As of December 16, 2024, the Addendum Regarding Brokers’ Fees (TXR 2406) and the Amendment to Representation Agreement (TXR 2701) will no longer be available for use on the Texas REALTORS® website or through approved form vendors. These forms filled gaps during the transition to the new NAR MLS rules regarding broker compensation.
I’m confused , so we go back to just doing BA and just need to use 1-4 again only?
Yes, Buyer Rep Agreement as it is and the 1-4 Residential Contract will be updated to include negotiations for buyer’s broker compensation.
This is one of those things you need to read slowly, and over again, and again before it sinks in.
As if things weren’t confusing enough.
The TREC website says the new contract goes into effect January 3, 2025. Are we going to have a gap where we are not going to have a compliant form that allows us agents to be compensated? Will the new TREC contract be available for voluntary use on Dec 16, 2024?
That is a great question and one I wondered myself.
I reread the article again and it does say the Contract will be available in Zipform on December 16th, so maybe there won’t be a gap.
I hope so.
If the updated forms allow the buyer’s agent commission (BAC) to be covered through seller concessions, it’s important to remember that federal limits on concessions still apply—ranging from 3% to 6% depending on the loan type and down payment amount. If we’re already negotiating the maximum concession from the seller, does that mean the buyer won’t be able to receive any additional concessions? This is a critical issue that should have been addressed in the article because if it’s fully a seller concession there are limitations therefore it could cause the buyer to be in default, or the deal falling… Read more »
Since the new TREC forms are not mandatory until 1/3/2025, if agents use the existing TREC contract forms, are they still able to use the Addendum Regarding Broker Fees until the new TREC forms become mandatory? This is a very inconvenient time to remove this form with it being mid-December and many agents won’t use the new TREC forms until January. TREC always has an optional period before mandatory so there is a gap here. We need to ensure we can still use the Add Re Broker Fees with the existing TREC contract until the new TREC form is mandatory.
There are two sections in the updated TREC contract in paragraph 12. One for buyer broker fee and another for seller concessions. This way it will not effect seller concession max limits
Section 12 is still quite confusing in my opinion. Section b in 12 essentially states an amount of seller concessions to be applied towards the buyer broker fee the buyer has agreed to pay. What if a buyer has NOT agreed to pay their agent (I have had more than a few buyers state, “Only show me homes where a seller is offering to pay you, as we can’t afford to pay you on top of all of the other loan fees, down payment, earnest money, etc.”)? Does this still apply or only when a buyer has agreed to pay… Read more »
I agree – paragraph 12 A (1) (b) is only if the buyer has agreed to pay something towards brokerage fees. After some research, I believe that BAC should be handled within the Compensation Agreement Between Brokers (TXR-2402) and also in the disclosure section of the 1-4 sales contract itself (bottom of pg 10) Hope this helps 🙂