Legal FAQs for REALTORS®
— Contracts and Forms
Texas Agricultural Development Districts
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? (Updated April 24, 2015)
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.
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