13-06

TREC NO. 40-2


(Street Address and City)

Buyer shall apply promptly for all financing described below and make every reasonable effort to obtain approval for the financing (Financing Approval). Buyer shall furnish all information and documents required by lender for Financing Approval. Financing Approval will be deemed to have been obtained when (1) the terms of the loan(s) described below are available and (2) lender determines that Buyer has satisfied all of lender's financial requirements (those items relating to Buyer's assets, income and credit history). If Buyer cannot obtain Financing Approval, Buyer may give written notice to Seller within ____ days after the effective date of this contract and this contract will terminate and the earnest money will be refunded to Buyer. If Buyer does not give such notice within the time required, this contract will no longer be subject to Financing Approval. Time is of the essence for this paragraph and strict compliance with the time for performance is required. NOTE: Financing Approval does not include approval of lender's underwriting requirements for the Property, as specified in Paragraph 4.A.(1) of the contract. Each note must be secured by vendor’s and deed of trust liens. CHECK APPLICABLE BOXES: Ç A. CONVENTIONAL FINANCING:

Ç (1) A first mortgage loan in the principal amount of $ (excluding any financed PMI premium), due in full in year(s), with interest not to exceed % per annum for the first year(s) of the loan with Loan Fees (loan origination, discount, buy-down, and commitment fees) not to exceed % of the loan.

Ç (2) A second mortgage loan in the principal amount of $ (excluding any financed PMI premium), due in full in year(s), with interest not to exceed % per annum for the first year(s) of the loan with Loan Fees (loan origination, discount, buy-down, and commitment fees) not to exceed % of the loan.

Ç B. TEXAS VETERANS HOUSING ASSISTANCE PROGRAM LOAN: A Texas Veterans Housing Assistance Program Loan of $ for a period of at least years at the interest rate established by the Texas Veterans Land Board.

Ç C. FHA INSURED FINANCING: A Section FHA insured loan of not less than $ (excluding any financed MIP), amortizable monthly for not less than years, with interest not to exceed % per annum for the first year(s) of the loan with Loan Fees (loan origination, discount, buy-down, and commitment fees) not to exceed % of the loan. As required by HUD-FHA, if FHA valuation is unknown, "It is expressly agreed that, notwithstanding any other provision of this contract, the purchaser (Buyer) shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless the purchaser (Buyer) has been given in accordance with HUD/FHA or VA requirements a written statement issued by the Federal Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement Lender setting forth the appraised value of the Property of not less than $ . The purchaser (Buyer) shall have the privilege and option of proceeding with consummation of the contract without regard to the amount of the


THIRD PARTY FINANCING CONDITION ADDENDUM

TO CONTRACT CONCERNING THE PROPERTY AT

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02-13-06

TREC NO. 40-2

appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value or the condition of the Property. The purchaser (Buyer) should satisfy himself/herself that the price and the condition of the Property are acceptable." NOTE: HUD 92564-CN "For Your Protection: Get a Home Inspection" must be signed and dated by Buyer and attached to this Addendum.

Ç D. VA GUARANTEED FINANCING: A VA guaranteed loan of not less than $ (excluding any financed Funding Fee), amortizable monthly for not less than years, with interest not to exceed % per annum for the first year(s) of the loan with Loan Fees (loan origination, discount, buy-down, and commitment fees) not to exceed % of the loan.

VA NOTICE TO BUYER: "It is expressly agreed that, notwithstanding any other provisions of this contract, the Buyer shall not incur any penalty by forfeiture of earnest money or otherwise or be obligated to complete the purchase of the Property described herein, if the contract purchase price or cost exceeds the reasonable value of the Property established by the Department of Veterans Affairs. The Buyer shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Department of Veterans Affairs." If Buyer elects to complete the purchase at an amount in excess of the reasonable value established by VA, Buyer shall pay such excess amount in cash from a source which Buyer agrees to disclose to the VA and which Buyer represents will not be from borrowed funds except as approved by VA. If VA reasonable value of the Property is less than the Sales Price, Seller may reduce the Sales Price to an amount equal to the VA reasonable value and the sale will be closed at the lower Sales Price with proportionate adjustments to the down payment and the loan amount.

Buyer hereby authorizes any lender to furnish to the Seller or Buyer or their representatives information relating only to the status of Financing Approval of Buyer.

Buyer Seller Buyer Seller

Third Party Financing Condition Addendum Concerning Page 2 of 2 (Address of Property)

This form has been approved by the Texas Real Estate Commission for use with similarly approved or promulgated contract forms. Such approval relates to this form only. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not intended for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us) TREC No. 40-2. This form replaces TREC No. 40-1.

page 71

Law of Contracts


01A

10-29-01PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)

SELLER FINANCING ADDENDUMTO CONTRACT CONCERNING THE PROPERTY AT


A. CREDIT DOCUMENTATION. Within days after the effective date of this contract, Buyer shall deliver to Seller credit report verification of employment, including salary

verification of funds on deposit in financial institutions current financial statement to establish Buyer's creditworthiness and

.Buyer hereby authorizes any credit reporting agency to furnish to Seller at Buyer's sole expense copies of Buyer's credit reports.

B. CREDIT APPROVAL. If Buyer's documentation is not delivered within the specified time, Seller may terminate this contract by notice to Buyer within 7 days after expiration of the time for delivery, and the earnest money will be paid to Seller. If the documentation is timely delivered, and Seller determines in Seller's sole discretion that Buyer's credit is unacceptable, Seller may terminate this contract by notice to Buyer within 7 days after expiration of the time for delivery and the earnest money will be refunded to Buyer. If Seller does not terminate this contract, Seller will be deemed to have accepted Buyer's credit.

C. PROMISSORY NOTE. The promissory note (Note) described in Paragraph 4 of this contract payable by Buyer to the order of Seller will be payable at the place designated by Seller.Buyer may prepay the Note in whole or in part at any time without penalty. Any prepayments are to be applied to the payment of the installments of principal last maturing and interest will immediately cease on the prepaid principal. The Note will contain a provision for payment of a late fee of 5% of any installment not paid within 10 days of the due date. The Note will be payable as follows:

(1) In one payment due after the date of the Note

with interest payable .

(2) In installments of $ including interestplus interest beginning after the date of the

Note and continuing at intervals thereafter for whenthe balance of the Note will be due and payable.

(3) Interest only in installments for the first month(s) and thereafter in installments of $ including interest plusinterest beginning after the date of the Note and continuing at intervals thereafter for when the balance of the Note will be due and payable.

D. DEED OF TRUST. The deed of trust securing the Note will provide for the following:

(1) PROPERTY TRANSFERS: (check only one)

(a) Consent Not Required: The Property may be sold, conveyed or leased without theconsent of Seller, provided any subsequent buyer assumes the Note.

(b) Consent Required: If all or any part of the Property is sold, conveyed, leased for a period longer than 3 years, leased with an option to purchase, or otherwise sold (including any contract for deed), without the prior written consent of Seller, Seller may declare the


page 73

01A

10-29-01

balance of the Note, to be immediately due and payable. The creation of a subordinate lien, any conveyance under threat or order of condemnation, any deed solely between buyers, the passage of title by reason of the death of a buyer or by operation of law will not entitle Seller to exercise the remedies provided in this paragraph.

(2) TAX AND INSURANCE ESCROW: (check only one)

(a) Escrow Not Required: Buyer shall furnish Seller annually, before the taxes become delinquent, evidence that all taxes on the Property have been paid. Buyer shall furnish Seller annually evidence of paid-up casualty insurance naming Seller as an additional loss payee.

(b) Escrow Required: With each installment Buyer shall deposit with Seller in escrow a pro rata part of the estimated annual ad valorem taxes and casualty insurance premiums for the Property. Buyer shall pay any deficiency within 30 days after notice from Seller. Buyer's failure to pay the deficiency constitutes a default under the deed of trust. Buyer is not required to deposit any escrow payments for taxes and insurance that are deposited with a superior lienholder. The casualty insurance must name Seller as an additional loss payee.

(3) PRIOR LIENS: Any default under any lien superior to the lien securing the Note constitutesdefault under the deed of trust securing the Note.

Buyer Seller

Buyer Seller

This form has been approved by the Texas Real Estate Commission for use with similarly approved or promulgated contract forms. Such approval relates to this form only. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not suitable for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188,1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us) TREC No. 26-4. This form replaces TREC No. 26-3.

Seller Financing Addendum Concerning Page Two

(Address of Property)

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01A

10-29-01

A. CREDIT DOCUMENTATION. Within days after the effective date of this contract, Buyer shall deliver to Seller credit report verification of employment, including salary verification of funds on deposit in financial institutions current financial statement to establish Buyer's creditworthiness and

.Buyer hereby authorizes any credit reporting agency to furnish to Seller at Buyer's sole expense copies of Buyer's credit reports.

B.CREDIT APPROVAL. If Buyer's documentation is not delivered within the specified time, Seller mayterminate this contract by notice to Buyer within 7 days after expiration of the time for delivery, and the earnest money will be paid to Seller. If the documentation is timely delivered, and Seller determines inSeller's sole discretion that Buyer's credit is unacceptable, Seller may terminate this contract by notice to Buyer within 7 days after expiration of the time for delivery and the earnest money will be refunded to Buyer. If Seller does not terminate this contract, Seller will be deemed to have accepted Buyer's credit.

C. ASSUMPTION.(1)The unpaid principal balance of a first lien promissory note payable to

which unpaid balance at closing will be $ . Thetotal current monthly payment including principal, interest and any reserve deposits is$ . Buyer’s initial payment will be the first payment due after closing.

(2)The unpaid principal balance of a second lien promissory note payable to which unpaid balance at closing will be

$ . The total current monthly payment including principal, interest and any reserve deposits is $ . Buyer’s initial payment will be the first payment due after closing.

Buyer’s assumption of an existing note includes all obligations imposed by the deed of trust securing the note.If the unpaid principal balance(s) of any assumed loan(s) as of the Closing Date varies from the loan balance(s) stated above, the cash payable at closing Sales Price will be adjusted by the amount of any variance; provided, if the total principal balance of all assumed loans varies in an amount greater than $350.00 at closing, either party may terminate this contract and the earnest money will be refunded to Buyer unless the other party elects to eliminate the excess in the variance by an appropriate adjustment at closing. Buyer may terminate this contract and the earnest money will be refunded to Buyer if the noteholder requires (a) payment of anassumption fee in excess of $ in (1) above or $ in (2) above and Seller declines to pay such excess, (b) an increase in the interest rate to more than % in (1) above, or

% in (2) above, (c) any other modification of the loan documents, or (d) consent to the assumption of the loan and fails to consent. A vendor’s lien and deed of trust to secure assumption will be required which will automatically be released on execution and delivery of a release by noteholder. If Seller is released fromliability on any assumed note, the vendor’s lien and deed of trust to secure assumption will not be required.If noteholder maintains an escrow account, the escrow account must be transferred to Buyer without anydeficiency. Buyer shall reimburse Seller for the amount in the transferred accounts.NOTICE TO BUYER: The monthly payments, interest rates or other terms of some loans may be adjusted by the noteholder at or after closing. If you are concerned about the possibility of future adjustments, do not sign the contract without examining the notes and deeds of trust.NOTICE TO SELLER: Your liability to pay the note assumed by Buyer will continue unless you obtain a release of liability from the noteholder. If you are concerned about future liability, you should use the TREC Release of Liability Addendum.

Buyer Seller

Buyer Seller



LOAN ASSUMPTION ADDENDUMTO CONTRACT CONCERNING THE PROPERTY AT


This form has been approved by the Texas Real Estate Commission for use with similarly approved or promulgated contract forms. Suchapproval relates to this form only. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validityor adequacy of any provision in any specific transactions. It is not suitable for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us) TREC No. 41-0.

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02-13-06

TREC NO. 39-6

Seller and Buyer amend the contract as follows: (check each applicable box) Ç(1) The Sales Price in Paragraph 3 of the contract is:

A. Cash portion of Sales Price payable by Buyer at closing ...........................$ B. Sum of financing described in the contract .............................................$

C. Sales Price (Sum of A and B) ...............................................................$ Ç(2) In addition to any repairs and treatments otherwise required by the contract, Seller, at Seller’s

expense, shall complete the following repairs and treatments: Ç(3) The date in Paragraph 9 of the contract is changed to , 20 . Ç(4) The amount in Paragraph 12A(1)(b) of the contract is changed to $ . Ç(5) The cost of lender required repairs and treatment, as itemized on the attached list, will be paid

as follows: $ by Seller; $ by Buyer. Ç(6) Buyer has paid Seller an additional Option Fee of $ for an extension of the

unrestricted right to terminate the contract on or before , 20 . This additional Option Fee Ç will Ç will not be credited to the Sales Price.

Ç(7) Buyer waives the unrestricted right to terminate the contract for which the Option Fee was paid. Ç(8) The date for Buyer to give written notice to Seller that Buyer cannot obtain Financing Approval

as set forth in the Third Party Financing Condition Addendum is changed to , 20 .

Ç(9) Other Modifications: (Insert only factual statements and business details applicable to this sale.)


This form has been approved by the Texas Real Estate Commission for use with similarly approved or promulgated contract forms. Such approval relates to this form only. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not intended for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us) TREC No. 39-6. This form replaces TREC No. 39-5.

EXECUTED the day of , 20 . (BROKER: FILL IN THE DATE OF FINAL ACCEPTANCE.)

Buyer Seller

Buyer Seller


AMENDMENT TO CONTRACT CONCERNING THE PROPERTY AT


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01A

10-29-01



NOTICE OF TERMINATION OF CONTRACT

To: Seller(s)

In accordance with the unrestricted right of Buyer to terminate the contract between

as Seller and

as Buyer dated , 20 for the Property located at

,

Buyer notifies Seller that the contract is terminated.

Buyer Date Buyer Date


page 77

(TAR-1924) 01-27-98 Page 1 of 1

NON-REALTY ITEMS ADDENDUM TO CONTRACTUSE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED.


ADDENDUM TO CONTRACT BETWEEN THE UNDERSIGNED PARTIESCONCERNING THE PROPERTY AT


A. Seller shall convey to Buyer at closing the following personal property (specify each item carefully, includedescription, model numbers, serial numbers, location, and other information):

B. Seller represents and warrants that Seller owns the personal property described in Paragraph A free and clearof all encumbrances. Seller shall convey the personal property:

� (1) at no cost to Buyer at closing.

� (2) for an additional sum of $ as separate consideration for the personalproperty.

C. Seller does not warrant or guarantee the condition or future performance of the personal property conveyed bythis document.

Buyer Seller

Buyer Seller

page 78

01A

02-09-2004

A. LEAD WARNING STATEMENT: “Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-paint hazards is recommended prior to purchase.” NOTICE: Inspector must be properly certified as required by federal law.

B. SELLER’S DISCLOSURE:1. PRESENCE OF LEAD-BASED PAINT AND/OR LEAD-BASED PAINT HAZARDS (check on box only):

(a) Known lead-based paint and/or lead-based paint hazards are present in the Property (explain): .

(b) Seller has no actual knowledge of lead-based paint and/or lead-based paint hazards in the Property. 2. RECORDS AND REPORTS AVAILABLE TO SELLER (check one box only):

(a) Seller has provided the purchaser with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the Property (list documents):

. (b) Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the

Property. C. BUYER'S RIGHTS (check one box only):

1. Buyer waives the opportunity to conduct a risk assessment or inspection of the Property for the presence of lead-based paint or lead-based paint hazards.

2. Within ten days after the effective date of this contract, Buyer may have the Property inspected by inspectors selected by Buyer. If lead-based paint or lead-based paint hazards are present, Buyer may terminate this contract by giving Seller written notice within 14 days after the effective date of this contract, and the earnest money will be refunded to Buyer.

D. BUYER'S ACKNOWLEDGMENT (check applicable boxes):1. Buyer has received copies of all information listed above.2. Buyer has received the pamphlet Protect Your Family from Lead in Your Home.

E. BROKERS' ACKNOWLEDGMENT: Brokers have informed Seller of Seller's obligations under 42 U.S.C. 4852d to: (a) provide Buyer with the federally approved pamphlet on lead poisoning prevention; (b) complete this addendum; (c) disclose any known lead-based paint and/or lead-based paint hazards in the Property; (d) deliver all records and reports to Buyer pertaining to lead-based paint and/or lead-based paint hazards in the Property; (e) provide Buyer a period of up to 10 days to have the Property inspected; and (f) retain a completed copy of this addendum for at least 3 years following the sale. Brokers are aware of their responsibility to ensure compliance.

F. CERTIFICATION OF ACCURACY: The following persons have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.

Buyer Date Seller Date

Buyer Date Seller Date

Other Broker Date Listing Broker Date


APPROVED BY THE TEXAS REAL ESTATE COMMISSION

ADDENDUM FOR SELLER’S DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS

AS REQUIRED BY FEDERAL LAW

CONCERNING THE PROPERTY AT (Street Address and City)

The form of this addendum has been approved by the Texas Real Estate Commission for use only with similarly approved or promulgated forms of contracts. Such approval relates to this contract form only. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not suitable for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us)

Form OP-Lpage 79

(TAR 1414) 1-7-04 Page 1 of 2

INFORMATION ABOUT SPECIAL FLOOD HAZARD AREAS USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED.

©Texas Association of REALTORS®, Inc., 2004

CONCERNING THE PROPERTY AT A. FLOOD AREAS: (1) The Federal Emergency Management Agency (FEMA) designates areas that have a high risk of

flooding as special flood hazard areas. (2) A property that is in a special flood hazard area lies in a “V-Zone” or “A-Zone” as noted on flood

insurance rate maps. Both V-Zone and A-Zone areas are areas with high risk of flooding. The V-Zone is the area of highest risk.

B. AVAILABILITY OF FLOOD INSURANCE: (1) Generally, flood insurance is available regardless of whether the property is located in or out of a

special flood hazard area. Contact your insurance agent to determine if any limitations or restrictions apply to the property in which you are interested.

(2) FEMA encourages every property owner to purchase flood insurance regardless of whether the

property is in a high, moderate, or low risk flood area. (3) A homeowner may obtain flood insurance coverage (up to certain limits) through the National Flood

Insurance Program. Supplemental coverage is available through private insurance carriers. (4) A mortgage lender making a federally related mortgage will require the borrower to maintain flood

insurance if the property is in a special flood hazard area. C. GROUND FLOOR REQUIREMENTS: (1) Many homes in special flood hazard areas are built-up or are elevated. In elevated homes the ground

floor typically lies below the base flood elevation and the first floor is elevated on piers, columns, posts, or piles. The base flood elevation is the highest level at which a flood is likely to occur as shown on flood insurance rate maps.

(2) Federal, state, county, and city regulations restrict the use and construction of any ground floor

enclosures in elevated homes that are in special flood hazard areas. (3) The first floor of all homes must now be built above the base flood elevation. (a) Older homes may have been built in compliance with applicable regulations at the time of

construction and may have first floors that lie below the base flood elevation, but flood insurance rates for such homes may be significant.

(b) It is possible that modifications were made to a ground floor enclosure after a home was first built.

The modifications may or may not comply with applicable regulations and may or may not affect flood insurance rates.

(c) It is important for a buyer to determine if the first floor of a home is elevated at or above the base

flood elevation.

page 80

Information about Special Flood Hazard Areas concerning

(TAR 1414) 1-7-04 Page 2 of 2

(4) Ground floor enclosures that lie below the base flood elevation may be used only for: (i) parking; (ii) storage; and (iii) building access. Plumbing, mechanical, or electrical items in ground floor enclosures that lie below the base flood elevation may be prohibited or restricted and may not be eligible for flood insurance coverage. Additionally:

(a) in A-Zones, the ground floor enclosures below the base flood elevation must have flow-through

vents or openings that permit the automatic entry and exit of floodwaters; and (b) in V-Zones, the ground floor enclosures must have break-away walls, screening, or lattice walls. D. COMPLIANCE: (1) The above-referenced property may or may not comply with regulations affecting ground floor

enclosures below the base flood elevation. (2) A property owner’s eligibility to purchase or maintain flood insurance, as well as the cost of the flood

insurance, is dependent on whether the property complies with the regulations affecting ground floor enclosures.

(3) A purchaser or property owner may be required to remove or modify a ground floor enclosure that is not

in compliance with city or county building requirements or is not entitled to an exemption from such requirements.

(4) A flood insurance policy maintained by the current property owner does not mean that the property is in

compliance with the regulations affecting ground floor enclosures or that the buyer will be able to continue to maintain flood insurance at the same rate.

(5) Insurance carriers calculate the cost of flood insurance using a rate that is based on the elevation of the

lowest floor. (a) If the ground floor lies below the base flood elevation and does not meet federal, state, county, and

city requirements, the ground floor will be the lowest floor for the purpose of computing the rate. (b) If the property is in compliance, the first elevated floor will be the lowest floor and the insurance rate

will be significantly less than the rate for a property that is not in compliance. (c) If the Property lies in a V-Zone the flood insurance rate will be impacted if a ground floor enclosure

below the base flood elevation exceeds 299 square feet (even if constructed with break-away walls).

You are encouraged to: (1) inspect the property for all purposes, including compliance with any ground floor enclosure requirement; (2) review the flood insurance policy (costs and coverage) with your insurance agent; and (3) contact the building permitting authority if you have any questions about building requirements or compliance issues. Receipt acknowledged by: Signature Date Signature Date

page 81

(TAR-1926) 8-27-04 Page 1 of 1

SELLER’S INVITATION TO BUYER TO SUBMIT NEW OFFER



To: (Buyer)

From: (Seller)

Re: The offer concerning the Property at

(1) Seller does not accept the above-referenced offer you submitted. (2) You are invited to submit another offer, which Seller may more favorably consider if:

(3) This communication and invitation is not a counter-offer. The Property remains on the market. Seller

may consider other offers and accept another offer. Seller Date Seller Date

page 82

(TAR-1412) 1-7-04 Page 1 of 1

SELLER’S AUTHORIZATION TO RELEASE AND ADVERTISE CERTAIN INFORMATION


TO: (Broker) FROM: (Seller) RE: (Property) DATE: A. Seller has placed the Property on the market because

. Seller authorizes Broker, at Broker’s discretion, to: (1) inform prospective buyers and other brokers of this information; and (2) advertise this information.

B. Seller authorizes Broker, at Broker’s discretion, to include the following information or phrases in

advertisements concerning the Property (for example, “seller is negotiable,” “bring all offers,” incentives offered, conditions for sale) .

Seller Seller

page 83

(TAR-1904) 2-6-02 Page 1 of 1

RELEASE OF EARNEST MONEY



RELEASE OF EARNEST MONEY BETWEEN THE UNDERSIGNED BUYER AND SELLER CONCERNING THE PROPERTY AT

NOTICE: This form provides for the release of the parties, brokers, and title companies from all liability under the contract (not just for disbursement of earnest money). Do not sign this form if it is not your intention to release all the persons signing this form from all liability under the contract. READ THIS RELEASE CAREFULLY. If you do not understand the effect of this release, consult your attorney BEFORE signing. A. The undersigned Buyer and Seller release each other, any broker, title company, and escrow agent

from any and all liability under the aforementioned contract. B. The undersigned direct (escrow agent)

to disburse the earnest money as follows: $ to $ to $ to $ to Buyer Date Seller Date Buyer Date Seller Date Address: Address: Other/Cooperating Broker Listing/Principal Broker By By Date Date Address: Address:

page 84

Law of Contracts


INFORMATION ABOUT ON-SITE SEWER FACILITY USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED.

©Texas Association of REALTORS®, Inc., 2004

CONCERNING THE PROPERTY AT A. DESCRIPTION OF ON-SITE SEWER FACILITY ON PROPERTY: (1) Type of Treatment System: ❑ Septic Tank ❑ Aerobic Treatment ❑ Unknown ❑ (2) Type of Distribution System: ❑ Unknown (3) Approximate Location of Drain Field or Distribution System: ❑ Unknown (4) Installer: ❑ Unknown (5) Approximate Age: ❑ Unknown B. MAINTENANCE INFORMATION: (1) Is Seller aware of any maintenance contract in effect for the on-site sewer facility? ❑ Yes ❑ No If

yes, name of maintenance contractor: Phone: contract expiration date: (Maintenance contracts must be in effect to operate aerobic treatment and certain non-standard” on-

site sewer facilities.) (2) Approximate date any tanks were last pumped? (3) Is Seller aware of any defect or malfunction in the on-site sewer facility? ❑ Yes ❑ No

If yes, explain:

(4) Does Seller have manufacturer or warranty information available for review? ❑ Yes ❑ No C. PLANNING MATERIALS, PERMITS, AND CONTRACTS: (1) The following items concerning the on-site sewer facility are attached: ❑ planning materials ❑ permit for original installation ❑ final inspection when OSSF was installed

❑ maintenance contract ❑ manufacturer information ❑ warranty information ❑

(2) “Planning materials” are the supporting materials that describe the on-site sewer facility that are

submitted to the permitting authority in order to obtain a permit to install the on-site sewer facility. (3) It may be necessary for a buyer to have the permit to operate an on-site sewer facility

transferred to the buyer. page 86

Information about On-Site Sewer Facility concerning

(TAR 1407) 1-7-04 Page 2 of 2

D. INFORMATION FROM GOVERNMENTAL AGENCIES: Pamphlets describing on-site sewer facilities are

available from the Texas Agricultural Extension Service. Information in the following table was obtained from Texas Commission on Environmental Quality (TCEQ) on 10/24/2002. The table estimates daily wastewater usage rates. Actual water usage data or other methods for calculating may be used if accurate and acceptable to TCEQ.

