Texas Register, Volume 38, Number 35, Pages 5587-5800, August 30, 2013 Page: 5,674
5587-5800 p. ; 28 cm.View a full description of this periodical.
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Standard Contract Form TREC No. 20-12, One to Four Family
Residential Contract (Resale); 537.30, concerning Standard
Contract Form TREC No. 23-13, New Home Contract (Incom-
plete Construction); 537.31, concerning Standard Contract
Form TREC No. 24-13, New Home Contract (Completed Con-
struction); 537.32, concerning Standard Contract Form TREC
No. 25-10, Farm and Ranch Contract; 537.37, concerning
Standard Contract Form TREC No. 30-11, Residential Condo-
minium Contract; 537.44, concerning Standard Contract Form
TREC No. 37-5, Subdivision Information, Including Resale
Certificate for Property Subject to Mandatory Membership in
a Property Owners' Association; and 537.47, concerning
Standard Contract Form TREC No. 40-6, Third Party Financing
Addendum for Credit Approval; and new 537.53, concerning
Standard Contract Form TREC No. 46-0, Mutual Termination of
Contract.
The amendments and new section propose to adopt by refer-
ence six revised contract forms, two revised addenda, and one
new addendum for use by Texas real estate licensees.
Texas real estate licensees are generally required to use forms
promulgated by TREC when negotiating contacts for the sale of
real property. These forms are drafted and recommended for
adoption by 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
TREC, and one public member appointed by the governor.
The amendments to 537.28 propose to adopt by reference
Standard Contract Form TREC No. 20-12, One to Four Family
Residential Contract (Resale). The proposed amendments are
as follows. The definition of "Property" is moved from the end
of Paragraph 2 to the beginning of the paragraph. Paragraph
6.A.(8) is amended to provide that, at buyers' expense, the
exception shall be amended to read "shortages in area" unless
the buyer instructs the title company otherwise. The third sen-
tence in Paragraph 6.B regarding delivery of Commitment and
Exception Documents is amended to read "the time for delivery
will be automatically extended up to 15 days or 3 days before
the Closing Date, whichever is earlier" to foreclose the delivery
of such documents at closing. Paragraph 7.D is amended to
define "As Is" as "the present condition of the Property with any
and all defects and without warranty except for the warranties
of title and the warranties in this contract." The notice after
paragraph 7.D is moved to the body of the paragraph after the
definition of "As Is" and the defined term "As Is" is added to
that sentence and subparagraphs (1) and (2) to replace "in its
present condition." The parenthetical at the end of paragraph
7.D is changed to add "and treatments" at the end of the sen-
tence. The second sentence in Paragraph 7.F is amended to
clarify that, if no license is required by law to perform a repair
or treatment, all repairs and treatments must be performed by
persons "who are commercially engaged in the trade of provid-
ing such repairs or treatments" rather than "authorized by law to
provide such repairs or treatments." Paragraph 7.F is amended
to change the number of days in the last sentence from 15
to 5 days regarding the Buyer's option to extent the Closing
Date if Seller fails to complete agreed repairs and treatments
prior to closing. Paragraph 9 is amended by adding a new
Paragraph 9.B regarding leases wherein the Seller (1) agrees
not to execute any lease or convey any interest in the Property
after the effective date without the Buyer's written consent,
and (2) incorporates existing Paragraph 9.B(5) and renumbers
existing Paragraph 9B to 9C to contain 9B(1)-(4). Paragraph
14 is amended to add the clause "or cause to be restored" inthe first sentence. Paragraph 16 is amended to remove the
mediation check boxes to require mediation to resolve disputes
between Buyer and Seller related to the contract. Paragraph
23 is amended to provide that the Seller or Listing Broker must
receive the option fee within 3 days after the effective date of
the contract rather than Buyer paying Seller the option fee within
two days after the effective date of the contract to make it clear
that it is not enough that the Buyer puts the option fee in the mail
within 2 days after the effective date; the Seller or Listing Broker
must receive the option fee within 3 days after the effective date.
The last page is amended to clarify that the agents should not
sign on the blank lines, they should insert their names only.
The amendment to 537.20 proposes to adopt by reference
Standard Contract Form TREC No. 9-11, Unimproved Prop-
erty Contract. The proposed revisions are the same as those
proposed for TREC Form No. 20-12 except as follows. The def-
inition of "Property" in Paragraph 2 is not changed. Paragraph
7.E(1) is amended to be the same as Paragraph 7.H(1) in Form
25-10, Farm and Ranch Contract. Paragraph 7.E(3) regarding
environmental hazards is amended to change "any environ-
mental hazards or conditions affecting" to "any environmental
hazards that materially and adversely affect" the property.
The amendment to 537.30 proposes to adopt by reference
Standard Contract Form TREC No. 23-13, New Home Contract
(Incomplete Construction). The proposed revisions are the
same as those proposed for TREC Form No. 20-12, except
as follows. The definition of "Property" in Paragraph 2 is not
changed. There are no amendments to paragraph 7 except
to insert missing parentheses as the paragraph has no refer-
ence to "as is" condition or repairs and treatments. Paragraph
7.1(3) regarding seller's disclosure of environmental hazards is
amended to change "any environmental hazards or conditions
materially affecting" to "any environmental hazards that materi-
ally and adversely affect" the property. Paragraph 9 is amended
by adding a new Paragraph 9.B regarding leases wherein the
Seller agrees not to execute any lease or convey any interest in
the Property after the effective date without the Buyer's written
consent.
The amendment to 537.31 proposes to adopt by reference
Standard Contract Form TREC No. 24-13, New Home Contract
(Completed Construction). The proposed revisions are the same
as those proposed for TREC Form No. 20-12 except as follows.
The definition of "Property" in Paragraph 2 is not changed.
Paragraph 7.H(3) regarding seller's disclosure of environmental
hazards is amended to change "any environmental hazards or
conditions materially affecting" to "any environmental hazards
that materially and adversely affect" the property. Paragraph 9
is amended by adding a new Paragraph 9.B regarding leases
wherein the Seller agrees not to execute any lease or convey
any interest in the Property after the effective date without the
Buyer's written consent.
The amendment to 537.32 proposes to adopt by reference
Standard Contract Form TREC No. 25-10, Farm and Ranch
Contract. The proposed revisions are the same as those
proposed for TREC Form No. 20-12, except as follows. Para-
graph 2 is amended to except exclusions and reservations.
The definition of "Property" in Paragraph 2 is not changed.
Paragraph 7.H(3) regarding seller's disclosure of environmental
hazards is amended to change "any environmental hazards or
conditions materially affecting" to "any environmental hazards
that materially and adversely affect" the property. The last page
is not amended.38 TexReg 5674 August 30, 2013 Texas Register
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Texas. Secretary of State. Texas Register, Volume 38, Number 35, Pages 5587-5800, August 30, 2013, periodical, August 30, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth342086/m1/88/: accessed April 28, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.