(a) Standard Contract Form TREC No. 9-4 is promulgated for
use in the sale of unimproved property where intended use is for one to four
family residences. Standard Contract Form TREC No. 10-3 is promulgated for
use as an addendum concerning sale of other property by a buyer to be attached
to promulgated forms of contracts. Standard Contract Form TREC No. 11-3 is
promulgated for use as an addendum to be attached to promulgated forms of
contracts which are second or "back-up" contracts. Standard Contract Form
TREC No. 12-1 is promulgated for use as an addendum to be attached to promulgated
forms of contracts where there is a Veterans Administration release of liability
or restoration entitlement. Standard Contract Form TREC No. 13-1 is promulgated
for use as an addendum concerning new home insulation to be attached to promulgated
forms of contracts. Standard Contract Form TREC No. 15-2 is promulgated for
use as a residential lease when a seller temporarily occupies property after
closing. Standard Contract Form TREC No. 16-2 is promulgated for use as a
residential lease when a buyer temporarily occupies property prior to closing.
Standard Contract Form 20-4 is promulgated for use in the resale of residential
real estate where there is all cash or owner financing, an assumption of an
existing loan, or a conventional loan. Standard Contract Form TREC No. 21-4
is promulgated for use in the resale of residential real estate where there
is a Veterans Administration guaranteed loan or a Federal Housing Administration
insured loan. Standard Contract Form TREC No. 23-3 is promulgated for use
in the sale of a new home where construction is incomplete. Standard Contract
Form TREC No. 24-3 is promulgated for use in the sale of a new home where
construction is completed. Standard Contract Form TREC No. 25-3 is promulgated
for use in the sale of a farm or ranch. Standard Contract Form TREC No. 26-2
is promulgated for use as an addendum concerning seller financing. Standard
Contract Form TREC No. 28-0 is promulgated for use as an addendum to be attached
to promulgated forms of contracts where reports are to be obtained relating
to environmental assessments, threatened or endangered species, or wetlands.
Standard Contract Form TREC No. 29-1 is promulgated for use as an addendum
to be attached to promulgated forms of contracts where an abstract of title
is to be furnished. Standard Contract Form TREC No. 30-2 is promulgated for
use in the resale of a residential condominium unit where there is all cash
or seller financing, an assumption of an existing loan, or a conventional
loan. Standard Contract Form TREC No. 31-2 is promulgated for use in the resale
of a residential condominium unit where there is a Veterans Administration
guaranteed loan or a Federal Housing Administration insured loan. Standard
Contract Form TREC No. 32-0 is promulgated for use as a condominium resale
certificate. Standard Contract Form TREC No. 33-0 is promulgated for use as
an addendum to be added to promulgated forms of contracts in the sale of property
adjoining and sharing a common boundary with the tidally influenced submerged
lands of the state. Standard Contract Form TREC Form No. 34-0 is promulgated
for use as an addendum to be added to promulgated forms of contracts in the
sale of property located seaward of the Gulf Intracoastal Waterway. Standard
Contract Form TREC No. 35-1 is promulgated for use as an addendum to be added
to promulgated forms of contracts as an agreement for mediation. Standard
Contract Form TREC Form No. 36-1 is promulgated for use as an addendum to
be added to promulgated forms in the sale of property subject to mandatory
membership in an owners' association. Standard Contract Form TREC Form No.
37-1 is promulgated for use as a resale certificate when the property is subject
to mandatory membership in an owners' association. Standard Contract Form
TREC Form No. 38-0 is promulgated for use as a notice of termination of contract.
Standard Contract Form TREC Form No. 39-1 is promulgated for use as an amendment
to promulgated forms of contracts.
(b) When negotiating contracts binding the sale, exchange,
option, lease or rental of any interest in real property, a real estate licensee
shall use only those contract forms promulgated by the Texas Real Estate Commission
for that kind of transaction with the following exceptions:
(1) transactions in which the licensee is functioning solely
as a principal, not as an agent;
(2) transactions in which an agency of the United States
government requires a different form to be used;
(3) transactions for which a contract form has been prepared
by the property owner or prepared by an attorney and required by the property
owner;
(4) transactions for which no standard contract form has
been promulgated by the Texas Real Estate Commission, and the licensee uses
a form prepared by an attorney at law licensed by this state and approved
by the attorney for the particular kind of transactions involved or prepared
by the Texas Real Estate Broker-Lawyer Committee and made available for trial
use by licensees with the consent of the Texas Real Estate Commission.
(c) A licensee may not practice law, offer, give nor attempt
to give advice, directly or indirectly; the licensee may not act as a public
conveyancer nor give advice or opinions as to the legal effect of any contracts
or other such instruments which may affect the title to real estate; the licensee
may not give opinions concerning the status or validity of title to real estate;
and the licensee may not attempt to prevent nor in any manner whatsoever discourage
any principal to a real estate transaction from employing a lawyer. However,
nothing herein shall be deemed to limit the licensee's fiduciary obligation
to disclose to the licensee's principals all pertinent facts which are within
the knowledge of the licensee, including such facts which might affect the
status of or title to real estate.
(d) A licensee may not undertake to draw or prepare documents
fixing and defining the legal rights of the principals to a transaction. In
negotiating real estate transactions, the licensee may fill in forms for such
transactions, using exclusively forms which have been approved and promulgated
by the Texas Real Estate Commission or such forms as are otherwise permitted
by these rules. When filling in such a form, the licensee may only fill in
the blanks provided and may not add to or strike matter from such form, except
that licensees shall add factual statements and business details desired by
the principals and shall strike only such matter as is desired by the principals
and as is necessary to conform the instrument to the intent of the parties.
A licensee may not add to a promulgated earnest money contract form factual
statements or business details for which a contract addendum, lease or other
form has been promulgated by the commission for mandatory use. Nothing herein
shall be deemed to prevent the licensee from explaining to the principals
the meaning of the factual statements and business details contained in the
said instrument so long as the licensee does not offer or give legal advice.
It is not the practice of law as defined in this Act for a real estate licensee
to complete a contract form which is either promulgated by the Texas Real
Estate Commission or prepared by the Texas Real Estate Broker-Lawyer Committee
and made available for trial use by licensees with the consent of the Texas
Real Estate Commission. Contract forms prepared by the Texas Real Estate Broker-Lawyer
Committee for trial use may be used on a voluntary basis after being approved
by the commission. Contract forms prepared by the Texas Real Estate Broker-Lawyer
Committee and approved by the commission to replace previously promulgated
forms may be used by licensees on a voluntary basis prior to the effective
date of rules requiring use of the replacement forms.
(e) Where it appears that, prior to the execution of any such
instrument, there are unusual matters involved in the transaction which should
be resolved by legal counsel before the instrument is executed or that the
instrument is to be acknowledged and filed for record, the licensee shall
advise the principals that each should consult a lawyer of the principal's
choice before executing same.
(f) A licensee may not employ, directly or indirectly, a lawyer
nor pay for the services of a lawyer to represent any principal to a real
estate transaction in which the licensee is acting as an agent. The licensee
may employ and pay for the services of a lawyer to represent only the licensee
in a real estate transaction, including preparation of the contract, agreement,
or other legal instruments to be executed by the principals to the transactions.
(g) A licensee shall advise the principals that the instrument
they are about to execute is binding on them.
(h) Forms approved or promulgated by the commission may be
reproduced only from the following sources:
(1) numbered copies obtained from the commission, whether in
a printed format or electronically reproduced from the files available on
the commission's Internet site;
(2) printed copies made from copies obtained from the
commission;
(3) legible photocopies made from such copies; or
(4) computer-driven printers following these guidelines.
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