The Practical Real Estate Lawyer | 13
Texas Purchase and Sale Issues for Buyers
John Nolan is a shareholder with Winstead PC’, in
Dallas. Since 1973, he has provided clients innovative
legal and business solutions that eciently and eec-
tively deliver the desired results. John’s broad-based
real estate practice encompasses development, work-
outs, portfolio/equity investments and nancing for
clients located across the United States and for interna-
tional companies investing in the United States. John is
active in both the community and the real estate indus-
try and shares his experience with others as a frequent
writer and lecturer at business and legal seminars and
presentations. His broad experience in all business
cycles consistently delivers results that earn him a rep-
utation as an innovative dealmaker. John also serves as
a member of Winstead’s Board of Directors and is chair-
man of the rm’s Real Estate Industry Group.
Ed Peterson is also a shareholder with Winstead PC’c
Dallas oce. He represents developers of real estate,
institutions, investors and lenders in relation to the
development and nancing of vertical and horizontal
mixed-use commercial common interest ownership
projects. He also represents condominium developers
and lenders in various types of residential condomin-
ium projects on a national basis.He represents institu-
tions in connection with distressed real estate assets
and the restructure of both debt and equity, including
multistate portfolios and signicant oce and retail
projects in Texas and other jurisdictions. He is a fellow
of the American College of Real Estate Lawyers and the
American College of Mortgage Attorneys, and is an
industry commentator, having written and spoken at
industry and professional meetings nationwide.
Marni Zarin is a shareholder in Winstead PC’s Houston
oce where she represents commercial, retail and
multi-family developers, owners, lenders, landlords
and tenants in all aspects of commercial real estate
development, construction, nancing and invest-
ments, including negotiating and drafting nancial
documents, purchase and sale agreements, real prop-
erty leases, development and property management
agreements, and easement and declaration docu-
ments. Marni is an active member in real estate indus-
try groups, such as ULI and CREW. She also serves on
boards and committees of Houston community not-
for-prot organizations. .
John Nolan, Ed Peterson, and Marni Zarin
1. INTRODUCTION
Sales of Texas real estate are typically governed by
Texas law and customs. Variances among states some-
times can be significant. Consequently, it is important
to understand the local rules and to seek the advice of
local experts to make an informed purchase. While not
intended to be exhaustive, this article will highlight some
of the local matters for buyers of commercial real estate
to keep in mind when entering into a purchase and sale
agreement and, by necessity, will address issues from
both the buyer’s and the seller’s perspective, including
many of the required statutory notices to be given by
the seller in contracts of sale of commercial real estate.
Note that this article focuses on commercial purchase
agreements and does not include any of the required dis-
closures or notices for residential contracts. This article
does not cover entitlements, permits or other possible
land use matters. Although this article sets forth many
of the Texas-specific doctrines related to purchase and
sale agreements for commercial properties, the authors
highly recommend engaging Texas counsel when draft-
ing and negotiating Texas commercial real property pur-
chase agreements.
2. TITLE
WARRANTY
The typical warranty as to title that Sellers are willing
to provide in Texas and what Texas title companies will
insure is a different standard than in many other states.
In Texas, the standard title warranty is “good and inde-
feasible” instead of “good and marketable” or “good and
merchantable”. The distinction originated during the
Great Depression when many properties were sold at
sheriff’s sales. This raised questions of marketability and