Changes to TREC Forms…How Big Are They?
MetroTex Forms and Contract Committee Chair Mary Beth Harrison offers a quick rundown of the changes proposed by TREC.
Mary Beth writes:
Many of the changes are “wording only,” not material changes that would affect how they apply to our clients. The remainder are changes needed to sell homes in our current climate, especially regarding security devices. Some sellers have retained the ability to look into their old home after buyers take possession and without their knowledge. Another really positive change is an end to having to deliver option money to the seller or their agent.
Material changes you need to be aware of:
Paragraph 4 Leases: All leases, (not just tenant but things like solar panels, security devices, etc.) must be sent to the buyer within 3 days of the effective date. That might be a little short; maybe five days is reasonable.
Paragraph 10C: Addresses smart devices and removal.
Paragraph 18A: Talks about “good funds” to the title company.
Paragraph 18B: Defines the expenses an Escrow agent can retain.
Paragraph 23: Now allows all money, both earnest and option, to go to the title company. This can be done in one large check or two separate checks. It also gives the title company permission to release the option money to the seller if the buyer terminates, leaving the earnest money up for negotiation as it’s always been.
Condo Contract: They removed the need for survey.
Two New Amendments: One regarding residential leases currently apart of the property; another regarding fixture leases, such as solar panels, propane tanks, security systems, etc.
This is your chance to be heard. Read the specifics and email your comments to TREC by July 13. Changes will be adopted in August.