How to Fill Out the Texas TREC One-to-Four Family Residential Resale Contract + FAQs

The Texas TREC One to Four Family Residential Contract (Resale), known as TREC Form 20-18, is the standard purchase agreement that buyers and sellers use to transfer ownership of an existing single-family home, duplex, triplex, or fourplex in Texas. The Texas Real Estate Commission promulgated this form, and every Texas real estate license holder must use it when representing a buyer or seller in a resale transaction that fits within its scope, per 22 TAC §537.11. The current version became mandatory on January 3, 2025, so always confirm the form footer reads 20-18 before you sign.

The Texas Real Estate Commission reports that more than 700,000 residential transactions move through Texas each year, and title companies estimate that roughly one in four contracts arrives at the closing table with at least one filling error that delays funding. A blank field in Paragraph 5 or a missed checkbox in Paragraph 7D can cost the parties their earnest money or push closing past the financing commitment date. This guide walks you through the form line by line so your contract closes the first time.

• 🏡 How to enter every paragraph from Parties through the Option Fee Receipt without leaving a blank
• 💰 How to calculate the cash portion in Paragraph 3 and avoid a financing-vs-cash mismatch
• 📝 How to choose the right boxes in Paragraph 7D so undisclosed repairs do not bind you
• ⏰ How to pay earnest money and the option fee within the new 3-day window without losing rights
• ⚖️ How to attach the right addenda for HOA, financing, lead paint, and back-up scenarios

What the Form Is and Who Must File It

The TREC One to Four Family Residential Contract (Resale) is a binding purchase agreement that controls every material term of a resale home sale in Texas, from price and financing to title, survey, possession, and default. The Texas Real Estate Commission adopted the form under authority granted by Chapter 1101 of the Texas Occupations Code, and the Broker-Lawyer Committee drafts every revision. The form is not optional for license holders; agents who draft their own contract language risk an unauthorized practice of law complaint and discipline by TREC.

Every Texas-licensed real estate agent and broker must use this form when the property is an existing one-to-four family residence being resold. Buyers and sellers handling a for-sale-by-owner transaction may also use it because the form is in the public domain on the TREC contracts page. New construction, farm and ranch tracts, condominiums, and unimproved lots use different TREC forms, so confirm the property type before opening Form 20-18.

The form does not apply to leases, options to purchase outside a sale, or commercial property. Investors flipping a home still use Form 20-18 because the property is residential and the sale is a resale, not new construction. A licensed agent who hands a buyer the wrong form risks both contract failure and a TREC sanction under 22 TAC §535.144.

Before You Start: Documents and Information You Need

Gather every document below before you open the contract because missing data forces you to circle back, re-initial, and re-deliver the form, which restarts deadlines and frustrates the other side. The faster you fill the contract correctly, the sooner the option period clock starts.

• Buyer and seller full legal names as they appear on a driver license or state ID, because title cannot insure a name mismatch
• Property legal description from the most recent deed or title commitment, including lot, block, subdivision, recording reference, and county, because the street address alone will not bind a court
• Sales price broken into cash at closing and any financed amount, because Paragraph 3 requires both
• Earnest money amount and the name and address of the escrow agent, usually the title company, because Paragraph 5 demands a deliverable target
• Option fee amount and the number of days for the unrestricted termination right, because Paragraph 23 is now standard not optional
• Existing survey with a T-47.1 Declaration if the seller has one, because Paragraph 6C lets you avoid the cost of a new survey
• HOA documents including the management company contact and any transfer fee, because Paragraph 6E and the HOA Addendum hinge on it
• Lender pre-approval letter with the loan type and term, because the Third Party Financing Addendum mirrors those numbers
• Seller’s Disclosure Notice under Texas Property Code §5.008, because Paragraph 7B requires it for resale homes
• Closing date target that respects lender turn times, because Paragraph 9 controls timing and remedies if you miss it

Where to Get the Form and How to Access It

The only authoritative source for Form 20-18 is the Texas Real Estate Commission’s contracts page, which hosts the current PDF and any voluntary or mandatory updates. Texas REALTORS members also receive form-fillable versions through zipForm and Dotloop, which sync with TREC updates automatically. Never download the form from a third-party blog because revisions have happened nine times since 2004 and an outdated version can void key protections.

Most agents execute the contract through DocuSign, zipForm Plus, or Dotloop, which auto-populate dates, calculate prorations, and lock the form footer to the current version. Pro se buyers and sellers can fill in a fillable PDF using Adobe Acrobat Reader, but they must initial each page, sign each signature block, and deliver the executed contract to the title company within three days of the effective date.

The form is free; nobody charges you to download it from TREC. If a website asks for payment to access Form 20-18, leave the page. The form runs roughly 10 to 16 pages depending on optional addenda and informational disclosures, so print on letter-size paper if you handle wet signatures.

Step-by-Step: How to Fill Out TREC Form 20-18 Line by Line

The contract has 24 numbered paragraphs plus signature blocks and an option fee receipt. Each paragraph below carries its own H3 with plain-English instructions, a sample entry in italics, an edge case, the most common mistake, and a misconception worth correcting. Read each paragraph before you write anything because Paragraphs 5, 6, 7, 12, and 23 interlock.

Paragraph 1: Parties

This paragraph asks for the full legal names of the seller and the buyer. The seller is whoever holds title on the most recent recorded deed, and the buyer is whoever will sign the deed of trust at closing.

Type each name exactly as it appears on a government ID, with middle names if used on title. Sample entry: Seller is Maria Elena Lopez and Buyer is Carlos Daniel Ramirez and Sofia Ramirez. Use and between joint buyers, and add a married couple if they take title together.

If the seller is a trust, write the trustee’s name and the trust name, such as Maria E. Lopez, Trustee of the Lopez Family Revocable Trust dated June 1, 2014. The most common mistake is leaving off a co-owner spouse on a homestead, which will block closing because Texas Family Code §5.001 requires both spouses to convey the homestead. A misconception is that nicknames are fine; they are not, because title insurance underwriters cannot match Liz to Elizabeth Anne Carter on the deed.

Paragraph 2: Property

This paragraph identifies the property by legal description and street address. Pull the legal description from the seller’s deed or the preliminary title commitment, not from the county tax appraisal site.

Enter the lot, block, subdivision, recording reference, and county on the lines provided, then the street address and ZIP. Sample entry: Lot 14, Block 3, Westwood Estates Section Two, an addition in Travis County, Texas, according to the map or plat recorded in Volume 84, Page 221 of the Plat Records of Travis County, Texas, commonly known as 4502 Westwood Drive, Austin, TX 78745.

If the property has no formal subdivision (rural acreage carved from a larger tract), use a metes-and-bounds description from the deed and reference the volume and page. The most common mistake is copying only the street address, which can void the contract for indefiniteness if the property cannot be identified. A common misconception is that the appraisal district’s legal description is enough; it often abbreviates and may not match the recorded plat.

Paragraph 2B: Exclusions

This paragraph lets the seller carve out items that would otherwise pass with the property as fixtures, such as a mounted television bracket, a chandelier, or a wall-mounted speaker. Anything attached to the home is presumed to convey unless excluded here.

List each item plainly. Sample entry: The dining-room chandelier and the wall-mounted Sonos speakers in the living room are excluded. Use specific descriptions so there is no fight at the walk-through.

A common edge case is a flat-screen TV mounted on a bracket; the TV is personal property unless attached, but the bracket is a fixture and stays. The most common mistake is forgetting to exclude an heirloom item, which then becomes the buyer’s property at funding. The misconception is that handshake agreements survive; they do not, because Paragraph 22 says the written contract is the entire agreement.

Paragraph 3: Sales Price

This paragraph splits the price into the cash portion the buyer brings to closing and the amount financed. The two must add up to the total sales price exactly.

Enter the cash portion on line 3A, the financed portion on line 3B, and the sum on line 3C. Sample entry: 3A cash of $40,000, 3B financed of $360,000, 3C sales price of $400,000. If the deal is all cash, write 0.00 on 3B and check the cash box later in Paragraph 4.

A common edge case is seller financing, which goes on a separate Loan Assumption Addendum or Seller Financing Addendum. The most common mistake is a math error that does not balance, which forces an amendment and can panic the lender’s underwriter. The misconception is that the financed amount must equal the loan; it equals the principal balance the buyer takes out, not including PMI or prepaids.

Paragraph 4: License Holder Disclosure

This paragraph asks whether the buyer or seller is a Texas real estate license holder, or is related to one. Disclosure is required by 22 TAC §535.144.

Check the appropriate box and add the relationship if a yes answer applies. Sample entry: Buyer Carlos Ramirez checks the box stating Buyer is not a license holder.

The edge case is a license holder buying through an LLC; disclosure still applies because the natural person controlling the entity holds the license. The most common mistake is leaving both boxes blank, which is a TREC violation even if it does not void the contract. The misconception is that an inactive license does not count; it does, because the form asks about license holder status, not active status.

Paragraph 5: Earnest Money and Termination Option

This paragraph was rewritten in the 20-18 form to combine earnest money and the option fee delivery in one place. Both are due within 3 days after the effective date, delivered to the escrow agent named in 5A.

Enter the earnest money amount, the additional earnest money amount and date if any, the option fee, the number of option period days, and the escrow agent’s full name and address. Sample entry: $5,000 earnest money, $200 option fee, 7-day option period, delivered to Independence Title, 4106 N. Lamar Blvd, Austin, TX 78756.

The edge case is a federal holiday or weekend deadline; per Paragraph 24, the deadline rolls to the next business day. The most common mistake is delivering only the earnest money and forgetting the option fee, which forfeits the unrestricted termination right under Paragraph 23. The misconception is that the option fee must be a separate check; the updated form lets the title company collect both in one wire.

Paragraph 6A and 6B: Title Policy and Title Commitment

Paragraph 6A names the title company that will issue the Owner’s Policy of Title Insurance and identifies who pays. Paragraph 6B sets the deadline for the seller to deliver the commitment.

Fill in the title company name and address, and check whether seller or buyer pays for the standard exception removals. Sample entry: Independence Title; Seller pays for the amendment of the Area and Boundary exception. Most Central Texas deals have the seller pay; in DFW many have the buyer pay.

The edge case is a property with old probate clouds; the title company may require additional curative work that delays the commitment. The most common mistake is naming a title company the seller has not pre-approved, which causes a back-and-forth amendment. The misconception is that title insurance covers all defects; it covers only the matters listed in the policy.

Paragraph 6C: Survey

This paragraph chooses among three survey options: the seller delivers an existing survey with a T-47.1, the buyer obtains a new survey at buyer’s expense, or the seller obtains a new survey at seller’s expense. The 20-18 form replaced shall obtain with may obtain in 6C(2).

Check the box that fits and enter the deadline number of days. Sample entry: Within 7 days, Seller shall furnish to Buyer and Title Company Seller’s existing survey along with a T-47.1 Residential Real Property Affidavit.

The edge case is a survey older than ten years on a property where the seller has built a fence or pool; the title company will likely require a new survey to insure boundary coverage. The most common mistake is checking 6C(2) without budgeting the $450 to $700 survey fee. The misconception is that buyers who do not order a survey can terminate the financing addendum for that reason; the updated form expressly removes that right.

Paragraph 6D: Objections

This paragraph is the buyer’s window to object to title commitment items, the survey, and the exception list. The default deadline is 5 days after the buyer receives the last of the commitment, survey, and exception documents.

Enter the number of days you want for objections; 5 to 10 is typical. Sample entry: Buyer may object in writing within 7 days after the date Buyer receives the Commitment, Exception Documents, and the survey.

The edge case is a property with a recorded easement that blocks a future addition; the buyer must object in writing or the easement becomes a permitted exception. The most common mistake is sending an oral objection to the agent, which is not enforceable. The misconception is that the seller must cure every objection; the seller may cure or refuse, and if the seller refuses, the buyer’s only remedy is termination with earnest money returned.

Paragraph 6E: Title Notices

Paragraph 6E lists statutory notices that may apply, including HOA membership, MUD districts, coastal area properties, public improvement districts, propane systems, and the new mold remediation certificate notice in 6E(11). Check every box that applies to the property.

Read each subparagraph and check the boxes that match the property. Sample entry: 6E(2) checked because the property is in the Westwood HOA; 6E(11) noted because the seller had mold remediated in 2023.

The edge case is a PID annexation that closed escrow before the buyer signed; the seller must still deliver the PID notice. The most common mistake is skipping 6E(11) on a home with prior mold work, which is a statutory disclosure failure under Texas Occupations Code §1958.154. The misconception is that 6E notices are informational only; many of them give the buyer a separate termination right.

Paragraph 7A through 7E: Property Condition

Paragraph 7 governs inspections, the Seller’s Disclosure Notice, accepting the property as-is or with repairs, lead-based paint, and Environmental Protection Agency disclosures.

In 7A pick whether the buyer accepts the property in its current condition, and in 7B confirm whether the buyer has received the Seller’s Disclosure Notice. Sample entry: 7A buyer accepts as-is with the right to terminate during the option period; 7B buyer received the Seller’s Disclosure on the effective date.

The edge case is a property built before 1978, which triggers the federal Lead-Based Paint Addendum under 24 CFR Part 35. The most common mistake is checking 7D(1) (accepted as-is) and then later asking for repairs without an amendment. The misconception is that as-is means no inspection; the buyer still has full inspection rights during the option period.

Paragraph 7D: Acceptance of Property Condition

This is the most contested paragraph in the form because it sets repair expectations. Box 7D(1) means the buyer accepts the property as-is. Box 7D(2) means the buyer accepts as-is provided the seller completes specific listed repairs.

Check one box only and write any required repairs in the lines under 7D(2). Sample entry: 7D(2) Seller, at Seller’s expense, shall complete the following specific repairs: replace the GFCI outlet in the master bath and repair the leaking kitchen sink P-trap.

The edge case is a buyer who wants repair credits instead of repairs; that goes in Paragraph 12 as a seller contribution, not in 7D. The most common mistake is leaving both boxes blank, which makes the contract ambiguous and can void it. The misconception is that 7D repairs include cosmetic items; the contract limits repairs to those agreed to in writing here.

Paragraph 7F, 7G, 7H: Lender Requirements, Completion, Service Contract

7F lets the seller complete lender-required repairs, 7G requires repairs by licensed or registered contractors with permits, and 7H lets the buyer pay up to a stated cap for a residential service contract.

Enter the dollar cap in 7H if the seller agrees to contribute to a home warranty. Sample entry: 7H Seller shall reimburse Buyer up to $600 for a residential service contract issued by a company of Buyer’s choice.

The edge case is FHA or VA repair requirements that surface late in escrow; 7F lets the seller cover them without an amendment. The most common mistake is forgetting to name the warranty company, which leaves the buyer scrambling at closing. The misconception is that the seller picks the warranty; the buyer chooses the provider, with the seller paying up to the cap.

Paragraph 8: Brokers’ Fees

This paragraph references the separate compensation agreements between each party and their broker. The form no longer states a percentage; compensation now appears in the listing agreement and the buyer representation agreement.

Leave Paragraph 8 alone unless your broker tells you otherwise; the substantive compensation entries are in Paragraph 12 under the 2025 changes. Sample entry: No additions; relies on separate written agreements.

The edge case is a transaction where the seller agrees to contribute toward the buyer’s broker fee; that goes in Paragraph 12A(1)(b). The most common mistake is writing the commission in Paragraph 11, which can muddy the contract. The misconception is that Paragraph 8 sets compensation; it merely acknowledges separate agreements.

Paragraph 9: Closing

This paragraph sets the closing date, which is the date the parties sign closing documents and the deed records. The date must allow lender turn time and HOA estoppel turnaround.

Enter the calendar date or the formula on or before X days after the effective date. Sample entry: The closing of the sale will be on or before October 15, 2026, or within 7 days after objections made under Paragraph 6D have been cured, whichever is later.

The edge case is a financing delay; the Third Party Financing Addendum does not extend Paragraph 9 unless the parties amend. The most common mistake is choosing a Friday with a holiday weekend; wires can stall and ruin the funding. The misconception is that the closing date is flexible by default; it is firm unless amended in writing.

Paragraph 10: Possession

Possession transfers either at funding or under a temporary residential lease using TREC Form 15-6 (Seller’s) or 16-6 (Buyer’s). Pick one in 10A.

Check the box and, if a leaseback applies, attach the temporary lease addendum. Sample entry: 10A Seller will deliver possession upon funding; no leaseback.

The edge case is a seller who needs a few days after closing to move; use the Seller’s Temporary Residential Lease and limit it to 90 days to avoid landlord-tenant rules. The most common mistake is verbal leaseback agreements, which expose the seller to trespass risk. The misconception is that buyers can move in early; pre-closing occupancy is risky and most lenders forbid it.

Paragraph 11: Special Provisions

Paragraph 11 is for factual statements and business details only, not legal language. Texas case law and TREC rules prohibit license holders from drafting legal terms here.

Use plain factual language. Sample entry: Seller shall leave the refrigerator, washer, and dryer in working order at closing.

The edge case is wanting to add an attorney-drafted clause; the only safe path is to attach an addendum drafted by a Texas-licensed attorney. The most common mistake is writing legal contingencies in Paragraph 11, which is the unauthorized practice of law. The misconception is that anything can go in this box; only factual items belong.

Paragraph 12: Settlement and Other Expenses

The 2025 update split Paragraph 12A(1) into three subsections: 12A(1)(a) for seller broker fees, 12A(1)(b) for amounts the seller agrees to contribute toward buyer broker fees, and 12A(1)(c) for other buyer expenses such as closing costs.

Fill in the dollar amounts or percentages. Sample entry: 12A(1)(b) Seller will contribute up to $9,000 toward buyer broker fees the buyer has agreed to pay; 12A(1)(c) Seller will contribute up to $5,000 toward other Buyer Expenses.

The edge case is a buyer’s representation agreement set higher than the 12A(1)(b) cap; the seller’s contribution stops at the cap, and the buyer pays the rest. The most common mistake is double-counting compensation in 12A(1)(b) and 12A(1)(c). The misconception is that the seller pays the buyer’s broker directly; the seller contributes a capped amount, and the buyer remains responsible for the rest.

