Paperwork Needed to Sell a House By Owner in Texas

When selling your home, it’s only natural to want to make as much profit as possible. Using a real estate agent makes the sale process run more smoothly, but it also takes away from the money you'll earn from the sale. That's why some people choose to list their home as “for sale by owner,” also known as FSBO.

However, be aware that selling a home independently isn’t a task that can be taken lightly. It requires a ton of time, effort, and, most importantly, legal savvy. If you're considering selling your house by owner, it's critical to have a thorough understanding of the following documents you’ll need as you navigate through the FSBO process.

Key points from this article:

• FSBO in Texas is Accessible – Selling a home by owner in Texas is facilitated by the Texas Real Estate Commission (TREC), which provides various legal documents used by realtors to the general public. This makes the FSBO process more accessible in Texas compared to many other states.
• Essential Documents for FSBO – Key documents for FSBO in Texas include the Residential Purchase Agreement, Seller's Disclosure Notice, HOA Addendum, Lead-based Paint Addendum, and MUD Notice. Each of these serves a specific purpose in the sale process, such as detailing the property's features, disclosing potential issues, and informing about HOA or MUD specifics.
• Contingency-Related Forms – Contingencies protect buyers' rights in real estate transactions. Common contingency-related forms include the Third-Party Financing Addendum, Right to Terminate Due to Appraisal, and Amendment to Contract Addendum. These documents address various scenarios like financing approval, appraisal results, and contract amendments.
• Legal Review and Alternatives – The complexity of legal language in these documents can be challenging. It's recommended to have a lawyer review all contracts to avoid misunderstandings. Alternatively, homeowners can opt to sell to a cash buyer like AMI to bypass the hassle of handling these documents.

Disclaimer – The information on this page is intended for general informational purposes only and not to provide legal advice.

How Does FSBO in Texas Differ from Most Other States?

Selling a home by owner in Texas is easier than in many other states because access to the necessary materials is not restricted to licensed professionals. The Texas Real Estate Commission (TREC) has made various documents written by lawyers and used by realtors available to the general public on their website.

Of course, just because these documents are easy to find doesn't necessarily mean they are easy to understand or utilize. It's essential to have a firm grasp on which forms you'll need and what purpose each of them serves. Continue reading for a brief overview of the most commonly used forms.

Basic Forms You Will (or May) Need

While different home sales may require various documents, some forms are common or mandatory across the board. Below are the primary forms you’ll most likely need.

Residential Purchase Agreement

• • • For a newly built home that has not been previously occupied, use the New Home Contract (Completed Construction) (Form ID: 24-17).
    • For a new home that is currently being built, use the New Home Contract (Incomplete Construction) (Form ID: 23-17).
    • For condos, use the Residential Condominium Contract (Resale) (Form ID 30-15).
    • For rural farm and ranch properties, use the Farm and Ranch Contract (Form ID: 20-14).
    • For land without any buildings or other additional structures, use the Unimproved Property Contract (Form ID: 9-15).

    Seller's Disclosure Notice

    HOA Addendum

    • • • In some cases, the buyer or seller will need to obtain subdivision information detailing HOA rules. The HOA addendum states that the buyer has the right to back out of the sale if they do not receive this information in time.
        • HOAs require that a small fee, known as a transfer fee, be paid any time a home transfers ownership. While the seller traditionally pays for the transfer fee, this is not a concrete rule. The HOA addendum specifies whose responsibility it is to cover this fee.
        • A home for sale in an HOA must come with a resale certificate detailing the property's current status, including any rule violations or past-due payments. The seller typically pays this, but the HOA addendum specifies if the buyer needs to pay.

        Lead-based Paint Addendum

        MUD Notice

        • • 1. Use the notice in 49.452(c) for a MUD located within city limits.
            2. Use the notice in 49.452(b) for a MUD that is located outside of city limits, but within the city’s jurisdiction.
            3. Use the notice in 49.452(d) for a MUD that does not meet the above criteria.

          Common Contingency-Related Forms

          A contingency is a clause in a real estate contract outlining specific conditions that need to be met. If these conditions are not met, the contract is not binding, and the buyer has the right to terminate the sale without repercussions.

          Contingencies are needed to protect buyers’ rights, and most buyers will only enter into a contract that contains one or more contingencies. Here are the documents you’ll need for some of the most common contingencies:

          Third-Party Financing Addendum

          Right to Terminate Due to Appraisal

          Amendment to Contract Addendum

          • • • • Changing the selling price after an inspection brings new issues to light
                • Changing a deadline, like the closing date
                • Requiring that the seller make repairs before the sale
                • Updating the contract to reflect that the buyer has paid the seller an option fee
                • Correcting a misspelled name in the original contract

                Other Contingency Forms

                Get a Legal Review

                The documents linked above were created by lawyers, and the language used in them may be difficult for the average person to comprehend. Even if you think you understand everything, there's the possibility that you’ve misinterpreted something important that could lead to legal trouble later on.

                It’s always wise to have a lawyer review any contracts before you sign them to ensure there are no misunderstandings—especially if you’re not working with a realtor who has experience with these legal documents.

                Want to Skip the Paperwork?

                Dealing with all the documents when selling a house can be difficult for a homeowner to handle on their own. You can always save yourself from this hassle and sell to a cash buyer, like AMI. Get in touch with us today for a no-obligation cash offer. We'll take care of all the necessary paperwork for you, making your home sale go quickly and smoothly.

                Rae Hoffman

                Rae Hoffman is the owner of AMI House Buyers and a seasoned real estate investor with a heavy focus on the Houston & Katy, Texas areas. She has done numerous flips, has owned multiple rental properties, and is also a licensed real estate agent in the state of Texas. She is heavily experienced in the areas of foreclosures, water damaged properties, burnouts, and inherited properties, and works with distressed homeowners in all types of situations to help them understand their options and find potential solutions.

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