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The Texas Real Estate Commission at its August meeting proposed form revisions recommended by the Texas Real Estate Broker-Lawyer Committee. 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 星空体育app下载, and one public member appointed by the governor.聽

You can comment on these proposed changes until September 26 using the online comment tool, emailing [email protected], or via mail to General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. These proposed revisions and rules will be up for adoption at the next 星空体育app下载 Meeting on November 7.

Proposed Changes to All Contract Forms

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) (星空体育app下载 20-16).

• The term "Escrow Agent" is capitalized throughout the contract to reflect its status as a defined term.
• 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. The corresponding reference to the Commission鈥檚 form Addendum Containing Notice of Obligation to Pay Improvement District Assessment is removed from Paragraph 22.
• Paragraph 7.F is revised to require that the seller: (i) provide the buyer with copies of documentation from the repair person that shows both the scope of work and payment for the work completed; and (ii) transfer, at seller鈥檚 expense, any transferable warranties at closing.
• Paragraph 7.H is amended to replace the term "residential service company"聽with the terminology used by the Texas Department of Licensing and Regulation, which as of September 1, 2021, regulates residential service companies.
• Paragraph 9.B(3) is amended to add the transfer of any warranties to correspond with the change in Paragraph 7F. New paragraph 9.B(5) provides that private transfer fees will be the obligation of the seller, unless otherwise provided in this contract.
• Paragraph 11 is amended to further clarify the intent of the paragraph by replacing the terms "factual statements"聽and "business details"聽with "informational items,"聽which is now defined, and adding that real estate brokers cannot practice law and are prohibited from adding to, deleting, or modifying the contract unless drafted by a party to the contract or a party鈥檚 attorney. Lines have also been inserted into the blank.
• Paragraph 13 is amended to clarify what amounts will be prorated through the closing date.
• Paragraph 18.B 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 courtesy copy to another individual, like an agent.

In the Unimproved Property Contract (星空体育app下载 9-15) (View redline PDF), the Farm and Ranch Contract (星空体育app下载 25-14) (View redline PDF), the New Home Contract (Incomplete Construction) (星空体育app下载 23-17) (View redline PDF), and the New Home Contract (Completed Construction) (星空体育app下载 24-17) (View redline PDF),聽the Seller鈥檚 Disclosures paragraph has been amended to: (i) add checkboxes to each disclosure item to indicate whether the seller is or is not aware; and (ii) 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.

View redline PDF of proposed changes to the One to Four Family Residential Contract (Resale) form.

Proposed Changes to the Farm and Ranch Contract Form

The Farm and Ranch Contract (星空体育app下载 25-14) contains the following additional proposed changes:

• A notice is added that states the form is designed for use in sales of existing farms or ranches of any size, and that it is not for use in complex transactions.
• Paragraph 2.A adds the term 鈥淐ounties鈥� 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 2.B is amended to make the terms "house" and "garage"聽plural.
• Paragraph 3.D is amended to alter the calculation of the sales price adjustment should the survey reveal a difference in acreage.
• New paragraph 4.D is added to address 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 6.F is also amended.
• On page 10 of the Contract, the statement "Do not sign if there is a separate written agreement for payment of Brokers'聽fees"聽is being modified to make it more conspicuous.

View the redline PDF of the proposed changes to the Farm and Ranch Contract form.

Proposed Changes to the Residential Condominium Contract (Resale) Form

The Residential Condominium Contract (Resale) (星空体育app下载 30-15) contains the following additional proposed changes:

• Paragraph 2.A(1) is amended to add a reference to an exhibit.
• Paragraphs 2.B(2) and 2.C(2) are amended to clarify the timing related to termination and to add a reference to the applicable Property Code provision.
• Paragraph 12.A(3) is amended to except prepaid regular periodic maintenance fees, assessments, or dues from the buyer鈥檚 obligation to pay any and fees associated with the transfer of the property not to exceed a certain amount, and the seller pays the excess.

View the redline PDF of the proposed changes to the Residential Condominium Contract (Resale) form.

