The Texas Real Estate Commission (TREC) proposes amendments to §537.30, concerning Standard Contract Form TREC No. 23-7, New Home Contract (Incomplete Construction); §537.31, concerning Standard Contract Form TREC No. 24-7, New Home Contract (Completed Construction); §537.41, concerning Standard Contract Form TREC No. 34-3, Addendum for Property Located Seaward of the Gulf Intracoastal Waterway; §537.47, concerning Standard Contract Form TREC No. 40-3, Third Party Financing Condition Addendum; and new §537.50, concerning Standard Contract Form TREC No. 43-0, Addendum Containing Required Notices Under §420.001 and §420.002, Texas Property Code. The amendments propose to adopt by reference five revised contract forms for use by Texas real estate licensees.

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 §537.30 proposes to adopt by reference Standard Contract Form TREC No. 23-7, New Home Contract (Incomplete Construction). The disclosure on page 8 of the contract required by §27.007(a), Texas Property Code, is revised because the disclosure was amended by House Bill 3147, 80th Legislature, R.S. (2007).

The amendment to §537.31 proposes to adopt by reference Standard Contract Form TREC No. 23-7, New Home Contract (Completed Construction). The proposed revisions are the same as those proposed for Form TREC No. 23-7.

The amendment to §537.41 proposes to adopt by reference Standard Contract Form TREC No. 34-3, Addendum for Property Located Seaward of the Gulf Intracoastal Waterway. The addendum was revised to reflect changes that were made to the disclosure under House Bill 2819, 80th Legislature, R.S. (2007).

The amendment to §537.47 proposes to adopt by reference Standard Contract Form TREC No. 40-3, Third Party Financing Condition Addendum. On page 2 of the addendum, a reference to having HUD form 92564-CN signed and dated by the buyer was removed as the form no longer has a signature line.

New §537.50 is proposed to adopt by reference Standard Contract Form TREC No. 43-0, Addendum Containing Required Notices Under §420.001 and §420.002, Texas Property Code. The new addendum contains disclosures required by House Bill 1038, 80th Legislature, R.S. (2007) in cases where the seller may be subject to or exempt from the requirements of Title 16, Texas Property Code, regarding registration with the Texas Residential Construction Commission.

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 state or local governments 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.

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 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 these proposed amendments and new rule is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the proposed amendments and new rule.