The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §537.20, concerning Standard Contract Form TREC No. 9-8, Unimproved Property Contract; §537.28, concerning Standard Contract Form TREC No. 20-9, One to Four Family Residential Contract (Resale); §537.30, concerning Standard Contract Form TREC No. 23-10, New Home Contract (Incomplete Construction); §537.31, concerning Standard Contract Form TREC No. 24-10, New Home Contract (Completed Construction); §537.32, concerning Standard Contract Form TREC No. 25-7, Farm and Ranch Contract; and §537.37, concerning Standard Contract Form TREC No. 30-8, Residential Condominium Contract (Resale). The amendments propose to adopt by reference six 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 contracts 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 §537.20 proposes to adopt by reference Standard Contract Form TREC No. 9-9, Unimproved Property Contract. The proposed revision is the same as that proposed for Form TREC No. 20-10. Also, typographical errors in paragraph 7 are corrected.

The amendments to §537.28 propose to adopt by reference Standard Contract Form TREC No. 20-10, One to Four Family Residential Contract (Resale). Paragraph 15 would be revised to delete subparagraph 15B. This change to all six of the forms was adopted on an emergency basis at the February meeting of the Commission with an effective date of March 1, 2011.

The amendment to §537.30 proposes to adopt by reference Standard Contract Form TREC No. 23-11, New Home Contract (Incomplete Construction). The proposed revision is the same as that proposed for Form TREC No. 20-10.

The amendment to §537.31 proposes to adopt by reference Standard Contract Form TREC No. 24-11, New Home Contract (Completed Construction). The proposed revision is the same as that proposed for Form TREC No. 20-10. Also, typographical errors in paragraph 7 are corrected.

The amendment to §537.32 proposes to adopt by reference Standard Contract Form TREC No. 25-8, Farm and Ranch Contract. The proposed revision is the same as that proposed for Form TREC No. 20-10.

The amendment to §537.37 proposes to adopt by reference Standard Contract Form TREC No. 30-9, Residential Condominium Contract (Resale). The proposed revision is the same as that proposed for Form TREC No. 20-10.

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. 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

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 consistent standard contract forms for use by TREC licensees.

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 deadline for comments is 30 days after publication in the Texas Register.

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