Usage (gal/day) Usage (gal/day) without water- with water- Facility saving devices saving devices Single family dwelling (1–2 bedrooms; less than 1,500 sf) 225 180 Single family dwelling (3 bedrooms; less than 2,500 sf) 300 240 Single family dwelling (4 bedrooms; less than 3,500 sf) 375 300 Single family dwelling (5 bedrooms; less than 4,500 sf) 450 360 Single family dwelling (6 bedrooms; less than 5,500 sf) 525 420 Mobile home, condo, or townhouse (1-2 bedroom) 225 180 Mobile home, condo, or townhouse (each add’l bedroom) 75 60

This document is not a substitute for any inspections or warranties. This document was completed to the best of Seller’s knowledge and belief on the date signed. Seller and real estate agents are not experts about on-site sewer facilities. Buyer is encouraged to have the on-site sewer facility inspected by an inspector of Buyer’s choice. Signature of Seller Date Signature of Seller Date Receipt acknowledged by: Signature of Buyer Date Signature of Buyer Date

page 87

Law of Contracts


This form has been approved by the Texas Real Estate Commission (TREC) for use whena contract of sale has not been promulgated by TREC. The form should be presented beforean offer to purchase is signed by the prospective buyer. Texas Real Estate Commission, P.O.Box 12188, Austin, Texas 78711-2188, 1-800-250-8732 or (512) 459-6544(http://www.trec.state.tx.us). TREC Notice to Prospective Buyer.(12/99) OP-C replaces MA-C.

APPROVED BY THE TEXAS REAL ESTATE COMMISSION

NOTICE TO PROSPECTIVE BUYER

As required by law, I advise you to have the abstract covering the property known as

(Address) examined byan attorney of your own selection OR you should be furnished with or obtain a policyof title insurance.

If the property is situated in a Utility District, Chapter 49 of the Texas Water Coderequires you to sign and acknowledge the statutory notice from the seller of theproperty relating to the tax rate, bonded indebtedness or standby fee of the District.

DATED: , .

Brokerage Company Name

Broker or Sales Associate

I have received a copy of this NOTICE TO PROSPECTIVE BUYER.

Prospective Buyer

Prospective Buyer

01A TREC NO. OP-Cpage 89

page 90

01A

02-09-2004

A. The Contract to which this Addendum is attached (the Back-Up Contract) is binding upon execution by the parties, and the earnest money and any Option Fee must be paid as provided in the Back-Up Contract. The Back-Up Contract is contingent upon the termination of a previous contract (the First Contract) between Seller and ,dated , 20 , for the sale of Property. Except as provided by this Addendum, neither party is required to perform under the Back-Up Contract while it is contingent upon the First Contract.

B. If the First Contract terminates on or before 5:00 p.m. on , (the Contingency Date), the Back-Up Contract will no longer be contingent upon the termination of the First Contract. Seller must notify Buyer immediately of the termination of the First Contract. For purposes of performance, the effective date of the Back-Up Contract automatically changes to the date Buyer receives notice of termination of the First Contract or the Contingency Date, whichever is earlier (Amended Effective Date).

C. If the First Contract does not terminate by the Contingency Date, the Back-Up Contract terminates and the earnest money will be refunded to Buyer.

D. An amendment or modification of the First Contract will not terminate the First Contract.

E. If Buyer has the unrestricted right to terminate the Back-Up Contract, the time for giving notice of termination begins on the effective date of the Back-Up Contract, continues after the Amended Effective Date and ends upon the expiration of Buyer's unrestricted right to terminate the Back-Up Contract.

F. For purposes of this Addendum, time is of the essence. Strict compliance with the times for performance stated herein is required.

Buyer Seller

Buyer Seller



ADDENDUM FOR "BACK-UP" CONTRACT



This form has been approved by the Texas Real Estate Commission for use with similarly approved or promulgated contract forms. Such approval relates to this form only. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not suitable for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us) TREC No. 11-5. This form replaces TREC No. 11-4.

page 91

01A

10-29-01

IN ACCORDANCE WITH SECTION 61.025, TEXAS NATURAL RESOURCES CODE, THEFOLLOWING STATEMENT IS INCLUDED AS PART OF THE CONTRACT:

The real property described in this contract is located seaward of the Gulf Intracoastal Waterway to its southernmost point and then seaward of the longitudinal line also known as 97 degrees, 12', 19" which runs southerly to the international boundary from the intersection of the centerline of the Gulf Intracoastal Waterway and the Brownsville Ship Channel. If the property is in close proximity to a beach fronting the Gulf of Mexico, the purchaser is hereby advised that the public has acquireda right of use or easement to or over the area of any public beach by prescription, dedication, or presumption, or has retained a right by virtue of continuous right in the public since timeimmemorial, as recognized in law and custom.

The extreme seaward boundary of natural vegetation that spreads continuously inland customarily marks the landward boundary of the public easement. If there is no clearly marked naturalvegetation line, the landward boundary of the easement is as provided by Sections 61.016 and61.017, Natural Resources Code.

State law prohibits any obstruction, barrier, restraint, or interference with the use of the public easement, including the placement of structures seaward of the landward boundary of the easement.STRUCTURES ERECTED SEAWARD OF THE VEGETATION LINE (OR OTHER APPLICABLE EASEMENT BOUNDARY) OR THAT BECOME SEAWARD OF THE VEGETATION LINE AS A RESULTOF NATURAL PROCESSES ARE SUBJECT TO A LAWSUIT BY THE STATE OF TEXAS TO REMOVE THE STRUCTURES.

The purchaser is hereby notified that the purchaser should: (1) determine the rate of shoreline erosion in the vicinity of the real property; and (2) seek the advice of an attorney or other qualified person before executing this contract or instrument of conveyance as to the relevance ofthese statutes and facts to the value of the property the purchaser is hereby purchasing orcontracting to purchase.

Buyer Seller

Buyer Seller



ADDENDUM FORPROPERTY LOCATED SEAWARD OF THE

GULF INTRACOASTAL WATERWAY


(Location of Property)

This form has been approved by the Texas Real Estate Commission for use with similarly approved or promulgated contract forms. Such approval relates to this form only. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not suitable for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us) TREC No. 34-1. This form replaces TREC No. 34-0.

page 92

EQUAL HOUSINGOPPORTUNITY

12-05-94 PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)

P.O. BOX 12188, AUSTIN, TX 78711-2188

ADDENDUM FORCOASTAL AREA PROPERTY

ADDENDUM TO EARNEST MONEY CONTRACT BETWEEN THE UNDERSIGNED PARTIES CONCERNING THE PROPERTY AT

(Location of Property)

IN ACCORDANCE WITH SECTION 33.135, TEXAS NATURAL RESOURCES CODE, THE FOLLOWINGNOTICE IS INCLUDED AS PART OF THE CONTRACT:

NOTICE REGARDING COASTAL AREA PROPERTY

1. The real property described in and subject to this contract adjoins and shares a common boundary with thetidally influenced submerged lands of the state. The boundary is subject to change and can be determinedaccurately only by a survey on the ground made by a licensed state land surveyor in accordance with theoriginal grant from the sovereign. The owner of the property described in this contract may gain or loseportions of the tract because of changes in the boundary.

2. The seller, transferor, or grantor has no knowledge of any prior fill as it relates to the property describedin and subject to this contract except:

. 3. State law prohibits the use, encumbrance, construction, or placing of any structure in, on, or over state-

owned submerged lands below the applicable tide line, without proper permission.

4. The purchaser or grantee is hereby advised to seek the advice of an attorney or other qualified person asto the legal nature and effect of the facts set forth in this notice on the property described in and subject tothis contract. Information regarding the location of the applicable tide line as to the property described in andsubject to this contract may be obtained from the surveying division of the General Land Office in Austin.

Buyer Seller

Buyer Seller

This form has been approved by the Texas Real Estate Commission for use with similarly approved or promulgated contract forms. Such approval relatesto this form only. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not suitable forcomplex transactions. (12-94) TREC No. 33-0.

01A TREC No. 33-0

page 93

EQUAL HOUSINGOPPORTUN ITY

10-25-93

ENVIRONMENTAL ASSESSMENT, THREATENED ORENDANGERED SPECIES, AND WETLANDS ADDENDUM


ADDENDUM TO EARNEST MONEY CONTRACT BETWEEN THE UNDERSIGNED PARTIES CONCERNING THE PROPERTY AT ___________________________________________________________________

(Address)

A. ENVIRONMENTAL ASSESSMENT: Buyer, at Buyer’s expense, may obtain an EnvironmentalAssessment Report prepared by an environmental specialist.

B. THREATENED OR ENDANGERED SPECIES: Buyer, at Buyer’s expense, may obtaina report from a natural resources professional to determine if there are any threatened orendangered species or their habitats as defined by the Texas Parks and wildlife Department or theU.S. Fish and Wildlife Service.

C. WETLANDS: Buyer, at Buyer’s expense, may obtain a report from an environmental specialistto determine if there are wetlands, as defined by federal or state law or regulation.

Within days after the Effective Date of the contract, Buyer may terminate the contract by furnishingSeller a copy of any report noted above that adversely affects the use of the Property and the Earnest Money shallbe refunded to Buyer. If Buyer does not furnish Seller a copy of the unacceptable report within the prescribedtime and give Seller notice that Buyer has terminated the contract, Buyer shall be deemed to have accepted theProperty.

Buyer Seller

Buyer Seller

The form of this addendum has been approved by the Texas Real Estate Commission for use only with similarly approved orpromulgated forms of contracts. No representation is made as to the legal validity or adequacy of any provision in any specifictransactions. It is not suitable for complex transactions. (10-93) TREC No. 28-0.

01A TREC No. 28-0page 94

(TAR-1405) 1-7-04 Page 1 of 1

REQUEST FOR INFORMATION FROM AN OWNERS’ ASSOCIATION


To: (Owners’ Association) (Address) (City, State, Zip) Re: NOTICE OF INTENDED SALE AND REQUEST FOR INFORMATION This notice is to advise you that I intend to sell my Property at: (Address) (City, State, Zip). I am requesting the following information: ❑ Residential Subdivision Information, which includes: (1) a current copy of the subdivision’s restrictions; (2) a current copy of the bylaws and rules of the Owners’ Association; and (3) a resale certificate that complies with §207.003, Property Code. ❑ Condominium Information, which includes: (1) a current copy of the condominium declaration; (2) a current copy of the bylaws and rules of the Condominium Association; and (3) a resale certificate that complies with §82.157, Property Code. Please deliver the information to:

(❑ Broker ❑ Owner ❑ Closing Agent) Attn: (Address) (City, State, Zip) (phone) (fax) (e-mail).

I understand that the Property Code requires you to deliver the requested information not later than the 10th day after the date you receive this written request. Please advise me and the person to whom you will deliver the information if the Owners’ Association has a right of first refusal or if the Owners’ Association requires other information from me. Enclosed is $ for the cost, if any, for the requested information. Owner Date

Enclosure: TREC Resale Certificate (TAR No. 1921 for Condominiums; TAR No. 1923 for Subdivisions)

page 95

02-13-06

TREC NO. 36-4

A. SUBDIVISON INFORMATION: “Subdivision Information” means: (i) the restrictions applying to the subdivision, (ii) the bylaws and rules of the Owners’ Association, and (iii) a resale certificate, all of which were provided by the Owners’ Association in compliance with Section 207.003 of the Texas Property Code. (Check only one box): Ç 1. Within days after the effective date of the contract, Seller shall at Seller’s expense deliver

the Subdivision Information to Buyer. If Buyer does not receive the Subdivision Information, Buyer may terminate the contract at any time prior to closing and the earnest money will be refunded to Buyer. If Seller delivers the Subdivision Information, Buyer may terminate the contract for any reason within 7 days after Buyer receives the Subdivision Information or prior to closing, whichever first occurs, and the earnest money will be refunded to Buyer.

Ç 2. Buyer has received and approved the Subdivision Information before signing the contract. Ç 3. Buyer does not require delivery of the Subdivision Information. If Seller becomes aware of any material changes in the Subdivision Information, Seller shall immediately give notice to Buyer. Buyer may terminate the contract prior to closing by giving written notice to Seller if: (i) any of the Subdivision Information provided was not true; or (ii) any material adverse change in the Subdivision Information occurs prior to closing, and the earnest money will be refunded to Buyer.

B. FEES: Buyer shall pay any Owners' Association fees resulting from the transfer of the Property not to exceed $ and Seller shall pay any excess.

NOTICE TO BUYER REGARDING REPAIRS BY THE OWNERS’ ASSOCIATION: The Owners’ Association may have the sole responsibility to make certain repairs to the Property. If you are concerned about the condition of any part of the Property which the Owners’ Association is required to repair, you should not sign the contract unless you are satisfied that the Owners’ Association will make the desired repairs.

Buyer Seller Buyer Seller



ADDENDUM FOR PROPERTY SUBJECT TO MANDATORY MEMBERSHIP IN AN OWNERS’ ASSOCIATION

(NOT FOR USE WITH CONDOMINIUMS) ADDENDUM TO CONTRACT CONCERNING THE PROPERTY AT


(Name of Owners’ Association)

The form of this addendum has been approved by the Texas Real Estate Commission for use only with similarly approved or promulgated forms of contracts. Such approval relates to this contract form only. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not intended for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us) TREC No. 36-4. This form replaces TREC No. 36-3.

page 98


03-17-92

ADDENDUM FOR

RELEASE OF LIABILITY ON ASSUMPTION OF FHA, VA OR CONVENTIONAL LOAN

RESTORATION OF SELLER'S ENTITLEMENT FOR VA GUARANTEED LOAN


ADDENDUM TO EARNEST MONEY CONTRACT BETWEEN THE UNDERSIGNED PARTIESCONCERNING THE PROPERTY AT


o A. RELEASE OF SELLER'S LIABILITY ON LOAN TO BE ASSUMED:

Within days from the effective date of this contract Seller and Buyer shall apply for release of Seller's liabilityfrom (a) any conventional lender, (b) VA and any lender whose loan has been guaranteed by VA, or (c) FHA and any lenderwhose loan has been insured by FHA. Seller and Buyer shall furnish all required information and documents. If any releaseof liability has not been approved by the Closing Date: (check 1 or 2 below)

o 1. This contract shall terminate and the Earnest Money shall be refunded to Buyer.

o 2. Failure to obtain release approval shall not delay closing and Seller and Buyer shall continue to seek release of Seller'sliability.

o B. RESTORATION OF SELLERS ENTITLEMENT FOR VA LOAN:

Within days from the effective date of this contract Seller and Buyer shall apply for restoration of Seller's VAentitlement and shall furnish all information and documents required by VA. If restoration has not been approved by theClosing Date: (check 1 or 2 below)

o 1. This contract shall terminate and the Earnest Money shall be refunded to Buyer.

o 2. Failure to obtain restoration approval shall not delay closing and Seller and Buyer shall continue to seek restoration ofSeller's VA entitlement.

NOTICE: VA will not restore Seller's VA entitlement unless Buyer: (a) is a veteran, (b) has sufficient unused VAentitlement and (c) is otherwise qualified. If Seller desires release of liability from VA and the lender togetherwith restoration of VA entitlement, paragraphs A and B should be used.

Seller shall pay the cost of securing the release and restoration. If Seller's cost will exceed $ , and Buyerdeclines to pay the excess, Seller may (a) waive release or restoration, (b) pay the excess, or (c) terminate this contract and theEarnest Money shall be refunded to Buyer.

Seller's deed shall contain any loan assumption clause required by FHA, VA or any lender. The provisions of this addendum areenforceable after closing.

Buyer Seller

Buyer Seller

The form of this Addendum has been approved by the Texas Real Estate Commission for use with similarly approved orpromulgated contract forms. Such approval relates to this form only. No representation is made as to the legal validity oradequacy of any provision in any specific transactions. It is not suitable for complex transactions. (03-92) TREC No. 12-1. Thisform replaces TREC No. 12-0.

01A TREC No. 12-1page 99

01A

10-29-01

A. The contract is contingent upon Buyer's receipt of the proceeds from the sale of Buyer's propertyat(Address) by 5:00 p.m. on , 20 (the Contingency). If the Contingency is not satisfied or waived by Buyer by the above time and date, the contract willterminate automatically and the earnest money will be refunded to Buyer.NOTICE: The date inserted in this Paragraph should be no later than the date inserted in Paragraph 9 of the contract.

B. If Seller accepts a written offer to sell the Property, Seller shall notify Buyer (1) of such acceptanceAND (2) that Seller requires Buyer to waive the Contingency. Buyer must waive the Contingency by 5:00 p.m. on the day after delivery of Seller's notice to Buyer; otherwise the contract will terminate automatically and the earnest money will be refunded to Buyer.

C. Buyer may waive the Contingency only by notifying Seller of the waiver and depositing $with escrow agent as additional earnest money. All notices must be in writing and are effective when delivered in accordance with the contract.

D. If Buyer waives the Contingency and Buyer's loan or assumption approval is conditioned upon the sale of Buyer's property described in Paragraph A above, Buyer will be in default if such condition is not satisfied by the date provided for in the contract. If such default occurs, Seller may exercise the remedies specified in Paragraph 15 of the contract. If Buyer fails to obtain loan or assumptionapproval for any other reason, the provisions of the contract remain in effect.

E. For purposes of this Addendum time is of the essence; strict compliance with the times forperformance stated herein is required.

Buyer Seller

Buyer Seller



ADDENDUM FORSALE OF OTHER PROPERTY BY BUYER




page 100

(TAR-2008) 10-14-03 Page 1 of 1

ADDENDUM REGARDING LEAD-BASED PAINT For use in the lease of residential property built before 1978.

ADDENDUM TO RESIDENTIAL LEASE CONCERNING THE PROPERTY AT A. LEAD WARNING STATEMENT: Housing built before 1978 may contain lead-based paint. Lead from

paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-1978 housing, lessors (landlords) must disclose the presence of known lead-based paint and/or lead-based paint hazards in the dwelling. Lessees (tenants) must also receive a federally approved pamphlet on lead poisoning prevention.

B. DISCLOSURE: (1) Presence of lead-based paint and/or lead-based paint hazards. (Check (a) or (b)). ❑ (a) Landlord knows of the following lead-based paint and/or lead-based paint hazards in the Property:

. ❑ (b) Landlord has no knowledge of lead-based paint and/or lead-based paint hazards in the Property. (2) Records and reports available to Landlord. (Check (a) or (b)). ❑ (a) Landlord has provided Tenant with all available records and reports pertaining to lead-based paint

and/or lead-based paint hazards in the Property which are listed here: .

❑ (b) Landlord has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the Property.

C. TENANT’S ACNOWLEDGEMENT: ❑ (1) Tenant has received copies of all information listed in Paragraph B. ❑ (2) Tenant has received the pamphlet entitled Protect Your Family from Lead in Your Home. D. AGENTS’ NOTICE TO LANDLORD AND ACKNOWLEDGEMENT: (1) The brokers and agents to the lease notify Landlord that Landlord must: (a) provide Tenant with the

EPA-approved pamphlet on lead poisoning prevention; (b) complete this addendum; (c) disclose any known lead-based paint and/or lead-based paint hazard in the Property; (d) deliver all records and reports to Tenant pertaining lead-based paint and/or lead-based paint hazards in the Property; and (e) retain a copy of this addendum for at least 3 years.

(2) The brokers and agents to the lease have advised Landlord of Landlord’s obligations under 42 U.S.C. 4852d and are aware of his/her responsibility to ensure compliance.

E. CERTIFICATION OF ACCURACY: The undersigned have reviewed the information above and certify, to

the best of their knowledge, that the information they have provided is true and correct. Landlord Date Tenant Date

Landlord Date Tenant Date

Listing Broker/Agent or Property Manager Date Tenant Date

Other Broker/Agent Date Tenant Date

page 101

(TAR-1912) 4-26-04 Page 1 of 1

NOTICES REGARDING CONTINGENCY UNDER

ADDENDUM FOR SALE OF OTHER PROPERTY BY BUYER USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED.


Seller: Buyer: Re: The contract concerning the Property at A. Seller’s Notice to Buyer to Remove Contingency:

(1) Seller has accepted another written offer to purchase the Property. (2) Buyer may waive the contingency by notifying Seller of the waiver and depositing the required

additional earnest money with the escrow agent within the time required under the Addendum for Sale of Other Property by Buyer.

(3) If Buyer does not waive the contingency and deposit the additional earnest money within the time required, the contract will terminate and the earnest money will be refunded to Buyer.

Seller Date Seller Date B. Buyer’s Response to Seller’s Notice to Remove Contingency:

(1) Buyer waives the contingency and deposits the additional earnest money with the escrow agent.

(2) Buyer does not waive the contingency. The contract is terminated and the earnest money will be refunded to Buyer.

Buyer Date Buyer Date

(TAR-1913) 4-26-04 Page 1 of 1

SELLER’S NOTICE TO BUYER OF REMOVAL OF CONTINGENCY UNDER

ADDENDUM FOR BACK-UP CONTRACT USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED.


Seller: Buyer: Re: The contract concerning the Property at In accordance with the “Addendum for Back-Up Contract,” Seller notifies Buyer that: (1) the First Contract is terminated; (2) the contract with Buyer is no longer subject to the contingency described in the addendum; and (3) the effective date of the contract is amended to (insert the date this

notice is sent to Buyer). Seller Date Seller Date


12-07-98(NOTICE: For use only when BUYER occupies the property for no more than 90 days PRIOR to closing)

BUYER'S TEMPORARY RESIDENTIAL LEASEPROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)

1. PARTIES: The parties to this Lease are (Landlord) and (Tenant).2. LEASE: Landlord leases to Tenant the Property described in the Contract between Landlord as Seller and

Tenant as Buyer dated , ,and known as (address).

3. TERM: The term of this Lease commences on and terminates asspecified in Paragraph 18.

4. RENTAL: Rental will be $ per day. Upon commencement of this Lease, Tenant shallpay to Landlord the full amount of rental of $ for the anticipated term of the Lease(commencement date to the closing date specified in Paragraph 9 of the Contract). If the actual term of thisLease differs from the anticipated term, rent will be prorated and paid at closing through the actual closingdate. No portion of the rental will be applied to payment of any items covered by the Contract.

5. SECURITY DEPOSIT: Tenant has paid to Landlord $ as a deposit to secureperformance of this Lease by Tenant. If this Lease is terminated before the closing, Landlord may use thedeposit to satisfy Tenant's obligations under this Lease. Landlord shall refund to Tenant any unused portionof the deposit together with an itemized list of all deductions from the deposit within 30 days after Tenant (a)surrenders possession of the Property and (b) provides Landlord written notice of Tenant’s forwardingaddress. If this Lease is terminated by the closing of the sale of the Property, the unused portion of thedeposit will be refunded to Tenant at closing, together with an itemized list of all deductions from the deposit.NOTICE: The security deposit must be in addition to the earnest money under the Contract.

6. UTILITIES: Tenant shall pay all utility connections, deposits and charges except , which Landlord shall pay.

7. USE OF PROPERTY: Tenant may use the Property only for single family dwelling purposes. Tenant maynot assign this Lease or sublet any part of the Property.

8. PETS: Tenant may not keep pets on the Property except 9. CONDITION OF PROPERTY: Tenant accepts the Property in its present condition and state of repair, but

Landlord shall make all repairs and improvements required by the Contract. If this Lease is terminated priorto closing, Tenant shall surrender possession of the Property to Landlord in its present condition, as improvedby Landlord, except normal wear and tear and any casualty loss.

10. ALTERATIONS: Tenant may not: (a) make any holes or drive nails into the woodwork, floors, walls or ceilings(b) alter, paint or decorate the Property or (c) install improvements or fixtures without the prior written consentof Landlord. Any improvements or fixtures placed on the Property during the Lease become a part of theProperty.

11. SPECIAL PROVISIONS:

12. INSPECTIONS: Landlord may enter at reasonable times to inspect, replace, repair or complete theimprovements.

13. LAWS: Tenant shall comply with all applicable laws, restrictions, ordinances, rules and regulations with respectto the Property.

14. REPAIRS AND MAINTENANCE: Tenant shall bear all expense of repairing and maintaining the Property,including but not limited to yard, trees and shrubs, unless otherwise required by the Texas Property Code.Tenant shall promptly repair at Tenant's expense any damage to the Property caused directly or indirectly byany act or omission of the Tenant or any person other than Landlord, Landlord's agents or invitees.

01A TREC NO. 16-3

The form of this contract has been approved by the Texas Real Estate Commission. TREC forms are intended foruse only by trained real estate licensees. Such approval relates to this contract form only. No representation is madeas to the legal validity or adequacy of any provision in any specific transaction. It is not suitable for complextransactions. Extensive riders or additions are not to be used. (12-98) Texas Real Estate Commission, P.O. Box12188, Austin, TX 78711-2188, 1-800-250-8732 or (512)459-6544 (http://www.trec.state.tx.us) TREC NO. 16-3 Thisform replaces TREC NO. 16-2.

Buyer's Temporary Residential Lease Page Two 12-07-98(Address of Property)

15. INDEMNITY: Tenant indemnifies Landlord from the claims of all third parties for injury or damage to the personor property of such third party arising from the use or occupancy of the Property by Tenant. This indemnificationincludes attorney's fees, costs and expenses incurred by Landlord.

16. INSURANCE: Landlord and Tenant shall each maintain such insurance on the contents and Property as eachparty may deem appropriate during the term of this Lease. NOTE: CONSULT YOUR INSURANCE AGENT PRIORTO CLOSING. Possession of the Property by Buyer as Tenant may change insurance policy coverage.

17. DEFAULT: If Tenant fails to perform or observe any provision of this Lease and fails, within 24 hours after noticeby Landlord, to commence and diligently pursue to remedy such failure, Tenant will be in default.

18. TERMINATION: This Lease terminates upon (a) closing of the sale under the Contract, (b) termination of theContract prior to closing, (c) Tenant’s default under this Lease, or (d) Tenant’s default under the Contract, whicheveroccurs first. Upon termination other than by closing of the sale, Tenant shall surrender possession of the Property.

19. HOLDING OVER: Any possession by Tenant after termination creates a tenancy at sufferance and will not operateto renew or extend this Lease. Tenant shall pay $ per day during the period of anypossession after termination as damages, in addition to any other remedies to which Landlord is entitled.

20. ATTORNEY’S FEES: The prevailing party in any legal proceeding brought under or with respect to the transactiondescribed in this Lease is entitled to recover from the non-prevailing party all costs of such proceeding andreasonable attorney's fees.

21. SMOKE DETECTORS: The Texas Property Code requires Landlord to install smoke detectors in certain locationswithin the Property at Landlord’s expense. Tenant expressly waives Landlord’s duty to inspect and repair smokedetectors.

22. SECURITY DEVICES: The requirements of the Texas Property Code relating to security devices do not apply toa residential lease for a term of 90 days or less.

23. CONSULT YOUR ATTORNEY: Real estate licensees cannot give legal advice. This Lease is intended to be legallybinding. READ IT CAREFULLY. If you do not understand the effect of this Lease, consult your attorney BEFOREsigning.

