When you sell with a company you find on our site, we may earn a small commission. This never influences our rankings or advice.
Sellers are typically responsible for drawing up the for sale by owner (FSBO) real estate contract in Texas.
As a seller without a realtor in Texas, you can write up the contract on your own using a state- or realtor-approved real estate contract template. Alternatively, you can pay a real estate attorney or real estate transaction coordinator to help draft the contract.
We recommend using an attorney or transaction coordinator even though Texas law requires neither. A for sale by owner real estate contract is a complex, legally binding document with little room for error. Real estate contract templates also may not comply with local laws.
Surveys reveal that more than a third of non-traditional sellers have problems with their paperwork.
About 36% of non-traditional sellers made legal mistakes, and 40% said they didn't understand their contract.[1]
In a typical sale where the seller hires a real estate agent, the agent helps navigate the contract. If you want an agent's help with your contract but also want to save money, consider working with a low commission real estate broker in Texas. Sometimes, an agent can save you more money than selling without a realtor.See below for details about what you'll need in a for sale by owner real estate contract when you sell your house without a realtor in Texas.
🚨 DISCLAIMER: This article is being provided for informational purposes only and isn't intended to convey legal advice. Clever Real Estate recommends you consult a real estate agent or real estate attorney to navigate the contract for selling a home in Texas.
Texas for sale by owner real estate contract template example
Here's an example of a real estate contract for Texas.
If you're considering using this for sale by owner contract pdf for your sale, check with a real estate attorney, real estate transaction coordinator, or real estate agent to make sure it's current and complies with Texas law and any local laws.
Many real estate purchase agreements and sales contracts produced by realtor associations, state real estate commissions, and state bar associations include similar recommendations to consult an attorney to ensure the contract protects your legal rights.
🤔 Not sure whether you're ready to take on the contract on your own? Clever can connect you with one of our partner agents for a no-obligation conversation, so you know your options. A Clever agent can also save you money on your sale, if you choose to work with them.
Key elements of a Texas for sale by owner real estate contract
The contract must follow Texas state law regarding real estate contracts to be enforceable. It should also comply with the federal Fair Housing Act.[2]
Consult with a real estate attorney, transaction coordinator, or real estate agent to make sure your contract is enforceable and complies with local laws.
Generally, a for sale by owner real estate contract includes but isn't limited to the following elements.
The contract should include the full legal names of the buyer and seller involved in the sale.
The contract should include location details, such as the house number, street name, city, county, and state. It should also include details about the size and boundaries of the property.
The contract should include the following:
- Purchase price. The agreed-upon cost of the house.
- Financing information. The buyer's financing terms, such as whether they'll pay cash or what bank is financing their purchase and on what terms. Certain kinds of loans may need supplemental paperwork.
- Earnest money. The amount of earnest money deposit agreed upon by you and the buyer.
- Closing costs. The agreement of who covers the costs of closing the deal.
- Other financial concerns. Prorated costs about taxes, HOA fees, or utilities, for instance.
Texas requires sellers to fill out a disclosure form and attach it to their real estate contract.
You're required to disclose the condition of your house, from its foundation to its roof and almost everything in between.
You'll also need to attach federally required disclosures and any local disclosure laws.
» MORE: Real Estate Disclosure Requirements for Selling a House in Texas
The contract usually includes contingencies, clauses that allow the buyer or seller to back out of a deal without penalty if certain conditions aren't met.
The following contingencies are most common in a for sale by owner real estate contract in Texas:
- Inspection contingency. Allows the buyer to walk away if the home inspection uncovers serious issues with the property.
- Financing contingency. Allows the buyer to walk away from the deal if their financing falls through.
- Appraisal contingency. Allows the buyer to walk away if the home appraises for less than the agreed-upon sale price. Lenders usually require an appraisal to make sure the home value equals the amount of money they're lending the buyer.
- Home sale contingency. Allows the buyer to walk away if they can't sell their own home.
The contract should include a section describing what happens if the buyer or seller doesn't meet the obligations laid out elsewhere in the contract.
The contract should include details about the closing of the sale, including the date, place, and a timeline for meeting provisions in the contract.
The contract should include a section for the buyer and seller to sign.
Mistakes to avoid in a real estate contract
It's legal to sell a home without an agent, but 36% of people who sold without a traditional agent say they made legal errors. Such errors can lead to delays, disputes, or legal consequences.[1]
Sellers often make the following mistakes in their contracts:
❌ Sellers omit key information: Contracts missing important clauses like contingencies or default provisions can create confusion, leaving sellers unprotected.