Proposed Changes to the Amendment to Contract Form

The Amendment to Contract (星空体育app下载 39-8) form is amended to add a notice to consult an attorney and to add a reference to Paragraph 7 of the contracts in Paragraph 2 of the Amendment 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. Lines have also been inserted into the blank.

View the redline PDF of the proposed changes to the Amendment to Contract form.

Proposed Changes to the Seller Financing Addendum Form

The Seller Financing Addendum (星空体育app下载 26-7) contains the following amendments:

• A notice encouraging consultation with an attorney and a financial professional and informing parties of the complicated nature of these transactions is added to the top of the form.
• Paragraph B is amended to modify the time period within which the seller may terminate.
• A new instructional parenthetical is added in Paragraph C. Additionally, the interest in modified to reflect a per annum interest rate.
• Paragraph D.2(a) and (b) are amended to clarify the casualty insurance requirements and new paragraph D.2 is added to address casualty insurance.
• Paragraph D.2(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 services by a third鈥恜arty servicer at either the buyer鈥檚 or seller鈥檚 expense.

View the redline PDF of the proposed changes to the Seller Financing Addendum form.

Proposed Changes to the Addendum for Property Subject to Mandatory Membership in a Property Owners Association Form

The Addendum for Property Subject to Mandatory Membership in a Property Owners Association (星空体育app下载 36-9) is amended to except prepaid regular periodic maintenance fees, assessments, or dues from the buyer鈥檚 obligation to pay any and fees associated with the transfer of the property not to exceed a certain amount, and the seller pays the excess. Language is also added to clarify that these fees should be prorated pursuant to Paragraph 13 of the contract. Finally, the amended language adds that the paragraph does not apply to a fee that is not imposed by the property owners'聽association even if it is collected by the association for the benefit of a third party.

View the redline PDF of the proposed changes to the Addendum for Property Subject to Mandatory Membership in a Property Owners Association form.

Proposed Changes to the Third Party Financing Addendum Form

The Third Party Financing Addendum (星空体育app下载 40-9) is amended to add an "other financing"聽box in Paragraph 1. Paragraph 3 is amended to add that a note must be secured by vendor鈥檚 and deed of trust liens only if required by the buyer鈥檚 lender. Finally, the phrase 鈥減rovided in relation to the closing of this sale鈥� is struck from Paragraph 5.B to streamline the paragraph.

View the redline PDF of the proposed changes to the Third Party Financing Addendum form.

Proposed Changes to the Addendum Regarding Residential Leases and Addendum Regarding Fixture Leases Forms

Both the Addendum Regarding Residential Leases (星空体育app下载 51-0) and the Addendum Regarding Fixture Leases (星空体育app下载 52-0) forms are amended to add a checkbox in Paragraph B.1 related to notice of oral leases. Additionally, the Addendum Regarding Fixture Leases is amended to modify Paragraph A.1 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.

View the PDF of the proposed changes to the Addendum Regarding Residential Leases form and the proposed changes to the聽Addendum Regarding Fixture Leases form.

Proposed Changes to the Notice to Prospective Buyer Form

The Notice to Prospective Buyer (星空体育app下载 OP-C) form is amended to add a reference to the notice requirements regarding public improvement districts. View the redline PDF of the proposed changes to the Notice to Prospective Buyer form.

Proposed Changes to the Loan Assumption Addendum Form

The Loan Assumption Addendum (星空体育app下载 41-2) contains the following amendments:

• "Effective Date"聽and "Title Company" are capitalized throughout.
• Paragraph A is amended to add that the noteholder of the loan being assumed is authorized to receive a copy of the buyer鈥檚 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.

View the redline PDF of proposed changes to the Loan Assumption Addendum form.

Proposed Changes to the Addendum for Reservation of Oil, Gas, and Other Minerals Form

The Addendum for Reservation of Oil, Gas, and Other Minerals (星空体育app下载 44-2) is amended to replace the phrase "reserve and retain implied"聽with "waive" in Paragraph C. The term "current"聽is added to "contact information"聽in Paragraph D.

View the redline PDF of proposed changes to the Addendum for Reservation of Oil, Gas, and Other Minerals form.