• Texas FSBO guide

Texas One to Four Family Contract, Explained Clearly.

Get the official Texas One to Four Family Residential Contract (TREC 20-18) explained in plain English — so you can sell your home yourself, avoid costly mistakes, and still feel supported with ListClose’s 1% commission plan. If your situation is complex, you can always consult an attorney before signing, as the contract itself recommends.

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Download the TREC contract PDF

12 min read

Updated June 2026

TREC Form 20-18

Table of contents

A plain-English walkthrough of the Texas One to Four Family Residential Contract.

What is the TREC contract?

Download the PDF

Walkthrough

FAQ

Get started

Table of contents

1 The contract

2 Download the PDF

3 Walkthrough

4 Common mistakes

5 FAQ

6 Get started

For information only, not legal advice. For your specific sale, consider consulting a Texas attorney.

What this guide covers

A plain-English breakdown of all 23 paragraphs of TREC Form 20-18, with annotated screenshots pulled straight from the official contract.

The eight mistakes that most often delay or derail a Texas FSBO closing — each tied to the exact paragraph it comes from.

The official contract PDF, a complete FSBO form kit, and answers to the 12 questions Texas sellers ask most.

1 — What is the TREC contract?

What is the One to Four Family Residential Contract?

The TREC One to Four Family Residential Contract is the standard contract used in most Texas home sales. It covers property details, price, financing, the closing date, and the responsibilities of the buyer and seller.

It’s used in nearly every residential transaction in Texas — but it’s written in legal language that can be confusing for FSBO sellers. That’s exactly what this guide is here to translate.

The form, at a glance

Eleven pages and 23 paragraphs with one job: define what’s being sold, for how much, and on what terms. Reference: TREC Form 20-18, effective Jan 3, 2025.

Mini contract snapshot

Parties • Price • Financing • Disclosures • Deadlines • Closing • Signatures

2 — Download the contract

Get the official PDF, straight from TREC.

You can download the official TREC One to Four Family Residential Contract (Form 20-18) directly from the Texas Real Estate Commission, so you know you’re getting the correct, up-to-date form.

Download the contract (PDF)

The official Form 20-18 — free, standardized, and the version Texas buyers and title companies expect to see.

Download the contract (PDF)

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The Complete FSBO Kit

8 forms · 1 download

The contract rarely travels alone. This bundle holds TREC 20-18 plus the supporting forms a Texas seller is most likely to need. Each links to its own annotated PDF; the button below downloads the full set.

One to Four Family Residential Contract (Resale)

Amendment to Contract

Notice of Buyer's Termination of Contract

POA / HOA Addendum (mandatory membership)

Draft list — form numbers pending TREC verification before publish.

8 forms · 1 download

Third Party Financing Addendum

Seller's Disclosure Notice

Lead-Based Paint Addendum

Mineral Rights Reservation Addendum

Draft list — form numbers pending TREC verification before publish.

Download the full kit

For information only, not legal advice. For your specific sale, consider consulting a Texas attorney.

3 — Section-by-section walkthrough

All 23 paragraphs, in plain English.

The TREC One to Four Family Residential Contract is 11 pages of dense legal language — the form nearly every Texas home sale depends on. For someone selling without an agent, it can feel like a maze of clauses and deadlines.

The risks aren’t theoretical. Title companies routinely halt closings when the seller’s name in the contract doesn’t match the name on the deed. Missed earnest money deposits and undisclosed leases cause their own delays. This walkthrough explains Form 20-18 so you can avoid title delays, secure earnest money, schedule inspections, and keep control over possession and repairs.

All references cite TREC Form 20-18, effective Jan 3, 2025.

Topic 1

Parties & property

Who’s buying and selling, and exactly what property — land, improvements, and accessories — is included.

Topic 2

Sales price & financing

The total price and how the buyer pays: cash, a loan, or financing described in an addendum.

