Texas Real Estate Contracts 4 th Edition © 2015 OnCourse Learning

Chapter 10: Specific Real Estate Forms © 2015 OnCourse Learning

Texas Real Estate License Act The Texas Real Estate License Act codified in the Texas Occupations Code was created to govern the real estate profession. The administration of the Texas Real Estate License Act was vested in the Texas Real Estate Commission. © 2015 OnCourse Learning

Texas Real Estate Commission The Texas Real Estate Commission has the authority and power to make and enforce all rules and regulations necessary – for the performance of its duties, – to establish standards of conduct for real estate licensees, and – to insure licensee compliance with the provisions of the Texas Real Estate License Act © 2015 OnCourse Learning

Texas Broker- Lawyer Committee Texas Real Estate Broker-Lawyer Committee was created, in part, to draft and revise contract forms capable of uniform use by real estate licensees. © 2015 OnCourse Learning

Rules for Use of Promulgated Forms A real estate licensee must use only those contract forms promulgated by the Texas Real Estate Commission for that kind of transaction. © 2015 OnCourse Learning

Exceptions transactions in which the licensee is functioning solely as a principal, not as an agent; transactions in which an agency of the United States government requires a different form to be used; transactions for which a contract form has been prepared by the property owner or prepared by an attorney and required by the property owner; © 2015 OnCourse Learning

Exceptions cont. transactions for which no standard contract form has been promulgated by the Texas Real Estate Commission, and the licensee uses a form prepared by an attorney at law licensed by this state and approved by the attorney for the particular kind of transactions involved or prepared by the Texas Real Estate Broker- Lawyer Committee and made available for trial use by licensees with the consent of the Texas Real Estate Commission. © 2015 OnCourse Learning

Practice of Law A licensee may not practice law. © 2015 OnCourse Learning

Authorized Practices Disclosing facts is permissible. © 2015 OnCourse Learning

Promulgated Residential Sales Contracts One to Four Family Residential Contract (Resale) (TREC 20-12) Unimproved Property Contract (TREC 9-11) New Home Contract (Incomplete Construction) (TREC 23-13) New Home Contract (Completed Construction) (TREC 24-13) Farm and Ranch Contract (TREC 25-10) Residential Condominium Contract (Resale) (TREC 30-11) © 2015 OnCourse Learning

Promulgated Addenda in this Chapter Addendum for Property Subject to Mandatory Membership in an Owners Association Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum Addendum for Sale of Other Property by Buyer Addendum for “Backup” Contract © 2015 OnCourse Learning

Promulgated Addenda cont. Condominium Resale Certificate Addendum for Coastal Area Property Addendum for Property Located Seaward of the Gulf Intracoastal Waterway Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in an Owners Association © 2015 OnCourse Learning

Promulgated Addenda Cont. Notice of Buyer’s Termination of Contract Amendment Addendum for Reservation of Oil, Gas, and Other Minerals Addendum for Property in a Propane Gas System Service Area Not promulgated, but required by federal law- Lead based Paint Addendum © 2015 OnCourse Learning