Texas Register Preamble

The Texas Real Estate Commission (TREC) adopts amendments to 22 TAC §537.20, Standard Contract Form TREC No. 9-14; §537.28, Standard Contract Form TREC No. 20-15; §537.30, Standard Contract Form TREC No. 23-16; §537.31, Standard Contract Form TREC No. 24-16; §537.32, Standard Contract Form TREC No. 25-13; §537.37, Standard Contract Form TREC No. 30-14 and new §537.60, Standard Contract Form TREC No. 53-0; in Chapter 537, Professional Agreements and Standard Contracts, without changes, as published in the August 27, 2021, issue of the Texas Register (46 TexReg 5346). The rules will not be republished.

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 Texas Real Estate Broker-Lawyer Committee recommended revisions to the contract forms adopted by reference under the amendments and new rule to Chapter 537 to comply with statutory changes enacted by the 87th Legislature in HB 1543 and HB 1560. The changes listed below apply to all contract forms unless specified otherwise. Paragraph numbers referenced are from the One to Four Family Residential Contract (Resale).

Paragraph 6(E)(7) is amended to align the contract language with statutory changes in HB 1543 related to public improvement district notice requirements.

Paragraph 7(H) is amended to remove the language "licensed by TREC" to conform with the statutory changes in HB 1560, which transfers regulation of residential service companies to the Texas Department of Licensing and Regulation.

New §537.60 creates a new addendum to comply with the requirements of HB 1543.

One comment was received. The commenter agreed with the changes regarding the public improvement district notice requirements but asked that an item be added under paragraph 22 related to a MUD notice. The Commission declined to make changes at this time, but this addition will be considered at the next Texas Real Estate Broker-Lawyer meeting in January 2022.

The amendments and new rule 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 license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

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