The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §537.45, Standard Contract Form TREC No. 38-6 and §537.52, Standard Contract Form TREC No. 45-1 and the forms adopted by reference 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 proposal 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 previously recommended revisions to the contract forms adopted by reference under Chapter 537 to address issues that have arisen since the last contract revisions. Changes to those contract forms were adopted at the November 10, 2020, Commission meeting. These proposed amendments are for two contract forms which were inadvertently omitted during the previous round of revisions. The amendments correct a paragraph reference to align with those changes.

The Notice of Buyer's Termination of Contract adopted by reference in §537.45 is amended to correct a reference in Paragraph 1. The reference to Paragraph 23 is replaced with a reference to Paragraph 5 to align with the previous changes made to the contract forms.

The Short Sale Addendum adopted by reference in §537.52 is amended to correct a reference in paragraph F. The reference to Paragraph 23 is replaced with a reference to Paragraph 5 to align with the previous changes made to the contract forms.

Abby Lee, Deputy 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. Lee also has determined that for each year of the first five years the sections as proposed are in effect, the public benefits anticipated as a result of enforcing the sections as proposed will be contract addenda that are consistent with the previously-revised contract forms, as well as improved clarity and greater transparency for members of the public and license holders.

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

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

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

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

-create a new regulation;

-expand, limit or repeal an existing regulation;

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

-positively or adversely affect the state's economy.

Comments on the proposal may be submitted to Abby Lee, Deputy 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 statute affected by these amendments is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the amendments and new rules.