TREC Form 20-17, the One to Four Family Residential Contract (Resale), is the most-used contract in Texas real estate. Agents handle dozens of these per year and most have never read all 23 paragraphs carefully. This guide walks through the form by paragraph and flags what matters operationally.
¶ 1 — Parties
Identifies the seller and buyer. Use legal names exactly as they appear on title for the seller (matching the deed) and on the buyer's loan documents.
¶ 2 — Property
Property description: street address, county, legal description (lot/block/subdivision/recording reference). The legal description must match the title commitment exactly. Mismatches here surface as title objections later.
¶ 3 — Sales price
Total sales price, broken into cash portion and financed portion. ¶ 3B's financing portion ties to the Third Party Financing Addendum (40-11) if attached.
¶ 4 — License holder disclosure
Which party each agent represents. Critical to mark correctly — Texas brokerage law requires disclosure of representation in writing.
¶ 5 — Earnest money and option fee
The most operationally consequential paragraph in the form.
- ¶ 5A — Earnest money + option fee. Both due within a specified number of days after the Effective Date (typically 3). Both roll per ¶ 23 if the deadline lands on a weekend or holiday.
- ¶ 5B — Option period. The buyer's right to terminate without cause for a specified number of days. Calendar days, no rollover. Ends at 5:00 PM local. Full explainer.
¶ 6 — Title policy and survey
- ¶ 6A — Title commitment. Title company delivers the commitment within the specified number of days; rolls per ¶ 23.
- ¶ 6B — Title objection. Buyer has a window to object to exceptions on Schedule B.
- ¶ 6C — Survey. Specifies whether seller provides a new survey or buyer accepts the existing survey + T-47 affidavit. Day-counted, rollover applies.
- ¶ 6D — Title cure or termination. If the seller can't or won't cure objections, buyer can terminate and recover earnest money.
¶ 7 — Property condition
Seller's disclosure obligations under TREC, plus buyer's acceptance "as-is" or subject to repairs. Most repair negotiations happen during the option period and are documented via amendment (39-9), not by editing ¶ 7 directly.
¶ 8 — Effective date
The Effective Date is the date the last party signs and delivery occurs. The escrow agent or title company typically dates the contract on receipt; the Effective Date drives every subsequent deadline. Confirm in writing.
¶ 9 — Closing
Sets the closing date (¶ 9A). All other deadlines must run before this date — financing, title, survey, repairs all complete prior. If closing needs to move, execute TREC Form 39-9.
¶ 10 — Possession
When does the buyer get the keys — at closing, at funding, or per a separate temporary lease (TREC 16-7 buyer or 15-6 seller temporary residential leases)?
¶ 11 — Special provisions
Free-text negotiated provisions. Texas brokerage law restricts what license holders can write here without crossing into legal advice. Custom drafting beyond simple business terms typically requires an attorney.
¶ 12 — Settlement and other expenses
Allocates closing costs between buyer and seller (title policy, survey, recording fees, etc.) plus any negotiated seller concessions toward buyer's closing costs.
¶ 13 — Prorations
Property tax prorations, HOA fees, etc. Title company handles the math at closing.
¶ 14 — Casualty loss
What happens if the property is damaged before closing.
¶ 15 — Default
Remedies if either party defaults — typically liquidated damages limited to the earnest money for the seller, specific performance available for the buyer.
¶ 16 — Mediation
Mediation provision before any litigation.
¶ 17 — Attorney's fees
Prevailing party recovers reasonable attorney's fees.
¶ 18 — Escrow
How earnest money is held and disbursed by the escrow agent.
¶ 19-22 — Representations, federal tax, agreement of parties, consult an attorney
Standard provisions. ¶ 22 lets parties identify which addenda are attached (financing, lead paint, HOA, etc.).
¶ 23 — Time
The rollover rule. "If the time period within which any act required by this contract falls on a Saturday, Sunday, or legal holiday, the time for performance is extended until the end of the next day which is not a Saturday, Sunday, or legal holiday." Applies to every TREC deadline except ¶ 5B's option period, which carves itself out.