Texas REALTORS® invites you to comment on 12 new and revised residential forms between now and October 24. Below is a summary of the changes.
New Forms
Showing Form (TXR 1508)
This form can be used for non-agency showing of residential property for sale.
Residential Contract Critical Date List (TXR 1958)
This form includes important dates and deadlines for several provisions in the One to Four Family Residential Contract (Resale) (TXR 1601, TREC 20-18).
Revised Forms
Residential Real Estate Listing Agreement, Exclusive Right to Sell (TXR 1101)
Revisions include:
- Removing Paragraph 5A authorization for listing broker to share compensation with other brokers
- Adding a definition of “related party”
- Adding a paragraph prohibiting a related party from selling the property during the protection period without compensating the broker
- Adding T-47.1 Declaration as an option in Section 19D.
These changes will also be made to the Farm and Ranch Real Estate Listing Agreement, Exclusive Right to Sell (TXR 1201).
Amendment to Listing (TXR 1404)
Proposed updates match proposed changes to the listing agreement regarding the sharing of broker compensation with other brokers.
Information About On-Site Sewer Facility (TXR 1407)
Paragraph D was updated with the date and source of information for wastewater usage rates.
Seller’s Disclosure Notice (TXR 1406)
The proposed changes include:
- Adding new disclosures for above-ground storage tanks and private roads
- Adding new disclosures related to TREC disclosure requirements
- Renumbering and reordering sections to keep insurance-related disclosures together
- A new definition for conservation easements.
Condominium Addendum (TXR 1401)
The proposed revisions change the term unit to property throughout.
Buyer/Tenant Representation Agreement-Long Form (TXR 1501)
Proposed changes include:
- Removing Residential from the title to allow the form to be used in more transactions, including farm & ranch
- New language to clarify broker compensation
- A new subparagraph that provides a retainer provision
- A new subparagraph notifying buyers and tenants about changes to Texas law following the passage of Senate Bill 17 relating to foreign acquisition of real property interests.
Termination of Buyer/Tenant Representation Agreement (TXR 1503)
Revisions include:
- Additional language to emphasize that both parties must sign the termination agreement
- Clarifying language about the termination fee
- Addition of “related party” to the protection period
- Added language about certain provisions surviving termination.
Notice of Withdrawal of Offer (TXR 1945)
The proposed revision is a change to the wording to allow the withdrawal of an offer or counteroffer to purchase, sell, or amend a contract.
Compensation Agreement Between Brokers (TXR 2402)
The proposed change is added language at the top to include a notice not to use the form without written authorization from a seller, allowing the listing broker to share compensation with a cooperating broker.
Buying Your Home: Settlement Costs and Helpful Information (HUD Form) (TXR 2512)
You can comment on this form being considered for retirement due to its underutilization.
TREC 57-0 Addendum for Property Subject to Mandatory Membership in a POA needs to be changed as well. Section C is not really clear. The amount is confusing. I’m seeing some agents put just what a one month’s HOA dues is in the blank, and others putting the total of all required fees due at closing, such as the total of the transfer fee, plus any HOA dues as security deposits, plus the monthly HOA dues due at closing. In my last case, the agent put $400 (which is the amount of HOA monthly dues), when it should have been… Read more »
Lee, there is “Should Be” it is possible they don’t want to pay the full $1300 = and they are offering $400. As always, this is NEGOTIABLE and nothing is “Should Be”. That is the Realtor’s job.
None of the links for comments are opening for me. In the Residential Listing Agreement Section 2 it still states Property: “Property” means the land, improvements, and accessories described below, except for any described exclusions. However, all the sections that list what are considered improvements and accessories that must stay with the property, except those excluded, are being moved 6 pages later, not “below”? Feels like those things are being hidden, especially if the verbiage about the property is not planned to be changed based on what I’m seeing in the redline.
RE: Showing Form # TXR-1508: Customer must ad contact information for the agents safety and more.
Please add lines for Address, Drivers License number,, phone number, and email address. and signature line.
so agent can do a background prior to showing said property. This keeps the agent safe and the owner and their property safe.
