Contracts
In Texas, a 'contract for deed' (installment land contract) is potentially problematic for buyers because:
AThe buyer gets title immediately but cannot sell for 5 years
BThe buyer takes possession but title remains with the seller until all payments are made, risking forfeiture if behind on payments✓ Correct
CInterest rates are capped by state law
DThe buyer cannot use the property as their homestead
Explanation
In a contract for deed, the buyer takes possession but the seller retains legal title until all payments are made. If the buyer defaults, Texas law provides statutory cancellation procedures (though protections have been strengthened). Texas Property Code Chapter 5 has added significant consumer protections for executory contracts after abuses in colonias and elsewhere.
Related Texas Contracts Questions
- The Texas Farm and Ranch Contract differs from the One to Four Family Contract primarily because it includes provisions for:
- The TREC contract requires the buyer to deliver the earnest money to the escrow agent within a specified number of days. If the buyer fails to deliver earnest money on time:
- Under Texas law, a seller who has signed a listing agreement and then receives an acceptable offer is obligated to:
- Under the TREC contract, if the buyer fails to deposit the earnest money within the required timeframe, the seller may:
- Texas TREC contracts provide for which type of notice to be effective upon receipt by the other party?
- In Texas, a lease that is NOT in writing is:
- When a TREC Residential Addendum for Seller's Disclosure of Information on Lead-Based Paint is required, it applies to:
- The TREC contract's 'paragraph 4' addresses the license holder disclosure required when a real estate agent has a personal interest in the property. This disclosure:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →