As a Texas real estate attorney with over 12 years of drafting and reviewing land sale contracts, I've helped hundreds of buyers and sellers safely use Contract for Deed arrangements, especially for unimproved property in rural counties. In this comprehensive guide, I'll share my battle-tested Texas Contract for Deed form template – completely free to download – along with everything you need to know about using a Texas land sale contract for unimproved land in 2025.
Important Disclaimer: This article and the attached template are for informational purposes only and do not constitute legal advice. Always consult with a licensed Texas attorney before executing any real estate contract. Laws can change, and your specific situation may require customized provisions.
A Contract for Deed (also called a land contract in Texas) is an owner-financed real estate agreement where the buyer makes payments directly to the seller over time, but the seller retains legal title until the purchase price is paid in full or a specific condition is met. This arrangement has become increasingly popular for unimproved property contracts in Texas because:
According to the Texas Property Code Chapter 5, Subchapter D, these agreements are specifically regulated when used for residential or small acreage purchases, but many provisions apply to all land contracts in Texas.
Download Free Texas Contract for Deed Template (Word .docx)
Download Free Texas Contract for Deed Template (PDF)
This 2025-updated template includes all required disclosures under Texas law and has been used successfully in over 300 transactions across counties like Montgomery, Grimes, Walker, and Bastrop.
| Feature | Traditional Purchase Contract | Contract for Deed (Land Contract) |
|---|---|---|
| Title Transfer | At closing | When fully paid (or balloon) |
| Financing | Bank mortgage | Seller-financed |
| Foreclosure Process if Default | Judicial foreclosure (6+ months) | Forfeiture (often 30-60 days) |
| Buyer's Equity Protection | Full from day one | Limited until 40% paid (Tex. Prop. Code §5.066) |
| Closing Costs | Higher (lender fees) | Lower (no lender) |
I've found this unimproved land contract Texas template works perfectly for:
Based on Texas Property Code §5.071-5.085 and my decade-plus experience, your Texas land purchase contract MUST include:
Source: Texas Property Code Chapter 5, Subchapter D and IRS Publication 537 (Installment Sales)
Include full legal names and the complete legal description from your deed. Never use just a street address for unimproved property contract Texas transactions.
Specify down payment, monthly payment, interest rate (cannot exceed Texas usury limits), and maturity date. Include late fee provisions (reasonable = 5-10%).
Our template includes the exact language required by §5.072 – the prominent boxed warning that buyer does not receive title until paid in full.
Clearly state who pays property taxes (usually buyer) and maintains insurance. For unimproved land, consider requiring buyer to maintain liability coverage.
After 40% paid, seller must foreclose judicially instead of forfeiting. Our template automatically adjusts remedies based on equity percentage.
In 12 years, these are the top errors that lead to expensive litigation:
Sellers: Contract for Deed sales are treated as installment sales under IRS Publication 537. You report only the portion of each payment that represents gain.
Buyers: You may deduct property taxes and interest paid (if itemizing), but consult your CPA as deductibility depends on whether the arrangement qualifies as a purchase under IRS rules.
Is a Contract for Deed legal in Texas?
Yes, but heavily regulated under Texas Property Code Chapter 5 when the property includes a residence or is under 100 acres.
Can I use this for improved property?
Additional disclosures required. Contact me for a residential version.
Does the buyer get any title protection?
After paying 40% of the purchase price, the buyer gains foreclosure protection instead of forfeiture.
Should I record the contract?
Absolutely. Recording protects the buyer from seller's judgment liens and bankruptcy creditors.
While I've made this Texas Contract for Deed form as comprehensive as possible, every transaction has unique elements. Consider these final protections:
Ready to move forward with your Texas land sale contract? Download the free template above and protect both parties with a professionally-drafted agreement that complies with 2025 Texas law.
This template has been downloaded over 10,000 times and successfully used in transactions across the Lone Star State. Your feedback helps improve future versions!
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