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Earnest Money Contract Review and Negotiation


What is involved in the Review & Negotiation of an Ernest Money Contract?

The term "earnest money contract" is a generic expression applied to the type of contract used in the sale and purchase of real property (land) in Texas. The real property may be unimproved (no structures have been built on the land), or it may be improved with structures of some kind (for example, a home, or a commercial building).  The real property may be used for residential purposes (for example, a home), or it may be used in a commercial setting (for example, a commercial building located on land used in conjunction with the business).

What are some common types of Ernest Money Contracts?

The Texas Real Estate Commission (TREC) publishes several specialized earnest money contracts, for example: the One to Four Family Residential Contract (Resale); the Unimproved Property Contract; the Farm and Ranch Contract; the New Home Contract (Incomplete Construction); the New Home Contract (Complete Construction); and the Residential Condominium Contract (Resale).  And the Texas Association of Realtors (TAR) also publishes its own copyrighted earnest money contracts for a variety of sale and purchase circumstances.  And most Texas real estate attorneys have also developed their own customized earnest money contracts (which may be identified by any number of titles) to fit a variety of circumstances.

Can I modify the content of an Ernest Money Contract?

Attorneys are authorized to draft and modify the substantive content of all earnest money contracts no mater what the document may be called.  If you donít understand a contract or a document you have been requested to sign, donít sign it!  You may always engage the services of a Texas attorney to explain the document, and to negotiate its content or modify it if necessary.

I regularly assist clients in drafting, reviewing, interpreting, modifying, and negotiating all forms of earnest money contracts.

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