Topic 3

Earnest money & option

The buyer’s good-faith deposit, the option fee, and the strict deadlines that protect both sides.

Topic 4

Title, survey & condition

Title insurance, the survey, disclosures, inspections, and how the property’s condition is handled.

Topic 5

Closing & possession

When ownership transfers, when the buyer moves in, and how costs are settled at the table.

Topic 6

Default & remedies

What happens if either side fails to perform, and the remedies each party can pursue.

Full contract walkthrough

Parties

Names matter. This section lists the buyer and seller. If the names don’t match the deed or ID, title companies can’t move forward.

Tip for sellers: Double‑check spelling and ownership records now to avoid hiccups later.

Property

This section identifies the property being sold, including street address, legal description, lot details, and improvements. It ensures the contract applies to the correct property and clarifies what is included and what is not.

Sellers must verify the legal description in their deed or county records.

Sales Price

This section explains the total price and how the buyer will pay—cash, a loan, or another method. Buyers need to state their payment method to avoid confusion.

Leases

This section covers existing leases affecting the property, such as residential, fixture, or natural resources leases. Sellers should disclose these and provide copies to buyers. Undisclosed leases can give buyers the right to terminate the contract.

Earnest Money

Earnest Money proves the buyer’s commitment to purchasing the property. The funds are typically deposited with a title company or escrow agent shortly after the contract becomes effective, and it may be refundable under certain conditions if the buyer properly terminates. The Option Fee is non‑refundable if the buyer terminates, but if the sale closes, it is credited toward the purchase price.

Deadlines are strict. Always comply to secure your rights and protection.

Title Policy & Survey

This section outlines title insurance, survey requirements, and the buyer’s right to object to defects, which protects against ownership disputes and boundary issues.

Carefully review the title commitments and survey to avoid concerns before closing.

Property Condition

This section covers the property’s current condition. While the buyers are encouraged to conduct their own inspections and perform due diligence, sellers must permit inspections, keep utilities on, and deliver the property as is or with agreed-upon repairs.

Knowing the property’s condition up front helps everyone fix problems before closing.

Brokers and Sales Agents

This section requires disclosure if a broker or agent has a personal interest in the transaction. This outlines the agreements that exist outside the purchase contract regarding payment to real estate professionals involved in the transaction.

Closing

Closing is the point at which ownership officially transfers from the seller to the buyer. Both parties should coordinate with the title company to make sure all documents are ready.

Possession

Possession determines when the buyer can move in. Typically, it’s at closing, but parties can agree otherwise.

The contract should specify terms in the event of a delay in possession. Clear possession terms prevent disputes about move-in dates.

Special Provisions

This is a space for any custom terms not covered elsewhere in the contract. Examples include the seller’s unique property conditions.

While overusing this section can create conflicts with standard clauses, the seller should keep provisions simple and consistent with the rest of the contract.

Settlement and Other Expenses

This part divides up closing costs like title fees, recording costs, and taxes between the buyer and seller. If any expense goes over the amount stated in the contract, only the party responsible for that expense has the right to terminate unless the other party agrees to cover the excess.

Prorations

This section ensures each party pays their fair share up to closing, including taxes, HOA dues, and rents, which are prorated between the buyer and the seller.

Prorations are usually calculated by the title companies, but sellers should still verify for accuracy. Inaccurate prorations can result in unexpected bills.

Casualty Loss

This section explains options if the property is damaged before closing, protecting buyers from inheriting major damage before ownership changes hands. The buyers can either terminate or proceed with repairs.

To prevent conflicts, the seller must maintain insurance up to the closing date.

Default

This section outlines the available remedies if either party fails to perform their contractual obligations. It protects both parties by outlining consequences.

Sellers should understand that buyers may recover earnest money if the seller defaults.

Mediation

Mediation provides an opportunity for parties to work toward a mutually acceptable solution with the assistance of a neutral third party. This section encourages mediation as a way to resolve disagreements, which can often save time, money, and stress compared to going to court.