Paragraph 13: Prorations

Property taxes, HOA dues, and rents prorate at closing based on the most recent assessment. The title company calculates the actual figures.

Initial the paragraph as written; no entry is needed unless taxes are estimated. Sample entry: Initials of buyer and seller, with no special override.

The edge case is a recently rebuilt home with a partial year tax bill; the proration uses an estimated full assessment, and the parties may agree on a tax certificate adjustment. The most common mistake is forgetting to update HOA prorations after the estoppel arrives. The misconception is that prorations are final; they reconcile when the actual tax bill arrives.

Paragraph 14: Casualty Loss

If the property is damaged before closing, the seller must restore it to its prior condition. If the seller cannot, the buyer can terminate and recover earnest money or accept the property with an assignment of insurance proceeds.

No entry is needed; this is a standard provision. Sample entry: Initial as written.

The edge case is a Texas hailstorm two days before closing; the buyer can extend closing up to 15 days for the seller to restore. The most common mistake is failing to document damage before closing, which costs the buyer leverage. The misconception is that the buyer must close anyway; the buyer has clear termination rights.

Paragraph 15: Default

Paragraph 15 sets remedies. If the buyer defaults, the seller may keep earnest money as liquidated damages or sue for performance. If the seller defaults, the buyer may sue for performance or terminate and recover earnest money.

No entry is required. Sample entry: Initial as written.

The edge case is a buyer who defaults after waiving the option period; the seller’s earnest-money remedy is usually the only practical recovery. The most common mistake is sending a default notice without the required cure-period letter. The misconception is that a buyer can walk away after the option expires with only the loss of earnest money; the seller can also seek specific performance.

Paragraph 16: Mediation

Mediation is checked by default. Both parties agree to mediate disputes before litigation, which often saves attorney fees.

Confirm the mediation box is checked. Sample entry: Box checked, mediation required.

The edge case is a multi-party dispute that includes a non-party such as an inspector; mediation only binds buyer and seller. The most common mistake is unchecking the box on the assumption that mediation slows things down; it does not. The misconception is that mediation is binding; it is not, but the agreement to attempt mediation is enforceable.

Paragraph 17: Attorney’s Fees

The prevailing party in litigation may recover reasonable attorney’s fees. This is a one-way clause that attaches to whoever wins.

No entry is required. Sample entry: Initial as written.

The edge case is a partial win; courts apportion fees between parties. The most common mistake is filing suit before exchanging mediation demands, which can forfeit fees. The misconception is that this clause prevents lawsuits; it merely shifts cost.

Paragraph 18: Escrow

This paragraph names duties of the escrow agent and authorizes earnest money disbursement. Disputes trigger a written demand to the escrow agent and a 15-day notice period.

No entry is required; the escrow agent is named in Paragraph 5A. Sample entry: Initial as written.

The edge case is when both sides demand earnest money; the escrow agent will hold and may interplead the funds into court. The most common mistake is signing a release that does not match the contract default remedies. The misconception is that earnest money is automatically returned to the buyer if the deal falls apart; it is not; both parties must sign a release.

Paragraph 19: Representations

The seller represents the property is not a homestead leased or subject to liens not disclosed. Buyers rely on this to underwrite title.

No entry is required. Sample entry: Initial as written.

The edge case is a property under federal tax lien; that lien must be disclosed before closing. The most common mistake is omitting a private mortgage that did not appear in the abstract. The misconception is that representations expire at closing; many survive under Texas law for the applicable statute of limitations.

Paragraph 20: Federal Tax Requirements

If the seller is a foreign person under FIRPTA, the buyer must withhold up to 15 percent of the sales price.

No entry is required unless FIRPTA applies. Sample entry: Seller certifies non-foreign status with an affidavit at closing.

The edge case is a Mexican national selling a Texas home; the buyer must withhold and remit unless an IRS withholding certificate reduces it. The most common mistake is taking the seller’s word without the affidavit. The misconception is that title companies handle FIRPTA automatically; they assist, but the legal duty rests on the buyer.

Paragraph 21: Notices

Notices in writing go to the addresses listed in 21. Email and fax are valid only if the parties check those boxes.

Enter each party’s mailing address, phone, email, and fax. Sample entry: Buyer email carlos.ramirez@example.com; Seller email maria.lopez@example.com; both check the email box.

The edge case is an out-of-state seller; mail is slow, so always check email. The most common mistake is leaving the email box unchecked, which forces postal service notices and risks missed deadlines. The misconception is that texts are valid notices; they are not.

Paragraph 22: Agreement of Parties

This paragraph lists every addendum that is part of the contract. Each addendum must be checked and attached.