24. NOTICES: All notices under this Lease from one party to the other must be in writing and are effective when delivered or transmitted by facsimile machine as follows:

To Landlord: To Tenant:

Facsimile:( ) Facsimile:( )

EXECUTED the day of .

Landlord Tenant

Landlord Tenant

01A TREC NO. 16-3


12-07-98(NOTICE: For use only when SELLER occupies the property for no more than 90 days AFTER the closing)

SELLER’S TEMPORARY RESIDENTIAL LEASEPROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)

1. PARTIES: The parties to this Lease are (Landlord) and (Tenant).2. LEASE: Landlord leases to Tenant the Property described in the Contract between Landlord as Buyer and

Tenant as Seller dated , ,and known as (address).

3. TERM: The term of this Lease commences on the date the sale covered by the Contract is closed andterminates , unless terminated earlier by reason of other provisions.

4. RENTAL: Tenant shall pay to Landlord as rental $ per day with the full amount of rentalfor the term of the Lease to be paid at the time of funding of the sale. Tenant will not be entitled to a refundof rental if this Lease terminates early due to Tenant’s default or voluntary surrender of the Property.

5. SECURITY DEPOSIT: Tenant shall pay to Landlord at the time of funding of the sale $ as a deposit to secure performance of this Lease by Tenant. Landlord may use the deposit to satisfy Tenant'sobligations under this Lease. Landlord shall refund any unused portion of the deposit to Tenant with anitemized list of all deductions from the deposit within 30 days after Tenant (a) surrenders possession of theProperty and (b) provides Landlord written notice of Tenant’s forwarding address.

6. UTILITIES: Tenant shall pay all utility charges except ,which Landlord shall pay.

7. USE OF PROPERTY: Tenant may use the Property only for single family dwelling purposes. Tenant maynot assign this Lease or sublet any part of the Property.

8. PETS: Tenant may not keep pets on the Property except .9. CONDITION OF PROPERTY: Tenant accepts the Property in its present condition and state of repair at the

commencement of the Lease. Upon termination, Tenant shall surrender the Property to Landlord in thecondition required under the Contract at the time of closing, except normal wear and tear and any casualtyloss.

10. ALTERATIONS: Tenant may not alter the Property or install improvements or fixtures without the prior writtenconsent of Landlord. Any improvements or fixtures placed on the Property during the Lease become theproperty of Landlord.

11. SPECIAL PROVISIONS:

12. INSPECTIONS: Landlord may enter at reasonable times to inspect the Property.13. LAWS: Tenant shall comply with all applicable laws, restrictions, ordinances, rules and regulations with respect

to the Property. 14. REPAIRS AND MAINTENANCE: Tenant shall bear all expense of repairing and maintaining the Property,

including but not limited to yard, trees and shrubs, unless otherwise required by the Texas Property Code.Tenant shall promptly repair at Tenant's expense any damage to the Property caused directly or indirectly byany act or omission of the Tenant or any person other than Landlord, Landlord's agents or invitees.

01A TREC NO. 15-3

The form of this contract has been approved by the Texas Real Estate Commission. Such approval relates to thiscontract form only. TREC forms are intended for use only by trained real estate licensees. No representation ismade as to the legal validity or adequacy of any provision in any specific transaction. It is not suitable for complextransactions. Extensive riders or additions are not to be used. (12-98) Texas Real Estate Commission, P.O. Box12188, Austin, TX 78711-2188, 1-800-250-8732 or (512)459-6544 (http://www.trec.state.tx.us) TREC NO. 15-3.This form replaces TREC NO. 15-2.

Seller's Temporary Residential Lease Page Two 12-07-98(Address of Property)

15. INDEMNITY: Tenant indemnifies Landlord from the claims of all third parties for injury or damage to the personor property of such third party arising from the use or occupancy of the Property by Tenant. This indemnificationincludes attorney's fees, costs and expenses incurred by Landlord.

16. INSURANCE: Landlord and Tenant shall each maintain such insurance on the contents and Property as eachparty may deem appropriate during the term of this Lease. NOTE: CONSULT YOUR INSURANCE AGENT PRIORTO CLOSING. Possession of the Property by Seller as Tenant may change insurance policy coverage.

17. DEFAULT: If Tenant fails to perform or observe any provision of this Lease and fails, within 24 hours after noticeby Landlord, to commence and diligently pursue to remedy such failure, Tenant will be in default.

18. TERMINATION: This Lease terminates upon expiration of the term specified in Paragraph 3 or upon Tenant'sdefault under this Lease.

19. HOLDING OVER: Tenant shall surrender possession of the Property upon termination of this Lease. Anypossession by Tenant after termination creates a tenancy at sufferance and will not operate to renew or extendthis Lease. Tenant shall pay $ per day during the period of any possession after terminationas damages, in addition to any other remedies to which Landlord is entitled.

20. ATTORNEY’S FEES: The prevailing party in any legal proceeding brought under or with respect to the transactiondescribed in this Lease is entitled to recover from the non-prevailing party all costs of such proceeding andreasonable attorney's fees.

21. SMOKE DETECTORS: The Texas Property Code requires Landlord to install smoke detectors in certain locationswithin the Property at Landlord’s expense. Tenant expressly waives Landlord’s duty to inspect and repair smokedetectors.

22. SECURITY DEVICES: The requirements of the Texas Property Code relating to security devices do not apply toa residential lease for a term of 90 days or less.

23. CONSULT YOUR ATTORNEY: Real estate licensees cannot give legal advice. This Lease is intended to be legallybinding. READ IT CAREFULLY. If you do not understand the effect of this Lease, consult your attorney BEFOREsigning.

24. NOTICES: All notices under this Lease from one party to the other must be in writing and are effective whendelivered or transmitted by facsimile machine as follows:

To Landlord: To Tenant:

Facsimile:( ) Facsimile:( )

EXECUTED the day of .

Landlord Tenant

Landlord Tenant

O1A TREC NO. 15-3

(TAR-1501) 7-7-04 Page 1 of 4

RESIDENTIAL BUYER/TENANT REPRESENTATION AGREEMENT



1. PARTIES: The parties to this agreement are: Client:

Address: City, State, Zip: Phone: Fax: E-Mail: Broker: Address: City, State, Zip: Phone: Fax: E-Mail: 2. APPOINTMENT: Client grants to Broker the exclusive right to act as Client’s real estate agent for the

purpose of acquiring property in the market area. 3. DEFINITIONS: A. “Acquire” means to purchase or lease. B. “Closing” in a sale transaction means the date legal title to a property is conveyed to a purchaser of

property under a contract to buy. “Closing” in a lease transaction means the date a landlord and tenant enter into a binding lease of a property.

C. “Market area” means that area in the State of Texas within the perimeter boundaries of the following areas: .

D. “Property” means any interest in real estate including but not limited to properties listed in a multiple listing service or other listing services, properties for sale by owners, and properties for sale by builders.

4. TERM: This agreement commences on and ends

at 11:59 p.m. on . 5. BROKER’S OBLIGATIONS: Broker will: A. use Broker’s best efforts to assist Client in acquiring property in the market area; B. assist Client in negotiating the acquisition of property in the market area; and C. comply with other provisions of this agreement. 6. CLIENT’S OBLIGATIONS: Client will: A. work exclusively through Broker in acquiring property in the market area and negotiate the acquisition

of property in the market area only through Broker; B. inform other brokers, salespersons, sellers, and landlords with whom Client may have contact that

Broker exclusively represents Client for the purpose of acquiring property in the market area and refer all such persons to Broker; and

C. comply with other provisions of this agreement.

Buyer/Tenant Representation Agreement between

(TAR-1501) 7-7-04 Page 2 of 4

7. REPRESENTATIONS: A. Each person signing this agreement represents that the person has the legal capacity and authority to

bind the respective party to this agreement. B. Client represents that Client is not now a party to another buyer or tenant representation agreement

with another broker for the acquisition of property in the market area. C. Client represents that all information relating to Client’s ability to acquire property in the market area

Client gives to Broker is true and correct. D. Name any employer, relocation company, or other entity that will provide benefits to Client when

acquiring property in the market area: . 8. INTERMEDIARY: (Check A or B only.) ❑ A. Intermediary Status: Client desires to see Broker’s listings. If Client wishes to acquire one of Broker’s

listings, Client authorizes Broker to act as an intermediary and Broker will notify Client that Broker will service the parties in accordance with one of the following alternatives.

(1) If the owner of the property is serviced by an associate other than the associate servicing Client under this agreement, Broker may notify Client that Broker will: (a) appoint the associate then servicing the owner to communicate with, carry out instructions of, and provide opinions and advice during negotiations to the owner; and (b) appoint the associate then servicing Client to the Client for the same purpose.

(2) If the owner of the property is serviced by the same associate who is servicing Client, Broker may notify Client that Broker will: (a) appoint another associate to communicate with, carry out instructions of, and provide opinions and advice during negotiations to Client; and (b) appoint the associate servicing the owner under the listing to the owner for the same purpose.

(3) Broker may notify Client that Broker will make no appointments as described under this Paragraph 8A and, in such an event, the associate servicing the parties will act solely as Broker’s intermediary representative, who may facilitate the transaction but will not render opinions or advice during negotiations to either party.

❑ B. No Intermediary Status: Client does not wish to be shown or acquire any of Broker’s listings. Notice: If Broker acts as an intermediary under Paragraph 8A, Broker and Broker’s associates: may not disclose to Client that the seller or landlord will accept a price less than the

asking price unless otherwise instructed in a separate writing by the seller or landlord; may not disclose to the seller or landlord that Client will pay a price greater than the price

submitted in a written offer to the seller or landlord unless otherwise instructed in a separate writing by Client;

may not disclose any confidential information or any information a seller or landlord or Client specifically instructs Broker in writing not to disclose unless otherwise instructed in a separate writing by the respective party or required to disclose the information by the Real Estate License Act or a court order or if the information materially relates to the condition of the property;

shall treat all parties to the transaction honestly; and shall comply with the Real Estate License Act. 9. COMPETING CLIENTS: Client acknowledges that Broker may represent other prospective buyers or

tenants who may seek to acquire properties that may be of interest to Client. Client agrees that Broker may, during the term of this agreement and after it ends, represent such other prospects, show the other prospects the same properties that Broker shows to Client, and act as a real estate broker for such other prospects in negotiating the acquisition of properties that Client may seek to acquire.

10. CONFIDENTIAL INFORMATION: During the term of this agreement or after its termination, Broker may

not knowingly disclose information obtained in confidence from Client except as authorized by Client or required by law. Broker may not disclose to Client any information obtained in confidence regarding any other person Broker represents or may have represented except as required by law.


(TAR-1501) 7-7-04 Page 3 of 4

11. BROKER’S FEES:

A. Commission: The parties agree that Broker will receive a commission calculated as follows: (1) % of the gross sales price if Client agrees to purchase property in the market area; and (2) if Client agrees to lease property in the market a fee equal to (check only one box): ❑ % of one month’s rent or ❑ % of all rents to be paid over the term of the lease.

B. Source of Commission Payment: Broker will seek to obtain payment of the commission specified in

Paragraph 11A first from the seller, landlord, or their agents. If such persons refuse or fail to pay Broker the amount specified, Client will pay Broker the amount specified less any amounts Broker receives from such persons.

C. Earned and Payable: A person is not obligated to pay Broker a commission until such time as Broker’s

commission is earned and payable. Broker’s commission is earned when: (1) Client enters into a contract to buy or lease property in the market area; or (2) Client breaches this agreement. Broker’s commission is payable, either during the term of this agreement or after it ends, upon the earlier of: (1) the closing of the transaction to acquire the property; (2) Client’s breach of a contract to buy or lease a property in the market area; or (3) Client’s breach of this agreement. If Client acquires more than one property under this agreement, Broker’s commissions for each property acquired are earned as each property is acquired and are payable at the closing of each acquisition.

D. Additional Compensation: If a seller, landlord, or their agents offer compensation in excess of the

amount stated in Paragraph 11A (including but not limited to marketing incentives or bonuses to cooperating brokers) Broker may retain the additional compensation in addition to the specified commission. Client is not obligated to pay any such additional compensation to Broker.

E. Acquisition of Broker’s Listing: Notwithstanding any provision to the contrary, if Client acquires a

property listed by Broker, Broker will be paid in accordance with the terms of Broker’s listing agreement with the owner and Client will have no obligation to pay Broker.

F. In addition to the commission specified under Paragraph 11A, Broker is entitled to the following fees. (1) Construction: If Client uses Broker’s services to procure or negotiate the construction of

improvements to property that Client owns or may acquire, Client ensures that Broker will receive from Client or the contractor(s) at the time the construction is substantially complete a fee equal to: .

(2) Service Providers: If Broker refers Client or any party to a transaction contemplated by this agreement to a service provider (for example, mover, cable company, telecommunications provider, utility, or contractor) Broker may receive a fee from the service provider for the referral.

(3) Other: .

G. Protection Period: “Protection period” means that time starting the day after this agreement ends and

continuing for days. Not later than 10 days after this agreement ends, Broker may send Client written notice identifying the properties called to Client’s attention during this agreement. If Client or a relative of Client agrees to acquire a property identified in the notice during the protection period, Client will pay Broker, upon closing, the amount Broker would have been entitled to receive if this agreement were still in effect. This Paragraph 11G survives termination of this agreement. This Paragraph 11G will not apply if Client is, during the protection period, bound under a representation agreement with another broker who is a member of the Texas Association of REALTORS® at the time the acquisition is negotiated and the other broker is paid a fee for negotiating the transaction.

H. Escrow Authorization: Client authorizes, and Broker may so instruct, any escrow or closing agent

authorized to close a transaction for the acquisition of property contemplated by this agreement to collect and disburse to Broker all amounts payable to Broker.

I. County: Amounts payable to Broker are to be paid in cash in County, Texas.


(TAR-1501) 7-7-04 Page 4 of 4

12. MEDIATION: The parties agree to negotiate in good faith in an effort to resolve any dispute that may arise related to this agreement or any transaction related to or contemplated by this agreement. If the dispute cannot be resolved by negotiation, the parties will submit the dispute to mediation before resorting to arbitration or litigation and will equally share the costs of a mutually acceptable mediator.

13. DEFAULT: If either party fails to comply with this agreement or makes a false representation in this

agreement, the non-complying party is in default. If Client is in default, Client will be liable for the amount of compensation that Broker would have received under this agreement if Client was not in default. If Broker is in default, Client may exercise any remedy at law.

14. ATTORNEY’S FEES: If Client or Broker is a prevailing party in any legal proceeding brought as a result of

a dispute under this agreement or any transaction related to this agreement, such party will be entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney’s fees.

15. LIMITATION OF LIABILITY: Neither Broker nor any other broker, or their associates, is responsible or

liable for Client’s personal injuries or for any loss or damage to Client’s property that is not caused by Broker. Client will hold broker, any other broker, and their associates, harmless from any such injuries or losses. Client will indemnify Broker against any claims for injury or damage that Client may cause to others or their property.

16. ADDENDA: Addenda and other related documents which are part of this agreement are: X Information About Brokerage Services ❑ Protect Your Family from Lead in Your Home ❑ Protecting Your Home from Mold ❑ Information about Special Flood Hazard Areas ❑ Information Concerning Property Insurance ❑ For Your Protection: Get a Home Inspection ❑ ❑ 17. SPECIAL PROVISIONS: 18. ADDITIONAL NOTICES:

A. Broker's fees and the sharing of fees between brokers are not fixed, controlled, recommended, suggested, or maintained by the Association of REALTORS® or any listing service.

B. Broker’s services are provided without regard to race, color, religion, national origin, sex, disability or familial status.

C. Broker is not a property inspector, surveyor, engineer, environmental assessor, or compliance inspector. Client should seek experts to render such services in any acquisition.

D. If Client purchases property, Client should have an abstract covering the property examined by an attorney of Client’s selection, or Client should be furnished with or obtain a title policy.

E. Buyer may purchase a residential service contract. Buyer should review such service contract for the scope of coverage, exclusions, and limitations. The purchase of a residential service contract is optional. There are several residential service companies operating in Texas.

F. Broker cannot give legal advice. This is a legally binding agreement. READ IT CAREFULLY. If you do not understand the effect of this agreement, consult your attorney BEFORE signing.

Broker’s Printed Name License No. Client Date By: Broker’s Associate’s Signature Date Client Date

(TAR-1505) 7-7-04 Page 1 of 1

AMENDMENT TO BUYER/TENANT REPRESENTATION AGREEMENT



On or about , Client and Broker entered into a Buyer/Tenant Representation Agreement (the agreement): Effective , Client and Broker amend the agreement as follows: ❑ A. The market area in Paragraph 3C is redefined as

.

❑ B. The date the agreement ends specified in Paragraph 4 is changed to . ❑ C. Client instructs Broker to cease providing services under the agreement on

and to resume providing services on: ❑ (1) receipt of further instructions from Client; or ❑ (2) . The agreement is not terminated and remains in effect for all other purposes.

❑ D. Paragraph(s) are changed as follows: Broker’s (Company’s) Printed Name Client Date By: Broker’s Associate’s Signature Date Client Date

(TAR-1504) 4-26-04 Page 1 of 1

NOTICE FROM BUYER’S AGENT TO SELLER


To: (Seller) From: (Broker) Re: (Property) Date: A. Your real estate broker has asked that I deliver the enclosed offer to you. B. My client is the prospective buyer(s). C. I am obliged to inform my client of any material information you provide to me. D. I will not provide you with: (1) opinions or advice; (2) assistance in evaluating any offer; (3) assistance in drafting any offer, response to any offer, disclosure, notice, or other information; (4) relevant market information; (5) information related to any contractual duty you may have; (6) assistance in arranging for the completion of any obligations you may be required to meet under a

contract; or (7) information related to other service providers, such as title companies, mortgage companies, insurance

companies, attorneys, inspectors, contractors, surveyors, engineers, and others. E. I encourage you to contact your broker or your attorney for assistance. Texas Real Estate Commission

Rules provide that a broker is obligated under a listing agreement to negotiate the best possible transaction for the principal (seller).


CONDOMINIUM RESALE CERTIFICATE 04-18-94


Condominium Certificate concerning Condominium Unit , in Building , of , a condominium project, located at

(Address), City of , ,County, Texas, on behalf of the condominium owners association (the Association) by the Association's governing body (the Board).

A. The Declaration o does o does not contain a right of first refusal or other restraint that restricts the right to transfer the Unit.If a right of first refusal or other restraint exists, see Section of the Declaration.

B. The periodic common expense assessment for the Unit is $ per .

C. There o is o is not a common expense or special assessment due and unpaid by the Seller to the Association. The total unpaidamount is $ and is for .

D. Other amounts o are o are not payable by Seller to the Association. The total unpaid amount is $ and is for .

E. Capital expenditures approved by the Association for the next 12 months are $ .F. Reserves for capital expenditures are $ ; of this amount $ has been designated

for .G. The current operating budget of the Association is attached.H. The amount of unsatisfied judgments against the Association is $ .

I. There o are o are not any suits pending against the Association. The nature of the suits is .

J. The Association o does o does not provide insurance coverage for the benefit of unit owners as per the attached summary fromthe Association's insurance agent.

K. The Board o has o has no knowledge of alterations or improvements to the Unit or to the limited common elements assignedto the Unit or any portion of the project that violate any provision of the Declaration, by-laws or rules of the Association. Knownviolations are: .

L. The Board o has o has not received notice from a governmental authority concerning violations of health or building codeswith respect to the Unit, the limited common elements assigned to the Unit, or any other portion of the condominium project.Notices received are: .

M. The remaining term of any leasehold estate that affects the condominium is and the provisionsgoverning an extension or renewal of the lease are: .

N. The name, mailing address and telephone number of the Association's managing agent are:

(Name) (Telephone Number)

(Mailing Address)

REQUIRED ATTACHMENTS:1. Operating Budget2. Insurance Summary (Name of Condominium Owners Association)

NOTICE: The Certificate must be prepared no more thanthree months before the date it is delivered to Buyer.Received: 19

Buyer

Buyer Date Phone No.

By:

Title

Mailing Address

The form of this certificate has been approved by the Texas Real Estate Commission for use only with similarly approved or promulgated forms ofcontracts. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. (04-94) TREC No. 32-0.

01A TREC No. 32-0

Contract Concerning Page of 8 02-13-06(Address of Property)

TREC NO. 30-5



2. PROPERTY AND CONDOMINIUM DOCUMENTS: A. The Condominium Unit, improvements and accessories described below are collectively

referred to as the “Property”. (1) CONDOMINIUM UNIT: Unit , in Building ,

of , a condominium project, located at (address/zip code), City of ,County of ,

Texas, described in the Condominium Declaration and Plat and any amendments thereto of record in said County; together with such Unit's undivided interest in the Common Elements designated by the Declaration, including those areas reserved as Limited Common Elements appurtenant to the Unit and such other rights to use the Common Elements which have been specifically assigned to the Unit in any other manner. Parking areas assigned to the Unit are: .

(2) IMPROVEMENTS: All fixtures and improvements attached to the above described real property including without limitation, the following permanently installed and built-in items, if any: all equipment and appliances, valances, screens, shutters, awnings, wall-to-wall carpeting, mirrors, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system and equipment, heating and air conditioning units, security and fire detection equipment, wiring, plumbing and lighting fixtures, chandeliers, shrubbery, landscaping, outdoor cooking equipment, and all other property owned by Seller and attached to the above described Condominium Unit.

(3) ACCESSORIES: The following described related accessories, if any: window air conditioning units, stove, fireplace screens, curtains and rods, blinds, window shades, draperies and rods, controls for satellite dish system, controls for garage door openers, entry gate controls, door keys, mailbox keys, and artificial fireplace logs.

(4) EXCLUSIONS: The following improvements and accessories will be retained by Seller and removed prior to delivery of possession: .

B. The Declaration, Bylaws and any Rules of the Association are called "Documents". (Check one box only):

Ç (1) Buyer has received a copy of the Documents. Buyer is advised to read the Documents before signing the contract.

Ç (2) Buyer has not received a copy of the Documents. Seller shall deliver the Documents to Buyer within days after the effective date of the contract. Buyer may cancel the contract before the sixth day after Buyer receives the Documents by hand-delivering or mailing written notice of cancellation to Seller by certified United States mail, return receipt requested.

C. The Resale Certificate from the condominium owners association (the Association) is called the "Certificate". The Certificate must be in a form promulgated by TREC or required by the parties. The Certificate must have been prepared no more than 3 months before the date it is delivered to Buyer and must contain at a minimum the information required by Section 82.157, Texas Property Code.

(Check one box only): Ç (1) Buyer has received the Certificate. Ç (2) Buyer has not received the Certificate. Seller shall deliver the Certificate to Buyer

within days after the effective date of the contract. Buyer may cancel the contract before the sixth day after the date Buyer receives the Certificate by hand-delivering or mailing written notice of cancellation to Seller by certified United States mail, return receipt requested.

Ç (3) Buyer has received Seller's affidavit that Seller requested information from the Association concerning its financial condition as required by the Texas Property Code, and that the Association did not provide a Certificate or information required in the Certificate. Buyer and Seller agree to waive the requirement to furnish the Certificate.

3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer at closing................... $ B Sum of all financing described below (excluding any loan funding fee or mortgage insurance premium)........................................... $ C. Sales Price (Sum of A and B)....................................................... $

PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC) NOTICE: Not For Use Where Seller Owns Fee Simple Title To Land Beneath Unit

RESIDENTIAL CONDOMINIUM CONTRACT (RESALE)

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4. FINANCING: The portion of Sales Price not payable in cash will be paid as follows: (Check applicable boxes below)

Ç A.THIRD PARTY FINANCING: One or more third party mortgage loans in the total amount of $ (excluding any loan funding fee or mortgage insurance premium).

(1) Property Approval: If the Property does not satisfy the lenders' underwriting requirements for the loan(s), this contract will terminate and the earnest money will be refunded to Buyer.

(2) Financing Approval: (Check one box only) Ç (a) This contract is subject to Buyer being approved for the financing described in the

attached Third Party Financing Condition Addendum. Ç (b) This contract is not subject to Buyer being approved for financing and does not





6. TITLE POLICY: A. TITLE POLICY: Seller shall furnish to Buyer at ÇSeller’s ÇBuyer’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 4. (4) Terms and provisions of the Documents including the assessments and platted

easements. (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


lines, encroachments or protrusions, or overlapping improvements. 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 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 the Closing Date, whichever is earlier.

C. OBJECTIONS: Buyer may object in writing to defects, exceptions, or encumbrances to title: disclosed in the Commitment other than items 6A(1) through (8) above; or which prohibit the following use or activity: . Buyer must object not later than (i) the Closing Date or (ii) days after Buyer receives the Commitment and Exception Documents, whichever is earlier. 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 the timely objections of Buyer or any third party lender within 15 days after Seller receives the objections and the Closing Date will be extended as necessary. If objections are not cured within such 15 day period, this contract will terminate and the earnest money will be refunded to Buyer unless Buyer waives the objections.

D. TITLE NOTICES: (1) ABSTRACT OR TITLE POLICY: Broker advises Buyer to have an abstract of title covering


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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 turn on existing utilities for inspections.

B. SELLER'S DISCLOSURE NOTICE PURSUANT TO §5.008, TEXAS PROPERTY CODE (Notice): (Check one box only) Ç (1) Buyer has received the Notice. Ç (2) Buyer has not received the Notice. Within days after the effective date of this


Ç (3) The Texas Property Code does not require this Seller to furnish the Notice. C. SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by


provided Seller, at Seller’s expense, shall complete the following specific repairs and treatments: .

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 AND TREATMENTS: Unless otherwise agreed in writing, Seller shall complete all agreed repairs and treatments prior to the Closing Date. All required permits must be obtained, and repairs and treatments must be performed by persons who are licensed or otherwise authorized by law to provide 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 do so and receive reimbursement from Seller at closing. The Closing Date will be extended up to 15 days, if necessary, to complete repairs

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and treatments. 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. 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.


9. CLOSING: A. The closing of the sale will be on or before , 20 , or within 7 days

after objections to matters disclosed in the Commitment have been cured, 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 required of them by this contract, the Commitment or law necessary for the closing of the sale and the issuance of the Title Policy.





