The Texas Real Estate Commission (TREC) adopts an amendment to §537.11, concerning use of standard contract forms, with changes to the proposed text as published in the May 5, 2000, issue of the Texas Register (25 TexReg 3907). The amendments to §537.30 and §537.31, which adopt by reference revised standard contract forms for the sale of new homes, are being adopted without changes from the proposed text. The amendments to §537.33, concerning a proposed seller financing addendum, §537.42, concerning a proposed agreement for mediation, and §537.46, concerning a proposed amendment form, have been withdrawn for further consideration of public comments TREC received on the text of the proposed forms.

The amendment to §537.11 renumbers two revised contract forms for the sale of new homes in the list of forms promulgated by the commission and deletes a reference to a repealed addendum regarding new home insulation. The amendment to §537.30 adopts by reference a revised form TREC No. 23-4, New Home Contract (Incomplete Construction). The form has been revised to include a notice from Texas Property Code, Chapter 27, that builders will be required to provide to buyers beginning September 1, 2000. The notice advises the buyer that the buyer must notify the builder by certified mail at least 60 days prior to filing suit to recover damages from the builder and must provide the builder with an opportunity to inspect the property and cure a construction defect. The form also has been revised to clarify that the seller is responsible for any " rollback" taxes or penalties imposed after closing due to denial of a special use valuation on the property or a change in the use of the property by the seller for periods prior to closing. Information about insulation in the home has been transferred to the new home contract form from a TREC addendum, TREC No. 13-1, which has been repealed.

The amendment to §537.31 adopts by reference a revised form TREC No. 24-4, New Home Contract (Completed Construction). The form has been revised to include the Chapter 27 Property Code notice and the information about insulation which was added to TREC No. 23-4.

No comments were received regarding the proposed amendment to §537.11. One comment on §537.30 and §537.31 pointed out a typographical error in the new home contract forms that obligated both parties to pay for tax certificates and statements. The final version of the forms will obligate only the seller to pay for tax certificates and statements, consistent with the division of costs provided in the other TREC contract forms. Comments received on the forms proposed for adoption in §§537.33, 537.42, and 537.46 have been referred to the Texas Real Estate Broker-Lawyer Committee for consideration, and those proposed sections have been withdrawn so as not to delay the approval and distribution of revised new home contract forms containing the new Property Code notices. This action should ensure that copies of the new home forms are available for use by licensees when the Property Code changes become effective on September 1, 2000.

The amendments are adopted under Texas Civil Statutes, Article 6573a, §5(h), which authorize the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties.