On Sep. 6, TX LEG proposed to amend mortgage contract forms.
TX LEG Texas Real Estate Commission (TREC) proposed to amend contract forms.
Real estate license holders generally required to use forms promulgated by TREC when negotiating contracts the sale of real property; proposed revisions to contract forms.
Proposed amendments apply to all contract forms unless specified otherwise.
Redline of proposed amendments provided on page 6967 of the State register filing.
Rule Provisions
Paragraph numbers referenced are from the 1 to 4 family residential contract (resale).
Amended Paragraph 4 to add term geothermal to definition of Natural resource lease.
Par. 6C(1) amended to include option of providing T-47.1 Declaration (which does not need to be notarized)-in lieu of T-47-when seller furnished buyer in existing survey.
In lieu of providing a no survey required option, Paragraph 6C(2) is amended to read Buyer may obtain a new survey instead of Buyer shall obtain a new survey.
If buyer fails to obtain survey, buyer does not have the right to terminate the contract.
New par. 6D(11) added to provide requirements for mold remediation certificate.
Paragraph 8B added statement that brokers' fees are not set by law, are negotiable.
Added provisions on broker compensation; revised broker information s. of contracts.
Additionally, in the unimproved property contract, paragraph 3D is amended to include the same sales price adjustment language as in the farm and ranch contract.
Third party financing addendum amended to require both a notice of termination and a copy of a written statement of the lender's determination; made conforming changes.
Drafted a new Addendum for S. 1031 Exchange that allows seller/buyer to disclose an intent to use subject property as a 1031 exchange; includes cooperation statement.
Consultation
Comments on proposed amendments due 30 days from publication, on Oct. 6, 2024.
Nov. 2024 TX LEG Adopted Proposal
On Nov. 22, 2024, TX LEG TREC adopted contract amendments, effective Jan. 3, 2025.
Regulators
TX LEG
Entity Types
Bank; MG Orig; Servicer; Thrift
Reference
TX SR Vol. 49 No. 47 p. 9550, 11/22/2024; TX SR Vol. 36 No. 36 p. 6965, 9/6/2024; Form 9-17, 20-18, 11-8, 23-19, 25-16, 24-19, 30-17, 32-5, 39-10, 40-11, 60-0; Citation: *TX LEG* 22-23-537-537.20, 22-23-537-537.22, 22-23-537-537.28, 22-23-537-537.30, 22-23-537-537.32, 22-23-537-537.31, 22-23-537-537.37, 22-23-537-537.39, 22-23-537-537.46, 22-23-537-537.47, 22-23-537-537.67;
