This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
A Texas Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage is a legal document that outlines the terms and conditions of a real estate transaction in which the seller (property owner) provides financing to the buyer. This type of contract is commonly used when traditional mortgage financing is unavailable or when both parties agree to alternative financing arrangements. Some key elements that should be included in a Texas Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage are: 1. Parties involved: The contract should identify and provide contact details for both the seller and the buyer. It is important to include accurate legal names and addresses. 2. Property details: A detailed and accurate description of the residential property being sold must be included. This should typically include the address, legal description, and any additional structures or land being conveyed. 3. Purchase price and down payment: The contract should clearly state the agreed-upon purchase price and the amount the buyer will pay as a down payment. It is important to note any earnest money or deposits that have been made. 4. Financing terms: This section outlines the financing arrangement between the seller and the buyer. It should include the interest rate, the length of the loan, the total amount financed, and the monthly installment payments. It is essential to include provisions for default, late payments, and any penalties or fees associated with missed payments. 5. Title and closing: The contract should include details about the title search, title insurance, and any liens or encumbrances affecting the property. Information about the closing process and costs should also be stated. 6. Property condition and disclosures: The contract should address the property's condition and include any disclosures required by Texas law. Sellers must disclose all known defects or issues that could affect the value or desirability of the property. 7. Governing law and dispute resolution: The contract should specify that Texas law governs the agreement. It should also outline the procedures for resolving any disputes that may arise during the course of the contract. Types of Texas Contracts for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage can vary depending on the specific terms and conditions outlined within each contract. Some common variations include: 1. Fixed-rate contracts: The interest rate remains fixed throughout the loan term, providing stability to both the buyer and the seller. 2. Adjustable-rate contracts: The interest rate is subject to change over time, often based on a specified index, such as the U.S. Prime Rate or the LIBOR. 3. Balloon payment contracts: These contracts feature lower monthly payments for a fixed period, followed by a one-time larger payment, called a balloon payment, due at the end of the agreed-upon term. 4. Graduated payment contracts: Monthly payments start lower and gradually increase over the loan term, usually in line with the buyer's expected income growth. Remember, it is important to consult with a real estate attorney or professional to ensure that the Texas Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage complies with all applicable laws and provides adequate protection for both parties involved.
