What does TREC Paragraph 14 require from a seller?
It puts the repair on you, and it gives you a deadline. If any part of the property is damaged or destroyed by fire or other casualty after the effective date of the contract, Paragraph 14 of the TREC resale contract (TREC 20-19, dated 05-04-2026) says the seller “shall restore the Property to its previous condition as soon as reasonably possible, but in any event by the Closing Date.”
Read that sentence as three separate promises:
- The trigger. Fire or “other casualty,” to any part of the property, after the effective date. The effective date is the date written on the signature page, which the form tells the broker to fill in as the date of final acceptance. Damage from the week before that date is a different conversation.
- The standard. Restore the property “to its previous condition.”
- The clock. As soon as reasonably possible, and in any event by the closing date.
The paragraph ends with one more sentence: your obligations under it “are independent of any other obligations of Seller under this contract.”
If you signed on an earlier edition of the form, or on another TREC contract, read the casualty paragraph in the form you actually signed. The wording quoted here is from the 05-04-2026 edition.
Here is what that means on the ground. Neither form defines “casualty” or “previous condition.” Whether your damage fits Paragraph 14, and what previous condition means for your house, are questions for your attorney, and the time to ask is before the repair starts.
What can the buyer do if repairs miss the closing date?
Paragraph 14 gives the buyer three choices, and it gives them only when you fail to restore the property “due to factors beyond Seller’s control.” In that case the buyer may:
- Terminate the contract. The earnest money is refunded to the buyer.
- Extend the time for performance up to 15 days. The closing date moves out as needed.
- Accept the property in its damaged condition. The buyer takes an assignment of your insurance proceeds, if your insurance carrier permits it, and receives a credit from you at closing in the amount of the deductible under your policy.
Notice who holds the choice. The paragraph says “Buyer may.” You don’t pick which of the three happens.
If the buyer picks the extension, 15 days is the most this paragraph allows. Before you tell the buyer’s side how long you need, ask your contractor a plain question: would 15 more days actually finish the job, or only get it started?
| Buyer’s choice | What it means for you |
|---|---|
| Terminate | The sale ends and the buyer’s earnest money goes back to them |
| Extend up to 15 days | Your repair window grows, but by 15 days at most under this paragraph |
| Accept as is with insurance | The buyer takes the claim proceeds, if your carrier allows the assignment, and you credit the deductible at closing |
The contract does not define “factors beyond Seller’s control.” Whether a particular delay fits that phrase, and what happens if it does not, are questions for your attorney, not for a back-and-forth between agents.
For a seller, the practical read is simple. The contract says restore as soon as reasonably possible, so start the repair conversation the day the damage happens, and keep a record of every date and every delay for your attorney.
How should you plan the repair around the closing date?
Start with the closing date in Paragraph 9. Both forms say closing will be on or before the date filled in, or within 7 days after objections made under Paragraph 6D have been cured or waived, whichever is later. That date is the outer edge of “in any event by the Closing Date.”
Then work backward with a few questions:
- How big is the damage? A broken window and a damaged fence are a different project from a roof or a kitchen after a fire. Get a written scope from the contractor who will do the work.
- When can the work start and finish? Ask for dates in writing. If the honest answer runs past closing, you want to know that now, not the day before the final walkthrough.
- What does your insurance carrier allow? Option 3 depends on the carrier permitting an assignment of proceeds. Ask your agent or carrier how the claim is handled when the house is under contract, and what your deductible is, because Option 3 turns that deductible into a credit at closing.
- Does the buyer’s side need anything from you? If the buyer is financing, ask the buyer’s agent early what their lender will want to see about the repair.
Possession is the last step to check. Paragraph 10 of both forms says the seller delivers possession of the property “in its present or required condition, ordinary wear and tear excepted.” Ask your attorney how that language and Paragraph 14 fit together for your damage before the final walkthrough.
Write the timeline down before you call the buyer’s agent. A repair plan with dates gives both sides something to plan around.
Keep a simple log while the repair runs. Note the day the damage happened, the day you called your carrier, the day the contractor came out, and every date the contractor gives you or changes. If a delay comes up, write down the reason the contractor gives. That log is what you hand your attorney if the question of “factors beyond Seller’s control” ever comes up, and it is what lets your agent give the buyer’s side a straight answer when they ask where things stand.
What should you put in writing to the buyer?
Put your notices in writing. Paragraph 21 of both TREC forms says all notices from one party or their agent to the other must be in writing, and that notices are effective when mailed, hand-delivered, sent by overnight courier or transmitted electronically to the other party or their agent.
A short written update to the buyer’s side can cover:
- what happened and the date it happened
- what was damaged, with photos
- the contractor’s scope and the dates they gave you
- the date you expect the work to be finished, compared with the closing date
- whether you have filed an insurance claim and what your carrier has said about an assignment of proceeds
Keep the option period in mind as well. If the buyer delivered the option fee within the time required and the option period is still open when the damage happens, Paragraph 5B already gives them the unrestricted right to terminate by notice within that period, with notice due by 5:00 p.m. local time on the date specified. The buyer does not need Paragraph 14 to walk away during that window. If you sold your home with an option period, our guide to option fees and earnest money explains how that money moves.
What can a New Braunfels seller do before listing?
A few things done before you list make Paragraph 14 easier to live with if fire or other damage does come.
- Know your policy. Before you list, look up your homeowner’s deductible and keep your carrier’s claims contact where you can find it. If a casualty hits mid-contract, the deductible is the number that turns into a credit under Option 3.
- Pick a realistic closing date. A closing date with a little room gives a repair a chance to finish inside the contract instead of forcing the buyer’s choice.
- Keep the house documented. Listing photos and your own dated pictures show what “previous condition” looked like.
- Read the whole contract before you sign. Our walk-through of Texas contract contingencies covers the other paragraphs that can end a sale before closing.
If you are still deciding when to list, the New Braunfels sellers guide and the selling page lay out the steps from pricing to the closing table. Our post on the title company’s role in a Texas sale covers who handles the closing itself.
The next step is the same every time. Read your Paragraph 14 and your closing date side by side, call your contractor for dates, and send the buyer’s side a written update before they hear about the damage from someone else.
