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Texas Register Preamble


The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §537.20, concerning Standard Contract Form TREC No. 9-9; §537.21, concerning Standard Contract Form TREC No. 10-5; §537.22, concerning Standard Contract Form TREC No. 11-6; §537.23, concerning Standard Contract Form TREC No. 12-2; §537.26, concerning Standard Contract Form TREC No. 15-4; §537.27, concerning Standard Contract Form TREC No. 16-4; §537.28, concerning Standard Contract Form TREC No. 20-10; §537.30, concerning Standard Contract Form TREC No. 23-11; §537.31, concerning Standard Contract Form TREC No. 24-11; §537.32, concerning Standard Contract Form TREC No. 25-8; §537.33, concerning Standard Contract Form TREC No. 26-5; §537.35, concerning Standard Contract Form TREC No. 28-1; §537.37, concerning Standard Contract Form TREC No. 30-9; §537.39, concerning Standard Contract Form TREC No. 32-2; §537.40, concerning Standard Contract Form TREC No. 33-1; §537.41, concerning Standard Contract Form TREC No. 34-3; §537.44, concerning Standard Contract Form TREC No. 37-3; §537.45, concerning Standard Contract Form TREC No. 38-3; §537.46, concerning Standard Contract Form TREC No. 39-6; §537.47, concerning Standard Contract Form TREC No. 40-4; §537.48, concerning Standard Contract Form TREC No. 41-1; §537.51, concerning Standard Contract Form TREC No. 44-0; and §537.52, concerning Standard Contract Form TREC No. 45-0. The amendments propose to adopt by reference six revised contract forms and 17 assorted addenda 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.

Amendments to all of the forms adopted by reference change the main telephone number and website address for TREC located in the box on the penultimate and/or last page of each of the forms. Unless specifically referenced below, such changes are the only changes made to the forms adopted by reference.

The amendment to §537.20 proposes to adopt by reference Standard Contract Form TREC No. 9-10, Unimproved Property Contract. The proposed revisions are the same as those proposed for TREC Form No. 20-11, except that the transfer fee notice is new subparagraph 6.E.(9).

The amendment to §537.28 proposes to adopt by reference Standard Contract Form TREC No. 20-11, One to Four Family Residential Contract (Resale). Paragraph 6.B. is amended to add a sentence regarding the buyer's ability to terminate the contract if the commitment and exception documents are not delivered within the time required, which was deleted from paragraph 15; paragraph 6.D. is amended to add the phrase "by Buyer" to the sentence regarding waiver of Buyer's right to object to defects, exceptions or encumbrances to title; paragraph 6.E.(2) is amended to add additional disclosures required by amendments to §207.003, Property Code; new subparagraph 6.E.(8) adds a new statutory disclosure regarding private transfer fee obligations; paragraph 7.A. is amended to require a seller to have utilities turned on and keep them on while the contract is in effect. Paragraph 7.F. is amended to change a phrase regarding the buyer's remedies if the seller fails to complete agreed repairs and treatments prior to the closing date; the new text provides that the buyer may exercise remedies under paragraph 15 or extend the closing date up to 15 days. Paragraph 15 is amended to delete the sentence regarding seller's failure to make non-casualty repairs or deliver the commitment or survey. The sentence was moved to paragraph 6.B.

The amendment to §537.30 proposes to adopt by reference Standard Contract Form TREC No. 23-12, New Home Contract (Incomplete Construction). The proposed revisions are the same as those proposed for TREC Form No. 20-11, except that there are no amendments to paragraphs 7.A. or 7.F.

The amendment to §537.31 proposes to adopt by reference Standard Contract Form TREC No. 24-12, New Home Contract (Completed Construction). The proposed revisions are the same as those proposed for TREC Form No. 20-11.

The amendment to §537.32 proposes to adopt by reference Standard Contract Form TREC No. 25-9, Farm and Ranch Contract. The proposed revisions are the same as those proposed for TREC Form No. 20-11, except that paragraph 6.E.(2) is not amended.

The amendment to §537.37 proposes to adopt by reference Standard Contract Form TREC No. 30-10, Residential Condominium Contract (Resale). The proposed revisions are the same as those proposed for TREC Form No. 20-11, except that paragraph 6.E.(2) is not amended and the transfer fee notice is new subparagraph 6.D.(6).

The amendment to §537.44 proposes to adopt by Standard Contract Form TREC No. 37-4, Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners' Association. Paragraphs D, H, and I are amended to more closely track recent statutory changes to Chapter 207, Property Code.

The amendment to §537.46 proposes to adopt by Standard Contract Form TREC No. 39-7, Amendment to Contract. Paragraph (8) is changed to reference the correct title of the Third Party Financing Condition Addendum for Credit Approval.

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 website.

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 that, among other things, conform to new or recently revised statutory requirements.

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



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