Texas PL: Law of Contracts Course Overview

Texas Law of Contracts course

Each TREC-approved real estate education program is made up of six courses: 

You can take the courses in any order. Aceable recommends taking them as listed above. If you follow this recommendation, Law of Contracts (which we’ll refer to as LOC) will be your 4th real estate course. Let’s look at what LOC covers. 


LOC covers both the basics and intricacies of contract law. Some of the common laws you’ll read about are: 

  • Texas Real Estate License Act (TRELA) 

  • Deceptive Trade Practices Consumer Protection Act 

Unauthorized Practice of Law

License holders deal with a lot of legal issues and often work alongside attorneys and other legal professionals. But license holders always need to stay away from the unauthorized practice of law. 

LOC gets into what license holders can and cannot do when it comes to legal advice and legal issues. 


As you may have guessed, LOC goes over contract basics. You’ll need to know what makes a contract a contract and what types of contracts are out there, waiting to be utilized by soon-to-be licensees like you. 

Parts of a Contract 

Contracts can’t just be written down on any old napkin, signed, and made official. LOC goes over what every contract needs in order for it to be valid. 

Common Real Estate Contracts 

Some of the most common contracts you’ll need to know are the:

  • Listing agreement

  • Buyer agency agreement 

  • Lease agreement

LOC goes over all of these, as well as: 

  • Express or implied contracts

  • Unilateral or bilateral contracts

  • Contract for deed

  • Lease purchase agreements 

Sales Contract 

Sales contracts are particularly important. In LOC, you’ll talk about the actual sales contract, but you’ll also discuss the events that accompany executing a sales contract, such as the offer and acceptance. 

Contingencies, Addendum, and Amendments

Contracts can be changed or limited. That’s what you’ll learn about in LOC’s discussion of: 

  • Contingencies

  • Addendum 

  • Amendments 

Finance Options

Very few people have enough capital to pay for a home all in one go. Licensees need to have a solid understanding of how financing works. 

LOC covers mortgages, computerized loan originators and what happens when a party doesn’t pay back their financing. 


LOC builds upon the concept of title established in other Texas Real Estate education courses like Principles I and Principles II. You’ll learn more about: 

  • Alienation

  • Conveyance of title 

  • Recording title 


Title and ownership go hand in hand, but ownership can be complicated. LOC teaches how to navigate potential ownership complications regarding: 

  • Government control 

  • Encumbrances

  • Water rights

  • Mineral rights 


Title is transferred at closing. Sales agents need to ensure all boxes are checked so closing goes smoothly. 

LOC will prepare you for future success by covering the transaction process at closing and showing you a sample checklist you can reference during your practice. 

Common Errors 

Knowing what errors are possible, and even common, can help licensees avoid those errors. LOC goes over common contract errors and provides examples. This will help you be aware of what to watch for when you get your license. 

Sarah Jeter

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