Attorney’s Fees

Sellers should understand that legal battles can be costly if they lose, while buyers benefit from added protection against unnecessary litigation.

If disputes go to court, the losing party pays the attorney’s fees.

Escrow

The escrow agent holds funds and documents until closing. This ensures both parties meet obligations before money changes hands. Miscommunication with escrow can delay closing, so sellers should confirm escrow instructions early.

Representations

This section contains statements and assurances made by the parties regarding the transaction. These representations help establish expectations and provide important information that may influence decision-making. False representations can lead to contract termination or lawsuits.

Federal Requirements

This section addresses federal tax law under the Foreign Investment in Real Property Tax Act (FIRPTA). A U.S. seller must sign a non-foreign status certificate to confirm that withholding is not required. If the seller is a foreign person, a part of the sales proceeds will be withheld and sent to the IRS.

Notices

This section sets rules for official communications. Notices may include contract-related updates, requests, deadlines, or other important information. Having clear communication procedures helps keep everyone informed throughout the transaction.

Agreement of Parties

This section confirms that the written contract represents the complete agreement between the buyer and seller. It reinforces that any changes must generally be made in writing and agreed upon by all parties.

Consult an Attorney Before Signing

This clause encourages the parties to seek legal counsel when needed. TREC forms are not a substitute for legal advice. Sellers should consider consulting an attorney in complex situations. Buyers benefit from professional guidance if they are unsure.

Every deal is different, but understanding each section helps both sides move toward closing with clarity. Screenshots for Paragraphs 1–10 are pulled directly from the official TREC PDF; the remaining annotated crops drop into the same slots as they’re produced.

4 — Common mistakes

Small errors, big headaches.

Even with a standard form, small errors cause big problems. Here are the mistakes Texas sellers and buyers make most when filling out the TREC contract — and what happens if they aren’t caught early.

8 mistakes to avoid

Parties

Misspelled or wrong legal names

Mistake: Using nicknames, leaving out middle initials, or listing the wrong legal owner.

Consequence: Closing can be delayed for weeks if the title company won’t issue documents until names match the deed records — and the buyer gets frustrated.

Property

Vague property descriptions

Mistake: Relying only on the street address without the legal description.

Consequence: With multiple lots or shared driveways, the wrong property can be tied to the contract; the buyer may back out or disputes can arise later.

Earnest Money

Missed earnest money / option deadlines

Mistake: Failing to deposit earnest money or the option fee on time.

Consequence: Protections like the option period can vanish; the seller may cancel or keep the deposit, leaving the buyer with no recourse.

Leases

Skipping lease disclosure

Mistake: Forgetting to mention existing leases — tenants, solar panels, or equipment.

Consequence: The buyer can terminate once they discover undisclosed leases — wasted time and lost trust.

Title & Survey

Ignoring survey or title issues

Mistake: Assuming an old survey or title policy is fine without reviewing it.

Consequence: Boundary disputes or easements surface late, forcing renegotiation or cancellation; corrections can be costly.

Special Provisions

Overloading Special Provisions

Mistake: Adding long, complicated custom terms in the Special Provisions section.

Consequence: The title company can reject the contract, forcing a rewrite and delaying closing; it risks confusion and legal disputes.

Possession

Misunderstanding possession timing

Mistake: Assuming you can stay a few extra days after closing without a written agreement.

Consequence: The buyer may demand immediate possession and insurance coverage can lapse — exposing both sides to liability if damage occurs.

Casualty Loss

Letting insurance lapse too early

Mistake: Canceling homeowner’s insurance before closing.

Consequence: If the property is damaged before closing, the seller may have no coverage; the buyer can walk away and the seller faces repair costs alone.

Selling FSBO means you handle the contract yourself. Take your time, double-check details, and put every agreement in writing — it keeps your sale on track, protects your money, and builds trust with the buyer.

5 — FAQ

Texas FSBO questions, answered.

