TREC 25-17 Farm and Ranch Contract: what to check before title

The 25-17 looks like the 20-19 but isn't. It has its own paragraphs for acreage, leases, water and reservations, and those are where farm and ranch files pick up blanks and conflicting boxes.

Which contract is it?

TREC promulgates three purchase contracts agents mix up: the 20-19 One to Four Family Residential (Resale), the 9-18 Unimproved Property (land) and the 25-17 Farm and Ranch. The current Farm and Ranch edition is 25-17, which replaced 25-16. Check the "TREC NO." in the footer before anything else; an old template saved on a computer is a common source of problems.

Paragraph 3: price and acreage

• 3A + 3B = 3C. The cash portion plus the financing has to equal the Sales Price.
• 3D acreage adjustment. If the price "will" be adjusted, the acres and the $ per acre both need to be filled in, one of 3A, 3B or "proportionately" checked, and the days to terminate after an adjustment over 10% filled in.
• 3D and 6C have to agree. 3D adjusts based on the survey in Paragraph 6C, so "will be adjusted" with 6C(4) (no survey) is a conflict.
• "Will not" with acres filled in is worth a second look.

Paragraph 4: leases

• 4A Residential and 4B Fixture Leases. If checked, the matching addendum should be listed in Paragraph 22.
• 4C Natural Resource Leases. Exactly one of 4C(1) (Seller has delivered) or 4C(2) (has not delivered) should be checked, and 4C(2) needs its days to terminate.
• 4D Surface Leases. 4D(2) oral leases need the lease described; 4D(3) needs its days.

Paragraphs 5 and 6: option, title and survey

• 5B. An option fee with no option period days.
• 6A. Title policy expense: Seller's or Buyer's, exactly one. 6A(6) shortages in area: (i) or (ii), and (ii) needs exactly one of Buyer or Seller.
• 6C Survey. One box only, and 6C(1)-(3) need the number of days. 6C(1) also needs who pays for a new survey.
• 6D. The days for Buyer to object to title.

Paragraph 7: disclosures and water

• 7B Seller's Disclosure Notice. One of 7B(1)-(3) checked; 7B(2) needs the delivery days.
• 7H. Each item is "is" or "is not." If Seller is aware of any, the explanation line shouldn't be blank.
• 7K Seller's Water Disclosure. Check one box only; 7K(2) needs the delivery days and 7K(3) should name the water provider.

Dates, provisions and addenda

• 9A Closing date before the Effective Date.
• Paragraph 11 Special Provisions that read like business terms. Paragraph 11 is for informational items; business terms go in a TREC addendum or are drafted by a party or attorney.
• Reservations (2F). Minerals, water or timber reserved in Paragraph 11 or 2E, with no reservation addendum listed in Paragraph 22.
• Financing. 3B has to match the 40-11 loan amount, and the Lender's Appraisal termination addendum (49-1) is only for use with the Third Party Financing Addendum.
• Every page header. "Address of Property" at the top of each page should match Paragraph 2.

Working a resale file instead? See the TREC 20-19 checklist →

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