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Terms Used In Texas Property Code 5.0205

  • Contract: A legal written agreement that becomes binding when signed.
  • in writing: includes any representation of words, letters, or figures, whether by writing, printing, or other means. See Texas Government Code 312.011
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • Property: means real and personal property. See Texas Government Code 311.005
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.

Before entering into a contract to sell an option or assign an interest in a contract to purchase real property, a person must disclose in writing to:
(1) any potential buyer that the person is selling only an option or assigning an interest in a contract and that the person does not have legal title to the real property; and
(2) the owner of the real property that the person intends to sell an option or assign an interest in a contract.