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; lender, FHA, or VA completion requirements; 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,

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Texas Veterans Housing Assistance Program or other governmental loan programs, and then to other Buyer’s Expenses as allowed by the lender.



(3) Any Association fees resulting from the transfer of the property will be paid by Ç Seller Ç Buyer.


C. 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 Veteran's Housing Assistance Program or other governmental loan program regulations.

13. PRORATIONS: Taxes for the current year, interest, maintenance fees, regular condominium 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. Cash reserves from regular condominium assessments for deferred maintenance or capital improvements established by the Association will not be credited to Seller. Any special condominium assessment due and unpaid at closing will be the obligation of Seller.

14. CASUALTY LOSS: If any part of the Unit which Seller is solely obligated to maintain and repair under the terms of the Declaration is damaged or destroyed by fire or other casualty, Seller shall restore the same 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 and receive credit from Seller at closing in the amount of the deductible under the insurance policy. If any part of the Common Elements or Limited Common Elements appurtenant to the Unit is damaged or destroyed by fire or other casualty loss, Buyer will have 7 days from receipt of notice of such casualty loss within which to notify Seller in writing that the contract will be terminated unless Buyer receives written confirmation from the Association that the damaged condition will be restored to its previous condition within a reasonable time at no cost to Buyer. Unless Buyer gives such notice within such time, Buyer will be deemed to have accepted the Property without confirmation of such restoration. Seller will have 7 days from the date of receipt of Buyer’s notice within which to cause to be delivered to Buyer such confirmation. If written confirmation is not delivered to Buyer as required above, Buyer may terminate this contract and the earnest money will be refunded to Buyer. Seller’s obligations under this paragraph are independent of any other obligations of Seller under this contract.

15. DEFAULT: If Buyer fails to comply with this contract, Buyer will 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, due to factors beyond Seller’s control, Seller fails within the time allowed to make any non-casualty repairs or deliver the Commitment, if required of Seller, Buyer may (a) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (b) terminate this contract as the sole remedy and receive the earnest money. If Seller fails to comply with this contract for any other reason, 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: It 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 Çwill Çwill not be submitted to a mutually acceptable mediation service or provider. The parties to the

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mediation shall bear the mediation costs equally. This paragraph does not preclude a party from seeking equitable relief from a court of competent jurisdiction.


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.





19. REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Buyer, (b) assumed loans will not be in default, and (c) Seller has no knowledge of any misrepresentation or errors in the Certificate or any material changes in the information contained therein. If any representation of Seller in this contract or the Certificate is untrue on the Closing Date, Seller will be in default.



To Buyer at:



E-mail: E-mail:

To Seller at:

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22. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement. Addenda which are a part of this contract are (check all applicable boxes):

Ç Third Party Financing Condition Addendum Ç Addendum for Seller's Disclosure of Information on Lead-based Paint and Lead-based Paint Hazards as Required by Federal Law Ç Loan Assumption Addendum

Ç Buyer’s Temporary Residential Lease

Ç Seller's Temporary Residential Lease Ç Environmental Assessment, Threatened or Endangered Species and Wetlands Addendum

Ç Addendum for Sale of Other Property by Buyer

Ç Addendum for Coastal Area Property

Ç Addendum for "Back-Up" Contract Ç

Ç Seller Financing Addendum

Ç

Addendum for Property Located Seaward of the Gulf Intracoastal Waterway

Ç

Addendum for Release of Liability on Assumption of FHA, VA, or Conventional Loan Restoration of Seller’s Entitlement for VA Guaranteed Loan






Facsimile: ( ) ( )

E-mail: E-mail:

Facsimile:

Buyer Seller

Buyer Seller


Other (list):

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TREC NO. 30-5

















City State Zip

Email Address

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TREC NO. 23-6

Contract Concerning Page of 9 02-13-06 (Address of Property)


PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC) NEW HOME CONTRACT

(Incomplete Construction) NOTICE: Not For Use For Condominium Transactions or Closings Prior to Completion of Construction


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 described in the Construction Documents; 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”.

3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer at closing.................. $

B. Sum of all financing described below (excluding any loan funding fee or mortgage insurance premium) ............................................... $ C. Sales Price (Sum of A and B) ..................................................... $










6. TITLE POLICY AND SURVEY: A. TITLE POLICY: Seller shall furnish to Buyer at ÇSeller’s ÇBuyer’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 4. (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



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Contract Concerning Page 2 of 9 02-13-06 (Address of Property)


C. SURVEY: The survey must be made after the Substantial Completion Date by a registered professional land surveyor acceptable to the Title Company and any lender.

(Check one box only) Ç (1) At least days prior to the Closing Date, Seller, at Seller’s expense, shall provide

a new survey to Buyer. Ç (2) At least days prior to the Closing Date, Buyer, at Buyer’s expense, shall

obtain a new survey. Buyer is deemed to receive the survey on the date of actual receipt or the date specified in this paragraph, whichever is earlier.




(2) MANDATORY OWNERS' ASSOCIATION MEMBERSHIP: The Property Ç is Ç is not subject to mandatory membership in an owners' association. If the Property is subject to mandatory membership in an owners' association, Seller notifies Buyer under §5.012, Texas Property Code, that, as a purchaser of property in the residential community in which the Property is located, you are obligated to be a member of the owners' association. Restrictive covenants governing the use and occupancy of the Property and a dedicatory instrument 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 instrument may be obtained from the county clerk. You are obligated to pay assessments to the owners' association. 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 the Property. If Buyer is concerned about these matters, the TREC promulgated Addendum for Property Subject to Mandatory Membership in an Owner's Association should 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.

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7. PROPERTY CONDITION: A. ACCESS AND INSPECTIONS: 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.

B. CONSTRUCTION DOCUMENTS: Seller shall complete all improvements to the Property with due diligence in accordance with the Construction Documents. “Construction Documents” means the plans and specifications, the finish out schedules, any change orders, and any allowances related to the plans and specifications, finish out schedules, and change orders. The Construction Documents have been signed by the parties and are incorporated into this contract by reference.

C. COST ADJUSTMENTS: All change orders must be in writing. Increase in costs resulting from change orders or items selected by Buyer which exceed the allowances specified in the Construction Documents will be paid by Buyer as follows: _ _ _ _ _ _ _ _ _ _ _ _ _ ____ . A decrease in costs resulting from change orders and unused allowances will reduce the Sales Price, with proportionate adjustments to the amounts in Paragraphs 3A and 3B as required by lender.

D. BUYER’S SELECTIONS: If the Construction Documents permit selections by Buyer, Buyer’s selections will conform to Seller’s normal standards as set out in the Construction Documents or will not, in Seller’s judgment, adversely affect the marketability of the Property. Buyer will make required selections within days after notice from Seller.

E. COMPLETION: Seller must commence construction no later than days after the effective date of this contract. The improvements will be substantially completed in accordance with the Construction Documents and ready for occupancy not later than , 20 . The improvements will be deemed to be substantially completed in accordance with the Construction Documents upon the final inspection and approval by all applicable governmental authorities and any lender (Substantial Completion Date). Construction delays caused by acts of God, fire or other casualty, strikes, boycotts or nonavailability of materials for which no substitute of comparable quality and price is available will be added to the time allowed for substantial completion of the construction. However, in no event may the time for substantial completion extend beyond the Closing Date. Seller may substitute materials, equipment and appliances of comparable quality for those specified in the Construction Documents.

F. 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.

G.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) Ç (1) as shown in the attached specifications. Ç (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

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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.

H. 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.

I. 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 or conditions materially affecting 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.


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.







10. POSSESSION: Seller shall deliver to Buyer possession of the Property: Ç upon closing and funding Ç 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.

11. SPECIAL PROVISIONS: (Insert only factual statements and business details applicable to the

sale. TREC rules prohibit licensees from adding factual statements or business details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use.)

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(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.






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.

B. ROLLBACK TAXES: If Seller’s change in use of the Property prior to closing or denial of a special use valuation on the Property results in additional taxes, penalties or interest (Assessments) for periods prior to closing, the Assessments will be the obligation of Seller. Obligations imposed by this paragraph will survive closing.

14. CASUALTY LOSS: If any part of the Property is damaged 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 45 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 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: If Buyer fails to comply with this contract, Buyer will 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, due to factors beyond Seller’s control, Seller fails to substantially complete the improvements by the Closing Date or fails within the time allowed to make any non casualty repairs or deliver the Commitment, or survey, if required of Seller, Buyer may (a) extend the time for performance up to 45 days and the Closing Date will be extended as necessary or (b) terminate this contract as the sole remedy and receive the earnest money. If Seller fails to comply with this contract for any other reason, 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: It is the policy of the State of Texas to encourage resolution of disputes through

alternative dispute resolution procedures such as mediation. Subject to applicable law, any dispute between Seller and Buyer related to this contract which is not resolved through informal discussion Çwill Çwill not 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.

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19. REPRESENTATIONS: Seller represents that as of the Closing Date there will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds. If any representation of Seller in this contract is untrue on the Closing Date, Seller will be in default.

20. FEDERAL TAX REQUIREMENTS: If Seller is a "foreign person,” as defined by applicable law, or

if Seller fails to deliver an affidavit to Buyer that Seller is not a "foreign person,” then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. Internal Revenue Service regulations require filing written reports if currency in excess of specified amounts is received in the transaction.


To Buyer at:

Telephone: ( ) Tele-phone: ( )


E-mail: E-mail:

To Seller at:

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TREC NO. 23-6


Ç Third Party Financing Condition Addendum Ç Addendum for "Back-Up" Contract




Ç Buyer’s Temporary Residential Lease Ç Addendum for Property Located Seaward of the Gulf Intracoastal Waterway


Ç


Other (list):


24. CONSULT AN ATTORNEY: Real estate licensees cannot give legal advice. READ THIS

CONTRACT CAREFULLY. If you do not understand the effect of this contract, consult an attorney BEFORE signing.




Facsimile: ( ) ( )

E-mail: E-mail:

Facsimile:

page 129

TREC NO. 23-6


This contract is subject to Chapter 27 of the Texas Property Code. The provisions of that chapter may affect your right to recover damages arising from the performance of this contract. If you have a complaint concerning a construction defect arising from the performance of this contract and that defect has not been corrected through normal warranty service, you must provide the notice required by Chapter 27 of the Texas Property Code to the contractor by certified mail, return receipt requested, not later than the 60th day before the date you file suit to recover damages in a court of law or initiate arbitration. The notice must refer to Chapter 27 of the Texas Property Code and must describe the construction defect. If requested by the contractor, you must provide the contractor an opportunity to inspect and cure the defect as provided by Section 27.004 of the Texas Property Code.

Buyer Buyer Seller Seller



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Initialed for identification by Buyer and Seller

















City State Zip

Email Address

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TREC NO. 24-6

Contract Concerning Page of 9 02-13-06 (Address of Property)


PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC) NEW HOME CONTRACT

(Completed Construction) NOTICE: Not For Use For Condominium Transactions or Closings Prior to Completion of Construction


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”.

3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer at closing ..................$

B. Sum of all financing described below (excluding any loan funding fee or mortgage insurance premium)...........................................$ C. Sales Price (Sum of A and B) ......................................................$










6. TITLE POLICY AND SURVEY: A.TITLE POLICY: Seller shall furnish to Buyer at ÇSeller’s ÇBuyer’s expense an owner policy of






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

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authorizes the Title Company to deliver the Commitment and Exception Documents to Buyer 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 the Closing Date, whichever is earlier.

C. SURVEY: The survey must be made by a registered professional land surveyor acceptable to the Title Company and any lender. (Check one box only) Ç (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 (Affidavit). If the existing survey or Affidavit is not acceptable to Title Company or Buyer's lender, Buyer shall obtain a new survey at Ç Seller's Ç Buyer's expense no later than 3 days prior to Closing Date. 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.









(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

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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. 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 shall pay for turning on existing utilities for inspections.

B. ACCEPTANCE OF PROPERTY CONDITION: Buyer accepts the Property in its present condition; provided Seller, at Seller’s expense, shall complete the following specific repairs and treatments; and make the following improvements: _ _

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) Ç (1) as shown in the attached specifications. Ç (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, Seller shall complete all agreed repairs, treatments, and improvements (Work) prior to the Closing Date. All required permits must be obtained, and Work must be performed by persons who are licensed or otherwise authorized by law to provide 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 do so and receive reimbursement from Seller at closing. The Closing Date will be extended up to 15 days, if necessary, to complete Work.

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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; (3) any environmental hazards or conditions materially affecting 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.



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


(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,






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(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 Housing Assistance Program or other governmental loan programs, and then to other Buyer’s Expenses as allowed by the lender.





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.

B. ROLLBACK TAXES: If Seller’s change in use of the Property prior to closing or denial of a special use valuation on the Property results in additional taxes, penalties or interest (Assessments) for periods prior to closing, the Assessments will be the obligation of Seller. Obligations imposed by this paragraph will survive closing.



16. MEDIATION: It is the policy of the State of Texas to encourage resolution of disputes through alternative dispute resolution procedures such as mediation. Subject to applicable law, any dispute between Seller and Buyer related to this contract which is not resolved through informal discussion Çwill Çwill not 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.

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19. REPRESENTATIONS: Seller represents that as of the Closing Date there will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds. If any representation of Seller in this contract is untrue on the Closing Date, Seller will be in default.



To Buyer at:



E-mail: E-mail:

To Seller at:

page 137

TREC NO. 24-6



Ç Third Party Financing Condition Addendum Ç Addendum for "Back-Up" Contract






Ç Other (list):


24. CONSULT AN ATTORNEY: Real estate licensees cannot give legal advice. READ THIS

CONTRACT CAREFULLY. If you do not understand the effect of this contract, consult an attorney BEFORE signing.




Facsimile: ( ) ( )

E-mail: E-mail:

Facsimile:

page 138

TREC NO. 24-6




The form of this contract has been approved by the Texas Real Estate Commission. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not intended for complex transactions. Texas Real Estate Com-mission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us) TREC NO. 24-6. This form replaces TREC NO. 24-5.

This contract is subject to Chapter 27 of the Texas Property Code. The provisions of that chapter may affect your right to recover damages arising from the performance of this contract. If you have a complaint concerning a construction defect arising from the performance of this contract and that defect has not been corrected through normal warranty service, you must provide the notice required by Chapter 27 of the Texas Property Code to the contractor by certified mail, return receipt requested, not later than the 60th day before the date you file suit to recover damages in a court of law or initiate arbitration. The notice must refer to Chapter 27 of the Texas Property Code and must describe the construction defect. If requested by the contractor, you must provide the contractor an opportunity to inspect and cure the defect as provided by Section 27.004 of the Texas Property Code.

Buyer Buyer Seller Seller

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TREC NO. 24-6



















City State Zip

Email Address

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TREC NO. 9-6




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).

3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer at closing.................. $

B. Sum of all financing described below (excluding any loan funding fee or mortgage insurance premium) .......................................... $

C. Sales Price (Sum of A and B) ..................................................... $










6. TITLE POLICY AND SURVEY: A. TITLE POLICY: Seller shall furnish to Buyer at ÇSeller’s ÇBuyer’s expense an owner policy of






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


UNIMPROVED PROPERTY CONTRACT NOTICE: Not For Use For Condominium Transactions

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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 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 the Closing Date, whichever is earlier.

C. SURVEY: The survey must be made by a registered professional land surveyor acceptable to the Title Company and any lender. (Check one box only) Ç (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 (Affidavit). If the existing survey or Affidavit is not acceptable to Title Company or Buyer's lender, Buyer shall obtain a new survey at Ç Seller's Ç Buyer's expense no later than 3 days prior to Closing Date. 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.



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 (8) 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 not later than (i) the Closing Date or (ii) days after Buyer receives the Commitment, Exception Documents, and the survey, whichever is earlier. 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 the timely objections of Buyer or any third party lender within 15 days after Seller receives the objections and the Closing Date will be extended as necessary. If objections are not cured within such 15 day period, this contract will terminate and the earnest money will be refunded to Buyer unless Buyer waives the objections.

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.




(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

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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.



(8) TEXAS AGRICULTURAL DEVELOPMENT DISTRICT: The Property Ç is Ç is not located in a Texas Agricultural Development District. For additional information, contact the Texas Department of Agriculture.


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 turn on existing utilities for inspections. NOTICE: Buyer should determine the availability of utilities to the Property suitable to satisfy Buyer’s needs.

B. ACCEPTANCE OF PROPERTY CONDITION: Buyer accepts the Property in its present condition; provided Seller, at Seller’s expense, shall complete the following: .

C. COMPLETION OF REPAIRS: Unless otherwise agreed in writing, Seller shall complete all agreed repairs prior to the Closing Date. All required permits must be obtained, and repairs must be performed by persons who are licensed or otherwise permitted by law to provide such repairs. At Buyer’s election, any transferable warranties received by Seller with respect to the repairs will be transferred to Buyer at Buyer’s expense. If Seller fails to complete any agreed repairs prior to the Closing Date, Buyer may do so and receive reimbursement from Seller at closing. The Closing Date will be extended up to 15 days, if necessary, to complete repairs.

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; (2) any pending or threatened litigation, condemnation, or special assessment affecting the

Property; (3) any environmental hazards or conditions affecting 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.



after objections made under Paragraph 6D have been cured or waived, whichever date is later

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(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


(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,




10. POSSESSION: Seller shall deliver to Buyer possession of the Property in its present or required condition upon closing and funding.

11. SPECIAL PROVISIONS: (Insert only factual statements and business details applicable to the sale. TREC rules prohibit licensees from adding factual statements or business details for which a contract addendum 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 Housing Assistance Program 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): (a)Loan origination, discount, buy-down, and commitment fees (Loan Fees). (b)Appraisal fees; loan application fees; credit reports; preparation of loan documents;




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TREC NO. 9-6


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. ROLLBACK TAXES: If this sale or Buyer’s use of the Property after closing results in the assessment of additional taxes, penalties or interest (Assessments) for periods prior to closing, the Assessments will be the obligation of Buyer. If Seller’s change in use of the Property prior to closing or denial of a special use valuation on the Property claimed by Seller results in Assessments for periods prior to closing, the Assessments will be the obligation of Seller. Obligations imposed by this paragraph will survive closing.



16. MEDIATION: It 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 Çwill Çwill not 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.






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Ç Other (list):






Ç Third Party Financing Condition Addendum Ç Environmental Assessment, Threatened or Endangered Species and Wetlands Addendum

Ç Seller Financing Addendum Ç Addendum for Coastal Area Property

Ç Loan Assumption Addendum Ç Addendum for Property Located Seaward of the Gulf Intracoastal Waterway


Ç Addendum for Release of Liability on Assumption of FHA, VA, or Conventional Loan Restoration of Seller’s Entitlement for VA Guaranteed Loan


Ç Addendum for "Back-Up" Contract

To Buyer at:



E-mail: E-mail:

To Seller at:

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TREC NO. 9-6



Buyer Seller

Buyer Seller








Facsimile: ( ) ( )

E-mail: E-mail:

Facsimile:

page 147

TREC NO. 9-6


















City State Zip

Email Address

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TREC NO. 25-5



2. PROPERTY: The land, improvements, accessories and crops are collectively referred to as the “Property”. A. LAND: The land situated in the County of , Texas,

described as follows:

or as described on attached exhibit, also known as (address/zip code), 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.

B. IMPROVEMENTS: (1) FARM and RANCH IMPROVEMENTS: The following permanently installed and built-in

items, if any: windmills, tanks, barns, pens, fences, gates, sheds, outbuildings, and corrals.

(2) RESIDENTIAL IMPROVEMENTS: The house, garage, and all other fixtures and improvements attached to the above-described real property, including without limitation, the following permanently installed and built-in items, if any: all equipment and appliances, valances, screens, shutters, awnings, wall-to-wall carpeting, mirrors, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system and equipment, heating and air-conditioning units, security and fire detection equipment, wiring, plumbing and lighting fixtures, chandeliers, water softener system, kitchen equipment, garage door openers, cleaning equipment, shrubbery, landscaping, outdoor cooking equipment, and all other property owned by Seller and attached to the above described real property.

C. ACCESSORIES: (1) FARM AND RANCH ACCESSORIES: The following described related accessories: (check

boxes of conveyed accessories) Ç portable buildings Ç hunting blinds Ç game feeders Ç livestock feeders and troughs Ç irrigation equipment Ç fuel tanks Ç submersible pumps Ç pressure tanks Ç corrals Ç gates Ç chutes Ç other:

(2) RESIDENTIAL ACCESSORIES: The following described related accessories, if any: window air conditioning units, stove, fireplace screens, curtains and rods, blinds, window shades, draperies and rods, controls for satellite dish system, controls for garage door openers, entry gate controls, door keys, mailbox keys, above ground pool, swimming pool equipment and maintenance accessories, and artificial fireplace logs.

D. CROPS: Unless otherwise agreed in writing, Seller has the right to harvest all growing crops until delivery of possession of the Property.

E. EXCLUSIONS: The following improvements, accessories, and crops will be retained by Seller and excluded:

F. RESERVATIONS: Seller reserves the following mineral, water, royalty, timber, or other interests:

3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer at closing ...................$

B. Sum of all financing described below (excluding any loan funding fee or mortgage insurance premium) ............................................$ C. Sales Price (Sum of A and B) .......................................................$

D. The Sales Price Ç will Ç will not be adjusted based on the survey required by Paragraph 6C. If the Sales Price is adjusted, the Sales Price will be calculated on the basis of $

per acre. If the Sales Price is adjusted by more than 10%, either party may terminate this contract by providing written notice to the other party within days after the terminating party receives the survey. If neither party terminates this contract or if the variance is 10% or less, the adjustment will be made to the amount in Ç 3A Ç 3B Ç proportionately to 3A and 3B.


PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC) FARM AND RANCH CONTRACT

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6. TITLE POLICY AND SURVEY: A. TITLE POLICY: Seller shall furnish to Buyer at ÇSeller’s ÇBuyer’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) The standard printed exception for standby fees, taxes and assessments. (2) Liens created as part of the financing described in Paragraph 4. (3) Reservations or exceptions otherwise permitted by this contract or as may be approved by

Buyer in writing. (4)The standard printed exception as to marital rights. (5)The standard printed exception as to waters, tidelands, beaches, streams, and related




C. SURVEY: The survey must be made by a registered professional land surveyor acceptable to the Title Company and any lender. (Check one box only): Ç (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 (Affidavit). The existing survey Ç will Ç will not be recertified to a date subsequent to the effective date of this contract at the expense of Ç Buyer Ç Seller. If the existing survey is not approved by the Title Company or Buyer's Lender, a new survey will be obtained at the expense of Ç Buyer Ç Seller no later than 3 days prior to Closing Date. 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.

Ç (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.


Ç (4) No survey is required.

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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 (5) above; or disclosed in the Commitment other than items 6A(1) through (6) 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 not later than (i) the Closing Date or (ii) days after Buyer receives the Commitment, Exception Documents, and the survey, whichever is earlier. 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 the timely objections of Buyer or any third party lender within 15 days after Seller receives the objections and the Closing Date will be extended as necessary. If objections are not cured within such 15 day period, this contract will terminate and the earnest money will be refunded to Buyer unless Buyer waives the objections.

E. EXCEPTION DOCUMENTS: Prior to the execution of the contract, Seller has provided Buyer with copies of the Exception Documents listed below or on the attached exhibit. Matters reflected in the Exception Documents listed below or on the attached exhibit will be permitted exceptions in the Title Policy and will not be a basis for objection to title:

F. SURFACE LEASES: Prior to the execution of the contract, Seller has provided Buyer with

copies of written leases and given notice of oral leases (Leases) listed below or on the attached exhibit. The following Leases will be permitted exceptions in the Title Policy and will not be a basis for objection to title:

G. TITLE NOTICES: (1) ABSTRACT OR TITLE POLICY: Broker advises Buyer to have an abstract of title covering





(5) PROPERTY LOCATED IN A CERTIFICATED SERVICE AREA OF A UTILITY SERVICE PROVIDER: Notice required by §13.257, Water Code: The real property, described in

Document Date Recording Reference

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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) TEXAS AGRICULTURAL DEVELOPMENT DISTRICT: The Property Ç is Ç is not located in a Texas Agricultural Development District. For additional information contact the Texas Department of Agriculture.


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 turn on existing utilities for inspections. NOTICE: Buyer should determine the availability of utilities to the Property suitable to satisfy Buyer’s needs.

B. SELLER'S DISCLOSURE NOTICE PURSUANT TO §5.008, TEXAS PROPERTY CODE (Notice): (Check one box only) Ç (1) Buyer has received the Notice Ç (2) Buyer has not received the Notice. Within days after the effective date of this


Ç (3) The Texas Property Code does not require this Seller to furnish the Notice. C. SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by


provided Seller, at Seller’s expense, shall complete the following specific repairs and treatments: .

E. COMPLETION OF REPAIRS: Unless otherwise agreed in writing, Seller shall complete all agreed repairs prior to the Closing Date. All required permits must be obtained, and repairs must be performed by persons who are licensed or otherwise permitted by law to provide such repairs. At Buyer’s election, any transferable warranties received by Seller with respect to the repairs will be transferred to Buyer at Buyer’s expense. If Seller fails to complete any agreed repairs prior to the Closing Date, Buyer may do so and receive reimbursement from Seller at closing. The Closing Date will be extended up to 15 days, if necessary, to complete repairs.

F. 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.

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 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;

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(3) any environmental hazards or conditions materially affecting 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.

J. GOVERNMENT PROGRAMS: The Property is subject to the government programs listed below or on the attached exhibit: Seller shall provide Buyer with copies of all governmental program agreements. Any allocation or proration of payment under governmental programs is made by separate agreement between the parties which will survive closing.


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.


Buyer and showing no additional exceptions to those permitted in Paragraph 6, an assignment of Leases, and furnish tax statements or certificates showing no delinquent taxes on the Property.






11. SPECIAL PROVISIONS: (Insert only factual statements and business details applicable to the sale. TREC rules prohibit licensees from adding factual statements or business details for which a contract addendum or other form has been promulgated by TREC for mandatory use.)

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(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.






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. Rentals which are unknown at time of closing will be prorated between Buyer and Seller when they become known.

