Under the statute of frauds an agreement for the sale of real estate must be in writing. The earnest money contract or purchase agreement should describe the complete agreement between the parties, including aspects to the sale that are not real property. The agreement should be prepared with the help of a licensed realtor or an attorney. The basic contents of the contract are as follows:
•An exact complete legal description of the real estate being purchased
•Purchase Price (including Deposit)
•List of personal property included in purchase;
•Contingencies to be met before the Buyer is obligated to complete the purchase
o Inspection
o Financing
o Title commitment
•Proration of property taxes, insurance, taxes and utilities
•Risk of loss between contract and closing
•Designation of escrow agent
•Proof of title from the seller
•Acceptable survey
•Closing and possession dates
•Cost sharing
•Remedies available to either buyer or seller if there is a default
A sample Farm and Ranch Contract for the sale of a farm or ranch promulgated by The Texas Real Estate Commission appears at the end of this Chapter.