The Texas Real Estate Commission adopts amendments to §537.44, Standard Contract Form TREC No. 37-5, Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners' Association; and new §537.54, Standard Contract Form TREC No. 47-0, Addendum for Propane Gas System Service Area, without changes to the proposed rule text as published in the November 29, 2013, issue of the Texas Register (38 TexReg 8550) as well as the forms adopted by reference in those rules. The Texas Real Estate Commission adopts amendments to §537.47, Standard Contract Form TREC No. 40-6, Third Party Financing Addendum for Credit Approval, without changes to the proposed rule text but with a non-substantive change to the form adopted by reference. All of the other proposed amendments to rules in Chapter 537 as published in the November 29, 2013, issue of the Texas Register (38 TexReg 8550) remain open for additional comment.

The difference between the contract form adopted by reference under §537.47 as proposed and as adopted is that "[Not for use with Reverse Mortgage Financing]" was added under the title "Third Party Financing Addendum" as an instruction to license holders to avoid confusion. This revision was based on comments received and analyzed 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 one public member appointed by the governor. The three comments received regarding the Third Party Financing addendum form questioned how a license holder would use the form when Reverse Mortgage Financing was contemplated and whether language for Reverse Mortgage Financing should be added. The Broker-Lawyer Committee agreed that the form is not written for that situation and added the new language to alert license holders of that fact. The Broker-Lawyer Committee will be studying the issue of where best to address Reverse Mortgage Financing in the future.

The revision to the rule and form as adopted do not change the nature or scope so much that they could be deemed different a rule or form. The rule and form as adopted do not affect individuals other than those contemplated by the rule as proposed. The rule and form as adopted do not impose more onerous requirements than the proposed version and do not materially alter the issues raised in the proposed rule and form.

The reasoned justification for the amendments and new rule is consistency with a statutory provision and greater clarity in the contract forms.

No comments were received regarding the two other forms adopted by reference in proposed §537.44 and §537.54.

The amendments and new section are adopted 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 the amendments and new section are Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the adoption.