The Texas Real Estate Broker-Lawyer Committee’s (BLC) July 11 meeting opened with an acknowledgment to its departing members before the group proceeded with discussion over certain language in the contract forms and new legislation.

Departing BLC Members

This was the last meeting for four BLC members whose terms end in August. The committee and Texas Real Estate Commission (TREC) thank and appreciate the service of:

• SJ Swanson, lawyer member of 12 years
• Leigh York, broker member of 12 years
• Aimee Slusher, lawyer member of 12 years
• Ron Walker, broker member of 18 years

What’s a “Legal Holiday”?

After reviewing drafted language for the definition of a “Legal Holiday” in the contract forms, the committee decided to recommend updating Paragraph 5A(2) with the following:

“Legal Holiday” means a legal holiday defined by Sections 662.003(a) and (b)(6), Texas Government Code.

This includes national holidays, such as Memorial Day (the last Monday in May) and Independence Day (July 4), as well as the Friday after Thanksgiving (a state holiday).

Capitalization Tweaks

The capitalization of words in a contract often indicates they are defined terms. After discussing the term “Option Fee”—which is not currently defined—the committee decided to lowercase the words "option fee," "earnest money," and "contract," since they are not defined terms.

Effects of SB 1968

Because of Senate Bill 1968, effective January 1, 2026, BLC is removing any references to subagency in promulgated forms, since it is eliminated from statute.

To better clarify who “Other Broker” refers to in the contracts, the committee is replacing the term with “Buyer’s broker” and replacing “Listing Broker” with “Seller’s broker.”

The committee also revised the format of the Broker Information page in the contracts.

Another way SB 1968 affects license holders is that it permits a non-representation status when showing property, but only if certain elements are satisfied. It also requires written agreements with prospective residential buyers prior to performing brokerage services. After discussion, BLC decided not to create a promulgated form related to these changes at this time.

Checking a Box on Water

BLC is updating the second sentence of proposed new Paragraph 7I to clarify the use of a TREC groundwater and surface water rights notice form:

“The parties shall use the Water Notice published by TREC to identify information related to groundwater and surface water rights. (Check one box only).”

This stems from the committee’s last meeting which includes a review of the Water Notice: Seller’s Disclosure About Groundwater and Surface Water Rights draft and related proposed contract changes.

The changes may be viewed in the Meeting Minutes and will be brought to the Commission in August.

What Else Is on BLC’s Radar?

BLC will continue discussion on these topics and any comments received, at its next meeting on October 10, 2025 at 9 a.m. CT.

Where to Find Meeting Materials

View a recording of the meeting and download related materials.