Contracts and Forms Update May 22, 2014

Agenda Highlight of 2014 Changes 2014 Contract and Disclosure Review Zip Form Q&A

2014 Highlights Financing – Added Not for use with Reverse Mortgage financing. A New Reverse Financing Mortgage Addendum form will be available for use by June 1, Property Condition – Changes wording from “in its present condition” to “As Is” with a definition of ‘as is”. Property Repairs – Unless the buyer and seller agree otherwise in writing, the seller will now be required to use someone who is licensed to perform the repair or service. Possession – New language sets the time limit of seven days for sellers to provide copies of leases and move-in condition forms

2014 Highlights (Cont.) Mediation – Not negotiable. Buyers and sellers now must resolve any contract-related dispute through mediation Termination Option – Buyer will now have three (3) days to deliver their option fee to the seller or listing broker instead of two days. Remember TREC forms us only calendar days Property in a Propane Gas System Service Area – New Addendum form and added to paragraph 22. Consult an Attorney – Language change directing parties to consult an attorney before signing the contract Broker Information page 9 – New language reinforces that names should be printed, Not signed, on the appropriate lines.

Texas Real Estate.com Website forms/adopted-revisions

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