Form to use to make contract for sale by owner

[KatieKennedy]

With all of the questions you are asking, you probably should get a real estate lawyer to help you with the paperwork and to sue the other party if they back out.

[marksmu]

Originally Posted by dalparadise

I don't believe that TREC form is binding if not executed by a licensed broker.

There is no truth to that statement. A contract LEGALLY becomes binding the moment all elements of a contract are formed. Offer/Acceptance/consideration/intent/legal purpose, etc.

A contract is nothing more than a confirmation of the meeting of the minds of two people...that is all it is. The form in which it is written is irrelevant. Look at the Penzoil case - largest civil verdict in history. The contract was a few words written on a cocktail napkin in a bar. So long as the elements of a contract are present, then it is legitimate.

Real Estate agents/brokers want commissions so they will constantly tell people things like this but it is not true. Some real estate commissions will copyright their contracts but the enforceability of these copyrights is highly questionable and I know of ZERO cases where someone who copies a contract and
uses it as ever been held liable.

This contract is excellent, fill it out, send it to your title company (use should use a title company b/c you need title insurance and you should also have a survey done) and they will escrow and handle everything else.

While I am both an attorney and a realtor, I am not offering legal advice, or real estate advice to you an is not a solicitation for business....This advice is worth what you paid for it.

[Cranfords]

Originally Posted by marksmu

This contract is excellent, fill it out, send it to your title company (use should use a title company b/c you need title insurance and you should also have a survey done) and they will escrow and handle everything else.

Yup. Been there done that. Worked fine.

[xecluded]

Originally Posted by marksmu

There is no truth to that statement. A contract LEGALLY becomes binding the moment all elements of a contract are formed. Offer/Acceptance/consideration/intent/legal purpose, etc.

A contract is nothing more than a confirmation of the meeting of the minds of two people...that is all it is. The form in which it is written is irrelevant. Look at the Penzoil case - largest civil verdict in history. The contract was a few words written on a cocktail napkin in a bar. So long as the elements of a contract are present, then it is legitimate.

Real Estate agents/brokers want commissions so they will constantly tell people things like this but it is not true. Some real estate commissions will copyright their contracts but the enforceability of these copyrights is highly questionable and I know of ZERO cases where someone who copies a contract and
uses it as ever been held liable.

This contract is excellent, fill it out, send it to your title company (use should use a title company b/c you need title insurance and you should also have a survey done) and they will escrow and handle everything else.

While I am both an attorney and a realtor, I am not offering legal advice, or real estate advice to you an is not a solicitation for business....This advice is worth what you paid for it.

Perfect. We will proceed this weekend. Many many thanks Marksmu

[dalparadise]

Originally Posted by marksmu

There is no truth to that statement. A contract LEGALLY becomes binding the moment all elements of a contract are formed. Offer/Acceptance/consideration/intent/legal purpose, etc.

A contract is nothing more than a confirmation of the meeting of the minds of two people...that is all it is. The form in which it is written is irrelevant. Look at the Penzoil case - largest civil verdict in history. The contract was a few words written on a cocktail napkin in a bar. So long as the elements of a contract are present, then it is legitimate.

Real Estate agents/brokers want commissions so they will constantly tell people things like this but it is not true. Some real estate commissions will copyright their contracts but the enforceability of these copyrights is highly questionable and I know of ZERO cases where someone who copies a contract and
uses it as ever been held liable.

This contract is excellent, fill it out, send it to your title company (use should use a title company b/c you need title insurance and you should also have a survey done) and they will escrow and handle everything else.

While I am both an attorney and a realtor, I am not offering legal advice, or real estate advice to you an is not a solicitation for business....This advice is worth what you paid for it.

No attempt to mislead. I'm neither a Realtor, nor an attorney. But, it seems like a contract that is written to be executed by a Real Estate Broker would need one present to have all of its "elements present". At the very least, I believe a real estate transaction deserves an attorney present, and I am not sure I would put much credence in an attorney who advised against that, however much said attorney disclaimed his "advice" as advice.

[marksmu]

Originally Posted by dalparadise

No attempt to mislead. I'm neither a Realtor, nor an attorney. But, it seems like a contract that is written to be executed by a Real Estate Broker would need one present to have all of its "elements present". At the very least, I believe a real estate transaction deserves an attorney present, and I am not sure I would put much credence in an attorney who advised against that, however much said attorney disclaimed his "advice" as advice.

That form is not executed by a broker, its executed by the Buyer/Seller. The only purpose of the broker's signatures on Page 9 is to contractually settle the commission found on that page to prevent litigation since the MLS does not contain a written contract between two cooperating brokers.

The form was created by Texas to prevent Agents/Brokers from practicing law, and to create a simple form for a simple transaction to minimize litigation when agents/brokers screw up. The form has been litigated extensively and is updated as needed when the laws change. The form is written by attorneys with the intent to be simple enough even a realtor can use it. It is actually a very good contract.

The disclaimer in the form merely lets you know who the form is INTENDED to be used by...people who know how to use it (trained agents). Of course if a person is not comfortable with contracts or real-estate transactions in general they should get representation...but not everyone needs it. Anyone who does not understand the legal significance of each paragraph should absolutely get an attorney to walk them through the form....An attorney would probably only charge $200-$300 to go over this form. Its very basic, very easy.

I place my own disclaimer when I offer advice by disclosing that I am an attorney for the sole purpose of preventing the misconception that I am representing someone that is not paying me. It removes my liability but does not change the correctness of my advice.

Here is the disclaimer found on that form:
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.

[dalparadise]

Paying an attorney $200-$300 to sign off, versus using 8 pages of a 9-page contract (and crossing one's fingers to hope for the best) seems like something only a fool would deliberate for more than a few seconds. Especially considering a transaction of tens of thousands of dollars.

Personally, I'd be comfortable filling it out as the seller, but as a buyer, I'd find it sketchy that the mention of licensed brokers is ignored and that a page is missing, that's all. Seems like unnecessary drama for a couple hundred bucks.

[nicksavage]

Originally Posted by dalparadise

Paying an attorney $200-$300 to sign off, versus using 8 pages of a 9-page contract (and crossing one's fingers to hope for the best) seems like something only a fool would deliberate for more than a few seconds. Especially considering a transaction of tens of thousands of dollars.

Personally, I'd be comfortable filling it out as the seller, but as a buyer, I'd find it sketchy that the mention of licensed brokers is ignored and that a page is missing, that's all. Seems like unnecessary drama for a couple hundred bucks.

You know, you offer plenty of opinions but nothing to back it up with. The attorney in question is correct as I am a real estate attorney.

I will not give advice here though because of people like you.

[RCH99]

You know, Nick...you may well be an attorney, but you’re a bit dense. First blowhard post, and the fact that you’re replying to a five year old thread seems lost on you.

Refraining from additional legal advice for us dummies is a good call.

[dd1153]

Originally Posted by dalparadise

I don't believe that TREC form is binding if not executed by a licensed broker.

TREC form or a contract written on a napkin can be binding
I closed my last house with a TREC form and neither parties were brokers.