Which form is considered a mandatory TREC form for residential transactions?

The One to Four Family Residential Contract is a mandatory form established by the Texas Real Estate Commission (TREC) for residential real estate transactions involving one to four family dwellings. This form is essential because it standardizes the contractual terms for such transactions, ensuring clarity and protection for all parties involved.

The TREC drafts and requires specific forms to facilitate smoother real estate transactions in Texas, and this particular contract addresses typical provisions necessary in residential agreements, such as purchase price, earnest money, and contingencies. Its mandatory nature means that it must be used by licensed real estate professionals in the state when dealing with residential properties, promoting consistency and adherence to agreed-upon legal standards in residential real estate deals.

In contrast, the other options pertain to different types of transactions or properties that do not fall within the same category. For example, the Commercial Property Contract is specifically designed for commercial transactions and is not suitable for residential deals, while the Real Estate Option Contract grants a buyer the right to purchase a property at a later date but is not itself a standard sales contract. Lastly, the Land Lease Agreement pertains to leasing land rather than the sale of residential property and is therefore not necessary for residential purchase transactions.