❌ Sellers use outdated templates: Many sellers use free templates from contract services or other third parties without realizing they don't reflect current laws.
❌ Sellers forget or neglect mandatory disclosures: You’re legally required to follow disclosure requirements for Texas. Missing or incomplete disclosures can give the buyer legal grounds to cancel the sale or sue later.
Who draws up a for sale by owner real estate contract in Texas?
Typically, the seller draws up the for sale by owner real estate contract in Texas.
Sellers without a realtor can consider using a real estate contract template produced by Texas's real estate commission, the Texas Realtors, or a third party like eForms.
Where to get assistance with drawing up a real estate contract in Texas
We recommend consulting a legal or real estate professional to draw up your for sale by owner real estate contract.
Around 7% of sellers without a realtor said understanding and performing the paperwork was the most difficult part of selling without a real estate agent.[3]
Getting assistance from one of the resources below can help you meet the challenge.
Low commission realtor
Low commission realtors in Texas are full-service real estate agents who work for a reduced listing commission, often around 1.5%. On average, listing agents in Texas work for a 2.93% commission.[4]
A low commission real estate agent will provide professional help navigating the sales contract.
Sellers who work without an agent often choose that route to save money on realtor fees. But selling with a low commission agent can save you as much or more money than selling without an agent. According to a study, sellers without a realtor sold their homes for around 18% less than sellers who used an agent.[4]
💰 Save on realtor fees and potentially sell your house for more by using a full-service realtor. Fill out this form to get matched with local agents who charge a 1.5% listing fee.
Flat fee MLS company
Hire one of the flat fee MLS companies in Texas that offers plans with paperwork support. Flat fee MLS listing companies offer marketing and support services for people selling their homes without a realtor.
Flat fee MLS plans in Texas typically cost between $50–$1,400. Plans with paperwork support are usually at the higher end of the cost scale. Lower-cost plans sometimes offer paperwork support at an additional fee.
Transaction coordinator
If you choose to sell without a realtor, a transaction coordinator can help you draw up the contract and support other parts of the sales process.
⚡ Clever Real Estate can connect you with a transaction coordinator to manage your paperwork for a flat $3,000 fee.
Real estate attorney
Hire an attorney to help with the contract and other parts of the selling process.
Attorneys in Texas typically cost between $188–$368. You can find one via the State Bar of Texas.
FAQ
Sellers are usually responsible for preparing the sale contract. Most sellers in Texas start with a standard template and fill in the details.
You can find real estate contract templates from trusted sources like the Texas Realtors or third-party providers.
Whichever you use, we recommend having an attorney or a real estate agent review any template you plan to use. Not all templates available on the open web are up to date or compliant with local law.
It's best to use a real estate contract template from Texas's real estate commission or the Texas Realtors.
Fill in the blanks of the template with the terms you've hashed out with the buyer.
Because the contract is a complex, legally binding document, we recommend consulting with a real estate attorney, transaction coordinator, or real estate agent to write a real estate contract.
The contract must follow Texas state law regarding real estate contracts to be enforceable. It should also comply with the federal Fair Housing Act.
Generally, the contract will need to include financial terms, contingencies, disclosures, and more. See the key elements of a Texas for sale by owner real estate contract for more information.
Why you should trust us
Clever has earned home buyers’ and home sellers' trust with more than 3,800 5-star customer ratings on Trustpilot.
Our team is committed to making home selling more transparent by educating sellers through guides like this one. Our writers, editors, and industry-leading researchers strive to provide readers with the most up-to-date, accurate, and useful information.
Our research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more publications.
Data sources
Our Research Team reviews federal and Texas contract requirements at least once a year.
For the most recent update, we sourced supporting data and research from the U.S. Department of Justice, the National Association of Realtors, the Texas Realtors, Thumbtack, and our own surveys of home sellers and real estate agents.
About Clever Real Estate
Clever Real Estate has matched more than 200,000 buyers and sellers with agents.
We partner with over 18,000 top-performing agents nationwide at national brokers including Keller Williams, RE/MAX, Century 21, and more. Our free agent-matching tool connects sellers with agents who have agreed to work for a 1.5% commission rate, while Clever Offers lets sellers compare cash offers on their home at no charge.
