Contract

TXR 1802 — Commercial Contract - Unimproved Property

This is the standard Texas REALTORS purchase and sale contract for unimproved (vacant) commercial real property. It is designed for land without buildings or significant improvements, and includes a unique sales price adjustment provision based on survey area calculations. The form covers sales pric

Source: TXR
Form Number: 1802
Category: Contract
Revised: July 8, 2022

Used For

Commercial Sales, Vacant Land

Form Outline

The TXR 1802 form is organized into the following sections:

  1. Parties
    Identifies seller and buyer as the contracting parties and establishes the agreement to sell and purchase.
  2. Property
    Describes the unimproved property and what is conveyed, including land rights, mineral interests, leases, rents, and permits, but excluding trade names and personal property.
  3. Sales Price
    Establishes the sales price with a unique provision for adjusting the price based on actual survey area measurements, calculated per square foot or per acre.
  4. Financing
    Defines financing options for third-party loans (contingent or non-contingent), loan assumption, or seller financing, each requiring the Commercial Contract Financing Addendum.
  5. Earnest Money
    Requires buyer to deposit earnest money within 3 days of the effective date, with provisions for additional deposits.
  6. Title Policy and Survey
    Establishes title insurance and survey requirements without the UCC search provision found in the improved property contract. Buyer may object within specified days and seller has 15 days to optionally cure.
  7. Property Condition
    Establishes property acceptance, feasibility period with independent consideration, inspection rights, and a streamlined property information delivery list appropriate for unimproved land.
  8. Leases
    Governs assignment of existing ground leases, restricts lease modifications, requires disclosure of lease issues, and mandates tenant estoppel certificates.
  9. Brokers
    Identifies brokers, establishes representation roles, defines fee arrangements, and references broker lien rights.
  10. Closing
    Sets the closing date and details seller's and buyer's closing obligations, streamlined for unimproved property without bill of sale or personal property requirements.
  11. Possession
    Seller delivers possession at closing and funding; unauthorized possession creates a tenancy at sufferance.
  12. Special Provisions
    Provides space for custom terms that take priority over other contract provisions.
  13. Sales Expenses
    Allocates closing costs between seller and buyer, similar to TXR 1801 but without bill of sale preparation.
  14. Prorations
    Prorates taxes, rents, and expenses, assigns rollback tax responsibilities, and requires transfer of security deposits.
  15. Default
    Defines default remedies for buyer default, seller inability to perform, and seller default, identical to TXR 1801.
  16. Condemnation
    Addresses condemnation proceedings (buyer may terminate or participate) but unlike TXR 1801, does not include casualty loss provisions since the property is unimproved.
  17. Attorney's Fees
    Allows the prevailing party to recover attorney's fees; survives termination.
  18. Escrow
    Governs escrow procedures, earnest money disbursement, and 1031 exchange cooperation.
  19. Material Facts
    Requires seller disclosure of material facts through TXR-1408 or a 10-item checklist tailored for unimproved property (no improvements defect item).
  20. Notices
    Establishes written notice requirements with multiple delivery methods and optional email consent.
  21. Dispute Resolution
    Requires negotiation then mediation before arbitration or litigation; survives termination.
  22. Agreement of the Parties
    Contains standard legal provisions and an addenda checklist with 11 options tailored for unimproved property.
  23. Time
    Time is of the essence with business-day extensions for deadlines falling on weekends or bank holidays.
  24. Effective Date
    Effective date is when the title company receipts the fully-executed contract.
  25. Additional Notices
    Compiles required statutory notices tailored for unimproved property, excluding lead-paint and mold notices applicable to residential structures.
  26. Contract as Offer
    First party's execution is an offer expiring at 5:00 p.m. on the specified acceptance deadline.

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