Real estate contracts look standardized, but the details determine who carries risk when problems arise. In Houston’s fast-moving market, buyers and sellers often focus on price and closing date—while overlooked clauses can create costly consequences later.
This guide highlights key terms that commonly shape Texas real estate outcomes.
1. Option period and inspections
For buyers, the option period provides time to inspect and renegotiate or exit. Contracts should address:
- inspection timelines
- repair requests
- seller credits vs. repairs
- how and when termination must be delivered
2. Financing and appraisal terms
These terms allocate risk if:
- the loan isn’t approved
- the appraisal comes in low
- interest rates change
Clear language can prevent disputes about earnest money.
3. Earnest money and termination rights
Earnest money disputes are common. The contract should clearly define:
- what triggers forfeiture
- what documentation is needed to terminate
- deadlines for notice
4. Seller disclosures and “as-is” language
Disclosure obligations can be a major issue when defects are discovered after closing. Sellers should understand:
- what must be disclosed
- the risk of misrepresentation claims
- how “as-is” language can be limited by nondisclosure or fraud
5. Title objections and survey issues
Title matters can include liens, easements, and boundary issues. Contract language should cover:
- title commitment review deadlines
- objection procedures
- survey requirements and who pays
- cure periods for title defects
6. Repairs, credits, and walk-throughs
Repair provisions should specify:
- scope and standards for repairs
- licensed contractor requirements
- receipts and proof of completion
- final walk-through rights
7. Closing costs and proration
Common disputes arise from:
- tax proration
- HOA dues
- rent proration on investment properties
- utilities and escrow adjustments
When to have an attorney review the deal
Consider legal review if:
- it’s a commercial transaction
- there are title/boundary concerns
- there’s an HOA dispute or special assessments
- it’s an investment property with tenants
- seller financing or unusual terms are involved
