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TREC’s Broker-Lawyer Committee met January 14 to discuss public comments and potential changes to the Farm and Ranch Contract and other contract forms. Here are some takeaways from the meeting.

Potential Changes to the Farm and Ranch Contract and Other Contract Forms

The Farm and Ranch working group submitted a proposal to the committee containing suggested changes to Paragraph 4 and Paragraph 6 in the Farm and Ranch Contract (TREC 25-14) related to leases, including to list timber as an example of a natural resource lease and add a new section to Paragraph 4 about Surface Leases.

The committee also discussed making change to Paragraph 2 of the Amendment to Contract (TREC 39-8) related to repairs and modifying Paragraph 7(F) of the contracts, including to require that the seller provide the buyer with documentation showing completion and payment.

Finally, the committee looked into the possibility of adding language to Paragraph 6(E) to address required notices, including MUD notices.

How Public Comments Were Addressed

  • Unauthorized Practice of Law: The committee discussed public comments concerning unauthorized practice of law and generally supported educational efforts related to the comment, as well as further discussion on the topic.
  • Addendum for Mandatory Membership in a Homeowners Association, Paragraph C: The committee discussed possible revisions to clarify which party is responsible for paying certain fees associated with a homeowner’s association after several commenters expressed concerns about how some fees would be categorized.
  • Broker oversight: The committee discussed public comments related to who must fill in the date of final acceptance in the One to Four Family Residential Contract (Resale) (TREC 20-16) and reiterated that it is the broker’s responsibility to enter the effective date of final acceptance (page 9).
  • Back-up contracts: The committee discussed public comments related to Paragraph B of the Addendum for Sale of Other Property by Buyer (TREC 10-6) and whether the addition of the terms backup or backup contract would be beneficial for clarification and decided to keep this in mind for next time it considers this language.

The committee will continue its discussion on these issues and more during its next meeting on Friday, April 8, 2022.

View materials and the video from this meeting.

Upcoming Meeting Information

The next meeting of the Broker-Lawyer Committee is Friday, April 8, 2022. In accordance with normal Commission practice, any meeting materials will be available on the TREC website before the meeting. To participate by providing public comment during the meeting, contact by 5 p.m. CT on Thursday, April 7, 2022, along with the agenda item number you wish to speak on. If you are unable to attend the meeting live, you can email your public comments instead.