B. ROLLBACK TAXES: If this sale or Buyer’s use of the Property after closing results in the assessment of additional taxes, penalties or interest (Assessments) for periods prior to closing, the Assessments will be the obligation of Buyer. If Seller’s change in use of the Property prior to closing or denial of a special use valuation on the Property claimed by Seller results in Assessments for periods prior to closing, the Assessments will be the obligation of Seller. Obligations imposed by this paragraph will survive closing.

14. CASUALTY LOSS: If any part of the Property is damaged 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 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.


16. MEDIATION: It 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 Çwill Çwill not 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

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equitable relief from a court of competent jurisdiction.










21. NOTICES: All notices from one party to the other must be in writing and are effective when

mailed to, hand-delivered at, or transmitted by facsimile or electronic transmission as follows:

To Buyer at:



E-mail: E-mail:

To Seller at:

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Ç Third Party Financing Condition Addendum

Ç Addendum for Seller's Disclosure of Information on Lead-based Paint and Lead-based Paint Hazards as Required by Federal Law

Ç Seller Financing Addendum

Ç Environmental Assessment, Threatened or Endangered Species and Wetlands Addendum

Ç Loan Assumption Addendum Ç Addendum for Coastal Area Property


Ç Seller's Temporary Residential Lease Ç Addendum for "Back-Up" Contract


Ç


Buyer Seller

Buyer Seller




Facsimile: ( ) ( )

E-mail: E-mail:

Facsimile:

Other (list):



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RATIFICATION OF FEE

Listing Broker has agreed to pay Other Broker of the total Sales Price when Listing Broker’s fee is received. Escrow Agent is authorized and directed to pay Other Broker from Listing Broker’s fee at closing. Other Broker: Listing Broker: By: By:

BROKER INFORMATION AND AGREEMENT FOR PAYMENT OF BROKERS' FEES




Other Broker License No. Listing or Principal Broker License No. Associate Associate Address Address City State Zip City State Zip Telephone Facsimile Telephone Facsimile E-mail E-mail

represents Ç Buyer only as Buyer’s agent represents Ç Seller only Ç Seller as Listing Broker’s subagent Ç Buyer only Ç Seller and Buyer as an intermediary Upon closing of the sale by Seller to Buyer of the Property described in the contract to which this fee agreement is attached: (a) ÇSeller Ç Buyer will pay Listing/Principal Broker Ça cash fee of $ or Ç % of the total Sales Price; and (b) ÇSeller Ç Buyer will pay Other Broker Ça cash fee of $_________ or Ç % of the total Sales Price. Seller/Buyer authorizes and directs Escrow Agent to pay the brokers from the proceeds at closing.

Brokers' fees are negotiable. Brokers' fees or the sharing of fees between brokers are not fixed, controlled, recommended, suggested or maintained by the Texas Real Estate Commission.

Seller Buyer Seller Buyer

Do not sign if there is a separate written agreement for payment of Brokers' fees.

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(TAR-1101) 10-16-03 Page 1 of 8

RESIDENTIAL REAL ESTATE LISTING AGREEMENT EXCLUSIVE RIGHT TO SELL



1. PARTIES: The parties to this agreement (this Listing) are: Seller:

Address: City, State, Zip: Phone: Fax: E-Mail: Broker: Address: City, State, Zip: Phone: Fax: E-Mail: Seller appoints Broker as Seller’s sole and exclusive real estate agent and grants to Broker the exclusive

right to sell the Property. 2. PROPERTY: “Property” means the land, improvements, and accessories described below, except for any

described exclusions.

A. Land: Lot , Block , Addition, City of , in County, Texas known as (address/zip code), or as described on attached exhibit. (If Property is a condominium, attach Condominium Addendum.)

B. Improvements: The house, garage and all other fixtures and improvements attached to the above-

described real property, including without limitation, the following permanently installed and built-in items, if any: all equipment and appliances, valances, screens, shutters, awnings, wall-to-wall carpeting, mirrors, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system and equipment, heating and air-conditioning units, security and fire detection equipment, wiring, plumbing and lighting fixtures, chandeliers, water softener system, kitchen equipment, garage door openers, cleaning equipment, shrubbery, landscaping, outdoor cooking equipment, and all other property owned by Seller and attached to the above-described real property.

C. Accessories: The following described related accessories, if any: window air conditioning units, stove,

fireplace screens, curtains and rods, blinds, window shades, draperies and rods, controls for satellite dish system, controls for garage door openers, entry gate controls, door keys, mailbox keys, above-ground pool, swimming pool equipment and maintenance accessories, and artificial fireplace logs.

D. Exclusions: The following improvements and accessories will be retained by Seller and excluded:

. E. Owners’ Association: The property ❑ is ❑ is not subject to mandatory membership in an owners’

association.

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(TAR-1101) 10-16-03 Page 2 of 8

3. LISTING PRICE: Seller instructs Broker to market the Property at the following price: $

(Listing Price). Seller agrees to sell the Property for the Listing Price or any other price acceptable to Seller. Seller will pay all typical closing costs charged to sellers of residential real estate in Texas (seller’s typical closing costs are those set forth in the residential contract forms promulgated by the Texas Real Estate Commission).

4. TERM: A. This Listing begins on and ends at 11:59 p.m. on . B. If Seller enters into a binding written contract to sell the Property before the date this Listing begins and

the contract is binding on the date this Listing begins, this Listing will not commence and will be void. 5. BROKER'S FEE: A. Fee: When earned and payable, Seller will pay Broker a fee of: ❑ (1) % of the sales price. ❑ (2) . B. Earned: Broker's fee is earned when any one of the following occurs during this Listing: (1) Seller sells, exchanges, options, agrees to sell, agrees to exchange, or agrees to option the

Property to anyone at any price on any terms; (2) Broker individually or in cooperation with another broker procures a buyer ready, willing, and able to

buy the Property at the Listing Price or at any other price acceptable to Seller; or (3) Seller breaches this Listing.

C. Payable: Once earned, Broker's fee is payable either during this Listing or after it ends at the earlier of:

(1) the closing and funding of any sale or exchange of all or part of the Property; (2) Seller's refusal to sell the Property after Broker’s Fee has been earned; (3) Seller’s breach of this Listing; or (4) at such time as otherwise set forth in this Listing.

Broker's fee is not payable if a sale of the Property does not close or fund as a result of: (i) Seller's failure, without fault of Seller, to deliver to a buyer a deed or a title policy as required by the contract to sell; (ii) loss of ownership due to foreclosure or other legal proceeding; or (iii) Seller's failure to restore the Property, as a result of a casualty loss, to its previous condition by the closing date set forth in a contract for the sale of the Property.

D. Other Fees: (1) Breach by Buyer Under a Contract: If Seller collects earnest money, the sales price, or damages

by suit, compromise, settlement, or otherwise from a buyer who breaches a contract for the sale of the Property entered into during this Listing, Seller will pay Broker, after deducting attorney’s fees and collection expenses, an amount equal to the lesser of one-half of the amount collected after deductions or the amount of the Broker's Fee stated in Paragraph 5A. Any amount paid under this Paragraph 5D(1) is in addition to any amount that Broker may be entitled to receive for subsequently selling the Property.

(2) Service Providers: If Broker refers Seller or a prospective buyer to a service provider (for example,

mover, cable company, telecommunications provider, utility, or contractor) Broker may receive a fee from the service provider for the referral. Any referral fee Broker receives under this Paragraph 5D(2) is in addition to any other compensation Broker may receive under this Listing.

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(TAR-1101) 10-16-03 Page 3 of 8

(3) Transaction Fees or Reimbursable Expenses: .

E. Protection Period: (1) “Protection period” means that time starting the day after this Listing ends and continuing for

days. “Sell” means any transfer of any interest in the Property whether by oral or written agreement or option.

(2) Not later than 10 days after this Listing ends, Broker may send Seller written notice specifying the

names of persons whose attention was called to the Property during this Listing. If Seller agrees to sell the Property during the protection period to a person named in the notice or to a relative of a person named in the notice, Seller will pay Broker, upon the closing of the sale, the amount Broker would have been entitled to receive if this Listing were still in effect.

(3) This Paragraph 5E survives termination of this Listing. This Paragraph 5E will not apply if: (a) Seller agrees to sell the Property during the protection period; (b) the Property is exclusively listed with another broker who is a member of the Texas Association

of REALTORS® at the time the sale is negotiated; and (c) Seller is obligated to pay the other broker a fee for the sale. F. County: All amounts payable to Broker are to be paid in cash in

County, Texas. G. Escrow Authorization: Seller authorizes, and Broker may so instruct, any escrow or closing agent

authorized to close a transaction for the purchase or acquisition of the Property to collect and disburse to Broker all amounts payable to Broker under this Listing.

6. LISTING SERVICES: ❑ A. Broker will file this Listing with one or more Multiple Listing Services (MLS) by the earlier of the time

required by MLS rules or 5 days after the date this Listing begins. Seller authorizes Broker to submit information about this Listing and the sale of the Property to the MLS.

Notice: MLS rules require Broker to accurately and timely submit all information the MLS requires

for participation including sold data. Subscribers to the MLS may use the information for market evaluation or appraisal purposes. Subscribers are other brokers and other real estate professionals such as appraisers and may include the appraisal district. Any information filed with the MLS becomes the property of the MLS for all purposes. Submission of information to MLS ensures that persons who use and benefit from the MLS also contribute information.

❑ B. Broker will not file this Listing with a Multiple Listing Service (MLS) or any other listing service. 7. ACCESS TO THE PROPERTY:

A. Authorizing Access: Authorizing access to the Property means giving permission to another person to

enter the Property, disclosing to the other person any security codes necessary to enter the Property, and lending a key to the other person to enter the Property, directly or through a keybox. To facilitate the showing and sale of the Property, Seller instructs Broker to:

(1) access the Property at reasonable times (2) authorize other brokers, their associates, inspectors, appraisers, and contractors to access the

Property at reasonable times; and (3) duplicate keys to facilitate convenient and efficient showings of the Property. B. Scheduling Companies: Broker may engage the following companies to schedule appointments and to

authorize others to access the Property: .

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(TAR-1101) 10-16-03 Page 4 of 8

C. Keybox: A keybox is a locked container placed on the Property that holds a key to the Property. A keybox makes it more convenient for brokers, their associates, inspectors, appraisers, and contractors to show, inspect, or repair the Property. The keybox is opened by a special combination, key, or programmed device so that authorized persons may enter the Property, even in Seller’s absence. Using a keybox will probably increase the number of showings, but involves risks (for example, unauthorized entry, theft, property damage, or personal injury). Neither the Association of REALTORS® nor MLS requires the use of a keybox.

(1) Broker ❑ is ❑ is not authorized to place a keybox on the Property. (2) If a tenant occupies the Property at any time during this Listing, Seller will furnish Broker a written

statement (for example, TAR No. 1411), signed by all tenants, authorizing the use of a keybox or Broker may remove the keybox from the Property.

D. Liability and Indemnification: When authorizing access to the Property, Broker, other brokers, their

associates, any keybox provider, or any scheduling company are not responsible for personal injury or property loss to Seller or any other person. Seller assumes all risk of any loss, damage, or injury. Except for a loss caused by Broker, Seller will indemnify and hold Broker harmless from any claim for personal injury, property damage, or other loss.

8. COOPERATION WITH OTHER BROKERS: Broker will allow other brokers to show the Property to

prospective buyers. Broker will offer to pay the other broker a fee as described below if the other broker procures a buyer that purchases the Property.

A. MLS Participants: If the other broker is a participant in the MLS in which this Listing is filed, Broker will

offer to pay the other broker: (1) if the other broker represents the buyer: % of the sales price or $ ; and (2) if the other broker is a subagent: % of the sales price or $ . B. Non-MLS Brokers: If the other broker is not a participant in the MLS in which this Listing is filed, Broker

will offer to pay the other broker: (1) if the other broker represents the buyer: % of the sales price or $ ; and (2) if the other broker is a subagent: % of the sales price or $ . 9. INTERMEDIARY: (Check A or B only.) ❑ A. Intermediary Status: Broker may show the Property to interested prospective buyers who Broker

represents. If a prospective buyer who Broker represents offers to buy the Property, Seller authorizes Broker to act as an intermediary and Broker will notify Seller that Broker will service the parties in accordance with one of the following alternatives.

(1) If a prospective buyer who Broker represents is serviced by an associate other than the associate

servicing Seller under this Listing, Broker may notify Seller that Broker will: (a) appoint the associate then servicing Seller to communicate with, carry out instructions of, and provide opinions and advice during negotiations to Seller; and (b) appoint the associate then servicing the prospective buyer to the prospective buyer for the same purpose.

(2) If a prospective buyer who Broker represents is serviced by the same associate who is servicing

Seller, Broker may notify Seller that Broker will: (a) appoint another associate to communicate with, carry out instructions of, and provide opinions and advice during negotiations to the prospective buyer; and (b) appoint the associate servicing the Seller under this Listing to the Seller for the same purpose.

(3) Broker may notify Seller that Broker will make no appointments as described under this Paragraph

9A and, in such an event, the associate servicing the parties will act solely as Broker’s intermediary representative, who may facilitate the transaction but will not render opinions or advice during negotiations to either party.

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(TAR-1101) 10-16-03 Page 5 of 8

❑ B. No Intermediary Status: Seller agrees that Broker will not show the Property to prospective buyers who

Broker represents. Notice: If Broker acts as an intermediary under Paragraph 9A, Broker and Broker’s associates: may not disclose to the prospective buyer that Seller will accept a price less than the

asking price unless otherwise instructed in a separate writing by Seller; may not disclose to Seller that the prospective buyer will pay a price greater than the

price submitted in a written offer to Seller unless otherwise instructed in a separate writing by the prospective buyer;

may not disclose any confidential information or any information Seller or the prospective buyer specifically instructs Broker in writing not to disclose unless otherwise instructed in a separate writing by the respective party or required to disclose the information by the Real Estate License Act or a court order or if the information materially relates to the condition of the property;

may not treat a party to the transaction dishonestly; and may not violate the Real Estate License Act. 10. CONFIDENTIAL INFORMATION: During this Listing or after it ends, Broker may not knowingly disclose

information obtained in confidence from Seller except as authorized by Seller or required by law. Broker may not disclose to Seller any confidential information regarding any other person Broker represents or previously represented except as required by law.

11. BROKER’S AUTHORITY: A. Broker will use reasonable efforts and act diligently to market the Property for sale, procure a buyer,

and negotiate the sale of the Property. B. In addition to other authority granted by this Listing, Broker may: (1) advertise the Property by means and methods as Broker determines, including but not limited to

creating and placing advertisements with interior and exterior photographic and audio-visual images of the Property and related information in any media and the Internet;

(2) place a “For Sale” sign on the Property and remove all other signs offering the Property for sale or lease;

(3) furnish comparative marketing and sales information about other properties to prospective buyers; (4) disseminate information about the Property to other brokers and to prospective buyers, including

applicable disclosures or notices that Seller is required to make under law or a contract; (5) obtain information from any holder of a note secured by a lien on the Property; (6) accept and deposit earnest money in trust in accordance with a contract for the sale of the

Property; (7) disclose the sales price and terms of sale to other brokers, appraisers, or other real estate

professionals; (8) in response to inquiries from prospective buyers and other brokers, disclose whether the Seller is

considering more than one offer, provided that Broker will not disclose the terms of any competing offer unless specifically instructed by Seller;

(9) advertise, during or after this Listing ends, that Broker “sold” the Property; and (10) place information about this Listing, the Property, and a transaction for the Property on an

electronic transaction platform (typically an Internet-based system where professionals related to the transaction such as title companies, lenders, and others may receive, view, and input information).

C. Broker is not authorized to execute any document in the name of or on behalf of Seller concerning the

Property.

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(TAR-1101) 10-16-03 Page 6 of 8

12. SELLER’S REPRESENTATIONS: Except as provided by Paragraph 15, Seller represents that: A. Seller has fee simple title to and peaceable possession of the Property and all its improvements and

fixtures, unless rented, and the legal capacity to convey the Property; B. Seller is not bound by a listing agreement with another broker for the sale, exchange, or lease of the

Property that is or will be in effect during this Listing; C. any pool or spa and any required enclosures, fences, gates, and latches comply with all applicable

laws and ordinances; D. no person or entity has any right to purchase, lease, or acquire the Property by an option, right of

refusal, or other agreement; E. there are no delinquencies or defaults under any deed of trust, mortgage, or other encumbrance on the

Property; F. the Property is not subject to the jurisdiction of any court; G. all information relating to the Property Seller provides to Broker is true and correct to the best of

Seller’s knowledge; and H. the name of any employer, relocation company, or other entity that provides benefits to Seller when

selling the Property is: . 13. SELLER’S ADDITIONAL PROMISES: Seller agrees to: A. cooperate with Broker to facilitate the showing, marketing, and sale of the Property; B. not rent or lease the Property during this Listing without Broker’s prior written approval; C. not negotiate with any prospective buyer who may contact Seller directly, but refer all prospective

buyers to Broker; D. not enter into a listing agreement with another broker for the sale, exchange, or lease of the Property to

become effective during this Listing; E. maintain any pool and all required enclosures in compliance with all applicable laws and ordinances; F. provide Broker with copies of any leases or rental agreements pertaining to the Property and advise

Broker of tenants moving in or out of the Property; G. complete any disclosures or notices required by law or a contract to sell the Property; and H. amend any applicable notices and disclosures if any material change occurs during this Listing. 14. LIMITATION OF LIABILITY: A. If the Property is or becomes vacant during this Listing, Seller must notify Seller’s casualty insurance

company and request a “vacancy clause” to cover the Property. Broker is not responsible for the security of the Property nor for inspecting the Property on any periodic basis.

B. Broker is not responsible or liable in any manner for personal injury to any person or for loss or

damage to any person’s real or personal property resulting from any act or omission not caused by Broker’s negligence, including but not limited to injuries or damages caused by:

(1) other brokers, their associates, inspectors, appraisers, and contractors who are authorized to access the Property;

(2) acts of third parties (for example, vandalism or theft); (3) freezing water pipes; (4) a dangerous condition on the Property; or (5) the Property’s non-compliance with any law or ordinance. C. Seller agrees to protect, defend, indemnify, and hold Broker harmless from any damage, costs,

attorney’s fees, and expenses that: (1) are caused by Seller, negligently or otherwise; (2) arise from Seller’s failure to disclose any material or relevant information about the

Property; or (3) are caused by Seller giving incorrect information to any person.

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(TAR-1101) 10-16-03 Page 7 of 8

15. SPECIAL PROVISIONS: 16. DEFAULT: If Seller breaches this Listing, Seller is in default and will be liable to Broker for the amount of

the Broker’s fee specified in Paragraph 5A and any other fees Broker is entitled to receive under this Listing. If a sales price is not determinable in the event of an exchange or breach of this Listing, the Listing Price will be the sales price for purposes of computing Broker’s fee. If Broker breaches this Listing, Broker is in default and Seller may exercise any remedy at law.

17. MEDIATION: The parties agree to negotiate in good faith in an effort to resolve any dispute related to this

Listing that may arise between the parties. If the dispute cannot be resolved by negotiation, the dispute will be submitted to mediation. The parties to the dispute will choose a mutually acceptable mediator and will share the cost of mediation equally.

18. ATTORNEY’S FEES: If Seller or Broker is a prevailing party in any legal proceeding brought as a result of

a dispute under this Listing or any transaction related to or contemplated by this Listing, such party will be entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney’s fees.

19. ADDENDA AND OTHER DOCUMENTS: Addenda that are part of this Listing and other documents that

Seller may need to provide are: X A. Information About Brokerage Services; ❑ B. Seller Disclosure Notice (§5.008, Texas Property Code); ❑ C. Seller’s Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards (required if

Property was built before 1978); ❑ D. MUD, Water District, or Statutory Tax District Disclosure Notice (Chapter 49, Texas Water Code); ❑ E. Request for Information from an Owners’ Association; ❑ F. Request for Mortgage Information; ❑ G. Information about On-Site Sewer Facility; ❑ H. Information about Special Flood Hazard Areas; ❑ I. Condominium Addendum to Listing; ❑ J. Keybox Authorization by Tenant; ❑ K. Seller’s Authorization to Release and Advertise Certain Information; and ❑ L.

. 20. AGREEMENT OF PARTIES: A. Entire Agreement: This Listing is the entire agreement of the parties and may not be changed except

by written agreement. B. Assignability: Neither party may assign this Listing without the written consent of the other party.

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(TAR-1101) 10-16-03 Page 8 of 8

C. Binding Effect: Seller’s obligation to pay Broker an earned fee is binding upon Seller and Seller’s heirs, administrators, executors, successors, and permitted assignees.

D. Joint and Several: All Sellers executing this Listing are jointly and severally liable for the performance

of all its terms. E. Governing Law: Texas law governs the interpretation, validity, performance, and enforcement of this

Listing. F. Severability: If a court finds any clause in this Listing invalid or unenforceable, the remainder of this

Listing will not be affected and all other provisions of this Listing will remain valid and enforceable. G. Notices: Notices between the parties must be in writing and are effective when sent to the receiving

party’s address, fax, or e-mail address specified in Paragraph 1. 21. ADDITIONAL NOTICES: A. Broker’s fees or the sharing of fees between brokers are not fixed, controlled, recommended,

suggested, or maintained by the Association of REALTORS®, MLS, or any listing service. B. Fair housing laws require the Property to be shown and made available to all persons without

regard to race, color, religion, national origin, sex, disability, or familial status. Local ordinances may provide for additional protected classes (for example, creed, status as a student, marital status, sexual orientation, or age).

C. Seller may review the information Broker submits to an MLS or other listing service. D. Broker advises Seller to remove or secure jewelry, prescription drugs, and other valuables. E. Statutes or ordinances may regulate certain items on the Property (for example, swimming

pools and septic systems). Non-compliance with the statutes or ordinances may delay a transaction and may result in fines, penalties, and liability to Seller.

F. If the Property was built before 1978, Federal law requires the Seller to: (1) provide the buyer

with the federally approved pamphlet on lead poisoning prevention; (2) disclose the presence of any known lead-based paint or lead-based paint hazards in the Property; (3) deliver all records and reports to the buyer related to such paint or hazards; and (4) provide the buyer a period up to 10 days to have the Property inspected for such paint or hazards.

G. Broker cannot give legal advice. READ THIS LISTING CAREFULLY. If you do not understand

the effect of this Listing, consult an attorney BEFORE signing. Broker’s Printed Name License No. Seller Date By: Broker’s Associate’s Signature Date Seller Date

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(TAR-1403) 1-7-04 Page 1 of 1

EXCLUSIVE AGENCY ADDENDUM TO LISTING


ADDENDUM TO LISTING AGREEMENT BETWEEN THE UNDERSIGNED PARTIES CONCERNING THE PROPERTY AT

______________________________________________________________________

A. Definitions: (1) “Owner” means the seller or landlord of the above-referenced Property. (2) “Excluded Prospect” means a prospective buyer or tenant who: (a) has direct communication or negotiations with Owner about the purchase or lease of the Property; (b) is procured through Owner’s sole efforts; and (c) Owner identifies to be an Excluded Prospect as required by Paragraph D. B. Exclusive Agency: Notwithstanding provisions in the above-referenced listing agreement (the Listing) to

the contrary, Owner may sell or lease the Property to an Excluded Prospect if Owner does not use any other real estate broker to market or assist Owner to sell or lease the Property.

C. Broker’s Fees: If Owner sells or leases the Property to an Excluded Prospect, Owner will not be obligated

to pay the fees due to Broker under Paragraph 5A of the Listing, but Owner will pay Broker, at the time the sale closes or the lease begins, a fee equal to (check all that apply):

❑ (1) % of the sales price if Owner sells the Property. ❑ (2) % of the gross rent over the term of the lease if Owner leases the Property. ❑ (3) . D. Naming of Excluded Prospects: In order for a person to qualify to be an Excluded Prospect under this

Addendum, Owner must send Broker written notice identifying the Excluded Prospect by name, address, and phone. If Broker or any other broker shows the Property to a prospective buyer or tenant before Owner provides written notice to Broker that the prospective buyer or tenant is an Excluded Prospect, then the prospective buyer or tenant is not an Excluded Prospect.

E. Offers from Excluded Prospects: Owner will immediately notify Broker of: (1) Owner’s receipt of an offer

from an Excluded Prospect; (2) Owner’s acceptance of an offer from an Excluded Prospect by providing Broker a copy of the contract or lease; (3) the closing of a contract or lease with an Excluded Prospect; and (4) any termination of such a contract that does not close or a lease that does not commence.

F. Effect on Listing upon Sale or Lease to a Named Exclusion: If Owner enters into a contract to sell or lease

the Property to an Excluded Prospect, Broker will have no obligation to provide further services to Owner related to the sale or lease of the Property to an Excluded Prospect and Broker may: (1) terminate the Listing by providing written notice to Owner; or (2) continue to list and market the Property through the date the Listing ends for back-up offers.

G. Advertising: Owner may advertise the Property only by: ❑ signs, ❑ newspaper, ❑ Internet, ❑

. Broker’s (Company’s) Printed Name License No. Seller or Landlord Date By: Broker’s Associate’s Signature Date Seller or Landlord Date

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(TAR-1404) 1-7-04 Page 1 of 1

AMENDMENT TO LISTING


AMENDMENT TO LISTING AGREEMENT BETWEEN THE UNDERSIGNED PARTIES CONCERNING THE PROPERTY AT

______________________________________________________________________

“Owner” means the seller or landlord of the above-referenced Property. Effective , Owner and Broker amend the above-referenced Listing as follows: ❑ A. The Listing Price in Paragraph 3 of the Listing is changed to: $ . ❑ B. The date the Listing ends in Paragraph 4 of the Listing is changed to: . ❑ C. Owner instructs Broker to cease marketing the Property on and to

resume marketing the Property on: ❑ (1) receipt of further instructions from Owner; or ❑ (2) . The Listing is not terminated and remains in effect for all other purposes.

❑ D. Paragraph(s) are changed as follows: Broker’s (Company’s) Printed Name License No. Seller or Landlord Date By: Broker’s Associate’s Signature Date Seller or Landlord Date

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(TAR-1410) 1-7-04 Page 1 of 1

TERMINATION OF LISTING USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED.


