The Texas Real Estate Commission (TREC) adopts 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. Sections 537.11, 537.20 - 537.23, 537.28, 537.30 - 537.32, 537.35, 537.39 - 537.41, and 537.43 - 537.49 are adopted without changes to the proposed text as published in the October 20, 2006, issue of the Texas Register (31 TexReg 8613). Sections 537.26, 537.27, 537.33 and 537.37 are adopted with changes to the forms adopted by reference, therefore the text of these rules will be republished.

The revised forms may be used on a voluntary basis upon adoption; licensees will be required to use the forms on a mandatory basis as of March 1, 2007. 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 deletes 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 add the text deleted from §537.11(a) as appropriate for each section and form so that the description of each form is included in the section that adopts the form by reference. In addition, the amendments to each section 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 update them for consistency with existing contract forms that have been revised in the recent past. Minor non-substantive typographical errors were corrected on the proposed forms.

The revisions to the forms as adopted do not change the nature or scope so much that they could be deemed different forms. The forms as adopted do not affect individuals other than those contemplated by the forms as proposed. The forms as adopted do not impose more onerous requirements that the proposed versions and do not materially alter the issues raised in the proposed forms. Changes in the forms adopted by reference reflect non-substantive variations from the proposed rules and forms to clarify their intent and improve style and readability.

The reasoned justification for the revisions to the rules and forms adopted by references is to clarify existing rules, remove redundant provisions, and to make the forms more consistent with other promulgated forms.

No comments were received during the notice and comment period.

The amendment to §537.26 adopts by reference Standard Contract Form TREC No. 15-4, Seller's Temporary Lease. Paragraph 12 is 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 is revised to include a blank for e-mail addresses. The blank line for the execution date is removed as the execution date is provided for in the contract to which the lease is attached.

The amendment to §537.27 adopts by reference Standard Contract Form TREC No. 16-4, Buyer's Temporary Lease. Paragraph 12 is 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 is 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 is revised to include a blank for e-mail addresses. The blank line for the execution date is removed as the execution date is provided for in the contract to which the lease is attached.

The amendment to §537.33 adopts 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 is added; a provision addressing the interest rate of matured unpaid amount is added; subparagraphs (2) and (3) provide for a choice of monthly installments rather than an option to fill in the blanks on the type of installment; a note is 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) is revised by adding "ad valorem" before "taxes".

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

The amendments and forms 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 adopted amendments.