TREC Adopts New Form and Updates Contracts
The Texas Real Estate Commission this week approved changes to the promulgated contracts and adopted a new form to comply with legislation from the regular session of the Texas Legislature. The commission also proposed a change to education rules regarding designations and CE.
New Disclosure for Sales in Public Improvement Districts
Beginning September 1, sellers will be required to provide a new notice to buyers when selling property located in a public improvement district. If sellers fail to provide the required notice, buyers will have the right to terminate the contract, in addition to other penalties. These public improvement district requirements are similar to the current municipal utility district notice requirements.
The new form, Addendum Containing Notice of Obligation to Pay Improvement District Assessment, is a statutory notice required for the sale of all properties located in a public improvement district. This notice is required for the sale of all properties, including condominiums and commercial, not just residential as previously required.
The contract changes update the notice language in Paragraph 6, notifying parties that if the property is in a public improvement district, the seller must attach the new addendum. The contracts were also changed to reflect the new addendum in Paragraph 22, Agreement of Parties.
Use of the new contracts will be mandatory September 1. Although providing the required notice will also be required starting September 1, use of the Addendum Containing Notice of Obligation to Pay Improvement District Assessment to fulfill that requirement will be voluntary. Parties can use a form provided by the public improvement district if it meets the statutory requirements.
Copies of the new form and the contract changes will soon be available at texasrealestate.com, and all forms vendors will have the proper forms in place by September 1.
Proposed Education Change
The commission also proposed amendments to the rule that allows license holders to obtain CE credit for courses taken to fulfill a requirement of a professional designation, such as GRI. The amendment includes a list of specific professional designations recognized by the commission for CE credit. Under the changes, license holders can still receive CE credit for these courses if providers have had the course for credit by TREC.
Get More Information
A video replay of the entire meeting along with the full agenda and materials are available at TREC’s website. You can learn more about the legislative changes from the 87th Texas Legislature in this Texas REALTORS® legal webinar.
Source: Texas REALTORS®