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Texas Register Preamble


The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §537.45, Standard Contract Form TREC No. 38-5, §537.47, Standard Contract Form TREC no. 40-7, new §537.57, Standard Contract Form TREC No. 50-0 and new §537.58, Standard Contract From TREC No. 51-0 in Chapter 537, Professional Agreements and Standard Contracts.

Texas real estate license holders are generally required to use forms promulgated by TREC when negotiating contacts for the sale of real property. These forms are drafted and recommended for adoption 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 Broker Lawyer Committee recommended revisions to the contract forms adopted by reference under the rules set out in Chapter 537 to address issues that have arisen since the last contract revisions. Some of those revisions or new addenda created additional rights of termination for Buyer or Seller. The revisions to the Notice of Buyer's Termination of Contract and the new Notice of Seller's Termination of Contract, reflect those items. The Broker Lawyer Committee also recommended the new Release of Earnest Money, which can be used in conjunction with the termination forms.

The Committee also recommended a few clarifying revisions to the Third Party Financing Addendum and reformatted it so that it was consistent with other Commission promulgated addenda.

Kerri Lewis, General Counsel, has determined that for the first five-year period the proposed amendments 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 adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lewis 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 contract addenda for termination that are consistent with the newly adopted revised contract forms and new addenda.

For each year of the first five years the proposed amendments are in effect the amendments will not:

1) create or eliminate a government program;

2) require the creation of new employee positions or the elimination of existing employee positions;

3) require an increase or decrease in future legislative appropriations to the agency;

4) require an increase or decrease in fees paid to the agency;

5) create a new regulation;

6) expand, limit or repeal an existing regulation;

7) increase or decrease the number of individuals subject to the rule's applicability;

8) positively or adversely affect the state's economy.

Comments on the proposal may be submitted to Kerri Lewis, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188 or via email to general.counsel@trec.texas.gov. 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 license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The statutes affected by these amendments are Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the amendments.



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