The Texas Real Estate Commission (TREC) adopts new 22 TAC §537.57, Standard Contract Form TREC No. 50-0 and in Chapter 537, Professional Agreements and Standard Contracts, without changes to the rule, but with a non-substantive change to the form adopted by reference, as published in the May 25, 2018, issue of the Texas Register (43 TexReg 3296).

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. One of those revisions created an additional right of termination for Seller. The new Notice of Seller's Termination of Contract, reflects that item. The Broker Lawyer Committee made one grammatical change following proposal changing the word "delivered" to "provided."

The revision to the rule as adopted does not change the nature or scope so much that it could be deemed a different rule. The rule as adopted does not affect individuals other than those contemplated by the rule as proposed. The rule as adopted does not impose more onerous requirements than the proposed rule.

The reasoned justification for the new rule is to provide a standard method for a seller to give notice of termination of a contract when the earnest money has not been timely provided.

One comment was received on the proposal, asking whether a time-stamp space would be added to the form. The Broker Lawyer Committee declined to make that change since the form is a notice sent to a buyer by a seller and not the type of document that would be receipted by a third party.

The new rule is 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 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.