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Texas Commercial Real Estate Contracts

When conducting business in Texas, it`s important to understand the intricacies of commercial real estate contracts. Whether you`re a buyer, seller, or broker, having a solid understanding of the legalities involved can help protect your interests and ensure a successful transaction. In this article, we`ll explore some key aspects of Texas commercial real estate contracts that you need to be aware of.

Contract Basics

A contract is a legally binding agreement between two or more parties. In the commercial real estate world, contracts are used to outline the terms and conditions of a transaction. These terms may include the purchase price, financing agreements, contingencies, and closing date. All parties must agree to the terms and sign the contract for it to be enforceable.

Texas-specific Laws

Texas has specific laws that govern commercial real estate contracts. For example, the state requires that contracts be in writing and signed by all parties involved. Additionally, Texas is a “race-notice” state, meaning that a buyer who records a deed first and without knowledge of any prior claims has priority over other parties. This is important to consider when negotiating terms of a commercial real estate contract in Texas.

Due Diligence

Due diligence is the process of investigating a property before entering into a contract. This process can include reviewing financial statements, conducting inspections, and researching zoning restrictions. It`s important to include contingencies in the contract that allow for due diligence to be conducted before closing.

Title and Deeds

The title of a property refers to the legal ownership of the land, while the deed is the legal document that transfers ownership. In Texas, title companies generally handle the transfer of ownership and issue title insurance. It`s important to include provisions in the contract that address who will pay for the title search and insurance.

Closing Costs

Closing costs are the fees associated with the transaction, such as appraisal fees, title search fees, and attorney fees. In Texas, both the buyer and the seller typically pay closing costs. It`s important to discuss and negotiate these costs before signing a contract.


Commercial real estate contracts in Texas are complex legal agreements that require careful consideration and attention to detail. By understanding the basic components of these contracts and the laws governing them, you can protect your interests and ensure a successful transaction. Whether you`re buying, selling, or brokering commercial real estate in Texas, be sure to work with an experienced attorney and conduct thorough due diligence before signing a contract.

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