22 TAC §§537.21 - 537.23, 537.35, 537.39 - 537.41, 537.48
The Texas Real Estate Commission (TREC) proposes amendments
to §§537.21 - 537.23, 537.35, 537.39 - 537.41, and 537.48, concerning
Professional Agreements and Standard Contract Forms. The amendments would
adopt by reference eight revised contract forms to be used by Texas real estate
licensees.
Texas real estate licensees are generally required to use forms promulgated
by TREC when negotiating contacts for the sale of real property. These forms
are drafted 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 a public member appointed by
the governor.
Generally speaking most of the revisions to the forms are non-substantive
in nature and update and conform the text and format for consistency with
current contract forms.
The amendment to §537.21 would adopt by reference Standard Contract
Form TREC No. 10-5, Addendum for Sale of Property by Buyer. The revisions
to Paragraphs A & B of the form remove references to a specific time of
day in the definition of Contingency and in the deadline date to waive the
Contingency. Paragraph D is rewritten for clarity and deletes extraneous language
regarding Buyer's failure to obtain loan or assumption approval.
The amendment to §537.22 would adopt by reference Standard Contract
Form TREC No. 11-6, Addendum for "Back-Up" Contract. The blank line for the
Buyer's name is removed from Paragraph A. Paragraphs B & C are rewritten
and combined for clarity. In Paragraph B, the reference to a specific time
of day is deleted consistent with the proposed revisions to TREC No. 10-5;
the reference to a Contingency Date is deleted in the last sentence of Paragraph
B, which defines the Amended Effective Date for purposes of performance of
the Back-Up Contract. Therefore, as proposed, the Amended Effective Date hinges
solely on the date the Buyer receives notice of termination of the First Contract.
The amendment to §537.23 would adopt by reference Standard Contract
Form TREC No. 12-2, Addendum for Release of Liability on Assumed Loan and/or
Restoration of Seller's VA Entitlement. The amendments to the form change
the title to more accurately reflect the purpose and use of the addendum.
Redundant phrases in Paragraphs A.2, B.2, and the Notice are removed. The
paragraph that addresses payment of costs for obtaining the release and restoration,
which includes a sentence regarding negotiation of payment of such costs that
exceed a specified amount, is amended to delete the sentence so that seller
pays all such costs under the addendum.
The amendment to §537.35 would adopt by reference Standard Contract
Form TREC No. 28-1, Environmental Assessment, Threatened or Endangered Species,
and Wetlands Addendum. The amendments to the form remove redundant text and
make non-substantive conforming changes consistent with current forms.
The amendment to §537.39 would adopt by reference Standard Contract
Form TREC No. 32-1, Condominium Resale Certificate. The amendments to the
form add two additional paragraphs: Paragraph O regarding disclosure of association
fees resulting from the transfer, and Paragraph P regarding disclosure of
contributions, if any, to the capital reserves account.
The amendment to §537.40 would adopt by reference Standard Contract
Form TREC No. 33-1, Addendum for Coastal Area Property. The amendments to
the form make non-substantive conforming changes consistent with current forms.
The amendment to §537.41 would adopt by reference Standard Contract
Form TREC No. 34-2, Addendum for Property Located Seaward of the Gulf Intracoastal
Waterway. The amendments to the form make non-substantive conforming changes
consistent with current forms.
The amendment to §537.48 would adopt by reference Standard Contract
Form TREC No. 41-1, Loan Assumption Addendum. The amendments to the form make
non-substantive conforming changes consistent with current forms.
Loretta R. DeHay, General Counsel, has determined that for the first five-year
period the sections 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 anticipated impact on small businesses, micro-businesses
or local or state employment as a result of implementing the sections.
Ms. DeHay 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 the availability of current standard
contract forms. There will be no effect on small businesses. There is no anticipated
economic cost to persons who are required to comply with the proposed sections,
other than the costs of obtaining copies of the forms, which would be available
at no charge through the TREC web site, and available from private printers
at an estimated cost of $7.50 per set of 50 copies.
