Understanding Contingencies in the Texas Real Estate Contract

What Every Buyer and Seller Should Know

In Texas, the One to Four Family Residential Contract (Resale) includes several key contingencies that can make or break a deal. Here’s a quick list of the most common ones to help you understand what might come up during a real estate transaction:

1. Financing Contingency

2. Third-Party Financing Addendum

3. Appraisal Contingency

4. Option Period (Unrestricted Right to Terminate)

5. Property Condition Contingency

6. Title Commitment and Title Policy Contingency

7. HOA/POA Document Review Contingency

8. Sale of Other Property by Buyer Contingency

9. Lead-Based Paint Addendum

10. Homeowners Insurance Availability

11. Survey Contingency

12. Short Sale or Lender Approval Addendum

13. Temporary Lease Agreements (Seller or Buyer)

14. Back-Up Contract Addendum

15. Environmental Matters (like flood zone or endangered species)

16. Well and Septic Inspection Contingencies

17. Seller’s Disclosure Notice Contingency

18. Custom Addenda or Special Provisions

Each of these has its own purpose, deadlines, and risks — and they matter whether you're buying or selling. Stay tuned as I break them down weekly to help you navigate your next move with confidence!