TERMINATION OF LISTING BETWEEN THE UNDERSIGNED PARTIES

CONCERNING THE PROPERTY LOCATED AT

A. Definitions: “Owner” means the seller or landlord of the above-referenced Property. “Listing” means the

above-referenced listing agreement. B. Representation: Owner represents that there are currently no negotiations pending or contemplated with

anyone for the sale, lease, or exchange of the Property. C. Termination Date: The parties terminate the Listing at 11:59 p.m. on . D. Termination Fees:

(1) Upon execution of this termination agreement, Owner will pay Broker a fee of $ for services rendered through the termination date.

(2) If Owner agrees to sell or lease the Property on or before , by

oral or written agreement or option, Owner will pay Broker at the time the Property is sold or leased a fee equal to (check all that apply):

❑ (a) % of the sales price if Owner sells the Property. ❑ (b) % of the gross rent over the term of the lease if Owner leases the Property. ❑ (c)

. (3) The fees specified in Paragraph D(2) are payable only if Owner agrees to sell or lease the Property to:

(Check one box only.) ❑ (a) anyone. ❑ (b)

.

E. Release: Except for the promises and representation in this document, Owner and Broker release each

other from all obligations under or related to the Listing Broker’s (Company’s) Printed Name License No. Seller or Landlord Date By: Broker’s Associate’s Signature Date Seller or Landlord Date

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(TAR-2002) 10-14-03 Page 1 of 1

AGREEMENT BETWEEN BROKERS FOR RESIDENTIAL LEASES USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED.

©Texas Association of REALTORS®, Inc. 2003 CONCERNING THE RESIDENTIAL LEASE OF THE PROPERTY AT between (Landlord) and (Tenant). A. FEE: Listing Broker will pay Other Broker a fee equal to: ❑ (1) % of one full month’s rent that Tenant is obligated to pay under the above-referenced lease. ❑ (2) % of all rent that Tenant is obligated to pay under the primary term of the above-referenced lease. ❑ (3) . The fee under this Paragraph A is earned at the time the lease is binding on the parties to the lease and is

payable promptly after Tenant pays the first full month’s rent, the prorated rent, and the security deposit. B. OTHER FEES: ❑ (1) Renewals: If the parties to the above-referenced lease renew the lease, Listing Broker will pay Other

Broker an additional fee equal to: ❑ (a) % of one full month’s rent that Tenant is obligated to pay under the renewal. ❑ (b) % of all rent that Tenant is obligated to pay under the renewal term. ❑ (c) . The fee under this Paragraph B(1) is earned when the renewal begins and is payable when Listing

Broker receives Listing Broker’s fee for the renewal in accordance with a separate agreement between Landlord and Listing Broker. A “renewal” includes renewals, extensions, and new leases for the Property between the parties to the lease with terms greater than 30 days. This Paragraph B(1) does not apply to month-to-month renewals.

❑ (2) Sales: If Landlord agrees to sell the Property to Tenant during the term of the lease, including any

renewal or extension, Listing Broker will pay Other Broker an additional fee equal to: ❑ (a) % of the sales price. ❑ (b) . The fee under this Paragraph B(2) is earned when Landlord agrees to sell the Property to Tenant and

is payable when Listing Broker receives Listing Broker’s fee for the sale in accordance with a separate agreement between Landlord and Listing Broker. “Sell” means to agree to sell, convey, or transfer a legal or equitable interest (excluding a lease) by written or oral agreement or option.


By By: Date Date Address Address City, State, Zip City, State, Zip

Phone Fax Phone Fax

Submit IRS Form W-9 (see www.irs.gov) to Listing Broker for payment of fee.

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(TAR-1102) 10-16-03 Page 1 of 9

RESIDENTIAL REAL ESTATE LISTING AGREEMENT EXCLUSIVE RIGHT TO LEASE



1. PARTIES: The parties to this agreement (this Listing) are: Landlord:

Address: City, State, Zip: Phone: Fax: E-Mail: Broker: Address: City, State, Zip: Phone: Fax: E-Mail: Landlord appoints Broker as Landlord’s sole and exclusive real estate agent and grants to Broker the

exclusive right to lease the Property. 2. PROPERTY: “Property” means the land described below, its improvements, its fixtures, and the non-real

estate items described below, except for any exclusions described below.

A. Land: Lot , Block , Addition, City of , in County, Texas known as (address/zip code), or as described on attached exhibit. (If Property is a condominium, attach Condominium Addendum.)

B. Non-Real Estate Items: Except for items excluded in Paragraph 2C, Landlord instructs Broker to

market the Property with all its fixtures and improvements and the following non-real estate items: .

C. Exclusions: Landlord will remove the following:

.

3. LISTING PRICE: Landlord instructs Broker to market the Property: A. at a monthly rental of $ (Listing Price); and B. for a lease term of not less than months and not more than months. 4. TERM: A. This Listing begins on and ends at 11:59 p.m. on . B. If Landlord enters into a binding written lease for the Property before the date this Listing begins and

the lease is binding on the date this Listing begins, this Listing will not commence and will be void.

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5. BROKER'S FEE: A. Fee: When earned and payable, Landlord will pay Broker a fee of: ❑ (1) % of one full month’s rent to be paid under a lease of the Property. ❑ (2) % of all rents to be paid under a lease of the Property. ❑ (3) . B. Earned: Broker's fee is earned when any one of the following occurs during this Listing: (1) Landlord agrees to lease or rent the Property to anyone at any price and on any terms, whether by

written or oral agreement or option; (2) Broker individually or in cooperation with another broker procures a tenant ready, willing, and able

to lease the Property at the Listing Price for a term stated in Paragraph 3 or at any other price or term acceptable to Landlord; or

(3) Landlord breaches this Listing. C. Payable: Once earned, Broker's fee is payable either during this Listing or after it ends, at the earlier of:

(1) the time Landlord and any tenant agree to lease or rent the Property; (2) Landlord’s refusal to lease the Property after Broker’s Fee has been earned; (3) Landlord’s breach of this Listing; or (4) at such time as otherwise set forth in this Listing.

D. Other Fees: (1) Renewal Fees: If Landlord renews or extends a lease or rental agreement with a tenant procured

under this Listing, Landlord, at the time the renewal or extension begins, will pay Broker the fee described below. This Paragraph 5D(1) survives termination of this Listing.

❑ (a) % of one full month’s rent to be paid under the renewal or extension. ❑ (b) % of all rents to be paid under the renewal or extension. ❑ (c) . (2) Fee for a Sale: (a) If Landlord agrees to sell the Property, by written or oral agreement or option, before days

after the end of a lease or rental of the Property to a tenant procured under this Listing, Landlord will, at the time the sale closes, pay Broker:

❑ (i) % of the sales price. ❑ (ii) . (b) If Landlord sells or agrees to sell the Property during the term of this Listing, Landlord will pay

Broker the fee specified in Paragraph 5D(2)(a) at the time the sale closes. (3) Service Providers: If Broker refers Landlord or a prospective tenant or buyer to a service provider

(for example, mover, cable company, telecommunications provider, utility, or contractor) Broker may receive a fee from the service provider for the referral. Any referral fee Broker receives under this Paragraph 5D(3) is in addition to any other compensation Broker may receive under this Listing.

(4) Transaction Fees or Reimbursable Expenses:

.

E. Protection Period: (1) “Protection period” means that time starting the day after this Listing ends and continuing for

days.

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(2) Not later than 10 days after this Listing ends, Broker may send Landlord written notice specifying the names of persons whose attention was called to the Property during this Listing. If Landlord agrees to lease or sell the Property during the protection period to a person named in the notice or to a relative of a person named in the notice, Landlord will, at the time Landlord agrees to lease or sell the Property, pay Broker the amount Broker would have been entitled to receive if this Listing were still in effect

(3) This Paragraph 5E survives termination of this Listing. This Paragraph 5E will not apply if: (a) Landlord agrees to lease, rent, or sell the Property during the protection period; (b) the Property is exclusively listed with another broker who is a member of the Texas Association

of REALTORS® at the time the lease, rental, or sale is negotiated; and (c) Landlord is obligated to pay the other broker a fee for the lease, rental, or sale. F. County: All amounts payable to Broker are to be paid in cash in

County, Texas. 6. LISTING SERVICES: ❑ A. Broker will file this Listing with one or more Multiple Listing Services (MLS) by the earlier of the time

required by MLS rules or 5 days after the date this Listing begins. Landlord authorizes Broker to submit information about this Listing and the lease of the Property to the MLS.

Notice: MLS rules require Broker to accurately and timely submit all information the MLS requires

for participation including leased or sold data. Subscribers to the MLS may use the information for market evaluation or appraisal purposes. Subscribers are other brokers and other real estate professionals such as appraisers and may include the appraisal district. Any information filed with the MLS becomes the property of the MLS for all purposes. Submission of information to MLS ensures that persons who use and benefit from the MLS also contribute information.

❑ B. Broker will not file this Listing with a Multiple Listing Service (MLS) or any other listing service. 7. ACCESS TO THE PROPERTY:

A. Authorizing Access: Authorizing access to the Property means giving permission to another person to

enter the Property, disclosing to the other person any security codes necessary to enter the Property, and lending a key to the other person to enter the Property, directly or through a keybox. To facilitate the showing and lease of the Property, Landlord instructs Broker to:

(1) access the Property at reasonable times; (2) authorize other brokers, their associates, inspectors, appraisers, and contractors to enter the

Property at reasonable times; and (3) duplicate keys to facilitate convenient and efficient showings of the Property. B. Scheduling Companies: Broker may engage the following companies to schedule appointments and to

authorize others to access the Property: . C. Keybox: A keybox is a locked container placed on the Property that holds a key to the Property.

A keybox makes it more convenient for brokers, their associates, inspectors, appraisers, and contractors to show, inspect, or repair the Property. The keybox is opened by a special combination, key, or programmed device so that authorized persons may enter the Property, even in Landlord’s absence. Using a keybox will probably increase the number of showings, but involves risks (for example, unauthorized entry, theft, property damage, or personal injury). Neither the Association of REALTORS® nor MLS requires the use of a keybox.

(1) Broker ❑ is ❑ is not authorized to place a keybox on the Property. (2) If a tenant occupies the Property at any time during this Listing, Landlord will furnish Broker a

written statement (for example, TAR No. 1411), signed by all tenants, authorizing the use of a keybox or Broker may remove the keybox from the Property.

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D. Liability and Indemnification: When authorizing access to the Property, Broker, other brokers, their associates, any keybox provider, or any scheduling company are not responsible for personal injury or property loss to Landlord or any other person. Landlord assumes all risk of any loss, damage, or injury. Except for a loss caused by Broker, Landlord will indemnify and hold Broker harmless from any claim for personal injury, property damage, or other loss.

8. COOPERATION WITH OTHER BROKERS: Broker will allow other brokers to show the Property to

prospective tenants. Broker will offer to pay the other broker a fee as described below if the other broker procures a tenant that purchases the Property.

A. MLS Participants: If the other broker is a participant in the MLS in which this Listing is filed, Broker will

offer to pay the other broker: (1) if the other broker represents the tenant (complete only one): % of one month’s rent to be

paid under a lease; % of all rents to be paid under a lease; or $ ; and (2) if the other broker is a subagent (complete only one): % of one month’s rent to be paid

under a lease; % of all rents to be paid under a lease; or $ . B. Non-MLS Brokers: If the other broker is not a participant in the MLS in which this Listing is filed, Broker

will offer to pay the other broker: (1) if the other broker represents the tenant (complete only one): % of one month’s rent to be

paid under a lease; % of all rents to be paid under a lease; or $ ; and (2) if the other broker is a subagent (complete only one): % of one month’s rent to be paid

under a lease; % of all rents to be paid under a lease; or $ . 9. INTERMEDIARY: (Check A or B only.) ❑ A. Intermediary Status: Broker may show the Property to interested prospective tenants or buyers who

Broker represents. If a prospective tenant who Broker represents offers to lease or buy the Property, Landlord authorizes Broker to act as an intermediary and Broker will notify Landlord that Broker will service the parties in accordance with one of the following alternatives.

(1) If a prospective tenant or buyer who Broker represents is serviced by an associate other than the

associate servicing Landlord under this Listing, Broker may notify Landlord that Broker will: (a) appoint the associate then servicing Landlord to communicate with, carry out instructions of, and provide opinions and advice during negotiations to Landlord; and (b) appoint the associate then servicing the prospective tenant or buyer to the prospective tenant or buyer for the same purpose.

(2) If a prospective tenant or buyer who Broker represents is serviced by the same associate that is

servicing Landlord, Broker may notify Landlord that Broker will: (a) appoint another associate to communicate with, carry out instructions of, and provide opinions and advice during negotiations to the prospective tenant or buyer; and (b) appoint the associate servicing the Landlord under this Listing to Landlord for the same purpose.

(3) Broker may notify Landlord that Broker will make no appointments as described under this

Paragraph 9A and, in such an event, the associate servicing the parties will act solely as Broker’s intermediary representative, who may facilitate the transaction but will not render opinions or advice during negotiations to either party.

❑ B. No Intermediary Status: Landlord agrees that Broker will not show the Property to prospective tenants

or buyers who Broker represents. Notice: If Broker acts as an intermediary under Paragraph 9A, Broker and Broker’s associates: may not disclose to the prospective tenant or buyer that Landlord will accept a price less

than the asking price unless otherwise instructed in a separate writing by Landlord; may not disclose to Landlord that the prospective tenant or buyer will pay a price greater

than the price submitted in a written offer to Landlord unless otherwise instructed in a

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separate writing by the prospective tenant or buyer; may not disclose any confidential information or any information Landlord or the

prospective tenant or buyer specifically instructs Broker in writing not to disclose unless otherwise instructed in a separate writing by the respective party or required to disclose the information by the Real Estate License Act or a court order or if the information materially relates to the condition of the property;

may not treat a party to the transaction dishonestly; and may not violate the Real Estate License Act. 10. CONFIDENTIAL INFORMATION: During this Listing or after it ends, Broker may not knowingly disclose

information obtained in confidence from Landlord except as authorized by Landlord or required by law. Broker may not disclose to Landlord any confidential information regarding any other person Broker represents or previously represented except as required by law.

11. BROKER’S AUTHORITY: A. Broker will use reasonable efforts and act diligently to market the Property for lease, procure a tenant,

and negotiate the lease of the Property. B. In addition to other authority granted by this Listing, Broker may: (1) advertise the Property by means and methods as Broker determines, including but not limited to

creating and placing advertisements with interior and exterior photographic and audio-visual images of the Property and related information in any media and the Internet;

(2) place a “For Lease” sign on the Property and remove all other signs offering the Property for sale or lease;

(3) furnish comparative marketing and lease information about other properties to prospective tenants;

(4) disseminate information about the Property to other brokers and to prospective tenants, including applicable disclosures or notices that Landlord is required to make under law or a lease;

(5) accept and deposit money for security deposit(s), application fees, and rent in trust in accordance with a lease for the Property and to make authorized deductions and offsets from such money for Broker’s fees, reimbursements, and other authorized purposes;

(6) disclose the terms of a lease for the Property to other brokers, appraisers, or other real estate professionals;

(7) in response to inquiries from prospective tenants and other brokers, disclose whether Landlord is considering more than one offer, provided that Broker will not disclose the terms of any competing offer unless specifically instructed by Landlord;

(8) advertise, during or after this Listing ends, that Broker “leased” the Property; and (9) place information about this Listing, the Property, and a transaction for the Property on an

electronic transaction platform (typically an Internet-based system where professionals related to the transaction such as title companies, lenders, and others may receive, view, and input information).

C. Make Ready: ❑ (1) Broker may not arrange for contractors to make repairs or alterations to the Property. ❑ (2) Broker may arrange for contractors to make repairs or alterations to the Property. The total cost of

repairs or alterations may not exceed $ , unless Landlord consents to any excess. Unless this agreement limits Broker’s discretion otherwise, Broker will use Broker’s best judgment in selecting contractors and determining the repairs or alterations to be made. Landlord will:

❑ (a) pay the contractors directly and pay Broker a service fee of upon receipt of the contractors’ and Broker’s invoices.

❑ (b) reimburse Broker for the costs Broker incurs for any repairs or alterations and pay Broker a service fee of upon receipt of Broker’s invoice.

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D. Broker is not authorized to execute any document in the name of or on behalf of Landlord concerning the Property.

12. LANDLORD’S REPRESENTATIONS: Except as provided by Paragraph 15, Landlord represents that: A. Landlord has fee simple title to and peaceable possession of the Property and all its improvements and

fixtures, unless rented, and the legal capacity to lease the Property; B. Landlord is not bound by a listing agreement with another broker for the sale, exchange, or lease of the

Property that is or will be in effect during this Listing; C. any pool or spa and any required enclosures, fences, gates, and latches comply with all applicable laws

and ordinances; D. no person or entity has any right to purchase, lease, or acquire the Property by an option, right of

refusal, or other agreement; E. there are no delinquencies or defaults under any deed of trust, mortgage, or other encumbrance on the

Property; F. the Property is not subject to the jurisdiction of any court; G. all information relating to the Property Landlord provides to Broker is true and correct to the best of

Landlord’s knowledge; H. there are no optional user fees for the use common areas (for example, pool or tennis courts in the

Property’s addition except: ; and

I. Landlord is not aware of a condition concerning the Property that materially affects the health or safety of an ordinary tenant except: .

13. LANDLORD’S ADDITIONAL PROMISES: Landlord agrees to: A. cooperate with Broker to facilitate the showing, marketing, and lease of the Property; B. not rent, lease, or sell the Property during this Listing without Broker’s prior written approval; C. not negotiate with any prospective tenant who may contact Landlord directly, but refer all prospective

tenants to Broker; D. not enter into a listing agreement with another broker for the sale, exchange, or lease of the Property to

become effective during this Listing; E. maintain any pool and all required enclosures in compliance with all applicable laws and ordinances; F. provide Broker with copies of any leases or rental agreements pertaining to the Property and advise

Broker of tenants moving in or out of the Property; G. complete any disclosures or notices required by law or a lease of the Property; and H. amend any applicable notices and disclosures if any material change occurs during this Listing. 14. LIMITATION OF LIABILITY: A. If the Property is or becomes vacant during this Listing, Landlord must notify Landlord’s casualty

insurance company and request a “vacancy clause” to cover the Property. Broker is not responsible for the security of the Property nor for inspecting the Property on any periodic basis.

B. Broker is not responsible or liable in any manner for personal injury to any person or for loss or

damage to any person’s real or personal property resulting from any act or omission not caused by Broker’s negligence, including but not limited to injuries or damages caused by:

(1) other brokers, their associates, inspectors, appraisers, and contractors who are authorized to access the Property;

(2) acts of third parties (for example, vandalism or theft); (3) freezing water pipes; (4) a dangerous condition on the Property; or (5) the Property’s non-compliance with any law or ordinance.

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C. Landlord agrees to protect, defend, indemnify, and hold Broker harmless from any damage, costs, attorney’s fees, and expenses that:

(1) are caused by Landlord, negligently or otherwise; (2) arise from Landlord’s failure to disclose any material or relevant information about the

Property; or (3) are caused by Landlord giving incorrect information to any person. 15. SPECIAL PROVISIONS: 16. DEFAULT: If Landlord breaches this Listing, Landlord is in default and will be liable to Broker for the

amount of the Broker’s fee specified in Paragraph 5A and any other fees Broker is entitled to receive under this Listing. If Landlord breaches this Listing and has not leased the Property, the Listing Price will be the monthly rent and the term will be 12 months for purposes of computing Broker’s fee. If Broker breaches this Listing, Broker is in default and Landlord may exercise any remedy at law.

17. MEDIATION: The parties agree to negotiate in good faith in an effort to resolve any dispute related to this

Listing that may arise between the parties. If the dispute cannot be resolved by negotiation, the dispute will be submitted to mediation. The parties to the dispute will choose a mutually acceptable mediator and will share the cost of mediation equally.

18. ATTORNEY’S FEES: If Landlord or Broker is a prevailing party in any legal proceeding brought as a result

of a dispute under this Listing or any transaction related to or contemplated by this Listing, such party will be entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney’s fees.

19. ADDENDA AND OTHER DOCUMENTS: Addenda that are part of this Listing and other documents that

Landlord may need to provide are: X A. Information About Brokerage Services; ❑ B. Addendum Regarding Lead-Based Paint (required if Property was built before 1978); ❑ C. Request for Information from an Owners’Association; ❑ D. Information about Special Flood Hazard Areas; ❑ E. Condominium Addendum to Listing; ❑ F. Keybox Authorization by Tenant; and ❑ G. . 20. LEASE REQUIREMENTS BY LANDLORD: In response to inquiries from prospective tenants and other

brokers, Broker may communicate the Listing Price as the desired monthly rent and the following preferences or requirements by Landlord. The information is negotiable and does not bind Landlord to accept or reject any offer. A. Late Charges: Time at which late charges are incurred: p.m. on the day of the month.

(1) Initial Late Charge: ❑ (a) $ ; ❑ (b) % of one month’s rent. (2) Additional Late Charges: $ per day thereafter.

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(TAR-1102) 10-16-03 Page 8 of 9

B. Pets: ❑ not permitted ❑ permitted with the following restrictions (size, weight, number, type):

(1) If a pet is permitted, Landlord requires the tenant to sign a pet agreement and requires: ❑ (a) a pet deposit of $ in addition to the security deposit. ❑ (b) the monthly rent to be increased by $ . ❑ (c) a one-time, non-refundable payment of $ .

(2) Pet violation charges (whether pet is permitted or not permitted): (a) an initial charge of $ ; and (b) $ per day thereafter.

C. Security Deposit: $

D. Utilities: To be paid by Landlord:

E. Guests: Number of days guests permitted on Property:

F. Vehicles: Number of vehicles permitted on Property:

G. Trip Charge: $

H. Keybox: Authorized during last days of lease; Early Withdrawal Fee $

I. Inventory and Condition Form: To be delivered within days

J. Yard: To be maintained by: ❑ Landlord; ❑ Tenant; ❑ a contractor chosen and paid by Tenant; or ❑ (contractor) paid by Tenant

K. Pool/Spa: To be maintained by: ❑ Landlord; ❑ Tenant; ❑ a contractor chosen and paid by Tenant; ❑ (contractor) paid by Tenant; or ❑ L. Repairs: Tenant to pay first $ of repairs, except as otherwise provided by lease. Appliances or items that will not be repaired:

M. Special Provisions:

N. Assignment & Subletting Fees: (1) If procured by tenant: ❑ (i) $ ; or ❑ (ii) % of one’s month rent. (2) If procured by landlord: ❑ (i) $ ; or ❑ (ii) % of one’s month rent.

O. Other:

21. AGREEMENT OF PARTIES: A. Entire Agreement: This Listing is the entire agreement of the parties and may not be changed except

by written agreement. B. Assignability: Neither party may assign this Listing without the written consent of the other party. C. Binding Effect: Landlord’s obligation to pay Broker an earned fee is binding upon Landlord and

Landlord’s heirs, administrators, executors, successors, and permitted assignees. D. Joint and Several: All Landlords executing this Listing are jointly and severally liable for the

performance of all its terms. E. Governing Law: Texas law governs the interpretation, validity, performance, and enforcement of this

Listing. F. Severability: If a court finds any clause in this Listing invalid or unenforceable, the remainder of this

Listing will not be affected and all other provisions of this Listing will remain valid and enforceable.

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G. Notices: Notices between the parties must be in writing and are effective when sent to the receiving party’s address, fax, or e-mail address specified in Paragraph 1.

22. ADDITIONAL NOTICES: A. Broker’s fees or the sharing of fees between brokers are not fixed, controlled, recommended,

suggested, or maintained by the Association of REALTORS®, MLS, or any listing service. B. Fair housing laws require the Property to be shown and made available to all persons without

regard to race, color, religion, national origin, sex, disability, or familial status. Local ordinances may provide for additional protected classes (for example, creed, status as a student, marital status, sexual orientation, or age).

C. Landlord may review the information Broker submits to an MLS or other listing service. D. Broker advises Landlord to remove or secure jewelry, prescription drugs, and other valuables. E. Statutes or ordinances may regulate certain items on the Property (for example, swimming

pools and septic systems). Non-compliance with the statutes or ordinances may delay a transaction and may result in fines, penalties, and liability to Landlord.

F. Residential service contracts are available from licensed residential service companies. A

residential service contract may provide for the repair or replacement of some appliances or electrical, plumbing, heating, or cooling systems. Exclusions and deductibles apply.

G. The Property Code requires certain types of locks or security devices on all exterior doors of

residential rental properties and requires smoke detectors in certain locations. The Property Code requires Landlord to rekey the security devices and to test the smoke detectors each time a new tenant occupies the Property.

H. If the Property was built before 1978, Federal law requires the Landlord (before a tenant is

obligated under a lease) to: (1) provide the tenant with the federally approved pamphlet on lead poisoning prevention; (2) disclose the presence of any known lead-based paint or lead-based paint hazards in the Property; and (3) deliver all records and reports to the tenant related to such paint or hazards.

I. Broker cannot give legal advice. READ THIS LISTING CAREFULLY. If you do not understand

the effect of this Listing, consult an attorney BEFORE signing. Broker’s Printed Name License No. Landlord Date By: Broker’s Associate’s Signature Date Landlord Date

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(TAR-2001) 10-5-05 Page 1 of 14

RESIDENTIAL LEASE


1. PARTIES: The parties to this lease are:

the owner of the Property, Landlord,: ; and Tenant(s): .

2. PROPERTY: Landlord leases to Tenant the following real property: Address: legally described as: in County, Texas, together with the following non-real-property

items: . The real property and the non-real-property are collectively called the “Property”.

3. TERM: A. Primary Term: The primary term of this lease begins and ends as follows: Commencement Date: Expiration Date: B. Delay of Occupancy: Tenant must occupy the Property within 5 days after the Commencement Date.

If Tenant is unable to occupy the Property by the 5th day after the Commencement Date because of construction on the Property or a prior tenant’s holding over of the Property, Tenant may terminate this lease by giving written notice to Landlord before the Property becomes available to be occupied by Tenant, and Landlord will refund to Tenant the security deposit and any rent paid. Landlord will abate rent on a daily basis for a delay caused by construction or a prior tenant’s holding over. This paragraph does not apply to any delay in occupancy caused by cleaning, repairs, or make-ready items.

4. AUTOMATIC RENEWAL AND NOTICE OF TERMINATION: A. This lease automatically renews on a month-to-month basis unless Landlord or Tenant provides the

other party written notice of termination not less than: (Check only one box.) Ç (1) 30 days before the Expiration Date. Ç (2) days before the Expiration Date. B. If this lease automatically renews on a month-to month basis, it will continue to renew on a month-to-

month basis until either party provides written notice of termination to the other party and the notice of termination will be effective: (Check only one box.)

Ç (1) on the last day of the month following the month in which the notice is given. Landlord is not obligated to prorate rent even if Tenant surrenders the Property before the termination date.

Ç (2) on the date designated in the notice but not sooner than 30 days after the notice is given and, if necessary, rent will be prorated on a daily basis.

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Residential Lease concerning:

(TAR-2001) 10-5-05 Page 2 of 14

C. Oral notice of termination is not sufficient under any circumstances. Time is of the essence for providing notice of termination (strict compliance with dates by which notice must be provided is required). If a box is not checked under Paragraph 4A, Paragraph 4A(1) will apply. If a box is not checked under Paragraph 4B, Paragraph 4B(1) will apply.

5. RENT:

A. Monthly Rent: Tenant will pay Landlord monthly rent in the amount of $ for each full month during this lease. The first full month's rent is due and payable not later than . Thereafter, Tenant will pay the monthly rent so that Landlord receives the monthly rent on or before the first day of each month during this lease. Weekends, holidays, and mail delays do not excuse Tenant’s obligation to timely pay rent.

B. Prorated Rent: On or before Tenant will pay Landlord $ as prorated

rent from the Commencement Date through the last day of the month in which this lease begins.

C. Place of Payment: Unless this lease provides otherwise, Tenant will remit all amounts due to Landlord under this lease to the following person or entity at the place stated and make all payments payable to the named person or entity. Landlord may later designate, in writing, another person or place to which Tenant must remit amounts due under this lease.

Name:

Address: Notice: Place the Property address and Tenant’s name on all payments. D. Method of Payment: (1) Tenant must pay all rent timely and without demand, deduction, or offset, except as permitted by

law or this lease. (2) Time is of the essence for the payment of rent (strict compliance with rental due dates is required). (3) Unless the parties agree otherwise, Tenant may not pay rent in cash and will pay all rent by check,

cashier’s check, money order, or other means acceptable to Landlord. (4) Landlord Ç requires Ç does not require Tenant(s) to pay monthly rents by one check or draft. (5) If Tenant fails to timely pay any amounts due under this lease or if any check of Tenant is not

honored by the institution on which it was drawn, Landlord may require Tenant to pay such amount and any subsequent amounts under this lease in certified funds. This paragraph does not limit Landlord from seeking other remedies under this lease for Tenant’s failure to make timely payments with good funds.

E. Rent Increases: There will be no rent increases through the primary term. Landlord may increase the

rent that will be paid during any month-to-month renewal period by providing at least 30 days written notice to Tenant.

6. LATE CHARGES: A. If Landlord does not actually receive a rent payment in the full amount at the designated place of

payment by p.m. on the day of the month in which it is due, Tenant will pay Landlord for each late payment:

(1) an initial late charge equal to (check one box only): Ç (a) $ ; or Ç (b) % of one

month’s rent; and (2) additional late charges of $ per day thereafter until rent and late charges are paid in full.

Additional late charges may not exceed more than 30 days in any one month.

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B. For the purposes of paying rent and any late charges, the mailbox is not the agent for receipt for Landlord (the postmark date is not the date Landlord receives the payment). The late charge is a cost associated with the collection of rent and Landlord’s acceptance of a late charge does not waive Landlord’s right to exercise remedies under Paragraph 27.

7. RETURNED CHECKS: Tenant will pay Landlord $ (not to exceed $25.00) for each check

Tenant tenders to Landlord which is returned or not honored by the institution on which it is drawn for any reason, plus any late charges until Landlord receives payment. Tenant must make any returned check good by paying such amount(s) plus any associated charges in certified funds.

8. APPLICATION OF FUNDS: Regardless of any notation on a check, Landlord may apply funds received

from Tenant first to any non-rent obligations of Tenant, including but not limited to, late charges, returned check charges, repairs, brokerage fees, periodic utilities, pet charges, and then to rent.

9. PETS: A. Unless the parties agree otherwise in writing, Tenant may not permit, even temporarily, any pet on the

Property (including but not limited to any mammal, reptile, bird, fish, rodent, or insect). B. If Tenant violates this Paragraph 9 or any agreement to keep a pet on the Property, Landlord may take

all or any of the following action: (1) declare Tenant to be in default of this lease and exercise Landlord’s remedies under Paragraph 27; (2) charge Tenant, as additional rent, an initial amount of $ and $ per day thereafter per pet

for each day Tenant violates the pet restrictions; (3) remove or cause to be removed any unauthorized pet and deliver it to appropriate local authorities

by providing at least 24-hour written notice to Tenant of Landlord’s intention to remove the unauthorized pet; and

(4) charge to Tenant the Landlord’s cost to: (a) remove any unauthorized pet; (b) exterminate the Property for fleas and other insects; (c) clean and deodorize the Property’s carpets and drapes; and (d) repair any damage to the Property caused by the unauthorized pet. C. When taking any action under Paragraph 9B Landlord will not be liable for any harm, injury, death, or

sickness to any pet. 10. SECURITY DEPOSIT: A. Security Deposit: On or before execution of this lease, Tenant will pay a security deposit to Landlord in

the amount of $ . “Security deposit” has the meaning assigned to that term in §92.102, Property Code.

B. Interest: No interest or income will be paid to Tenant on the security deposit. Landlord may place the

security deposit in an interest-bearing or income-producing account and any interest or income earned will be paid to Landlord or Landlord’s representative.

C. Refund: Tenant must give Landlord at least thirty (30) days written notice of surrender before Landlord

is obligated to refund or account for the security deposit. Notices about Security Deposits: (1) §92.108, Property Code provides that a tenant may not withhold payment of any portion of the

last month’s rent on grounds that the security deposit is security for unpaid rent.

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(2) Bad faith violations of §92.108 may subject a tenant to liability up to 3 times the rent wrongfully

withheld and the landlord’s reasonable attorney’s fees. (3) The Property Code does not obligate a landlord to return or account for the security deposit

until the tenant surrenders the Property and gives the landlord a written statement of the tenant’s forwarding address, after which the landlord has 30 days in which to account.

(4) “Surrender” is defined in Paragraph 16 of this lease. (5) One may view the Texas Property Code at the Texas Legislature’s website which, as of the date

shown in the lower left-hand corner of this form, is www.capitol.state.tx.us/statutes/pr.toc.htm. D. Deductions: (1) Landlord may deduct reasonable charges from the security deposit for: (a) damages to the Property, excluding normal wear and tear; (b) costs for which Tenant is responsible to clean, deodorize, exterminate, and maintain the

Property; (c) unpaid or accelerated rent; (d) unpaid late charges; (e) unpaid utilities; (f) unpaid pet charges; (g) replacing unreturned keys, garage door openers, security devices, or other components; (h) the removal of unauthorized locks or fixtures installed by Tenant; (i) Landlord’s cost to access the Property if made inaccessible by Tenant; (j) missing or burned-out light bulbs and fluorescent tubes (at the same location and of the same

type and quality that are in the Property on the Commencement Date); (k) packing, removing, and storing abandoned property; (l) removing abandoned or illegally parked vehicles; (m) costs of reletting (as defined in Paragraph 27), if Tenant is in default; (n) attorney’s fees, costs of court, costs of service, and other reasonable costs incurred in any legal

proceeding against Tenant; (o) mailing costs associated with sending notices to Tenant for any violations of this lease; and (p) any other unpaid charges or fees or other items for which Tenant is responsible under this

lease.

(2) If deductions exceed the security deposit, Tenant will pay to Landlord the excess within 10 days after Landlord makes written demand.

11. UTILITIES: A. Tenant will pay all connection fees, service fees, usage fees, and all other costs and fees for all utilities

to the Property (for example, electricity, gas, water, wastewater, garbage, telephone, alarm monitoring systems, cable, and Internet connections) except the following which Landlord will pay: . Unless otherwise agreed, amounts under this paragraph are payable directly to the service providers.

B. Unless provided by Landlord, Tenant must, at a minimum, keep the following utilities on, if available, at

all times this lease is in effect: gas; electricity; water; wastewater; and garbage services. Notice: Before signing this lease, Tenant should determine if all necessary utilities are available

to the Property and are adequate for Tenant’s use.

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12. USE AND OCCUPANCY: A. Occupants: Tenant may use the Property as a private residence only. The only persons Tenant may

permit to reside on the Property during the term of this lease are (include names and ages of all occupants): .

B. Phone Numbers: Tenant must promptly inform Landlord of any changes in Tenant's phone numbers

(home, work, and mobile) not later than 5 days after a change. C. HOA Rules: Tenant must comply with any owners’ association rules or restrictive covenants affecting

the Property. Tenant will reimburse Landlord for any fines or other charges assessed against Landlord for violations by Tenant of any owners’ association rule or restrictive covenant.

D. Prohibitions: Unless otherwise authorized by this lease, Tenant may not install or permit any of the

following on the Property, even temporarily: a spa, hot tub, above-ground pool, trampoline, or any item which causes a suspension or cancellation of insurance coverage or an increase in insurance premiums. Tenant may not permit any part of the Property to be used for: (1) any activity which is a nuisance, offensive, noisy, or dangerous; (2) the repair of any vehicle; (3) any business of any type, including but not limited to child care; (4) any activity which violates any zoning ordinance, owners’ association rule, or restrictive covenant; (5) any illegal or unlawful activity; or (6) activity that obstructs, interferes with, or infringes on the rights of other persons near the Property.

E. Guests: Tenant may not permit any guest to stay on the Property longer the amount of time permitted

by any owners’ association rule or restrictive covenant or days without Landlord's written permission, whichever is less.

F. Common Areas: Landlord is not obligated to pay any non-mandatory or user fees for Tenant’s use of

any common areas or facilities (for example, pool or tennis courts). 13. PARKING RULES: Tenant may not permit more than vehicles, including but not limited to

automobiles, trucks, recreational vehicles, trailers, motorcycles, all-terrain vehicles, jet skis, and boats, on the Property unless authorized by Landlord in writing. Tenant may not park or permit any person to park any vehicles in the yard. Tenant may permit vehicles to be parked only in drives, garages, designated common parking areas, or in the street if not prohibited by law or an owners’ association. Tenant may not store or permit any person to store any vehicles on or adjacent to the Property or on the street in front of the Property. In accordance with applicable state and local laws, Landlord may have towed, at Tenant’s expense: (a) any inoperative vehicle on or adjacent to the Property; (b) any vehicle parked in violation of this paragraph or any additional parking rules made part of this lease; or (c) any vehicle parked in violation of any law, local ordinance, or owners’ association rule.

14. ACCESS BY LANDLORD: A. Signs: Landlord may prominently display a "For Sale" or "For Lease" or similarly worded sign on the

Property during the term of this lease or any renewal period. B. Access: Before accessing the Property, Landlord or anyone authorized by Landlord will attempt to first

contact Tenant, but may enter the Property at reasonable times without notice to make repairs or to show the Property to prospective tenants or buyers, inspectors, fire marshals, lenders, appraisers, or insurance agents. Additionally, Landlord or anyone authorized by Landlord may peacefully enter the Property at reasonable times without first attempting to contact Tenant and without notice to: (1) survey or review the Property’s condition; (2) make emergency repairs; (3) exercise a contractual or statutory lien; (4) leave written notices; or (5) seize nonexempt property if Tenant is in default.

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C. Trip Charges: If Landlord or Landlord’s agents have made prior arrangements with Tenant to access the Property and are later denied or are not able to access the Property because of Tenant’s failure to make the Property accessible, Landlord may charge Tenant a trip charge of $ .

D. Keybox: A keybox is a locked container placed on the Property holding a key to the Property.

The keybox is opened by a special combination, key, or programmed access device so that persons with the access device may enter the Property, even in Tenant’s absence. The keybox is a convenience but involves risk (such as unauthorized entry, theft, property damage, or personal injury). Neither the Association of REALTORS® nor MLS requires the use of a keybox.

(1) Tenant authorizes Landlord, Landlord’s property manager, and Landlord’s broker to place on the Property a keybox containing a key to the Property:

(a) during the last days of this lease or any renewal or extension; and (b) at any time Landlord lists the Property for sale with a Texas licensed broker.

(2) Tenant may withdraw Tenant’s authorization to place a keybox on the Property by providing written notice to Landlord and paying Landlord a fee of $ as consideration for the withdrawal. Landlord will remove the keybox within a reasonable time after receipt of the notice of withdrawal and payment of the required fee.

(3) If Landlord or Landlord’s agents have made prior arrangements with Tenant to access the Property and are later denied or are not able to access the Property because of Tenant’s failure to make the Property accessible, Landlord may charge Tenant a trip charge as provided in Paragraph 14C.

(4) Landlord, the property manager, and Landlord’s broker are not responsible to Tenant, Tenant’s guests, family, or occupants for any damages, injuries, or losses arising from use of the keybox unless caused by Landlord, the property manager, or Landlord’s broker.

15. MOVE-IN CONDITION: A. Landlord makes no express or implied warranties as to the Property’s condition. Tenant has inspected

the Property and accepts it AS-IS provided that Landlord: .

B. Tenant will complete an Inventory and Condition Form, noting any damages to the Property, and deliver

it to Landlord within days after the Commencement Date. If Tenant fails to timely deliver the Inventory and Condition Form, the Property will be deemed to be free of damages, unless otherwise expressed in this lease. The Inventory and Condition Form is not a request for repairs. Tenant must direct all requests for repairs in compliance with Paragraph 18.

16. MOVE-OUT: A. Move-Out Condition: When this lease ends, Tenant will surrender the Property in the same condition

as when received, normal wear and tear excepted. Tenant will leave the Property in a clean condition free of all trash, debris, and any personal property. Tenant may not abandon the Property.

B. Definitions: (1) “Normal wear and tear” means deterioration that occurs without negligence, carelessness, accident,

or abuse. (2) “Surrender” occurs when all occupants have vacated the Property, in Landlord’s reasonable

judgment, and one of the following events occurs:

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(a) the date Tenant specifies as the move-out or termination date in a written notice to Landlord has passed; or

(b) Tenant returns keys and access devices that Landlord provided to Tenant under this lease. (3) "Abandonment" occurs when all of the following occur: (a) all occupants have vacated the Property, in Landlord’s reasonable judgment; (b) Tenant is in breach of this lease by not timely paying rent; and (c) Landlord has delivered written notice to Tenant, by affixing it to the inside of the main entry door

or if the Landlord is prevented from entering the Property by affixing it to the outside of the main entry door, stating that Landlord considers the Property abandoned, and Tenant fails to respond

to the affixed notice by the time required in the notice, which will not be less than 2 days from the date the notice is affixed to the main entry door.

C. Personal Property Left After Move-Out: (1) If Tenant leaves any personal property in the Property after surrendering or abandoning the

Property Landlord may: (a) dispose of such personal property in the trash or a landfill; (b) give such personal property to a charitable organization; or (c) store and sell such personal property by following procedures in §54.045(b)-(e), Property Code. (2) Tenant must reimburse Landlord all Landlord’s reasonable costs under Paragraph 16C(1) for

packing, removing, storing, and selling the personal property left in the Property after surrender or abandonment.

17. PROPERTY MAINTENANCE: A. Tenant's General Responsibilities: Tenant, at Tenant's expense, must: (1) keep the Property clean and sanitary; (2) promptly dispose of all garbage in appropriate receptacles; (3) supply and change heating and air conditioning filters at least once a month; (4) supply and replace all light bulbs, fluorescent tubes, and batteries for smoke detectors, carbon

monoxide detectors, garage door openers, ceiling fan remotes, and other devices (of the same type and quality that are in the Property on the Commencement Date);

(5) maintain appropriate levels of necessary chemicals or matter in any water softener; (6) take action to promptly eliminate any dangerous condition on the Property; (7) take all necessary precautions to prevent broken water pipes due to freezing or other causes; (8) replace any lost or misplaced keys; (9) pay any periodic, preventive, or additional extermination costs desired by Tenant; (10) remove any standing water; (11) know the location and operation of the main water cut-off valve and all electric breakers and how

to switch the valve or breakers off at appropriate times to mitigate any potential damage; and (12) promptly notify Landlord, in writing, of all needed repairs. B. Yard Maintenance: (1) "Yard" means all lawns, shrubbery, bushes, flowers, gardens, trees, rock or other landscaping, and

other foliage on or encroaching on the Property or on any easement appurtenant to the Property, and does not include common areas maintained by an owners’ association.

(2) "Maintain the yard” means to perform activities such as, but not limited to: (a) mowing, fertilizing,

and trimming the yard; (b) controlling pests in the yard; and (c) removing debris from the yard.

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(3) Tenant will water the yard at reasonable and appropriate times including but not limited to the following times: . Other than watering, the yard will be maintained as follows:

Æ (a) Landlord, at Landlord’s expense, will maintain the yard. Tenant will permit Landlord and Landlord's contractors reasonable access to the yard and will remove any pet from the yard at appropriate times.

Æ (b) Tenant, at Tenant’s expense, will maintain the yard. Æ (c) Tenant will maintain in effect a scheduled yard maintenance contract with: Ç a contractor who

regularly provides such service; Ç . C. Pool/Spa Maintenance: Any pool or spa on the Property will be maintained according to a Pool/Spa

Maintenance Addendum. D. Prohibitions: If Tenant installs any fixtures on the Property, authorized or unauthorized, such as

additional smoke detectors, locks, alarm systems, cables, satellite dishes, or other fixtures, such fixtures will become the property of the Landlord. Except as otherwise permitted by law, this lease, or in writing by Landlord, Tenant may not:

(1) remove any part of the Property or any of Landlord's personal property from the Property; (2) remove, change, add, or rekey any lock; (3) make holes in the woodwork, floors, or walls, except that a reasonable number of small nails may

be used to hang pictures in sheetrock and grooves in paneling; (4) permit any water furniture on the Property; (5) install additional phone or video cables, outlets, antennas, satellite receivers, or alarm systems; (6) replace or remove flooring material, paint, or wallpaper; (7) install, change, or remove any: fixture, appliance, or non-real-property item listed in Paragraph 2; (8) keep or permit any hazardous material on the Property such as flammable or explosive materials; (9) keep or permit any material or item which causes any liability or fire and extended insurance

coverage to be suspended or canceled or any premiums to be increased; (10) dispose of any environmentally detrimental substance (for example, motor oil or radiator fluid) on

the Property; or (11) cause or allow any lien to be filed against any portion of the Property. E. Failure to Maintain: If Tenant fails to comply with this Paragraph 17 or any Pool/Spa Maintenance

Addendum, Landlord may, in addition to exercising Landlord’s remedies under Paragraph 27, perform whatever action Tenant is obligated to perform and Tenant must immediately reimburse Landlord the reasonable expenses that Landlord incurs.

18. REPAIRS: (Notice: Subchapter B, Chapter 92, Property Code governs repair obligations). A. Repair Requests: All requests for repairs must be in writing and delivered to Landlord. If

Tenant is delinquent in rent at the time a repair notice is given, Landlord is not obligated to make the repair.

B. Completion of Repairs: (1) Tenant may not repair or cause to be repaired any condition, regardless of the cause,

without Landlord’s permission. All decisions regarding repairs, including the completion of any repair, whether to repair or replace the item, and the selection of contractors, will be at Landlord’s sole discretion.

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(2) Landlord is not obligated to complete a repair on a day other than a business day unless required to do so by the Property Code.

C. Payment of Repair Costs: Tenant will pay Landlord or any contractor Landlord directs Tenant to

pay, the first $ of the cost to repair each condition in need of repair, and Landlord will pay the remainder, except for the following conditions which will be paid as follows.

(1) Repairs that Landlord will Pay Entirely: Landlord will pay the entire cost to repair: (a) a condition caused by the Landlord or the negligence of the Landlord; (b) wastewater stoppages or backups caused by deterioration, breakage, roots, ground

condition, faulty construction, or malfunctioning equipment; (c) a condition that adversely affects the health or safety of an ordinary tenant which is not

caused by Tenant, an occupant, a member of Tenant’s family, or a guest or invitee of Tenant; and

(d) a condition in the following items which is not caused by Tenant or Tenant’s negligence: (1) heating and air conditioning systems; (2) water heaters; or (3) water penetration from structural defects. (2) Repairs that Tenant will Pay Entirely: Tenant will pay Landlord or any contractor Landlord

directs Tenant to pay the entire cost to repair: (a) a condition caused by Tenant, an occupant, a member of Tenant’s family, or a guest or

invitee of Tenant (a failure to timely report an item in need of repair or the failure to properly maintain an item may cause damage for which Tenant may be responsible);

(b) damage from wastewater stoppages caused by foreign or improper objects in lines that exclusively service the Property;

(c) damage to doors, windows, or screens; and (d) damage from windows or doors left open. (3) Appliances or Items that will not be Repaired: Landlord does not warrant and will not repair

or replace the following: .

D. Trip Charges: If a repair person is unable to access the Property after making arrangements with Tenant to complete the repair, Tenant will pay any trip charge the repair person may charge, which amount may be different from the amount stated in Paragraph 14C.

E. Advance Payments and Reimbursements: Landlord may require advance payment of repairs or payments under this Paragraph 18 for which Tenant is responsible. Tenant must promptly reimburse Landlord the amounts under this Paragraph 18 for which Tenant is responsible.

19. SECURITY DEVICES AND EXTERIOR DOOR LOCKS: A. Subchapter D, Chapter 92, Property Code requires the Property to be equipped with certain types of

locks and security devices. Landlord has rekeyed the security devices since the last occupant vacated the Property or will rekey the security devices within 7 days after Tenant moves in. “Security device" has the meaning assigned to that term in §92.151, Property Code.

B. All notices or requests by Tenant for rekeying, changing, installing, repairing, or replacing security

devices must be in writing. Installation of additional security devices or additional rekeying or replacement of security devices desired by Tenant will be paid by Tenant in advance and may be installed only by contractors authorized by Landlord.

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(TAR-2001) 10-5-05 Page 10 of 14

20. SMOKE DETECTORS: Subchapter F, Chapter 92, Property Code requires the Property to be equipped with smoke detectors in certain locations. Requests for additional installation, inspection, or repair of smoke detectors must be in writing. Disconnecting or intentionally damaging a smoke detector or removing a battery without immediately replacing it with a working battery may subject Tenant to civil penalties and liability for damages and attorney fees under §92.2611, Property Code.

21. LIABILITY: Unless caused by Landlord, Landlord is not responsible to Tenant, Tenant’s guests, family, or

occupants for any damages, injuries, or losses to person or property caused by fire, flood, water leaks, ice, snow, hail, winds, explosion, smoke, interruption of utilities, theft, burglary, robbery, assault, vandalism, other persons, condition of the Property, environmental contaminants (for example, carbon monoxide, asbestos, radon, lead-based paint, mold, fungus, etc.), or other occurrences or casualty losses. Tenant will promptly reimburse Landlord for any loss, property damage, or cost of repairs or service to the Property caused by Tenant, Tenant's guests, any occupants, or any pets.

22. HOLDOVER: If Tenant fails to vacate the Property at the time this lease ends Tenant will pay Landlord

rent for the holdover period and indemnify Landlord and prospective tenants for damages, including but not limited to lost rent, lodging expenses, costs of eviction, and attorneys' fees. Rent for any holdover period will be three (3) times the monthly rent, calculated on a daily basis, and will be immediately due and payable daily without notice or demand.

23. RESIDENTIAL LANDLORD'S LIEN: Landlord will have a lien for unpaid rent against all of Tenant's

nonexempt personal property that is in the Property and may seize such nonexempt property if Tenant fails to pay rent. Subchapter C, Chapter 54, Property Code governs the rights and obligations of the parties regarding Landlord's lien. Landlord may collect a charge for packing, removing, or storing property seized in addition to any other amounts Landlord is entitled to receive. Landlord may sell or dispose of any seized property in accordance with the provisions of §54.045, Property Code.

24. SUBORDINATION: This lease and Tenant’s leasehold interest are and will be subject, subordinate, and

inferior to: (i) any lien or encumbrance now or later placed on the Property by Landlord; (ii) all advances made under any such lien or encumbrance; (iii) the interest payable on any such lien or encumbrance; (iv) any and all renewals and extensions of any such lien or encumbrance; (v) any restrictive covenant; and (vi) the rights of any owners’ association affecting the Property.

25. CASUALTY LOSS OR CONDEMNATION: Section 92.054, Property Code governs the rights and

obligations of the parties regarding a casualty loss to the Property. Any proceeds, payment for damages, settlements, awards, or other sums paid because of a casualty loss to the Property will be Landlord’s sole property. For the purpose of this lease, any condemnation of all or a part of the Property is a casualty loss.

26. SPECIAL PROVISIONS: (Do not insert a lease-option or lease-purchase clause without the assistance of

legal counsel. Special obligations and liabilities under statute apply to such transactions.)

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(TAR-2001) 10-5-05 Page 11 of 14

27. DEFAULT: A. If Landlord fails to comply with this lease, Tenant may seek any relief provided by law. B. If Tenant fails to timely pay all amounts due under this lease or otherwise fails to comply with this lease,

Tenant will be in default and: (1) Landlord may terminate Tenant’s right to occupy the Property by providing Tenant with at least one

day written notice to vacate; (2) all unpaid rents which are payable during the remainder of this lease or any renewal period will be

accelerated without notice or demand; (3) Landlord may exercise Landlord’s lien under Paragraph 23 and any other rights under this lease or

the Property Code; and (4) Tenant will be liable for: (a) any lost rent; (b) Landlord’s cost of reletting the Property including but not limited to leasing fees, advertising

fees, utility charges, and other fees reasonably necessary to relet the Property; (c) repairs to the Property for use beyond normal wear and tear; (d) all Landlord’s costs associated with eviction of Tenant, including but not limited to attorney’s

fees, court costs, costs of service, and prejudgment interest; (e) all Landlord's costs associated with collection of amounts due under this lease, including but not

limited to collection fees, late charges, and returned check charges; and (f) any other recovery to which Landlord may be entitled by law. C. Notice to vacate under Paragraph 27B(1) may be by any means permitted by §24.005, Property Code. D. Landlord will attempt to mitigate any damage or loss caused by Tenant's breach by attempting to relet

the Property to acceptable tenants and reducing Tenant's liability accordingly. 28. EARLY TERMINATION: This lease begins on the Commencement Date and ends on the Expiration date

unless: (i) renewed under Paragraph 4; (ii) extended by written agreement of the parties; or (iii) terminated earlier under Paragraph 27, by agreement of the parties, applicable law, or this Paragraph 28.

A. Military and Family Violence: Tenants may have special statutory rights to terminate the lease early in

certain situations involving family violence or a military deployment or transfer.

(1) Military: If Tenant is or becomes a servicemember or a dependent of a servicemember, Tenant may terminate this lease by delivering to Landlord a written notice of termination and a copy of an appropriate government document providing evidence of: (a) entrance into military service; (b) military orders for a permanent change of station (PCS); or (c) military orders to deploy with a military unit for not less than 90 days. Termination is effective on the 30th day after the first date on which the next rental payment is due after the date on which the notice is delivered. Section 92.017, Property Code governs the rights and obligations of the parties under this paragraph.

(2) Family Violence: Tenant may terminate this lease if Tenant obtains and provides Landlord with a

copy of a court order described under §92.016, Property Code protecting Tenant or an occupant from family violence committed by a cotenant or occupant of the Property. Section 92.016, Property Code governs the rights and obligations of the parties under this paragraph.

B. Assignment and Subletting: (1) Tenant may not assign this lease or sublet the Property without Landlord’s written consent.

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(TAR-2001) 10-5-05 Page 12 of 14

(2) If Tenant requests an early termination of this lease under this Paragraph 28B, Tenant may attempt to find a replacement tenant and may request Landlord to do the same. Landlord may, but is not obligated to, attempt to find a replacement tenant under this paragraph.

(3) Any assignee, subtenant, or replacement tenant must, in Landlord’s discretion, be acceptable as a

tenant and must sign: (a) a new lease with terms not less favorable to Landlord than this lease or otherwise acceptable to Landlord; (b) a sublease with terms approved by Landlord; or (c) an assignment of this lease in a form approved by Landlord.

(4) At the time Landlord agrees to permit an assignee, subtenant, or replacement tenant to occupy the

Property, Tenant will pay Landlord:

(a) if Tenant procures the assignee, subtenant, or replacement tenant: Ç (i) $ . Ç (ii) % of one’s month rent that the assignee, subtenant, or replacement tenant is to pay.

(b) if Landlord procures the assignee, subtenant, or replacement tenant: Ç (i) $ . Ç (ii) % of one’s month rent that the assignee, subtenant, or replacement tenant is to pay. (5) Unless expressly stated otherwise in an assignment or sublease, Tenant will not be released from

Tenant’s obligations under this lease because of an assignment or sublease. An assignment of this lease or a sublease of this lease without Landlord’s written consent is voidable by Landlord.

29. ATTORNEY’S FEES: Any person who is a prevailing party in any legal proceeding brought under or

related to the transaction described in this lease is entitled to recover prejudgment interest, attorney’s fees, costs of service, and all other costs of the legal proceeding from the non-prevailing party.

30. REPRESENTATIONS: Tenant's statements in this lease and any application for rental are material

representations. Each party to this lease represents that he or she is of legal age to enter into a contract. If Tenant makes a misrepresentation in this lease or in an application for rental, Tenant is in default.

31. ADDENDA: Incorporated into this lease are the following addenda, exhibits and other information. If

Landlord’s Rules and Regulations are made part of this lease, Tenant agrees to comply with the Rules and Regulations as Landlord may, at Landlord’s discretion, amend from time to time.

Ç Addendum Regarding Lead-Based Paint Ç Agreement Between Brokers Ç Inventory & Condition Form Ç Landlord’s Rules & Regulations Ç Landlord’s Additional Parking Rules Ç Owners’ Association Rules Ç Pet Agreement Ç Pool/Spa Maintenance Addendum Ç Protecting Your Home from Mold Ç Residential Lease Application Ç Agreement for Application Deposit & Hold Ç Residential Lease Guaranty Ç Ç 32. NOTICES: All notices under this lease must be in writing and are effective when hand-delivered, sent by

mail, or sent by electronic transmission to (Do not insert an e-mail address or a fax number unless the party consents to receive notices under this lease at the e-mail address or fax number specified.):

Tenant at the Property and a copy to: Landlord c/o: E-mail: E-mail: Fax: Fax:

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(TAR-2001) 10-5-05 Page 13 of 14

33. AGREEMENT OF PARTIES:

A. Entire Agreement: There are no oral agreements between Landlord and Tenant. This lease contains the entire agreement between Landlord and Tenant and may not be changed except by written agreement.

B. Binding Effect: This lease is binding upon and inures to the benefit of the parties to this lease and their

respective heirs, executors, administrators, successors, and permitted assigns. C. Joint and Several: All Tenants are jointly and severally liable for all provisions of this lease. Any act or

notice to, refund to, or signature of, any one or more of the Tenants regarding any term of this lease, its extension, its renewal, or its termination is binding on all Tenants executing this lease.

D. Waiver: Landlord's past delay, waiver, or non-enforcement of a rental due date or any other right will

not be deemed to be a waiver of any other breach by Tenant or any other right in this lease. E. Severable Clauses: Should a court find any clause in this lease unenforceable, the remainder of this

lease will not be affected and all other provisions in this lease will remain enforceable. F. Controlling Law: The laws of the State of Texas govern the interpretation, validity, performance, and

enforcement of this lease. G. Copyright: If an active REALTOR® member of the Texas Association of REALTORS® or an active

member of the State Bar of Texas does not negotiate this lease as a party or for one of the parties, either as a party’s broker or attorney, this lease is voidable at will by Tenant.

34. INFORMATION:

A. Future inquires about this lease, rental payments, and security deposits should be directed to the person listed for receipt of notices for Landlord under Paragraph 32.

B. It is Tenant’s responsibility to determine, before signing this lease, if: (i) all services (e.g., utilities,

connections, schools, and transportation) are accessible to or from the Property; (ii) such services are sufficient for Tenant’s needs and wishes; and (iii) Tenant is satisfied with the Property’s condition.

C. The brokers to this lease have no knowledge of whether Landlord is delinquent in the payment of any

lien against the Property. D. Unpaid rent and any unpaid amount under this lease are reportable to credit reporting agencies. E. If all occupants over 18 years of age die during this lease, Landlord may: (i) permit the person named

below to access the Property at reasonable times in Landlord’s or Landlord’s agent’s presence; (ii) permit the named person to remove Tenant’s personal property; and (iii) refund the security deposit, less deductions, to the named person. Section 92.014, Property Code governs procedures to follow in the event of a tenant’s death.

Name: Phone: Address: E-mail: F. The Texas Department of Public Safety maintains a database that the public may search, at no cost, to

determine if registered sex offenders are located in certain areas (see www.txdps.state.tx.us under on-line services). For information concerning past criminal activity in certain areas, contact the local police department.

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(TAR-2001) 10-5-05 Page 14 of 14

G. Landlord’s insurance does not cover Tenant from loss of personal property. Landlord recommends that Tenant obtain insurance for casualties such as fire, flood, water damage, and theft. Tenant represents that Tenant Ç intends Ç does not intend to purchase such insurance.

H. Landlord’s broker, ,

Ç will Ç will not act as the property manager for landlord. I. This lease is negotiable between the parties. This lease is binding upon final acceptance. READ IT

CAREFULLY. If you do not understand the effect of this lease, consult your attorney BEFORE signing. Landlord Date Tenant Date Landlord Date Tenant Date Or signed for Landlord under written property management agreement or power of attorney: Tenant Date

By: Date Tenant Date

Printed Name:

Firm Name:

Index Paragraph Pg. Paragraph Pg. Paragraph Pg. Paragraph Pg. 1. Parties 1 10. Security Deposit 3 15. Move-In Condition 6 20. Smoke Detectors 10 2. Property 1 A. Security Deposit 16. Move-Out 6 21. Liability 10 3. Term 1 B. Interest A. Move-Out Condition 22. Holdover 10 A. Primary Term C. Refund B. Definitions 23. Landlord’s Lien 10 B. Delay of Occupancy D. Deductions C. Personal Prop. Left 24. Subordination 10 4. Renewal & Termination 1 11. Utilities 4 17. Property Maintenance 7 25. Casualty & Condemn. 10 5. Rent 2 12. Use & Occupancy 5 A. Tenant’s General 26. Special Provisions 10 A. Monthly Rent A. Occupants B. Yard Maintenance 27. Default 11 B. Prorated Rent B. Phone Numbers C. Pool/Spa 28. Early Termination 11 C. Place of Payment C. HOA Rules D. Prohibitions A. Military & Family Viol. D. Method of Payment D. Prohibitions E. Failure to Maintain B. Assignment & Sublet E. Rent Increases E. Guests 18. Repairs 8 29. Attorney’s Fees 12 6. Late Charges 2 F. Common Areas A. Repair Requests 30. Representations 12 7. Returned Checks 3 13. Parking Rules 5 B. Completion of Repairs 31. Addenda 12 8. Application of Funds 3 14. Access by Landlord 5 C. Payment of Repairs 32. Notices 12 9. Pets 3 A. Signs D. Trip Charges 33. Agreement of Parties 13 B. Access E. Advance Payments 34. Information 13 C. Trip Charges 19. Security Devices 9 D. Keybox

page 192

Received on _________________ (date) at __________ (time)

(TAR-2003) 10-5-05 Page 1 of 3

RESIDENTIAL LEASE APPLICATION


Each occupant and co-applicant 18 years or older must submit a separate application. Property Address: Anticipated: Move-in Date: Monthly Rent: $ Security Deposit: $ Applicant was referred to Landlord by: Ç Real estate agent (name) (phone) Ç Newspaper Ç Sign Ç Internet Ç Other

Applicant’s name (first, middle, last) Is there a co-applicant? Ç yes Ç no If yes, co-applicant must submit a separate application. Applicant’s former last name (maiden or married) E-mail Home Phone Work Phone Mobile/Pager Soc. Sec. No. Driver License No. in (state) Date of Birth Height Weight Eye Color Hair Color Marital Status Citizenship (country) Emergency Contact: Name: Address: Phone: E-mail:

Name all other persons who will occupy the Property: Name: Relationship: Age: Name: Relationship: Age: Name: Relationship: Age: Name: Relationship: Age:

Applicant’s Current Address: Apt. No. (city, state, zip) Landlord’s Name: Phone:Day:__________________Nt:_________________Mb:__________________Fax:________________ Date Moved-In Move-Out Date Rent $ Reason for move: Applicant’s Previous Address: Apt. No. (city, state, zip) Previous Landlord’s Name: Phone:Day:__________________Nt:_________________Mb:__________________Fax:________________ Date Moved-In Date Moved-Out Rent $ Reason for move:

Applicant’s Current Employer: Address: (street, city, state, zip) Supervisor’s Name: Phone: Fax: Start Date: Gross Monthly Income: $ Position: Applicant’s Previous Employer: Address: (street, city, state, zip) Supervisor’s Name: Phone: Fax: Employed from to Gross Monthly Income: $ Position:

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Residential Lease Application concerning

(TAR-2003) 10-5-05 Page 2 of 3

Describe other income Applicant wants considered:

List all vehicles to be parked on the Property: Type Year Make Model License/State Mo.Pymnt. List all pets to be kept on the Property (dogs, cats, birds, reptiles, fish, and other pets): Rabies Type & Breed Name Color Weight Age Gender Neutered? Declawed? Shots Current? Ç yes Ç no Ç yes Ç no Ç yes Ç no Ç yes Ç no Ç yes Ç no Ç yes Ç no Yes No Explanation Will any waterbeds or water-filled furniture be on the Property? Ç Ç Does anyone who will occupy the Property smoke? Ç Ç Will Applicant maintain renter’s insurance? Ç Ç Is Applicant or Applicant’s spouse, even if separated, in military?Ç Ç If yes, is the military person serving under orders limiting the military person’s stay to one year or less? Ç Ç Has Applicant ever: been evicted? Ç Ç been asked to move out by a landlord? Ç Ç breached a lease or rental agreement? Ç Ç filed for bankruptcy? Ç Ç lost property in a foreclosure? Ç Ç had any credit problems? Ç Ç been convicted of a crime? Ç Ç Is any occupant a registered sex offender? Ç Ç Are there any criminal matters pending against any occupant? Ç Ç Is there additional information Applicant wants considered? Ç Ç

Authorization & Representation: Applicant authorizes Landlord and Landlord’s agent, at any time before, during, or after any tenancy, to: (1) obtain a copy of Applicant’s credit report; (2) obtain a criminal background check related to Applicant and any occupant; and (3) verify any rental or employment history or verify any other information related to this application with persons knowledgeable of such information. Applicant represents that the statements in this application are true and complete. Applicant understands that providing false or inaccurate information is grounds for rejection and a breach of any lease.

Notice: Unless agreed otherwise in writing, the Property remains on the market until a lease is signed and Landlord may continue to show the Property to other prospective tenants and accept another offer. Landlord’s agent or property manager maintains a privacy policy that is available upon request.

Fees: Applicant submits a non-refundable fee of $ for processing and reviewing this application and (check only one box if applicable): Ç (1) $ to be applied to the security deposit upon execution of a lease or returned to

Applicant if a lease is not executed. Ç (2) an Application Deposit of $ in accordance with the attached Agreement for Application

Deposit and Hold on Property (TAR No. 2009 or similar agreement). Applicant’s Signature Date For Landlord’s Use: On , (name/initials) notified Ç Applicant Ç by Ç phone Ç mail Ç e-mail Ç fax Ç in person that Applicant was Ç approved Ç not approved.

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(TAR-2003) 10-5-05 Page 3 of 3

AUTHORIZATION TO RELEASE INFORMATION

RELATED TO A RESIDENTIAL LEASE APPLICANT USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED.


I, (Applicant), have submitted an application

to lease a property located at

(address, city, state, zip). The landlord, broker, or landlord’s representative is: (name)

(address)

(city, state, zip)

(phone) (fax)

(e-mail) I give my permission: (1) to my current and former employers to release any information about my employment history and

income history to the above-named person; (2) to my current and former landlords to release any information about my rental history to the above-

named person; (3) to my current and former mortgage lenders on property that I own or have owned to release any

information about my mortgage payment history to the above-named person; (4) to my bank, savings and loan, or credit union to provide a verification of funds that I have on deposit to

the above-named person; and (5) to the above-named person to obtain a copy of my consumer report (credit report) from any consumer

reporting agency and to obtain background information about me. Applicant’s Signature Date Note: Any broker gathering information about an applicant acts under specific instructions to verify some or all of the information described in this authorization. The broker maintains a privacy policy which is available upon request.

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(TAR-2005) 10-5-05 Page 1 of 1

EXTENSION OF RESIDENTIAL LEASE


CONCERNING THE RESIDENTIAL LEASE OF THE PROPERTY AT between (Landlord) and (Tenant) A. Effective , Landlord and Tenant extend and amend the above-referenced lease

as follows.

(1) The Expiration Date in Paragraph 3 is changed to: .

(2) The monthly rent in Paragraph 5A is changed to: Ç $ Ç remains the same.

(3) The following statement is added to the lease: “Tenants may have special statutory rights to terminate the lease early in certain situations involving family violence or a military deployment or transfer.”

(4) Other: Paragraph(s) of the lease are amended as follows. (Insert only factual statements or business details applicable to the lease.)

B. If Tenant does not sign and return this extension to Landlord on or before ,

Landlord notifies Tenant that: Ç (1) the lease, in accordance with its terms, will renew on a month-to-month basis, and Landlord notifies

Tenant that the monthly rent will be: Ç (a) $ , effective . Ç (b) remain the same. Ç (2) the lease will terminate on and Tenant must vacate the Property

by the date of termination. Landlord Date Tenant Date Landlord Date Tenant Date Or signed for Landlord under written property management agreement or power of attorney: Tenant Date

By: Date Tenant Date Printed Name: Firm Name: Tenant’s Phone & E-Mail

Home Work Mobile

E-Mail:

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(TAR-2010) 10-14-03 Page 1 of 1

POOL/SPA MAINTENANCE ADDENDUM For use in the lease of single family residences only.


ADDENDUM TO RESIDENTIAL LEASE CONCERNING THE PROPERTY AT A. MAINTENANCE: Tenant will: (i) maintain proper water heights in the pool and spa at all times; (ii)

empty and clean skimmers and pool sweeps at least once a week and more often if necessary; (iii) properly operate the pool equipment; and (iv) take necessary precautions to prevent the freezing of pipes, pool equipment, and pool water. Other maintenance, including periodic vacuuming, the application of appropriate chemicals, and equipment maintenance, will be performed as follows.

❑ (1) Landlord, at Landlord’s expense, is responsible for the other maintenance. Tenant will permit Landlord

and Landlord’s contractors reasonable access to the pool and spa and will remove, at appropriate times, any pet in the yard in which the pool or spa is located.

❑ (2) Tenant, at Tenant’s expense, is responsible for the other maintenance. ❑ (3) Tenant will maintain in effect a regularly scheduled pool/spa maintenance contract with: ❑ a contractor

who regularly provides such service; ❑ . ❑ (4) . B. ENCLOSURES: Tenant will keep all pool enclosures and yard gates in good operable condition and

closed at all times. C. USE: Tenant must take reasonable action to: (i) prohibit children from using the pool or spa or accessing

the pool or spa area without an adult present; (ii) prohibit persons under the influence of drugs or alcohol from using the pool or spa; (iii) prohibit any glass containers or objects in or near the pool or spa; and (iv) prohibit any diving in the pool or spa.

D. RISK OF LOSS AND INSURANCE: (1) Tenant assumes all risk when Tenant or Tenant’s guests use the pool or spa. Landlord and

Landlord’s agent are not liable for use of the pool or spa by Tenant or Tenant’s guests. (2) At all times the lease is in effect, Tenant must, at Tenant’s expense, maintain in full force and effect a

public liability insurance policy in amount not less than $300,000.00 on an occurrence basis for losses related to the Property and pool and spa. Upon request, Tenant must provide Landlord a copy of an insurance certificate evidencing the required coverage. If Tenant fails to maintain the required insurance at all times the lease is in effect, Landlord may, in addition to Landlord’s remedies under the lease, purchase insurance that will provide Landlord with the required level of coverage and Tenant must immediately reimburse Landlord for such expense.

Landlord Date Tenant Date Landlord Date Tenant Date Or signed for Landlord under written property management agreement or power of attorney: Tenant Date

By: Printed Name: Tenant Date Firm Name:

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(TAR-2401) 1-2-03 Page 1 of 3

REGISTRATION AGREEMENT BETWEEN BROKER AND OWNER

USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED. ©Texas Association of REALTORS®, Inc., 2003

1. PARTIES: The parties to this agreement are: Owner:

Address: City, State, Zip: Phone: Fax: E-Mail: Broker: Address: City, State, Zip: Phone: Fax: E-Mail: 2. PROPERTY: “Property” means the following real property in Texas, together with all its improvements and

fixtures: Address: City: County: Zip: Legal Description (Identify exhibit if described on attachment):

3. ASKING PRICE: Owner is presently asking: A. $ to sell the Property; and B. $ to lease the Property. 4. REGISTRATION: Broker registers

(Prospect) with Owner. 5. TERM: This agreement begins on and ends on . 6. BROKER’S FEE: Owner is not obligated to pay Broker a fee until such time as Broker’s fee is earned and

payable. Broker’s fees are earned when Owner enters into a binding agreement to sell or lease all or part of the Property at any price to Prospect or if Owner breaches this agreement. Broker’s fees are payable in the amounts stated below at the specified times.

A. Sales: (1) If Owner agrees to sell all or a part of the Property to Prospect at any price on or before the date

this agreement ends, Owner will pay Broker a fee equal to: ❑ (a) % of the gross sales price; or ❑ (b) . (2) The fee is payable, either during the term of this agreement or after its termination, at the earlier of: (a) the closing and funding of the sale or exchange of the Property; (b) Owner’s breach of this agreement; or (c) Owner’s breach of a binding contract to sell the Property to Prospect.

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Registration Agreement concerning

(TAR-2401) 1-2-03 Page 2 of 3

B. Leases: (1) Primary Lease: (a) If Owner agrees to lease all or part of the Property to Prospect, on any terms, on or before the

date this agreement ends, Owner will pay Broker a fee equal to: ❑ (1) % of all rents to be paid for the term of the lease; or ❑ (2) . (b) The fee is payable during the term of this agreement or after its termination: ❑ (1) in one payment upon . ❑ (2) in two payments as follows: one-half of the fee at the time the lease is executed and the

remainder on the date the lease commences. ❑ (3)

. (2) Renewals: If Prospect leases all or part of the Property and subsequently extends, renews, or

expands the lease, (including new leases for more, less, or different space in the same building or complex), Owner will pay Broker, at the time the extension, renewal, or expansion commences, a fee equal to:

❑ (a) ________% of all rents to be paid for the term of the extension, renewal, or expansion; or ❑ (b) . (3) Subsequent Sale to a Tenant: If Prospect leases all or part of the Property and later agrees to buy

all or part of the Property within the term of the lease or within 180 days after the date the lease ends, Owner will pay Broker, at the closing of the sale, a fee equal to:

❑ (a) % of the gross sales price; or ❑ (b) . NOTICE: If the Property is commercial property under Chapter 62, Property Code, Broker is entitled to

claim a lien against the Property to secure payment of an earned commission. 7. BROKER’S REPRESENTATION: A. Owner acknowledges receipt of the attached Information About Brokerage Services which is

incorporated into this agreement for all purposes. During negotiations for the sale or lease of the Property, Broker:

❑ (1) will represent Owner only. ❑ (2) will represent Prospect only. ❑ (3) will act as an intermediary between Owner and Prospect. B. If Broker acts as an intermediary, Broker will assist both Prospect and Owner in the sale or lease of the

Property. Broker’s fees will be paid by Owner as provided in Paragraph 6. Broker may appoint a licensed associate(s) of Broker to communicate with, carry out instructions of, and provide opinions and advice during negotiations to Owner and appoint another licensed associate(s) for the same purposes to Prospect. As an intermediary, Broker:

(1) may not disclose to Prospect that Owner will accept a price less than the asking price unless otherwise instructed in a separate writing by Owner;

(2) may not disclose to Owner that Prospect will pay a price greater than the price submitted in a written offer to Owner unless otherwise instructed in a separate writing by Prospect;

(3) may not disclose any confidential information or any information Owner or Prospect specifically instruct Broker in writing not to disclose unless otherwise instructed in a separate writing by the respective party or required to disclose the information by the Real Estate License Act or a court order or if the information materially relates to the condition of the Property.

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Registration Agreement concerning

(TAR-2401) 1-2-03 Page 3 of 3

(4) shall treat all parties to the transaction honestly; and (5) shall comply with the Real Estate License Act. 8. ADDENDA: Addenda and other related documents which are part of this agreement are Information

About Brokerage Services and .

9. OTHER: A. Entire Agreement: This document contains the entire agreement between the parties and may not be

changed except by written agreement. B. Notices: Notices between the parties must be in writing and are effective when sent to the receiving

party’s address, fax, or e-mail specified in Paragraph 1. C. Definition of Sell: “Sell” means to sell, agree to sell, convey, agree to convey, exchange, agree to

exchange, transfer, or agree to transfer a legal or equitable interest either by written or oral agreement or option. The transfer of Owner’s interest (stock or shares) in any entity that holds title to the Property for the purpose of conveying the Property to another person is a sale.

D. Disbursements: All fees to Broker under this agreement are payable in cash in the county in which the Property is located. Owner authorizes Broker to instruct any escrow or closing agent to collect and disburse to Broker at closing the Broker’s fees due under this agreement. Paragraphs 6B(2) and 6B(3) survive termination of this agreement. In the event of an exchange or breach of this agreement, the asking price will be the sales price or rental rate for computing Broker’s fees.

E. Related Parties: If a related party of Prospect agrees to buy or lease all or part of the Property within the term of this agreement, Broker will be entitled to all compensation under this agreement as if Prospect had acquired the Property. “Related party” means any assignee of Prospect, any family member or relation of Prospect, any officer, director, or partner of Prospect, any entity owned or controlled, in whole or part, by Prospect, and any entity that owns or controls Prospect, in whole or part.

F. Additional Notices: (1) Broker's fees or the sharing of fees between brokers are not fixed, controlled, recommended,

suggested, or maintained by the Association of REALTORS® or any listing service. Broker’s fees are negotiable.

(2) If the Property contains a residential dwelling built before 1978, federal law requires the Owner to: (a) provide the buyer with the promulgated lead hazard information pamphlet; and (b) disclose the presence of any known lead-based paint or lead-based paint hazards.

(3) Broker cannot give legal advice. This is a legally binding agreement. READ IT CAREFULLY. If you do not understand the effect of this Listing, consult your attorney BEFORE signing.

Owner: By: Printed Name & Title: Date: Owner: By: Printed Name & Title: Date: Broker: By: Printed Name & Title: Date:

page 200

Law of Contracts



1. An oral contract for sale is enforceable in a court of law.

2. The buyer is entitled to have his earnest money refunded if he does not quality for his

loan.

3. TAR is the licensing authority in Texas for real estate licensees.

4. The seller must disclose the condition of his property to a potential purchaser only if he

lists his property with a real estate broker.

5. When presenting multiple offers, the first offer submitted to the listing agent must be

worked first by the seller.

6. If a buyer offers full price and terms pursuant to the listing agreement, the seller is

obligated to sell.

7. An agent, with full disclosure to all parties, may give part of his commission to a buyer

or tenant in a transaction.

8. A verbal agreement (usually done on the telephone) on a contract of sale is binding on

all the parties.

9. All listing agreements must have a definite termination date.

10. A Buyer's Temporary Lease or a Seller's Temporary Lease may not be used for more

than a 90 day tenancy.

11. A Buyer/Tenant Representation Agreement must have a definite termination date.

12. A buyer has an automatic three day (72 hour) time period to break out of the real

property contract.

13. TREC has a standard Buyer/Tenant Representation Agreement.

FT

F

F

F

F

T

F

T

T

T

F

F