What’s Changing in TREC Forms? Here’s What to Know

Updates to Lease Forms, a New Water Notice, and Changes to Paragraph 12A

The Texas Real Estate Commission’s Broker-Lawyer Committee (BLC) recently reviewed several important contract updates that could impact your transactions. Here’s a breakdown of the latest:

1. Flood Notice No Longer Required for Temporary Leases

Following the passage of SB 2349, TREC is removing the Floodplain Notice (TREC No. 62-0) from its three temporary residential lease forms:

  • Seller’s Temporary Residential Lease (TREC 15-6)
  • Buyer’s Temporary Residential Lease (TREC 16-6)
  • Landlord’s Floodplain & Flood Notice (TREC 62-0)

Starting September 1, 2025, these forms will no longer require a flood disclosure for short-term leases, in line with the new legislation.

2. New Water Notice Form in Development

The BLC is working on a new Water Notice to help buyers understand water-related rights and property features. This form would include questions like:

  • Is the property located in a groundwater conservation district?
  • Does it include a well or surface water features such as a pond or stream?

This draft form is still being refined and will be reviewed again at the July 11 BLC meeting.

3. Changes to Paragraph 12A and Page 10 Disclosures

The Committee is also proposing revisions to Paragraph 12A of the One to Four Family Residential Contract to better clarify seller contributions:

  • (b) allows sellers to contribute toward the buyer’s broker compensation, up to a specified cap
  • (c) covers seller-paid buyer expenses, excluding broker fees

TREC is also simplifying the Page 10 broker compensation section. Broker-to-broker fees listed in the MLS will remain for informational purposes but will no longer be part of the executed contract.

Why It Matters

These changes aim to improve clarity in contracts and make commission-related contributions easier to understand and explain. MetroTex will continue to monitor TREC updates and keep you informed as new drafts are finalized.

Stay tuned for updates after the next BLC meeting on July 11, 2025.