The Texas Real Estate Commission (TREC) proposes amendments to §§537.11, 537.33, 537.42 and 537.46, concerning standard contract forms. These amendments would adopt by reference three revised contract forms to be used 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 and six brokers appointed by TREC.

The amendment to §537.11 would renumber the revised forms in a list of forms promulgated by the commission.

The amendment to §535.33 would adopt by reference revised form TREC No. 26-3, Seller Financing Addendum. The form is an addendum used to create an agreement between the buyer and the seller in a seller-financed transaction to establish the provisions of the promissory note and deed of trust. The form has been rewritten to make it easier to read, primarily by replacing the terms "maker" and "payee", respectively, with "buyer" and "seller", identifying the parties by the same terms used in the main contract.

The amendment to §537.42 would adopt by reference revised form TREC No. 35-2, Mediation Addendum. The form is an addendum used to create an agreement for the parties to the contract, and any broker who signs the addendum, to submit disputes to mediation prior to resorting to litigation. The addendum was rewritten to clarify that a broker who signs the addendum is bound by its terms and that a broker is not a party to the main contract between the buyer and the seller. Minor language changes also were made to make the form easier to read.

The amendment to §537.46 would adopt by reference revised form TREC No. 39-2, Amendment. This form is used to amend an existing contract between the buyer and seller. The form has been revised to remove a caption which restricts use of the form to residential resales, to revise a reference to a paragraph in the contract to make it general enough to apply to all of the TREC contract forms and to clarify that the waiver of the right to terminate the contract under an option clause does not affect other rights of termination in the contract.

Mark A. Moseley, 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.

Mr. Moseley 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, and available from private printers at an estimated cost of $7.50 per set of 50 copies.

Comments on the proposal may be submitted to Mark A. Moseley, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments are proposed 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.

The statute which is affected by this proposal is Texas Civil Statutes, Article 6573a.