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▼ For AEs Governance Professional Standards Board Staff Education Resources Guest Speakers and Installations Communications Issues Mobilization and Political Advocacy Assessment TREPAC Resources FAQ For Leaders Committees Key Leadership Directory Resources Expense Reimbursement Travel Policy Texas REALTORS® Pathways to Leadership Leadership Applications About Us Who We Are Leadership & Staff Outreach Member Directory REALTORS® and Appraisers Service Providers Local REALTOR® Associations Awards Careers Newsroom Log in zipForm For Buyers, Sellers, Renters For REALTOR® Members Legal & Ethics Forms Blank Form Downloads zipForm Help Approved Form Vendors Form Changes Resources Legal FAQs Hotline: 512-480-8200 Legal Briefs Video Series Risk Management Resources Manuals and Guides Legal Fund Fair Housing for REALTORS® Ethics Code of Ethics Complaints Arbitration Government Affairs Political Affairs Political Affairs Resources Grassroots Election Programs Get Involved Legislative Affairs Positions Local Issues Program TREPAC What is TREPAC? 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Visit trec.texas.gov for all meeting materials. ONE TO FOUR FAMILY RESIDENTIAL CONTRACT (RESALE) (TXR 1601, TREC 20-17) * Paragraph 3 is amended to add a definition of “cash portion of the sales price.” * A new “required notices” section is added to Paragraph 6, which provides one location where MUD, PID, or other similar notices that have been given or are attached to the contract can be listed. * Paragraph 7F is revised to require that the seller provide the buyer with copies of documentation from the repair person that shows the scope of work and payment for the work completed. The paragraph also requires the transfer, at the seller’s expense, of any transferable warranties at closing. * Paragraph 9B(3) is amended to add the transfer of any warranties to correspond with the change in Paragraph 7F. * New paragraph 9B(5) provides that private transfer fees will be the obligation of the seller, unless otherwise provided in this contract and that transfer fees assessed by a property owners association are governed by the Addendum for Property Subject to Mandatory Membership in a Property Owners Association. A similar sentence is added to the Residential Condominium Contract (Resale). * Paragraph 11 is amended to further clarify the intent of the paragraph by replacing the terms “factual statements” and “business details” with “informational items,” which is now defined. Also added is language explaining that real estate brokers cannot practice law and are prohibited from adding to, deleting from, or modifying the contract unless drafted by a party to the contract or a party’s attorney. * Paragraph 13 is amended to clarify what amounts will be prorated through the closing date. * Paragraph 18B is amended to add that if no closing occurs, the escrow agent may require a written release of liability before releasing the earnest money. * Paragraph 21 is amended to add a line for a copy to the buyer’s and seller’s agent respectively. UNIMPROVED PROPERTY CONTRACT (TXR 1607, TREC 9-16), NEW HOME CONTRACT (INCOMPLETE CONSTRUCTION) (TXR 1603, TREC 23-18), NEW HOME CONTRACT (COMPLETED CONSTRUCTION) (TXR 1604, TREC 24-18) * The Seller’s Disclosures paragraph has been amended to add checkboxes to each disclosure item to indicate whether the seller is or is not aware and add two additional disclosures relating to whether the property is located in a floodplain or if any tree located on the property has oak wilt. FARM AND RANCH CONTRACT (TXR 1701, TREC 25-15) * A notice is added that states the form is designed for use in sales of existing farms or ranches of any size and is not for use in complex transactions. * Paragraph 2A adds the term “counties” to reflect the fact that farm and ranch properties could be located across two or more counties. Additionally, the phrase “including but not limited to: water rights, claims, permits, strips and gores, easements, and cooperative or association memberships” is deleted from the paragraph. * Paragraph 3D is amended to alter the calculation of the sales price adjustment should the survey reveal a difference in acreage. * New Paragraph 4D addresses surface leases and includes options regarding whether the seller has delivered copies of written leases or provided notice of oral leases to the buyer, similar to the existing natural resource lease paragraph. The corresponding language in Paragraph 6F is also amended. SELLER FINANCING ADDENDUM (TXR 1914, TREC 26-8) * A notice is added to the top of the form encouraging consultation with an attorney and a financial professional. The notice also informs parties of the complicated nature of these transactions. * Paragraph B is amended to modify the time period within which the seller may terminate. RESIDENTIAL CONDOMINIUM CONTRACT (RESALE) (TXR 1605, TREC 30-16) * Paragraphs 2B(2) and 2C(2) are amended to clarify the timing related to termination and to add a reference to the applicable Property Code provision. * Paragraph 12A(3) is amended to exclude regular periodic maintenance fees, assessments, or dues (including prepaid items) that are prorated under Paragraph 13 from the parties’ obligation to pay under this section, as well as costs and fees provided by Paragraph 2. * Paragraph D2(a) and (b) are amended to clarify the casualty insurance requirements and new Paragraph D2(c) is added to address casualty insurance * Paragraph D2(b) is further amended to add a requirement that the seller provide the buyer with an annual accounting of the escrow account, use escrow deposits to pay taxes and insurance premiums in a timely manner in certain circumstances, and hold the escrow deposit in a separate account. Language is also added to specify whether the escrow account will or will not be serviced by a third party at either the buyer’s or seller’s expense. ADDENDUM FOR PROPERTY SUBJECT TO MANDATORY MEMBERSHIP IN A PROPERTY OWNERS ASSOCIATION (TXR 1922, TREC 36-10) * Amended to exclude regular periodic maintenance fees, assessments, or dues (including prepaid items) that are prorated under Paragraph 13 from the parties’ obligation to pay under this section, as well as costs and fees provided by Paragraphs A and D. AMENDMENT TO CONTRACT (TXR 1903, TREC 39-9) * A notice is added to consult an attorney, and a reference is added in Paragraph 2 dealing with repairs. The form is also amended to replace the parenthetical following Paragraph 9, Other Modifications, with a statement that real estate brokers and sales agents are prohibited from practicing law. THIRD PARTY FINANCING ADDENDUM (TXR 1901, TREC 40-10) * Amended to add an “Other Financing” box in Paragraph 1. * Paragraph 3 is amended to add that a note must be secured by the vendor’s and deed of trust liens only if required by the buyer’s lender. LOAN ASSUMPTION ADDENDUM (TXR 1919, TREC 41-3) * Paragraph A is amended to add that the noteholder of the loan being assumed is authorized to receive a copy of the buyer’s credit reports. * Paragraph B is amended to modify the time period within which the seller may terminate. * Paragraph C is amended to clarify that the buyer will assume in writing the following notes at closing, to remove the reference to $500 and instead insert a blank, and to add the following sentence: “Within 7 days after the Effective Date, Seller will deliver to Buyer copies of the note(s) to be assumed, the deed(s) of trust, and the most recent loan statement(s) from the lender.” * New Paragraph H is added related to authorization to release information. * A new due on sale notice is added. ADDENDUM REGARDING RESIDENTIAL LEASES (TXR 1953, TREC 51-1) * Amended to add a checkbox in Paragraph B1 related to notice of oral leases. ADDENDUM REGARDING FIXTURE LEASES (TXR 1954, TREC 52-1) * Amended to add a checkbox in Paragraph B1 related to notice of oral leases. * Paragraph A1 is modified to include checkboxes, in lieu of a blank line, so that the parties can specifically indicate what types of fixture leases will be assumed and assigned. NOTICE TO PROSPECTIVE BUYER (TXR 2505, TREC 57-0) * This form is amended to add a reference to the notice requirements regarding public improvement districts. 30 LEAVE A REPLY 12 Comment threads 18 Thread replies 0 Followers Most reacted comment Hottest comment thread 24 Comment authors Recent comment authors newest oldest Guest sara wolkowitz when will the new forms be available Reply 1 year ago Guest RICHARD WEEKS They are available on the TREC website. TXR is working to have the uploaded into ZipForm Reply 1 year ago Guest Ray H I like these changes! Reply 1 year ago Guest Manuel Salazar Great changes! Reply 1 year ago Guest B Hurn Lawyers writing or reviewing Real Estate contracts should be required to have a Real Estate License . Reply 1 year ago Guest Forrest Hyde Agreed! Reply 1 year ago Guest Julie Hyland Agree! Reply 1 year ago Guest Susy Matheu 100% agreed1 Reply 1 year ago Guest Micah The TREC committee that makes these changes is comprised of both lawyers and brokers, and some that are both Reply 1 year ago Guest RICHARD WEEKS Do you know anything about the 6 lawyers who serve on the committee, and how they are appointed? Reply 1 year ago Guest Marty W Disagree with the new Paragraph 7F is revised to require that the seller provide the buyer with copies of documentation from the repair person that shows the scope of work and payment for the work completed. The paragraph also requires the transfer, at the seller’s expense, of any transferable warranties at closing. What a seller or an investor paid for renovation/repair work is none of the buyer’s business. All this does is give insight to the buyer’s as to what profit margin a seller will be making on