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Understanding Real Estate Contracts in Plano

Home sales constitute the most common real estate contracts.  In Plano, real estate contract law governs who must be party to a contract and what terms the contract must contain to be valid.

Real estate contract laws in Plano

The most important thing to understand about real estate contract laws in Plano is that they are legally binding, enforceable agreements.  If a buyer reneges on an offer after a seller accepts, or a seller accepts an offer and then decides not to sell, the other party has recourse to the law to enforce the contract. 
Some basics of Plano real estate contract laws include the following:

  • Buyers and sellers—the main parties to the transaction—are called principals.
  • The property is identified by its legal description, e.g., lots and blocks of a subdivision instead of a street address.
  • A real estate contract must be in writing to be enforceable: a mere verbal agreement to sell or purchase a property is insufficient.
  • Title to real estate establishes ownership.  It may refer to actual ownership or to documentation of ownership.

So far, so good.  But from here on out, it gets a bit more complicated.

Why should I hire a Plano real estate contract lawyer?

For one thing, deeds—written instruments that transfer property from one person to another—can be tricky in Texas.  Types of deed include the following:

  • Quitclaim deeds: Often mispronounced quick claim, these deeds do the buyer no favors.  Instead of transferring title to the land, quitclaim deeds relinquish whatever interest, if any, the seller has in the land.  Because they provide no protection to the buyer, quitclaim deeds are more appropriate in marriage dissolution than in Plano real estate contracts.
  • General warranty deed: These provide the most protection to the buyer.  Almost every Plano real estate contract attorney will recommend a general warranty deed to the buyer, in which the seller guarantees the buyer that the title being conveyed is clear and free.
  • Special warranty deed: Here, the seller guarantees the buyer that the seller has not personally done anything to adversely affect the title being conveyed.  This limits the seller’s liability to the buyer should another prior owner appear.

A real estate contract lawyer in Plano will also ensure that the contract clarifies sales price, whether and how much earnest money is required, the closing date, and when sellers will vacate the property.

Protect yourself: hire a skilled real estate attorney

Buying or selling a home is a complex, emotionally fraught endeavor.  Ask Jason Bowes, Esq., a capable and dedicated real estate contract attorney in Plano, to simplify the process for you, whether you are buying or selling.