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Texas Register Preamble


Comment: One commenter suggested revising paragraph 6E(7) regarding public improvement districts (PIDs) to make it clear to the buyer that the property is located in a PID and that the buyer will pay an assessment.

Response: The commission respectfully disagrees and believes that the paragraph as revised recites the appropriate notice as required by section 5.014 of the Property Code. Further, it is uncertain how the seller can determine whether the property is in fact located in a PID as there are very few PIDs in existence at this time.

Comment: One commenter suggested that paragraph 6 regarding the parties' agreement as to who pays for the survey under various circumstances continues to be ambiguous and suggests a revision to require that the seller pay for the survey in all cases.

Response: The commission respectfully disagrees and believes that the best interest of the public is served without the suggested revisions as the current draft permits the appropriate flexibility for the parties to negotiate who pays for the survey under various circumstances.

Comment: One commenter suggested a new paragraph in all forms disclosing whether and what type of mineral rights are conveyed with the property.

Response: The commission appreciates the suggestion. However, given that a mineral rights paragraph or addendum requires additional research and major changes to the forms, the commission will consider the suggestion in future revisions of the forms.

Comment: One commenter suggested putting the names of all forms, the form numbers and page numbers on the bottom of each form promulgated by the commission.

Response: The commission respectfully disagrees as there is insufficient space at the bottom of the forms to add the name and page number because the space is currently used for initials of the parties and for licensees or companies to print their name and other identifying information outside the margins on pre-printed forms. The form number is currently on the bottom right hand side of the form and the page numbers are on the top of the form.

Comment: Several commenters recommended that a paragraph be added to the form regarding "evidence of presentation" to provide evidence of the date and time the offer is presented.

Response: The commission respectfully disagrees and believes that the best interest of the public is served without the suggested revisions regarding evidence of presentation as such information is not essential to the transaction.

Comment: One commenter suggested that check boxes should be added to paragraph 6A(8) to note whether the buyer elects coverage to have the exception amended to read "shortages in area" to alert the title company.

Response: The commission respectfully disagrees because to include such information would introduce complex issues on the contract form that are more appropriately discussed directly between the title company and the buyer.

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

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



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