<<Exit

Texas Register Preamble


The Texas Real Estate Commission (TREC) proposes amendments to §§537.11, 537.20 - 537.23, 537.26 - 537.28, 537.30 - 537.33, 537.35, 537.37, 537.39 - 537.41, and 537.43 - 537.49, concerning Professional Agreements and Standard Contract Forms. The amendments would adopt by reference four revised contract forms to be used by Texas real estate licensees and would restructure and clarify the rules by removing redundant provisions.

Texas real estate licensees are generally required to use forms promulgated by TREC when negotiating contacts for the sale of real property. These forms are drafted by the Texas Real Estate Broker-Lawyer Committee, an advisory body consisting of six attorneys appointed by the President of the State Bar of Texas, six brokers appointed by TREC, and a public member appointed by the governor.

The amendment to §537.11 would delete the text in subsection (a). The amendments to §§537.20 - 537.23, 537.26 - 537.28, 537.30 - 537.33, 537.35, 537.37, 537.39 - 537.41, and 537.43 - 537.49 would include the text deleted from §537.11(a) as appropriate for each section and form so that the description of each form would be included in the section that adopts the form by reference. In addition, the amendments to each section would include a reference to the commission's website as another means by which a person may obtain the form. Generally speaking the revisions to each of the forms are primarily non-substantive in nature and would update them for consistency with existing contract forms that have been revised in the recent past.

The amendments to §537.26 would adopt by reference Standard Contract Form TREC No. 15-4, Seller's Temporary Lease. Paragraph 12 would be revised to require the tenant to provide the landlord with door keys and access codes to allow access to the property during the term of the lease. Paragraph 24 would be revised to include a blank for e-mail addresses. The blank line for the execution date would be removed as the execution date is provided for in the contract to which the lease is attached.

The amendment to §537.27 would adopt by reference Standard Contract Form TREC No. 16-4, Buyer's Temporary Lease. Paragraph 12 would be revised to require the tenant to provide the landlord with door keys and access codes to allow access to the property during the term of the lease. Paragraph 14 would be revised to add equipment and appliances to the list of specific expenses of repairing, replacing and maintaining the property that the buyer/tenant will bear. Paragraph 24 would be revised to include a blank for e-mail addresses. The blank line for the execution date would be removed as the execution date is provided for in the contract to which the lease is attached.

The amendment to §537.33 would adopt by reference Standard Contract Form TREC No. 26-5, Seller Financing Condition Addendum. Regarding proposed revisions to paragraph C, a blank line for the interest rate of the note would be added; a provision addressing the interest rate of matured unpaid amount would be added; subparagraphs (2) and (3) would provided for a choice of monthly installments rather than an option to fill in the blanks on the type of installment; a note would be added to subparagraph D(1) which states that the buyer's liability to pay the note will continue unless the buyer obtains a release of liability from the Seller; subparagraph D(2)(a) would be revised by adding "ad valorem" before "taxes".

The amendment to §537.37 would adopt by reference Standard Contract Form TREC No. 30-6, Residential Condominium Contract (Resale). The change to the form would fix a typographical error in paragraph 7.F.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the sections 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 sections. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections.

Ms. DeHay also has determined that for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing the 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 sections, 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 and forms are proposed 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 proposal is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the proposed amendments.



Next Page Previous Page

Link to Texas Secretary of State Home Page | link to Texas Register home page | link to Texas Administrative Code home page | link to Open Meetings home page