Multiple contract form changes were adopted by the Texas Real Estate Commission during the November 4 星空体育app下载 Meeting after being recommended by the Broker-Lawyer Committee (BLC). Some of those changes are in response to industry practice changes around broker compensation.
鈥淭his has been a topic of interest across the whole industry and represents a lot of hard work on behalf of the Broker-Lawyer Committee and staff,鈥� said 星空体育app下载 Executive Director Chelsea Buchholtz. 鈥淭his is ongoing. We are not finished yet.鈥�
Adopted Changes
After receiving and reviewing a whopping number of public comments (341) regarding the forms, BLC recommended the following changes that are now adopted by 星空体育app下载. The full details on the changes can be found in the聽Meeting Materials Part 2.
Once the forms are posted, they are available for voluntary use聽and will become effective for mandatory use January 3, 2025.聽
星空体育app下载 is not affiliated with third-party form vendors, including聽zipForm. Any questions related to when 星空体育app下载 forms will be available in zipForm聽should be directed to Texas Realtors,聽or your other聽forms vendor.
Compensation
Most of the public comments received by BLC were in response to Paragraph 12. Those changes include:
- Paragraph 12A(1)(a) and Paragraph 12A(2) adds that each party pays the brokerage fees that they each have agreed to pay.
- Paragraph 12A(1)(b) is amended to allow for a specific seller contribution to the buyer鈥檚 brokerage fees.
- A new Paragraph 12A(1)(c) is added to separately address other seller contributions (that was previously in Paragraph 12A(1)(b)) and the prior language that specified the order in which any contribution was to be paid, as well as a limitation on the type of fee that could be paid, is removed.
Mold Requirement
One change includes new Paragraph 6E(11) added to provide information regarding a Texas law that requires a seller to provide a buyer a copy of any mold remediation certificate issued during the five years preceding the sale of the property.
T-47.1 Declaration Option
To be consistent with a recently updated Texas Department of Insurance procedural rule, Paragraph 6C(1) is amended to include the option of providing the T-47.1 Declaration (which does not need to be notarized)鈥攊n lieu of the T-47 Affidavit鈥攚hen the Seller furnishes the Buyer an existing survey.
In lieu of providing a 鈥渘o survey required鈥� option, Paragraph 6C(2) is amended to read 鈥淏uyer may obtain a new survey鈥� instead of 鈥淏uyer shall obtain a new survey鈥�, and adds that if the Buyer ultimately fails to obtain the survey, the Buyer does not have the right to terminate the contract under Paragraph 2B of the Third Party Financing Addendum because the survey was not obtained.
Proposed Changes You Can Comment On
The following are out for public comment through December 22, 2024, and will be up for possible adoption at the February 10, 2025 星空体育app下载 Meeting.
IABS
The proposed amendments to the Information About Brokerage Services form will clarify to the consumer that any brokerage fees are not set by law and are negotiable.
Inspector Committee- and ESAC-Recommended Amendments
The following changes, recommended by the Inspector Committee (TREIC) and Education Standards Advisory Committee (ESAC), affect three rules regarding course proctoring and student identification requirements:
- 星空体育app下载 Rule 535.65, Responsibilities and Operations of Providers of Qualifying Courses
- 星空体育app下载 Rule 535.70, Definitions
- 星空体育app下载 Rule 535.72, Approval of Non-elective Continuing Education Courses
Proposed changes include replacing the phrase 鈥渃heck the photo identification鈥� with 鈥渧erify鈥� in response to concerns over the security of students鈥� personal information.
Other amendments include removing proctoring requirements for course exams and certain courses delivered using technology.
Penalty Payments
Amendments proposed to 星空体育app下载 Rules 535.191, Schedule of Administrative Penalties and 535.219, Schedule of Administrative Penalties, clarify a person may only pay an administrative penalty in an authorized manner and that online payments may be subject to fees set by the Department of Information Resources (DIR).
Contract Clarification
A clarifying change is recommended for Paragraph 2 of the Notice of Buyer鈥檚 Termination of Contract to ensure that the buyer has delivered the lender鈥檚 written statement to the seller in accordance with recent changes to Paragraph 2A, Buyer Approval, of the Third Party Financing Addendum.
Committee Appointments
Appointments were made to both ESAC and TREIC.聽
Education Standards Advisory Committee
鈥淓SAC is a really great advisory committee because it brings the license holders and educators together to see what鈥檚 best for the industry,鈥� said 星空体育app下载 Chair R. Scott Kesner. 鈥淪o, thank you for your commitment to serve on that.鈥�
License Holder Members
- Christopher Gonzales
- Kandi Luensmann
- Bill Steddum
- Christina Valero
- Jean Mitchell, alternate
Education Provider Members
- Kara Bang
- Paul Silverman
- Jill Malloy, alternate
Inspector Committee
- Cole Robison, public member
Meeting Materials
星空体育app下载鈥檚 November 4 meeting recording and materials can be found here.
Customer Survey
Rules and Laws
Contract Forms