Top Legal Issues Texas Homebuyers Should Know in 2026

Contracts, Title Problems, Disclosures, Contingencies, and Common Pitfalls

Buying a home in Texas is one of the most significant financial decisions you will make. While the process may seem straightforward, real estate transactions involve complex legal documents and strict deadlines. At Kelsey Law Firm, we regularly help clients in Denton and throughout North Texas navigate these issues and avoid costly mistakes.

Here are the top legal issues Texas homebuyers should understand in 2026.

1. The Purchase Contract: More Than Just

Paperwork

A real estate contract is a legally binding agreement. Once signed, it controls the rights and responsibilities of both parties. Small errors or misunderstood provisions can lead to disputes, delays, or financial loss.

Common contract issues include:

• Missing or incomplete terms

• Confusion about deadlines for inspections or financing

• Misunderstanding earnest money requirements

• Unclear language regarding repairs or seller obligations

Buyers should carefully review all terms before signing. Having a real estate attorney review your contract can help ensure your interests are protected from the start.

2. Buyer Representation Agreements

As of 2026, buyers in Texas must pay closer attention to written buyer representation agreements. These agreements define how your agent is compensated and clarify the scope of representation.

Before signing, buyers should understand:

• The length of the agreement

• Compensation terms

• Whether the agreement is exclusive

• How termination works

If you are unsure about the legal impact of your representation agreement, an attorney can review it and explain your rights.

3. Title Issues and Ownership Problems

Clear title is essential. If there is a lien, boundary dispute, unpaid tax, or other encumbrance attached to the property, it could delay closing or create serious ownership problems later.

Common title issues include:

• Unpaid property taxes

• Contractor or mechanic’s liens

• Judgment liens

• Errors in prior deeds

• Survey or boundary disputes

Title insurance is critical, but it is not a substitute for proper legal review. At Kelsey Law Firm, we help buyers understand title commitments and resolve issues before closing.

4. Seller Disclosures and Hidden Defects

Texas law requires most sellers to provide a Seller’s Disclosure Notice outlining known defects or issues with the property. This may include structural problems, foundation concerns, plumbing or electrical defects, or previous flooding.

However, sellers are only required to disclose issues they know about. If a seller fails to disclose a known defect, buyers may have legal remedies, including claims for damages.

Buyers should:

• Carefully review all disclosure forms

• Conduct a thorough inspection

• Follow up on any vague or incomplete answers

If something seems inconsistent, legal guidance can help you determine your options.

5. Contingencies and Protecting Your Earnest Money

Contingencies provide legal protections during the transaction. Common contingencies include:

• Inspection contingency

• Financing contingency

• Appraisal contingency

Each contingency has strict deadlines. Missing a deadline could result in losing your earnest money or being forced to proceed with the purchase.

Understanding how these provisions operate under Texas law is critical. An attorney can help ensure your protections remain intact throughout the transaction.

6. Common Pitfalls Denton Homebuyers Should Avoid

Even experienced buyers can make mistakes. Some of the most common legal pitfalls include:

• Waiving inspections in competitive markets

• Failing to review HOA documents

• Overlooking deed restrictions

• Not understanding homestead protections

• Signing documents without fully reviewing terms

North Texas real estate continues to grow rapidly, particularly in Denton and surrounding areas.

With increased competition often comes pressure to move quickly. Rushing the process can expose buyers to unnecessary risk.

Protecting Your Investment

A home purchase is not just a financial transaction — it is a legal one. From contract negotiation to closing, each step carries potential risks.

At Kelsey Law Firm, we help Denton homebuyers:

• Review and negotiate purchase contracts

• Resolve title issues

• Evaluate disclosure disputes

• Protect earnest money deposits

• Navigate complex real estate transactions

If you are buying a home in Denton or anywhere in North Texas, having experienced legal guidance can provide clarity and peace of mind.

Contact Kelsey Law Firm today to schedule a consultation and ensure your home purchase is handled properly from contract to closing.

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