Note: The Texas Association of Realtors and TREC update promulgated forms regularly. For the most recent updates, check with TAR, TREC, or contact me at firstname.lastname@example.org.
Note: I am a real estate professional, not a lawyer. Nothing herein should be construed as legal advice or instructions.
The contracts are always changing. Resources like mine here at Hood Homes Blog are not always current. While I will try to keep my resources as current as possible, I mostly hope my articles give some of the broad strokes for buyers and sellers on what to expect in a contract.
Revisions are too numerous to describe here. For Realtors, a line by line change log for every change can be found here.
For buyers and sellers, here are the highlights:
Termination Due at 5 PM
This is probably the biggest change. Previously, as long as you sent a notice on or before 11:59 PM of the date due, you were good. For Realtors, this meant literally just having an email sent to the other agent’s inbox in time. That has resulted in some late nights for Realtors, buyers and sellers as I’ve had negotiations literally run into the 11th hour. Now, termination notices are due at 5:00 PM. I’m not so sure this is good or bad. It means sometimes we may not have to stay up so late, but it also means we are going to be all the more stressed during the day working with a deadline. Some buyers and sellers don’t get off work until 5 or after, so it is just all the more important to get things done before they are due.
Third Party Financing
This isn’t as much a change as it is just rearranging what appears where. Originally, the financing terms were on page 1 of the contract in paragraph 4, and then they were half duplicated on the Third Party Financing Addendum. To simplify things, instead there is a section to say whether or not there is financing, and then refer all financing issues to the Third Party Addendum (which has also been updated to include that information).
Disclosing a Realtor’s Interest
This was always a requirement, but there was not a specific location to make the disclosure except special provisions. Now, if either agent is a seller, buyer, or related to either the seller or buyer, there is a convenient location to disclose it right there on page 1.
Information About Brokerage Services
This form was rebuilt and simplified. I like it a lot. It is very simple and straightforward for buyers and sellers to view and understand how Texas agency laws work. It also includes spots for license numbers of the brokerage, broker, supervisor and agent for the buyer/seller to reference and know exactly who they are working with (and check licenses with TREC to verify they are in good standing).
For more information on the 2016 contract changes, check out here!