Check every addendum used. Sample entry: Third Party Financing Addendum checked, Seller’s Disclosure of Information on Lead-Based Paint checked, Addendum for Property Subject to Mandatory Membership in a Property Owners Association checked.

The edge case is a forgotten HOA addendum on a property with mandatory membership; the buyer can later terminate under Texas Property Code §209.00701. The most common mistake is checking a box but failing to attach the form. The misconception is that addenda automatically attach if mentioned in Paragraph 11; they do not.

Paragraph 23: Termination Option

Paragraph 23 grants the buyer an unrestricted right to terminate within the option period for any reason or no reason. The option fee is paid as consideration and is generally non-refundable.

The numbers entered here must mirror Paragraph 5. Sample entry: $200 option fee, 7 days from the effective date.

The edge case is a zero-day option; that is legal but rare and surrenders the buyer’s strongest leverage. The most common mistake is buying back option days through a verbal extension; only a written amendment extends the option. The misconception is that the option fee is refundable; it is credited at closing or kept by the seller if the buyer terminates.

Paragraph 24: Consult an Attorney Before Signing

This paragraph reminds the parties that the agents are not lawyers. Each party may write the name of the attorney consulted.

Enter the attorney name and contact if consulted. Sample entry: Buyer consulted Smith Law, PLLC, 600 Congress Ave, Austin, TX.

The edge case is a complex transaction with seller financing or partial owner; an attorney is strongly recommended. The most common mistake is treating the agent as a legal adviser. The misconception is that this paragraph is just boilerplate; it is a TREC-mandated disclosure.

Effective Date and Signature Blocks

The effective date is the date the last party delivers the fully executed contract to the other party. The escrow agent records the effective date in the box on the signature page.

Sign and date in ink, or e-sign through DocuSign or zipForm. Sample entry: Effective date October 1, 2026, with both parties initialing each prior page.

The edge case is a counter-offer that is signed but not delivered; without delivery, no effective date exists, and deadlines do not start. The most common mistake is a missing initial on a page, which can let a court reopen that page’s terms. The misconception is that the contract date controls deadlines; the effective date does.

Option Fee Receipt

The seller signs the option fee receipt confirming the date the option fee was received. This nails down Paragraph 23’s clock.

Seller signs and dates the receipt the day the fee arrives. Sample entry: Seller Maria Lopez signs and dates October 4, 2026.

The edge case is an option fee paid through the title company; the title company signs as agent for the seller. The most common mistake is forgetting to sign the receipt, which can later be used to argue the option period never started. The misconception is that the wire date alone is enough; the signed receipt is the safest proof.

Three Filled-Out Examples Using Real Scenarios

The three scenarios below show how the contract reads end-to-end for the most common Texas resale fact patterns. Each table walks one named buyer through the most important fields.

Scenario 1: Carlos Ramirez, FHA buyer purchasing a $400,000 suburban home in Plano

Form Section	What Carlos Enters
Paragraph 1 Parties	Buyer: Carlos Daniel Ramirez and Sofia Ramirez; Seller: Maria Elena Lopez
Paragraph 2 Property	Lot 14, Block 3, Westwood Estates, Collin County; 1402 Westwood Drive, Plano, TX 75093
Paragraph 3 Sales Price	3A $14,000 cash, 3B $386,000 FHA financed, 3C $400,000
Paragraph 5 Earnest/Option	$5,000 earnest, $300 option fee, 10-day option period to Independence Title
Paragraph 6C Survey	Existing survey with T-47.1 from seller within 7 days
Paragraph 7D Condition	Box 7D(2): seller replaces two GFCI outlets and repairs back-fence post
Paragraph 9 Closing	November 14, 2026
Paragraph 22 Addenda	Third Party Financing, Seller’s Disclosure, HOA Addendum all checked
Paragraph 23 Option	$300 option fee for 10 days, mirrored from Paragraph 5

Scenario 2: Janet Brooks, cash investor buying a $185,000 Houston rental as-is

Form Section	What Janet Enters
Paragraph 1 Parties	Buyer: Janet Marie Brooks; Seller: Estate of Robert Hayes by Executor Lisa Hayes
Paragraph 2 Property	Lot 9, Block B, Eastwood Section One, Harris County; 3208 Telephone Rd, Houston, TX 77023
Paragraph 3 Sales Price	3A $185,000 cash, 3B $0 financed, 3C $185,000
Paragraph 4 License Disclosure	Buyer is a Texas license holder; relationship disclosed
Paragraph 5 Earnest/Option	$2,000 earnest, $100 option fee, 5-day option period to Stewart Title
Paragraph 7D Condition	Box 7D(1): as-is, no required repairs
Paragraph 9 Closing	October 30, 2026
Paragraph 11 Special Provisions	Seller leaves all appliances and tenant-occupied at closing
Paragraph 22 Addenda	Seller’s Disclosure waived (estate exemption), Lead-Based Paint Addendum attached

