Texas · TREC and statutesTexas real estate closing laws: a checklist for transaction coordinators

A Texas resale runs on the TREC One to Four Family Residential Contract (Resale), form 20-19, plus statutes and Texas Department of Insurance rules. In the order a transaction meets them: the Information About Brokerage Services notice at the first substantive communication about a property (IABS 1-2). The Seller's Disclosure Notice, due by the contract's effective date – if it comes later, the buyer may terminate within 7 days of receiving it (Property Code §5.008). Earnest money and the option fee to the escrow agent within 3 days of the effective date, with the option period ending at 5:00 p.m. on its last day (¶5). Title: the commitment within 20 days after the title company receives the contract, the buyer's written objections, a 15-day cure period (¶6), the survey or T-47 affidavit (¶6C) and the statutory notices in ¶6E. Money at closing: the title company can't disburse until good funds for every payment are received – cash, wires, cashier's or certified checks, and personal checks only under $1,500 or once collected (TDI Rule P-27). Documents: a general warranty deed showing no exceptions beyond those the contract permits (¶9B(1), Property Code §5.022); if the home is a homestead, both spouses join (Family Code ch. 5); a durable power of attorney used to sign must be recorded within 30 days after the deed or deed of trust is filed (Estates Code §751.151). Rentals: the buyer becomes liable for tenants' deposits and gives each tenant a signed statement (Property Code §92.105). The seller's liens: a property tax loan's transferred lien is paid by payoff statement (Tax Code §32.06), and if a paid-off mortgage isn't released, the title company can record an Affidavit as Release of Lien (Property Code §12.017). If the deal ends, earnest money is released under ¶18. And Texas restricts purchases by certain foreign buyers (Property Code §§5.251–5.259).