Updated October 2026. Clause references are to TREC form 20-19, the version in effect since July 1, 2026, read October 26, 2026. General information, not legal advice.
Most Texas for sale by owner sales use the Texas Real Estate Commission’s One to Four Family Residential Contract (Resale), TREC form 20-19. As of October 2026, the current version took effect July 1, 2026. It sets the price, financing, title and disclosure terms, and it gives the buyer 3 days to deliver the earnest money and option fee.
Jump to: 📄 Which form · 🪜 Key clauses · 📍 Disclosures · 💲 Who pays what · ⏱️ Mistakes · ❓ FAQ
Key takeaways
- TREC form 20-19 covers single-family homes up to fourplexes; it isn’t for condos, new builder homes or farm and ranch land.
- License holders must use TREC forms; an owner selling alone may, and most do, because Texas buyers, lenders and title companies know them.
- Texas sellers of a single home owe a written Seller’s Disclosure Notice under Property Code section 5.008.
- The contract lets you pick who pays for the owner’s title policy, and Texas title insurance rates are set by the state.
Which contract should a Texas FSBO seller use?
For a resale house, use TREC form 20-19. TREC says it’s the most used contract form, and it covers single-family homes, duplexes, triplexes and fourplexes. Condos, new homes sold by a builder and farm and ranch sales use other forms.
TREC’s FAQ says license holders are required to use its adopted contract forms. That rule binds agents and brokers. When you sell on your own, you and the buyer choose the paper, but the TREC form has a big edge: buyers’ agents, lenders and title companies in Texas work with it every day. A homemade contract slows everyone down.
Beycome sellers find Texas forms in the dashboard under Legal Forms. Paragraph 23 of the TREC form says it plainly: consult an attorney before signing. Spending a few hundred dollars on a review is cheap insurance on your biggest sale.
What are the key clauses in the TREC resale contract?
Property, price and financing (paragraphs 2 and 3)
Paragraph 2 lists what conveys. Built-in appliances, ceiling fans, mounts and brackets for TVs, landscaping and outdoor cooking gear stay with the house unless you exclude them. Want to keep the garage fridge or a chandelier? Name it in the exclusions line now, not at the walkthrough.
Paragraph 3 splits the price into cash and financing. Financing is spelled out in an addendum, such as the Third Party Financing Addendum for a normal mortgage. If the buyer wants out over a low appraisal, TREC has a separate addendum for that right. Read it before you accept.
Earnest money and the option period (paragraph 5)
The buyer must deliver the earnest money and the option fee to the escrow agent, usually the title company, within 3 days after the effective date. If that day falls on a weekend or legal holiday, it moves to the next business day.
The option fee buys the buyer a set number of days to end the deal for any reason. You and the buyer fill in that number. If the buyer terminates in time, you keep the option fee and the buyer gets the earnest money back. If they stay in, the option fee is credited to the price at closing. Short option periods favor you; long ones favor the buyer.
Title and survey (paragraph 6)
Paragraph 6A has a checkbox for whether the seller or the buyer pays for the owner’s title policy. It’s negotiable. The Texas Department of Insurance says every Texas title company charges the same rates for title insurance, based on the sale price, though closing fees can differ.
Paragraph 6C covers the survey. You can hand over your existing survey with a T-47 affidavit or T-47.1 declaration if nothing has changed. If the title company or lender won’t accept it, the contract says who pays for a new one.
Default, mediation and attorney’s fees (paragraphs 15 to 17)
If the buyer defaults, paragraph 15 lets you either enforce the contract or end it and keep the earnest money as liquidated damages. The buyer has matching remedies if you default. Paragraph 16 sends disputes to mediation first, with the cost split equally, and paragraph 17 lets the winning party in a lawsuit recover reasonable attorney’s fees.
What must a Texas seller disclose?
Section 5.008 of the Texas Property Code requires a seller of a single-dwelling home to give the buyer a written Seller’s Disclosure Notice. It covers appliances, systems, known defects, flooding and more. TREC publishes a version that tracks the statute.
Timing matters. Paragraph 7B of the contract says that if the buyer hasn’t received the notice and you deliver it later, the buyer can terminate for any reason within 7 days after getting it. If you never deliver it, the buyer can terminate any time before closing and get the earnest money back. Hand it over before you sign.
For homes built before 1978, federal law adds a lead-based paint disclosure and pamphlet. The EPA also gives buyers a 10-day window to test for lead unless both sides agree otherwise in writing. The TREC lead paint addendum covers it. If the home was remediated for mold, the contract also asks for the remediation certificate.
Sell smarter
List your home on the MLS from $99
A flat fee instead of a percentage, and $0 to Beycome at closing. You stay in control of your sale.
Sell your home →Buy smarter
Get up to 2% back at closing
On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →Who pays what at a Texas closing?
Paragraph 12 lists the default split. You pay to release your existing liens, tax statements or certificates, preparation of the deed and half of the escrow fee. The buyer pays the appraisal, loan fees and their half of the escrow fee. Anything else, like a seller credit toward the buyer’s costs, goes in the blank on line 12A(1)(b).
Buyer-agent pay is separate. Since August 17, 2024, offers of compensation to buyers’ agents can’t be shown on the MLS, per NAR. You may still agree to pay one, and the amount is negotiable. Put it in writing: Beycome sellers get a free “Compensation Agreement – Seller to Buyer’s Broker” template under Legal Forms.
