The box you’ve never checked for a land-purchase contract

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Rural land with flowers in the foregroud and a tilled field in the background, separated by a barbed wire fence.

04/24/2015 | Author: Editorial Staff

I’m helping my client prepare an offer for a vacant residential lot using TREC’s Unimproved Property Contract. A checkbox in the form asks whether the property is located in a Texas agricultural development district. What does this mean?

The process for creating agricultural development districts was enacted in 2001 by the Texas Legislature to promote the development of agricultural facilities that result in employment and economic activity. However, to date, no such districts have been created, according to the Texas Department of Agriculture.

The provision you described is in TREC’s Unimproved Property Contract (TREC 9-11, TAR 1607) and Farm and Ranch Contract (TREC 25-10, TAR 1701) in the event a seller is located in such a district. Then he’s required to give written notice to prospective buyers prior to the execution of a binding contract to purchase the property, which can be done either separately or within the terms of the contract itself. The seller and buyer of property in an agricultural development district must also sign a notice at closing that is recorded in the deed records.

Visit the Texas Department of Agriculture’s website to learn more about Texas agricultural development districts.

Categories: Forms, Legal
Tags: legal, legal faq, farm and ranch, land sales


Candace Cargill on 05/14/2015

Oops…ever not every…hit that post button a little to quickly.

Candace Cargill on 05/14/2015

I live and work in a rural, ag-freindly area…I don’t know if one of those districts will every be formed, but until the State of Texas decides to dissolve that Statute, I sure appreciate TREC and our Association having it in the contract form and covering my behind.  “Just in case”.

Mathew Thekkil on 05/12/2015

I fully endorse the comment from C. Harris. It is not only wasting space it is confusing all parties in a transaction.

C. Harris, ALC on 04/24/2015

If not one single property in the entire State of Texas is in such a district, why have it in the promulgated contracts at all? More wasted time and space. Typical of bureaucracy, though. TREC should at least wait until it is an issue. It’s been 14 years and not one such district has been created according to this article.

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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on Any legal or other information found here, on, or at other sites to which we link, should be verified before it is relied upon.

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