The Commission has proposed several rule changes based on recommendations made by the Broker Lawyer Committee. The revisions to the TREC standard contract forms address issues that have arisen in response to public comments received from the previously posted version of these rules in the June 12 issue of the Texas Register.
The following proposed changes are of particular note and apply to all contract forms unless specified otherwise. Paragraph numbers referenced are from the One to Four Family Residential Contract (Resale).
Language was added to Paragraph 4 to address leases to which the Seller is a party, and requires the Seller to acknowledge that Buyer has received a copy of all Leases or will receive a copy within three days after the Effective Date.
Paragraph 4 is also amended to include language regarding disclosure of existing leases including disclosure of Residential Leases, Fixture Leases, or Natural Resources Leases within three days after the effective date.
Paragraph 5 is amended to authorize payment of option fee to escrow agent separately or combined with earnest money in single payment. Clarifies order application of funds to be credited first to option fee and then to earnest money. Paragraph 5 also now incorporates language previously found in Paragraph 23 relating to remedy for failure to timely deliver.
Additionally, there are three newly proposed forms: Addendum For Property Subject to Mandatory Membership in a Property Owners Association, Addendum Regarding Residential Leases, and an Addendum Regarding Fixture Leases.
These proposals will be considered for adoption at the November 10, 2020 Commission meeting. License holders and the public are encouraged to review and comment on any proposed changes to the rules and contracts by emailing firstname.lastname@example.org through September 27, 2020.