their property which again is none of the seller’s business. The sale… Read more » Reply 1 year ago Guest Mica Pryor It’s talking about repairs required by the contract only. Also it says scope of work and that payment was made. It doesn’t say they have to state how much was paid. That’s my reading of it anyway. Reply 1 year ago Guest Marty That paragraph is not clear that it is only repairs required by the contract. The basic purchase/sale contract does not require any repairs unless agreed upon. This amended paragraph is very vague an opens itself up to attempts to require both the seller and investor to divulge all repairs and costs. There is already a means for disclosing what was done to a property…ie the seller’s disclosure required in all transactions where the seller is aware of the repairs, etc. Very few exceptions for when a seller’s disclosure is not required. Even then the seller must state why they are… Read more » Reply 1 year ago Guest Jess Actually, the contract is quite clear that it is for repairs and treatments conducted under the terms of the contract. It is not vague as you suggest. Perhaps you should spend some more time getting acquainted with the standard TREC forms. Reply 1 year ago Guest Catherine D I second on Marty’s comment. Seller’s profit margin is a confidential matter. As long as all the issues of the house have been fixed and passed inspector and buyer approves all the repairs, why does Buyer need copy of scope of work that was done and payment for the work that was done? If buyer doesn’t please with the house, they always have option to not buy it. Reply 1 year ago Guest John S Mica is correct. “Repairs” are in relation to the condition of the property at the time of contract. So if, for example, a buyer and seller negotiate to have the toilet replaced, then the detailed receipt for the toilet replacement should be provided. Renovation work would have been done before offering the property for sale and is not a repair under the contract. Reply 1 year ago Guest Marty Again, what is paid for the repairs is irrelevant to the buyer. IF they must know the contractor was paid, then the seller can provide an unconditional release of lien by that contractor which is what I as an investor always obtain from every contractor before they receive final payment for any work on my properties. As for a detailed receipt of the work performed to replace, in your example, the toilet, there is no need other than to show the replacement was made. If the buyer is concerned about who did the work, then it is on their representative… Read more » Reply 1 year ago Guest Carolyn Hill Marty, didn’t you mean buyer’s business not seller’s business? Reply 1 year ago Guest kelley i agree- what if seller does the repair himself? Reply 1 year ago Guest Jess The contract clearly states that repairs must be done by a vendor who normally does that type of work. If the buyer agrees to let the seller make the repair, that should be explicitly stated in the contract/amendment. Reply 1 year ago Guest Myesha Molenda A mouthful. Reply 1 year ago Guest Frank Gray Helpful summary. Thank you. Reply 1 year ago Guest Cynthia Woolley In the changes to One to Four Residential Contract 7F, what is the time frame for any repairs and the producing of documents concerning the repairs, one, five, twenty five years back? I am not in favor of this change. To open ended, IMO. Reply 1 year ago Guest Marty Fully agreed. Again, this modification does not state, nor limit, that information to ONLY what repairs were agreed upon. Additionally, the new modification changes the original paragraph now making any costs to transfer a warranty a responsibility of the seller vice the buyer as it currently states. This change is useless as most of the warranties I have run up against are transferable without charge. Reply 1 year ago Guest Jess Some of y’all really need a remedial class on these forms if that’s what you think it means. Reply 1 year ago Guest Fred Hensley For sure! I teach a 3 hour CE course on the contract that includes these revisions. Course 44671. Instructor #10648 Reply 1 year ago Guest Kelly Davis Thank you for the update. Reply 1 year ago Guest matson susan Paragraph 18B is amended to add that if no closing occurs, the escrow agent may require a written release of liability before releasing the earnest money. A little clarification please. Does this mean that if both parties don’t agree to release the title company from liability, the money sits at title? Reply 1 year ago Guest Emily Bleigh This is why its important to stay up to speed on changes that are brought to TREC, you have the chance to voice your opinion before these changes are approved. Read your newletters, board emails & realtor magazine Reply 1 year ago Guest Jennifer M Salazar These changes are definitely essential, thank you! 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