The amendment to §537.43 would adopt by reference Standard Contract Form TREC No. 36-4, Addendum for Property Subject to Mandatory Membership in an Owners' Association. The form would be revised to delete the requirement in Paragraph A that the Subdivision Information not be more than three months as such is not required by the statute. Old Paragraph A(3), which previously provided that the buyer does not require delivery of the Subdivision Information would be deleted. Paragraph B would be modified to change the title to "Fees" rather than "Transfer Fees" and to provide that the buyer will pay a certain amount of any fees resulting from the transfer and the seller will pay the remainder. The revisions will clarify that the fees at issue in the paragraph include any Owners' Association fees resulting from the transfer, which may also include initiation or other fees.

The amendment to §537.44 would adopt by reference Standard Contract Form TREC No. 37-2, Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in an Owners' Association. The proposed change would add a line for an e-mail address for the managing agent of the subdivision.

The amendment to §537.46 would adopt by reference Standard Contract Form TREC No. 39-6, Amendment. In Paragraph 6, the proposed revision would strike the word 'nonrefundable' before the word 'Option.' A bold box would be added around the execution date of the amendment to call the licensee's attention to the need to complete the date.

The amendment to §537.47 would adopt by reference Standard Contract Form TREC No. 40-2, Third Party Financing Condition Addendum. The form would be revised to include a provision concerning availability of the described loan terms to the definition of financing approval. Specifically, financing approval is obtained when the terms of the described loan are available; and the lender determines that the buyer has met the lender's financial requirements (creditworthiness, assets and income). This clarifies that the buyer may terminate the contract under the addendum, within the time specified in the addendum, if the described loan terms are not available (for example, interest rate increase over the stated amount). A note was added to the first paragraph to clarify that financing approval under the addendum does not include approval of the property.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the amended sections. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the amended sections.

Ms. DeHay also has determined that for each year of the first five years the amendments as proposed are in effect the public benefit anticipated as a result of enforcing the amended sections will be the availability of current standard contract forms. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed amendments, other than the costs of obtaining copies of the forms, which would be available at no charge through the TREC web site, and available from private printers at an estimated cost of $7.50 per set of 50 copies.

Comments on the proposal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapter 1101 and Chapter 1102; and to establish standards of conduct and ethics for its licensees to fulfill the purposes of Chapter 1101 and Chapter 1102 and ensure compliance with Chapter 1101 and Chapter 1102.

The statute affected by this proposal is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the proposed amendments.