The questions Texas sellers ask most about the TREC contract and selling by owner. FAQ JSON-LD is wired below the page so Google can render the rich-result snippet — see the WordPress note in the source.

What contract do I need to sell my house by owner in Texas?

Most FSBO sellers use the TREC One to Four Family Residential Contract (Form 20‑18). This is the standard form used throughout Texas and includes all the important terms that buyers and title companies look for. With ListClose’s 1% support, you can use this form confidently while saving thousands compared to full-service agent fees. Ready to get started? Contact us today to make your FSBO process easier and more cost-effective.

Can I use TREC forms if I don't have a real estate license?

Yes. TREC forms are public and available to anyone, including FSBO sellers. You don’t need a license to fill them out, but you do need to understand what each section means so you don’t miss important details.

What disclosures are required when selling a house FSBO in Texas?

Texas law requires sellers to provide a Seller’s Disclosure Notice for most residential properties. This form outlines the home’s condition, known issues, and systems. Failing to disclose can give buyers the right to cancel or even sue after closing.

Do I need a lawyer to sell my house FSBO in Texas?

Not always. Many FSBO sellers use TREC forms and complete the process without a lawyer. If your sale is complex, a lawyer can help, but with ListClose’s guidance, most FSBO sellers get the clarity they need without extra legal costs.

Who fills out the purchase contract in an FSBO sale in Texas?

Usually, the buyer or their agent drafts the initial offer using the TREC form. As the seller, you’ll review, negotiate changes, and sign once the terms are agreed. If you’re FSBO, you may also draft the contract yourself, but buyers usually expect to see the standard TREC version.

How do I write a for-sale-by-owner contract in Texas?

Most for-sale-by-owner sellers just use the TREC contract and fill in the blanks with the details you and the buyer agree on. ListClose’s 1% service helps you avoid errors and ensures your contract is complete, so buyers take your FSBO listing seriously.

Use the official TREC Form 20‑18, which is free and standardized.

What documents do I need to sell my house without a realtor in Texas?

At minimum, you’ll need the **TREC sales contract**, the **Seller’s Disclosure Notice**, and any HOA or property‑specific documents.

At closing, the title company also requires your deed, mortgage payoff information, and government ID. ListClose provides a checklist to help you avoid missing a step. Securing these documents beforehand also speeds up the process.

Is the Seller's Disclosure Notice required in Texas?

Yes, for most residential sales. It’s a legal requirement unless you’re selling certain exempt properties (like new construction or estate sales). Buyers rely on this disclosure to understand the home’s condition before committing.

What happens after the buyer signs my FSBO contract?

Once signed, the buyer deposits earnest money and option fees with the title company. Inspections, appraisals, and financing steps follow. As the seller, you’ll coordinate with the title company to prepare for closing and respond to any repair requests.

Do I have to use the official TREC form, or can I use a generic template?

You’re not legally required to use TREC forms, but they’re strongly recommended. Generic templates often miss key Texas‑specific clauses, which can lead to disputes or rejected contracts. Using TREC Form 20‑18 keeps your sale aligned with industry standards.

What is the option period in a Texas real estate contract?

The option period is a short window, commonly 7 to 10 days but negotiable, and requires no number in the form, during which the buyer can inspect the property and cancel for any reason. Buyers pay a small fee for this right while sellers keep it if they cancel. This process protects the buyers and shows the sellers’ transparency.

ListClose helps FSBO sellers understand option deadlines so you don’t lose leverage or protections. Contact ListClose today to get expert guidance on your option period.

When does it make sense to NOT use FSBO, even with ListClose?

FSBO works best for direct sales when you confidently handle the paperwork yourself. If your property includes some complicated issues like multiple heirs, mineral rights, or active lease agreements, you may benefit more from working with a full-service agent or attorney. At ListClose, we empower sellers to take control and save money, and we always explain when FSBO may not be the right choice for your situation.

6 — Get started

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