About the Connection Between Deeds & Contracts
In Texas, certain terms of a real estate sales contract must be included in the deed to be enforceable. For instance, if a person wants to sell a property “as-is,” checking the “as-is” box on standard TREC forms isn’t enough. The provision must be included in the deed and the language to be added to the deed should be included in the special provisions of the contract to prevent additional negotiation or delays at or just prior, to closing.
The title company’s lawyers represent the title company and often draft only sparse, standard documents. Because they represent the title company, a title company’s lawyers watch out for their clients by drafting these kinds of documents. Realtors cannot draft legal documents or give legal advice; therefore, not having a lawyer to review the title policy, deed, and other closing documents can place a person or entity in a transaction at a disadvantage.
Seasoned real estate buyers and sellers know this and have their own representation draft and negotiate the terms of deeds and other closing documents to protect their interests.