Please be aware that TREC has released an updated version of the One to Four Family Residential Contract (Resale), and it is effective for mandatory use as of February 1, 2023. We are currently in the process of updating this course content, and expect to have the updated information live in your course this month.
In the interest of ensuring that you remain compliant with all TREC rules, please review and bookmark the new version of the contract, available on TREC’s website.
Below is a summary of the changes to this version of the contract:
- Paragraph 3.A
- Edited to clarify that “The term “Cash portion of the Sales Price” does not include proceeds from borrowing of any kind or selling other real property except as disclosed in this contract.”
- Paragraphs 5.A-5.C, 9.B.(2), 17, & 18
- Edited to capitalize “Escrow Agent” everywhere the term appears.
- Paragraph 6.D
- Edited to capitalize “Survey” everywhere the term appears.
- Paragraph 6.E
- Added part (11) to note which required notices have been given or attached to the contract (MUD, WCID, PID, etc.).
- Paragraph 7.F
- Minor edits to punctuation and clarity regarding Seller’s requirement to complete agreed repairs and treatments.
- Additional provisions that state seller SHALL:
- Provide Buyer with copies of documentation from repair person(s) showing the scope of work and payment for work completed
- At Seller’s expense, arrange for transfer of any transferable warranties with respect to the repairs and treatments to Buyer at closing.
- Paragraph 7.H
- Edit to clarify that Buyer may purchase a residential service contract “from a provider or administrator licensed by the Texas Department of Licensing and Regulation.”
- Paragraph 9.B.(3)
- Added “transfer of any warranties” to the list of documents Seller and Buyer must execute and deliver in the process of the sale and issuance of a Title Policy.
- Paragraph 9.B.(5)
- Addition to clarify that private transfer fees will be the obligation of the Seller unless otherwise stated in the contract. Transfer fees assessed by an HOA will be governed by the Addendum for Property Subject to Mandatory Membership in a Property Owners Association.
- Paragraph 11
- Edited to read “ (This paragraph is intended to be used only for additional informational items. An informational item is a statement that completes a blank in a contract form, discloses factual information, or provides instructions. Real estate brokers and sales agents are prohibited from practicing law and shall not add to, delete, or modify any provision of this contract unless drafted by a party to this contract or a party's attorney.)”
- Paragraph 13
- Edited the first sentence to read: “Taxes for the current year, interest, rents, and regular periodic maintenance fees, assessments, and dues (including prepaid items) will be prorated through the Closing Date.”
- Paragraph 21
- Added field to Buyer and Seller notice directions clarifying where to send a copy to each agent.
- Paragraph 23
- Replaced “license holders” with “brokers and sales agents”