Earlier this year, Texas REALTORS® task forces examined the association’s forms and proposed changes and new forms. Those proposals were published in April, and members were given a month to submit comments. The task forces discussed all the comments and feedback and adopted the following changes and new forms.
This article does not address every change made to every form; it is a summary of substantive changes. To see redlines of all the adopted changes, visit texasrealestate.com and look under July 8. To see the new forms, visit texasrealestate.com and search for the form name or number.
All adopted and revised forms go into effect July 8. They are available on texasrealestate.com and through approved forms vendors.
Representation Agreements, Generally
- Modernized contact information of parties.
- Added language to clarify that a broker has a right terminate a representation agreement if a client defaults.
- Added a disclosure of the location of a property in a public improvement district or municipal utility district.
TXR 1925 Buyer’s Walk-Through and Acceptance Form
- Added a section for the buyers to specify whether they have seen the property in person or whether they are purchasing the property sight unseen.
- Added a section where the buyers will indicate whether they have chosen to have the property reinspected after repairs are completed.
- Added a section where the buyers will indicate whether they have chosen to purchase a residential service contract.
- Updated the title to reflect these additions: Buyer’s Walk-Through, Confirmation and Acceptance Form.
TXR 1935 Seller’s Estimated Net Proceeds and TXR 1936 Approximation of Buyer’s Closing Costs
- The task force proposed pulling down these forms. However, members voiced overwhelming support to keep them. Therefore, these forms will remain available for use.
TXR 2301 Independent Contractor Agreement for Sales Associate
- Added a place for the broker to authorize the geographic areas and disciplines in which the associate is authorized to practice.
TXR 1608 New Residential Condominium Contract (Complete Construction) and TXR 1609 New Residential Condominium Contract (Incomplete Construction)
- Added that if the buyer elects to terminate pursuant to provisions related to the delivery of update of a Condominium Information Statement, the buyer will get a refund of the earnest money.
New Form: TXR 2405 Referral Agreement Between Brokers
- An agreement for a referral fee to be paid to a broker who has referred a prospective client to another broker.
TXR 1408 Commercial Property Condition Statement
- Clarified that this form can be used by a sublessor with a sublease.
- Expanded the flood disclosures to mirror language in the residential Seller’s Disclosure Notice.
TXR 1801 Commercial Contract – Improved Property
- Independent consideration for the feasibility period is now delivered to the title company.
- Additional money paid by the buyer for the extension of the feasibility period may now be considered as additional earnest money and/or independent consideration.
- Clarified that the seller is only required to deliver to the buyer property information that is in the seller’s possession.
- Clarified that an overnight delivery service is an acceptable method to deliver notices under the agreement.
- The term “legal holiday” was changed to “federal reserve bank holiday.”
- Reflects the requirement of the seller to provide a Public Improvement District disclosure form.
TXR 2101 Commercial Lease
- The terms contained in the Commercial Lease Addendum for Expense Reimbursement (TXR 2103) have been incorporated directly into the Commercial Lease under Paragraph 4J.
- The landlord was given the authority to reserve portions of the common area parking for a specific tenant’s short-term use (i.e., curbside pickup spaces).
New Form: TXR 1419 Commercial Listing Agreement Termination
- May be used to terminate any Texas REALTORS® commercial listing agreement.
Leasing & Property Management Forms
- Changed all references of “pets” to “animals”
TXR 1102 Residential Real Estate Listing Agreement, Exclusive Right to Lease
- Added a notice making landlords aware of the risks of refusing a valid request for an assistance animal.
- Removed pre-checked box for Information About Brokerage Services under Paragraph 19.
TXR 2001 Residential Lease
- Clarified language about where to pay the rent, and added options about who can accept the first month’s rent.
- Added language to clarify the tenant has to produce documentation for assistance animals.
- Added a question for landlord to note whether the property is part of an HOA.
- Added a prohibition against planting, growth, consumption, or distribution of cannabis plants or products.
- Added a prohibition against listing the property on lodging/short term rental websites and added language about guest stay limits.
- Added that all unpaid debts will bear 18% interest or the maximum allowed by law.
TXR 2003 Residential Lease Application
- Added a question asking whether the applicant has viewed the property prior to applying.
- Changed all references of “pets” to “animals,” and added a question asking if any animal identified is an assistance animal.
TXR 2201 Residential Leasing and Property Management Agreement
- Added language to cover fees if the property is not leased on the date the agreement ends and owner terminates the agreement.
- Added language to cover compensation from benefit programs or packages.
- Added language to clarify that a broker is not responsible for performing or certifying any inspections or surveys that may be required by local, state, or federal regulations.
New Form: TXR 2016 Tenant and Occupant Information
- Provides additional space for tenant and occupants to insert information that would not be inserted in the lease.
New Form: TXR 2017 Residential Lease Sight Unseen Addendum
- Asks if the tenants have viewed the property before signing the lease, the manner in which the tenants viewed it, and provides notice that the tenants who lease the property sight unseen do so at their own risk.
New Form: TXR 2018 Addendum Regarding Fee In Lieu of a Security Deposit
- Allows the landlord and tenant to agree to a recurring monthly fee instead of a security deposit.
New Form: TXR 2228 Residential Tenant Estoppel Certificate
- Asks the tenant to certify that the statements in the certificate are true.
Source: Texas REALTORS®