Buying or Selling a Home in Texas: Legal Protections Every Homeowner Needs

According to Zillow, the median home price in Texas is more than $302,000 (July 2026). Of course, in many communities across the state, the average home costs significantly more than that. If you are preparing to buy or sell a home in Texas, it is crucial that you are prepared for a smooth transaction. A number of different legal issues can arise. At SimpleLawTX, our Texas real estate attorneys help protect your interests, whether you are buying or selling a home.  

An Overview of Legal Protections for Home Sellers in Texas

A Detailed Written Contract Defines the Parties’ Obligations

Texas requires a contract for the sale of real estate to be in writing and signed by the party against whom enforcement is sought. A properly drafted agreement protects the seller by identifying the property, purchase price, included fixtures, excluded personal property, financing structure, closing date, and required addenda. The Texas Real Estate Commission (TREC) One to Four Family Residential Contract also restricts a seller from creating new leases, amending existing leases, or conveying another interest after the effective date without the buyer’s written consent. 

Earnest Money and Option Fees Discourage Unsupported Termination

Earnest-money and option-fee provisions protect a seller against an uncommitted buyer. Under the TREC resale contract, the buyer generally must deliver both payments to the escrow agent within three days after the effective date, and time is expressly made of the essence. A buyer who timely pays an option fee receives an unrestricted termination right only for the negotiated option period, while the seller keeps the option fee following a proper termination. If the buyer fails to deliver earnest money on time, the seller may terminate before delivery or invoke available remedies. 

“As Is” Language that Can Limit Post-Closing Defect Claims

An “as is” provision can protect a Texas seller by defining the condition the buyer agrees to accept and limiting claims based on defects the buyer could have evaluated before closing. The TREC form defines “as is” as the property’s present condition, subject to title warranties and express contractual warranties, while preserving inspection and option-period rights. Texas courts may enforce a valid as-is agreement because it allocates the risk of the property’s quality to the buyer and can negate causation. Still, the protection, while important, is not absolute. Fraudulent representations, concealment of material information, or interference with a meaningful inspection can prevent enforcement of the provision.

Default Provisions (Defined Remedies)

A seller needs stated remedies when a buyer fails to close, loses financing without a valid contingency, or otherwise breaches the contract. Paragraph 15 of the TREC resale form allows a nondefaulting seller to pursue specific performance, seek other relief available by law, or terminate and receive the earnest money as liquidated damages. The contract also provides for mediation and permits a prevailing party in a related legal proceeding to recover reasonable attorney’s fees and costs. 

An Overview of Legal Protections for the Buyer in Texas

The Seller’s Disclosure Notice Should Clearly Identify Known Property Conditions

Texas Property Code § 5.008 generally requires a seller of qualifying residential property to provide a written disclosure notice addressing known defects, systems, environmental conditions, flooding history, and other specified matters. The disclosure is based on the seller’s actual knowledge and does not replace an independent inspection. Under the TREC resale contract, failure to deliver a required notice may allow the buyer to terminate before closing and recover earnest money. Once the notice is delivered, the buyer ordinarily receives seven days to terminate, or until closing if earlier. Statutory exemptions apply to certain transfers, so the transaction and seller’s status require careful review.

The Option Period Allows Inspections and Unrestricted Termination

The inspection and option provisions give a buyer a contractual method to investigate the property without first proving that a defect exists. The TREC resale form requires the seller to provide reasonable access for inspections and keep existing utilities operating while the contract remains effective. A buyer who timely pays the agreed option fee may terminate for any reason before 5:00 p.m. on the final day of the negotiated option period and recover earnest money, although the option fee is not refunded. Inspections can address the foundation, roof, drainage, plumbing, electrical systems, HVAC equipment, pests, environmental conditions, and other material risks. 

Financing Contingencies Protect Against Loan or Property Disapproval

Financing protection must be created through the contract and an appropriate TREC addendum; it should never be assumed. The Third Party Financing Addendum can condition the transaction on buyer approval, property approval, or both, subject to stated loan terms and strict notice requirements. Depending on the selected provisions, a buyer may terminate when the lender determines that the buyer does not satisfy asset, income, or credit requirements or that the property fails underwriting requirements involving appraisal, insurability, or required repairs. The buyer must provide timely notice and specified lender documentation. Missing a deadline or submitting an incomplete termination notice can eliminate the contractual protection.

Title, Survey, and Association Review Protect Ownership Rights

A title commitment, survey, and association records protect the buyer from acquiring property burdened by liens, boundary disputes, restrictive covenants, easements, assessments, or use limitations. The TREC resale contract permits written objections to qualifying title and survey matters within a negotiated period. If a timely objection is not cured, the buyer may terminate and recover earnest money or waive the issue.

How the Real Estate Law Team at SimpleLawTX Can Help Homeowners

Buying or selling a home can be stressful. For many Texans, it is the single largest transaction that they will ever be involved in. At SimpleLawTX, we have the knowledge and experience that homeowners and prospective homeowners can rely on. Our firm will work diligently to ensure that everything is handled the right way. Whether you are buying or selling a home, our Houston residential real estate lawyer can help you understand your rights and options during a strictly confidential, no obligation initial consultation. 

Contact Our Houston Real Estate Attorney for Buying and Selling a Home Today

At SimpleLawTX, our Houston real estate attorney invests time and attention into each and every case. If you have any questions about buying or selling a home, we are here as a real estate law resource. Contact us today to set up a completely confidential, no obligation initial consultation. We handle residential real estate issues in Houston and throughout the wider region.