What form do I file to cancel a rescinded contract for deed?

Full question:

I have rescinded a contract for deed due to default. What form do I file with the county clerk to cancel the contract?

• Category: Contracts
• Subcategory: Recission
• Date: 04/07/2025
• State: National

Answer:

County recorder procedures can differ by office. It's best to contact the Hill County Clerk at PO Box 398, Hillsborough, TX 76645, or call for specific guidance.

If the buyer has made fewer than forty-eight monthly payments or has paid less than forty percent of the total contract amount and defaults, the seller may either rescind the contract or pursue forfeiture and acceleration. However, the seller must follow strict requirements:

• The seller must send a notice via registered or certified mail that includes the following in 14-point type: “YOU ARE NOT COMPLYING WITH THE TERMS OF THE CONTRACT TO BUY YOUR PROPERTY. UNLESS YOU TAKE THE ACTION SPECIFIED IN THIS NOTICE BY (date), THE SELLER HAS THE RIGHT TO TAKE POSSESSION OF YOUR PROPERTY.”
• The notice must specify the remedy the seller intends to enforce if the buyer does not comply.
• If the buyer missed a payment, the notice must detail:
  • The delinquent amount, broken down into principal and interest;
  • Any additional charges;
  • The period for which the amounts are due.
• If the buyer defaulted on another term of the contract, the notice must identify that term and specify what the buyer must do to remedy the violation.
• The notice must inform the buyer of their right to cure the default within sixty days from the mailing date.

The seller must allow the buyer sixty days to cure the default before enforcing any remedies, regardless of the contract terms. If the buyer has paid at least forty percent of the contract price or has made at least forty-eight monthly payments, the seller cannot enforce rescission or forfeiture.