Comments on the proposal may be submitted to Loretta R. DeHay, General
Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.
The amendments and forms 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 licensees to fulfill
the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters
1101 and 1102.
The statute affected by this proposal is Texas Occupations Code, Chapter
1101. No other statute, code or article is affected by the proposed amendments.
§537.21.Standard Contract Form TREC No. 10- 5 [ 4 ].
The Texas Real Estate Commission adopts by reference standard contract
form TREC No. 10-
5
[
4
] approved by the Texas Real Estate
Commission in
2007
[
2002
] for use as an addendum concerning
sale of other property by a buyer to be attached to promulgated forms of contracts.
This document is published by and available from the Texas Real Estate Commission,
P.O. Box 12188, Austin, Texas 78711-2188, www.state.tx.us.
§537.22.Standard Contract Form TREC No. 11- 6 [ 5 ].
The Texas Real Estate Commission adopts by reference standard contract
form TREC No. 11-
6
[
5
] approved by the Texas Real Estate
Commission in
2007
[
2004
] for use as an addendum to
be attached to promulgated forms of contracts which are second or "back-up"
contracts. This document is published by and available from the Texas Real
Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.state.tx.us.
§537.23.Standard Contract Form TREC No. 12- 2 [ 1 ].
The Texas Real Estate Commission adopts by reference standard contract
form TREC No. 12-
2
[
1
] approved by the Texas Real Estate
Commission in
2007
[
1992
] for use as an addendum to
be attached to promulgated forms of contracts where there is a Veterans Administration
release of liability or restoration entitlement. This document is published
by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin,
Texas 78711-2188, www.state.tx.us.
§537.35.Standard Contract Form TREC No. 28- 1 [ 0 ].
The Texas Real Estate Commission adopts by reference standard contract
form TREC No. 28-
1
[
0
] approved by the Texas Real Estate
Commission in
2007
[
1993
] for use as an addendum to
be attached to promulgated forms of contracts where reports are to be obtained
relating to environmental assessments, threatened or endangered species, or
wetlands. This document is published by and available from the Texas Real
Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.state.tx.us.
§537.39.Standard Contract Form TREC No. 32- 1 [ 0 ].
The Texas Real Estate Commission adopts by reference standard contract
form TREC No. 32-
1
[
0
] approved by the Texas Real Estate
Commission in
2007
[
1994
] for use as a condominium resale
certificate. This document is published by and available from the Texas Real
Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.state.tx.us.
§537.40.Standard Contract Form TREC No. 33- 1 [ 0 ].
The Texas Real Estate Commission adopts by reference standard contract
form TREC No. 33-
1
[
0
] approved by the Texas Real Estate
Commission in
2007
[
1994
] for use as an addendum to
be added to promulgated forms of contracts in the sale of property adjoining
and sharing a common boundary with the tidally influenced submerged lands
of the state. This document is published by and available from the Texas Real
Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.state.tx.us.
§537.41.Standard Contract Form TREC No. 34- 2 [ 1 ].
The Texas Real Estate Commission adopts by reference standard contract
form TREC No. 34-
2
[
1
] approved by the Texas Real Estate
Commission in
2007
[
2002
] for use as an addendum to
be added to promulgated forms of contracts in the sale of property located
seaward of the Gulf Intracoastal Waterway. This document is published by and
available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas
78711-2188, www.state.tx.us.
§537.48.Standard Contract Form TREC No. 41- 1 [ 0 ].
The Texas Real Estate Commission adopts by reference standard contract
form TREC No. 41-
1
[
0
] approved by the Texas Real Estate
Commission in
2007
[
2002
] for use as an addendum to
be added to promulgated forms of contracts when there is an assumption of
a loan. This document is published by and available from the Texas Real Estate
Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.state.tx.us.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on February 27, 2007.
TRD-200700779
Loretta R. DeHay
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: April 15, 2007
For further information, please call: (512) 465-3900