A retail installment agreement is an agreement signed by the Purchaser involving a finance charge and providing for the sale of goods or services. Federal and some State Laws (Consumer Credit Protection Acts) require the disclosure of what the Purchaser is being charged for the credit he/she is receiving. These disclosures include such things as the amount being financed; finance charges; the annual percentage rate; and the number of payments and when due. However, such disclosures are usually only required when a person regularly extends consumer credit (e.g. more than 25 times in the preceding calendar year).
This form is for a casual seller who does not enter into such transactions on a regular basis. It can also be used in commercial transactions (e.g., credit that is not being extended primarily for personal, family, or household purposes).
The Purchaser in this form grants the Seller a security interest in the collateral being sold. A security interest is an interest in personal property or fixtures that secures payment or performance of an obligation. The Seller requires the Purchaser to secure the obligation with the personal property being purchased so that if the Purchaser does not pay as promised, the Purchaser can take the collateral back, sell it, and apply the proceeds against the unpaid obligation of the Purchaser.
A Texas Retail Installment Contract or Agreement (RICH) is a legal agreement between a buyer (consumer) and a seller (retailer) in the state of Texas regarding the purchase of goods or services. It outlines the terms and conditions of the purchase, including the price, payment schedule, interest rate, and other relevant details. Under the RICH, the consumer agrees to make installment payments to the retailer over a specified period of time until the total amount owed is paid off. This allows consumers to spread out the cost of a purchase instead of paying the entire amount upfront. The retailer, in turn, agrees to provide the goods or services as agreed upon. There are different types of Texas Retail Installment Contracts or Agreements, depending on the nature of the purchase. These may include: 1. Automobile RICH: This type of contract is specifically designed for the purchase of a vehicle, whether new or used. It includes provisions related to vehicle financing, such as loan terms, interest rates, and repayment schedules. 2. Retail RICH: This type of contract is more generic and covers a wide range of consumer goods or services. It could involve the purchase of furniture, appliances, electronics, jewelry, home improvement services, and more. 3. Real Estate RICH: This contract is used for installment sales of real estate properties, such as residential homes, land, or commercial buildings. It specifies the terms of payment, interest rates, and other relevant conditions, allowing buyers to acquire real estate through installment payments. It is important to note that a Texas Retail Installment Contract or Agreement is subject to state laws and regulations, such as the Texas Finance Code, which provides consumer protection measures. This ensures that both parties are treated fairly and that all terms and conditions comply with the applicable legal requirements. Overall, a Texas Retail Installment Contract or Agreement is a legally binding document that facilitates the purchase of goods or services on an installment basis, providing flexibility to consumers while protecting their rights and interests.
