Buying a home is exciting but nothing kills the vibe faster than that moment when a thick stack of contract papers hits the table. Suddenly you’re staring at pages of legal language, paragraphs you’ve never seen before, and boxes you’re expected to initial like you’re fluent in real estate law.

Most buyers skim. Some panic. Many sign without fully understanding what’s inside.
But those pages are powerful. They outline your rights, your protections, and the exact conditions under which you can walk away from the deal with your money intact.

Today, we’re breaking down five surprising truths tucked inside the Texas Residential resale Home buying Contract but these insights apply to almost any Texas home contract.

Once you understand the fine print, you’ll never look at that stack of paperwork the same way again.

1. “As Is” Doesn’t Mean You’re Stuck With Problems

The term “As Is” scares buyers. Many assume it means:

• No repairs

• No negotiations

• No backing out

Not true.

In the Texas Residential contract, “As Is” simply means this is the starting point. You still have:

✔ The right to inspect
✔ The right to negotiate repairs
✔ The right to walk away during your Option Period

The contract literally spells this out in Paragraph 7B.

Buyer’s agreement to accept the Property As Is under Paragraph 7B (1) or (2) does not preclude Buyer from inspecting the Property under Paragraph 7A, from negotiating repairs or treatments in a subsequent amendment, or from terminating this contract during the Option Period, if any. 

So don’t let “As Is” intimidate you. It doesn’t take away your ability to protect yourself it just means the seller isn’t promising to fix everything upfront.

2. You’re Actually Paying for the Right to Walk Away

Many buyers confuse Earnest Money with the Option Fee, but these two payments do very different things.

Earnest Money

A larger deposit showing serious intent. This money is held in trust and is generally refundable if you terminate the contract for a valid reason within the agreed-upon timeframes. 

Option Fee

A smaller, non-refundable fee paid directly to the seller.
This fee buys you the Option Period a set number of days where you can cancel for any reason at all.

Don’t like the inspection?   Cancel!
Feel unsure about the neighborhood? Cancel!
Wake up one morning and change your mind? Cancel!

You can terminate the contract no explanation needed.
Your earnest money is refunded as long as you do it within the Option Period.

For a few hundred dollars, you purchase total control at the most important stage of the deal. That’s a bargain.

3. Your Lender Can Save You From a Bad Deal

Just when you think you’re in the clear, your lender may order repairs or conditions before approving the loan. That can get pricey, fast.

But here’s the good news:

Under Paragraph 7E:

• If you and the seller can’t agree on who pays for lender-required repairs →
  The contract terminates and your earnest money is refunded.

• If those repairs exceed 5% of the sales price →
  You can cancel the contract and get all your earnest money back.

This clause protects you from being forced into unexpected, costly repairs just to keep the deal alive.

Think of it as your built-in “Get Out of Jail Free” card.

4. Sellers Only Have to Disclose What They Know

The Seller’s Disclosure may look thorough, but notice the key phrase repeated throughout:

“Seller is / is not aware of…”

They’re only confirming what they personally know at that moment.
They are not required to:

• Perform new inspections

• Investigate further

• Identify issues they’ve never noticed

Which means hidden problems can still exist without violating the contract.

This is why buyer inspections are essential. The disclosure tells you what the seller knows. The inspection tells you what the property actually is.

5. You Could Get Locked Out of Your Own Smart Home Unless the Contract Stops It

In today’s smart-home era, access matters.
Imagine moving in and:

• You can’t control the thermostat

• The video doorbell still sends alerts to the previous owner

• The security system thinks you're an intruder in your own house

Thankfully, the Texas contract covers this.

Under Paragraph 10B, the seller must:

1. Provide all login information, access codes, passwords, apps, and settings.

2. Remove their personal access from every smart device.

This provision is no small matter. It ensures a clean hand-off of the home's technological infrastructure, protecting your security, privacy, and the basic ability to use the features you paid for. It prevents the previous owner from having a digital backdoor into your new home and saves you the headache of trying to reclaim control of your own systems. 

Final Thoughts: Knowledge Is Your Best Protection

A Texas home contract may look intimidating, but it’s actually full of protections for buyers if you know where to look. Understanding these key truths transforms you from a nervous signer into an empowered decision-maker.

The fine print doesn’t exist to confuse you.
It exists to protect you.

So the next time you sit down with a real estate contract, ask yourself:

Do I fully understand what I’m signing or is it time to ask better questions?