Note: The Texas Association of Realtors and TREC update promulgated forms regularly. For the most recent updates, check with TAR, TREC, or contact me at brian@starpointerealty.com.
Note: I am a real estate professional, not a lawyer. Nothing herein should be construed as legal advice or instructions.
Welcome! The previous paragraphs were Paragraphs 1 & 2: Parties and Property. As of January 1st, 2016, there was a significant change to the resale contract that impacted Paragraphs 3 and 4 specifically. As such, we will update our contract info, here!
Paragraph 3. Here is your purchase price for the property. It’s probably easiest to fill out C first and then work backwards to find A and B. The cash portion of the sales price (A) is your down payment. If you are using a conventional loan with 5% down payment, multiply 5% by the sales price to find A (and of course 95% to find B, because you are financing the rest).
Note that B does NOT include your closing costs, and is NOT going to be the size of your loan. Your loan will likely be for a larger amount because you are likely going to finance into your mortgage most of your closing costs. Your lender can break down what that looks like depending on the lender, type of financing, mortgage terms and your personal preferences.
For cash buyers, of course, B is 0, and A = C because you are paying the whole Sales Price cash (though the actual cash due will again likely be higher because of closing costs, even though those costs will be much less than if you were using a lender).
The change that took place January 1, 2016 was that Paragraph 4: Financing was eliminated and added to the new Third Party Financing Addendum. Instead, in Part B, you simply note that there is a Third Party Financing Addendum (or Loan Assumption or Seller Financing Addendum, as appropriate). The previous Paragraph 4 and the Third Party Financing Addendum were a little redundant and confusing, and it is better having all the financing info on one form, anyway. So a good change!
Paragraph 4. This completely replaces the previous Paragraph 4, which had to do with the financing. Instead, this is where a licensee who is a party to the transaction to disclose as much. This was always a requirement, but simply wasn’t included in the contract. Instead, a licensee might disclose this through an email or perhaps in the special provisions. If neither buyer or seller have real estate licenses, then it will just be “N/A”.
I hope you found this helpful! The next paragraph is Paragraphs 5: Earnest Money.