For the closing itself, Beycome Title charges a $299 settlement fee per side in Texas, with title insurance at the state-set rate. It also closes in Florida from $99, and adds Michigan, Ohio, Illinois and Indiana starting November 1, 2026. Our guide to who pays closing costs when selling a home breaks down the rest.
What are common Texas FSBO contract mistakes?
- Leaving the option period or option fee blank. Without a fee delivered on time, the buyer has no unrestricted right to terminate.
- Forgetting the Seller’s Disclosure Notice until after signing, which hands the buyer a 7-day exit.
- Not checking who pays for title, survey or a residential service contract.
- Writing your own “special provisions” that change legal terms. Keep that box to business details and have a lawyer draft the rest.
- Accepting an offer without a pre-approval letter or proof of funds.
Before the contract, you need a buyer. Pricing starts with recent sales; try our tool for assessing your home’s value. Then get seen where Texas buyers’ agents look. A Beycome listing puts your home on the MLS without an agent for $99, with $0 to Beycome at closing, the most photos the MLS allows and e-signature built in. Our guide to listing your Texas home on the MLS by owner covers HAR, NTREIS and the other Texas MLSs.
Want experts to negotiate and handle the paperwork while you stay in control of every decision? Beycome Concierge is $999 through October 31, 2026 (list price $1,399).
Related reading: our overview of a For Sale By Owner (FSBO) contract and sale with Beycome, the Texas guides to selling your home FSBO in Texas and selling a Texas home without a realtor, our Texas flat fee MLS company rankings, and, for comparison, drafting a FSBO contract in Florida. If you’d rather start with Beycome’s complete FSBO solution, it bundles the listing, forms and offers in one place.
Frequently asked questions about FSBO contracts in Texas
Who drafts contracts in Texas?
Agents must use TREC’s promulgated forms and can only fill in facts and business details. In a FSBO sale, you and the buyer can use the same TREC form, and an attorney can draft anything beyond it.
What does caveat emptor mean?
“Let the buyer beware.” Texas doesn’t rely on it for homes: section 5.008 requires a written Seller’s Disclosure Notice for most single-home sales.
Are appraisal contingencies required?
No. The buyer can add TREC’s addendum on the right to terminate due to the lender’s appraisal. Whether you accept it is part of the negotiation.
Do I need an attorney?
It’s not required, but the TREC form itself tells both parties to consult an attorney before signing. A review costs far less than a contract dispute.
What happens if the buyer defaults?
Under paragraph 15, you can enforce the contract or end it and keep the earnest money as liquidated damages. Disputes go to mediation first.
Can a seller include contingencies?
Yes. A seller can ask for a short leaseback after closing or accept a back-up offer. TREC has addenda for both: the seller’s temporary residential lease and the addendum for a back-up contract.
Clause numbers refer to TREC form 20-19 (in effect July 1, 2026). Forms change; download the current version from TREC before you sign. Disclosure duty from Texas Property Code section 5.008; lead rules from the EPA; title rate rule from the Texas Department of Insurance.
Commissions are not set by law or by NAR rules and are fully negotiable. Sellers choose whether to offer any compensation to a buyer’s agent, and how much; since August 17, 2024, those offers can’t be shown on the MLS.
Beycome prices as of October 2026. Concierge is $999 through October 31, 2026 (list price $1,399). “$0 at closing” means no Beycome fee at closing; title, escrow and other closing costs still apply. Beycome Title: Florida and Texas today; Michigan, Ohio, Illinois and Indiana starting November 1, 2026. Texas settlement fee $299 per side. General information, not legal advice.
Sources
- TREC, One to Four Family Residential Contract (Resale), form 20-19 page, read October 26, 2026.
- TREC form 20-19 (PDF), read October 26, 2026.
- TREC FAQ, use of TREC contract forms by license holders, read October 26, 2026.
- Texas Property Code, chapter 5 (section 5.008), read October 26, 2026.
- Texas Department of Insurance, title insurance, read October 26, 2026.
- EPA, real estate lead disclosures, read October 26, 2026.
- NAR, what the settlement means for buyers and sellers, read October 26, 2026.
- Beycome Title, settlement fees, read October 26, 2026.
- Beycome, listing package features, October 2026.
Disclosure & Disclaimer
Beycome provides real estate services through affiliated licensed brokerages and has a commercial interest in the services and business models discussed on this blog. Content reflects Beycome’s perspective and may promote our services; it should not be treated as independent or neutral reporting.
Articles are provided for general informational and educational purposes only, not as financial, tax, legal, or investment advice or a recommendation for your particular situation. Reading this blog does not create a brokerage, advisory, or other professional relationship.
Information, opinions, pricing, service descriptions, and comparisons reflect the sources and information available when an article was published or last updated and may change. Although we aim for accuracy, we do not guarantee that all content is complete, current, or applicable to your circumstances. Laws, market conditions, and service availability vary by location. Examples and estimated savings are illustrative, depend on stated assumptions, and do not guarantee individual results.
Verify relevant information directly and consult qualified professionals before making decisions. Beycome services are subject to applicable agreements, eligibility requirements, and state-specific terms.