Scenario 3: Aisha and David Patel, conventional buyers in Austin with a home-sale contingency

Form Section	What the Patels Enter
Paragraph 1 Parties	Buyer: Aisha Patel and David Patel; Seller: Greenfield Holdings LLC
Paragraph 2 Property	Lot 22, Block 7, Travis Heights, Travis County; 1908 Newning Ave, Austin, TX 78704
Paragraph 3 Sales Price	3A $150,000 cash, 3B $600,000 conventional financed, 3C $750,000
Paragraph 5 Earnest/Option	$10,000 earnest, $500 option fee, 7-day option to Independence Title
Paragraph 6C Survey	Buyer may obtain a new survey at buyer’s expense
Paragraph 7D Condition	Box 7D(2): seller replaces water heater and services HVAC
Paragraph 9 Closing	December 12, 2026
Paragraph 12 Settlement	Seller contributes up to $12,000 toward buyer broker fees; up to $5,000 closing costs
Paragraph 22 Addenda	Third Party Financing Addendum and Addendum for Sale of Other Property checked

How to File the Completed Form

The TREC One to Four Family Residential Contract is not filed with a government agency; it is delivered to the title company, the lender, and the parties. Delivery starts the contract clock, so handle it quickly and keep proof.

Use one of the following channels. Electronic execution and delivery through DocuSign, zipForm Plus, or Dotloop is the most common; the platform timestamps signatures and delivers a sealed PDF to the title company within minutes, with no fee. Email PDF delivery of a wet-signed contract works if both parties checked the email notice box in Paragraph 21; cost is zero, processing is immediate, and the email itself is your proof. In-person delivery of a wet-signed contract to the title company means the receipt stamp is your proof; allow same-day processing. Mail or courier delivery is the slowest channel; use FedEx with signature required so you have proof of receipt, with a $25 to $75 fee.

After execution, the title company opens the file, orders the title commitment, collects earnest money and option fee wires, and sends the lender a copy. The buyer should also forward the contract to the lender within one business day to begin the loan disclosure clock under TRID rules.

What Happens After You File

Once both parties sign and the contract is delivered, the effective date sets every deadline in motion. The earnest money and option fee are due within 3 days; the option period runs from the effective date; the title commitment is due under Paragraph 6B; and the lender pulls credit and orders the appraisal.

During the option period the buyer typically schedules a TREC-licensed inspector for a general home inspection plus any specialty inspections (foundation, sewer scope, roof, HVAC). If the inspection reveals issues, the buyer may negotiate an amendment using TREC Form 39-10 Amendment, terminate during the option period, or accept the property as-is.

Approaching closing, the lender issues a Closing Disclosure at least three business days before signing, and the title company prepares the settlement statement. On the closing date the parties sign the deed, deed of trust, and closing documents, the lender funds, and the deed records at the county clerk’s office. Possession passes per Paragraph 10.

Mistakes to Avoid When Filling Out the Form

Mistakes on this form cost real money and real deals. Each item below pairs the error with its consequence so you can spot the risk before initialing.

• Skipping a co-owner spouse in Paragraph 1. Texas homestead law requires both spouses to sign; closing will halt.
• Using a tax appraisal legal description. Title cannot insure an inaccurate or abbreviated description.
• Math error in Paragraph 3. The lender flags any 3A plus 3B that does not equal 3C, forcing an amendment.
• Forgetting Paragraph 4 license disclosure. This is a TREC violation, even if it does not void the contract.
• Late or split earnest money and option fee delivery. Missing the 3-day window forfeits the unrestricted termination right.
• Naming a title company without seller agreement. The seller can refuse, costing days while you negotiate a swap.
• Checking 6C(2) without budgeting a survey. The buyer cannot terminate financing for failure to obtain a new survey.
• Leaving 6E mold remediation 6E(11) blank when it applies. That is a statutory disclosure failure under Texas Occupations Code Chapter 1958.
• Both 7D boxes blank. The contract becomes ambiguous and may be voidable.
• Writing legal language in Paragraph 11. That is the unauthorized practice of law and a TREC sanction.
• Double-counting compensation in 12A(1)(b) and 12A(1)(c). The seller pays once at the cap; double entries breed disputes.
• Failing to attach a checked addendum in Paragraph 22. A checked but unattached addendum can be unenforceable.
• Missing initials on any page. Each page should be initialed; missing initials open that page to challenge.
• Skipping the option fee receipt signature. Without it, the seller can argue the option period never started.