You should never put our agents in a fear of their safety situation without contact information
For a Lease Contract, under the HOA section, suggest having 2 checked boxes as to WHO is going to pay the HOA fees. Owner or Tenant.
The new 1101 – Listing Agreement – exclusive right to sell – If broker’s fees are NOT supposed to fixed or set then why is there NO choice on the new form for a seller who chooses to pay the Buyers broker?
Get the answer to that…and you know why our industry is in the turmoil that it is today! As the old adage says…’FOLLOW THE MONEY’!!!!!
add a field for the buyer to pay the listing broker. I have had the buyer pay the listing broker.
On the contract amendment regarding option extensions. There needs to be something clarifying that it is not valid without an amount being attached and paid. Trying to get agents to understand this is a daily struggle.
AMEN!!!
Agree.
Its pretty shocking that we are this far from the lawsuit settlement and there is still not clear language on contracts. Being self employed for 35 years, I would fire every lawyer or committee member working on this and start from scratch with real professionals. Its actually embarrassing that this is still being “worked on”.
Preach James! I Agree.
Agree, and the changes only seem to make it more murky. I love helping my sellers/buyers and if I were independently wealthy, I would do for free…cause this sucks. I agree James….
Absolutely spot on, James! I’m retirement age and considering retiring because of the incompetence and response of this disaster! The ambiguity and unclear contracts are lawsuits waiting to happen and it will fall on the agents/brokers, not NAR, TAR or TREC – we’ll be left holding the bag.
How is a realtor to keep things straight with his clients, seller or buyer with all the constant changes. It is hard for a realtor to even keep up with the changes. Licensed realtors should be able to show property and supply information as supplied on the MLS form to the client without a contract of any kind. The showing is authorized between brokers not the client.
In my opinion…the Inmates are Running the Asylum!!! Anyone else curious as to why after a $1 billion+ settlement we seem to be doing business exactly the same as before! Anybody old enough to remember the start of ‘Buyer Agency’ back in the early 1990’s when the norm was ‘Sub-Agency’??? I get a bunch of listing emails everyday…and they all say the same thing…3% BAC. I have never understood how any good lawyer could have lost these lawsuits. Not sure about other states…but in Texas our Listing Agreements were very clear…Sellers paid a set amount to a Broker to list… Read more »
Agree! ~ I believe everyone is trying very “patiently” to adjust to this new madness, but seriously, Come on. Texas had very clear and very transparent forms.
I’m so glad to hear other Realtors share their mutual disgust for what is NAR and the way they have handled everything since the Sitzer/Burnett class-action lawsuit. They should have NEVER bent over and let us all just take it! I saw one comment from the NAR president that said they did this for us (agents/brokers/companies) because a long, drawn-out court battle might hurt our livelihoods….NO NAR hurt our livelihoods and a lot of our joy in our work! The contracts that i use here in TEXAS are very thorough and do not leave things up for interpretation. TAR and… Read more »
What is the reason for removing Paragraph 5A authorization for listing broker to share compensation with other brokers? The Seller signs it and that is acknowledgment and agreement. Too many forms already.
None of the “Comments” link work and I do have comments
You can email your coments to forms@texasrealtors.com.
On site sewer form – waste water sewage rates??? really –
You are talking about what was paid when cleaning out septic?
Back in the day ( a few years ago when I had one ) it was between $125-$175 for lateral lines. Is this different with aerobic systems? I know aerobic have mandatory insp’s – so maybe who they have contracted with to do that.
Listing agreement neeeeds to have an option for Seller to compensate Buyer Broker if they so choose. What is so scary about that?
Yes!
I really wish there was a change on the Sale of Another Property form. It does not address the situation if a property falls out of contract. You have to wait until the close date indicated passes to go back to Active in MLS. It really puts the seller in a bad position.
Yes, you can still market the property as AKO, but who shows property in that status. Hardly anyone at all.
TXR 1922 / TREC 36-10 Addendum for Property Subject to Mandatory Membership in a Property Owners Association:
I think that A 2 should be revised not to send the subdivision information to the seller if the buyer wants to buy and pay for it. Why would Sellers want copies of the subdivision information if moving away from that subdivision? Seems a notice that buyer received it would be sufficient.