Do’s and Don’ts

A short checklist saves a long argument later. Use these rules every time you handle Form 20-18.

• Do confirm the form footer reads 20-18 and the effective date is on or after January 3, 2025, because earlier versions lack the new Paragraph 12 split.
• Do initial every page and sign every signature block, because missing marks invite later disputes.
• Do mirror the Paragraph 5 numbers into Paragraph 23, because mismatches let one side argue the option never attached.
• Do name the escrow agent’s full legal name and street address in 5A, because Independence Title alone may not be enough for a wire.
• Do check Paragraph 21 email boxes for both parties, because postal notices waste days.
• Do attach every addendum referenced in Paragraph 22, because boxes without paperwork can fail.
• Don’t sign without the Seller’s Disclosure Notice in hand for a non-exempt seller, because Paragraph 7B requires it.
• Don’t write legal contingencies in Paragraph 11, because TREC bars license holders from drafting law.
• Don’t rely on a verbal extension of the option period, because oral changes cannot bind the contract.
• Don’t skip the Lead-Based Paint Addendum on a pre-1978 home, because federal law requires it.
• Don’t leave the title commitment timeline open-ended, because vague deadlines create disputes.
• Don’t assume earnest money returns automatically; both parties must sign a release.

Pros and Cons of Filing on Your Own vs. With Help

The form is public, but execution risk is high. Compare the trade-offs before deciding.

Pros of filling out the form yourself – No agent commission outside any contract you sign separately, which can save thousands on a low-priced sale. – Full control over deadlines and special terms, which suits experienced investors. – Faster initial drafting because you decide directly without back-channel conversations. – Transparent communication directly with the other party, which can speed negotiations. – Strong educational value if you plan multiple transactions in the future.

Cons of filling out the form yourself – Legal risk because Paragraph 11 errors can amount to the unauthorized practice of law. – High odds of fillable mistakes because Paragraphs 3, 5, 6C, 7D, 12, and 22 interlock. – No comparable sales data, which weakens negotiation on price and credits. – Loss of mediation and dispute support that a broker often provides. – Lender and title company friction is more likely without an agent coordinating.

FAQs

Do I write the buyer’s married or maiden name in Paragraph 1?

Yes, write the name exactly as it appears on the buyer’s government ID and on the deed they will sign at closing, because title underwriters match names letter for letter.

Can I leave Paragraph 4 blank if I am not a license holder?

No, you must check the box that states you are not a license holder, because TREC requires an affirmative disclosure either way.

Is the option fee in Paragraph 5 refundable?

No, the option fee is consideration for the unrestricted termination right and is credited at closing or kept by the seller if the buyer terminates.

Do I have to use a Texas title company?

Yes, the property must be insured by a title company licensed by the Texas Department of Insurance, and the parties name the company in Paragraph 6A.

Can I check both 7D(1) and 7D(2)?

No, only one box can be checked, because as-is and as-is-with-repairs are mutually exclusive states under the form.

Does Paragraph 9 closing date extend automatically if my loan is delayed?

No, the closing date does not extend automatically; the parties must sign an Amendment to Contract to move the date.

Do I have to attach the Lead-Based Paint Addendum on a 1980-built home?

No, the federal disclosure rule applies only to housing built before 1978, so a 1980 home does not trigger it.

Can I write a financing contingency in Paragraph 11?

No, the financing contingency belongs in the Third Party Financing Addendum, and writing it in Paragraph 11 is unauthorized practice of law for a license holder.

Are texts valid notice under Paragraph 21?

No, only writing delivered to the address, fax, or email checked in Paragraph 21 counts as notice.

Does the option period count weekends and holidays?

Yes, the option period counts every calendar day, but if the last day falls on a weekend or holiday, it rolls to the next business day per Paragraph 24.

Can the seller back out during the option period?

No, only the buyer holds the unrestricted termination right; the seller is bound unless a separate contingency lets them out.

Do I need a survey if I have a recent title commitment?

No, a survey is separate from a title commitment, but most lenders require one, and Paragraph 6C controls who provides it.

Is the contract effective when both parties sign?

No, the contract is effective on the date the last fully executed copy is delivered to the other party, and the escrow agent fills in that date.

Can I add a buyer after the contract is signed?

No, adding a buyer requires a written amendment because Paragraph 1 fixes the parties at execution.

What happens if the seller refuses to sign the option fee receipt?

No signed receipt is fatal because the buyer can prove delivery through wire confirmation; still, request the signature to lock in the Paragraph 23 deadline.