TITLE 22. EXAMINING BOARDS

PART 23. TEXAS REAL ESTATE COMMISSION

CHAPTER 537. PROFESSIONAL AGREEMENTS AND STANDARD CONTRACTS

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §537.20, Standard Contract Form TREC No. 9-17, Unimproved Property Contract; §537.22, Standard Contract Form TREC No. 11-8, Addendum for "Back-Up" Contract; §537.28, Standard Contract Form TREC No. 20-18, One to Four Family Residential Contract (Resale); §537.30, Standard Contract Form TREC No. 23-19, New Home Contract (Incomplete Construction); §537.31, Standard Contract Form TREC No. 24-19, New Home Contract (Completed Construction); §537.32, Standard Contract Form TREC No. 25-16, Farm and Ranch Contract; §537.37, Standard Contract Form TREC No. 30-17, Residential Condominium Contract (Resale); §537.43, Standard Contract Form TREC No. 36-10, Addendum for Property Subject to Mandatory Membership in a Property Owners Association; §537.46, Standard Contract Form TREC No. 39-10, Amendment to Contract; §537.62, Standard Contract Form TREC No. 55-0, Seller's Disclosure Notice; §537.63, Standard Contract Form TREC No. OP-L, Addendum for Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law; new rule to 22 TAC §537.68, Standard Contract Form TREC No. 61-0, Water Notice: Seller's Disclosure about Groundwater and Surface Water Rights; and new rule to 22 TAC §537.69, Standard Contract Form TREC No. 62-0, Seller's Notice to Buyer of Removal of Contingency Under Addendum for "Back-Up" Contract, in Chapter 537, Professional Agreements and Standard Contracts.

Each of the rules correspond to contract forms adopted by reference. Texas real estate license holders are generally required to use forms promulgated by TREC when negotiating contracts for the sale of real property. These forms are drafted and recommended for proposal by the Texas Real Estate Broker-Lawyer Committee, an advisory body consisting of six attorneys appointed by the President of the State Bar of Texas, six brokers appointed by TREC, and one public member appointed by the governor. The Texas Real Estate Broker-Lawyer Committee recommended revisions to the contract forms adopted by reference under the proposed amendments and new rules. The changes listed below apply to all contract forms unless specified otherwise. Paragraph numbers referenced are from the One to Four Family Residential Contract (Resale).

The term "generators" has been added to Paragraph 2B, Improvements, to reflect the increased prevalence of generators on properties.

In Paragraph 5A(2), a definition of "Legal Holiday" has been added to provide better clarity. The term is also capitalized in the Addendum for "Back-Up" Contract.

In Paragraph 5 and the receipt page, as well as the Addendum for "Back-Up" Contract, the terms "option fee," "earnest money," and "contract" are now in lower case because they are not considered defined terms.

In the Commission's recent Special-Purpose Review by the Sunset Advisory Commission, Sunset directed the Commission to add language to contract forms to provide prospective buyers with relevant information on groundwater and surface water rights associated with a property. To that end, a new Paragraph 7(I) has been added to the contract forms and a new Water Notice: Seller's Disclosure About Groundwater and Surface Water Rights has been created.

The Sunset Advisory Commission also directed, as part of that review, that the TREC Seller's Disclosure Notice be updated to: (i) provide a prospective buyer with information on whether the property is presently covered by insurance, including windstorm insurance, and whether the current seller has been unable to insure their property for any reason; (ii) inform a prospective buyer if there is a private road on or adjoining the property that the prospective buyer would be financially responsible for maintaining; (iii) provide a prospective buyer with information on the existence of aboveground storage tanks on the property that are more than 500 gallons and have stored petroleum products or other chemicals; and (iv) tell a prospective buyer whether their property is located in a conservation easement. The Seller's Disclosure Notice is updated to reflect those directives.

In light of changes to industry practices surrounding compensation, Paragraph 12 has been reworded and reorganized and a new Paragraph 12B has been added related to brokerage compensation. The Amendment to Contract form has been updated to align with these changes and Paragraph 8B has also been removed. Additionally, the disclosure at the bottom of Page 10 related to compensation between brokers has been removed to help eliminate confusion.

Spurred by recent law changes related to the federal Financial Crimes Enforcement Network or FinCEN, language has been added to Paragraph 20B, which requires the parties to provide information needed by the escrow agent for any governmental reporting requirements and requires the buyer to pay any charges associated with gathering and reporting such information.

Paragraph 21 (Notices) was amended to clarify the acceptable delivery methods and that notices are effective when sent to a party or that party's agent. The revised paragraph also provides more options for buyer, seller, and agent contact information. A change is made to the seller's disclosure notice reference in Paragraph 7B for consistency in terminology.

To streamline and improve usability, the committee recommended that all addenda and notices be incorporated into Paragraph 22 and reorganized into clearly labeled categories: Financial, Leases, Additional Tests and Reports, Statutory Disclosures and Notices, and Other. Several references requiring addenda to be attached were removed from Paragraph 6, and one subsection--Paragraph 6(E)(12)--was struck entirely to reduce redundancy.

The Broker Information page has been further reorganized with updated formatting and terminology to better reflect industry practice.

The terms "Listing Broker" and "Other Broker" have been replaced with the terms "Seller's Broker" and "Buyer's Broker" in the Farm and Ranch Contract and the Addendum for Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law.

Paragraph H of the Addendum for "Back-Up" Contract is also revised to change the timing of the Amended Effective Date. A new Seller's Notice to Buyer of Removal of Contingency under Addendum for "Back-Up" Contract has been drafted, which may be used in conjunction with the Addendum.

The Addendum for Property Subject to Mandatory Membership in a Property Owners Association has been modified in Paragraph A(2) so that the buyer is not obligated to provide subdivision information to a seller under that provision. Clarifying language is also added to Paragraph C to address any conflicts that may arise. The term "Effective Date" is also capitalized in the form.

Abby Lee, General Counsel, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the sections. There is no adverse economic effect anticipated for small businesses, micro-businesses, rural communities, or local or state employment as a result of implementing the proposed amendments. There is no significant economic cost anticipated for persons who are required to comply with the proposed amendments. Accordingly, no Economic Impact Statement or Regulatory Flexibility Analysis is required.

Ms. Lee also has determined that for each year of the first five years the sections as proposed are in effect, the public benefits anticipated as a result of adopting the sections as proposed will be improved clarity and greater transparency for members of the public and license holders who use these contract forms.

For each year of the first five years the proposed amendments and new rules are in effect, the amendments will not:

-create or eliminate a government program;

-require the creation of new employee positions or the elimination of existing employee positions;

-require an increase or decrease in future legislative appropriations to the agency;

-require an increase or decrease in fees paid to the agency;

-create a new regulation;

-expand, limit or repeal an existing regulation;

-increase or decrease the number of individuals subject to the rule's applicability; or

-positively or adversely affect the state's economy.

The Commission requests comments on the proposal, including information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis, from any person required to comply with the proposal or any other interested person, which may be submitted through the online comment submission form at https://www.trec.texas.gov/rules-and-laws/comment-on-proposed-rules, to Abby Lee, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

The amendments and new rules are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its license holders to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102. The amendments and rules are also adopted under Texas Occupations Code, §1101.155, which authorizes the Commission to adopt rules in the public's best interest that require license holders to use contract forms prepared by the Texas Real Estate Broker-Lawyer Committee and adopted by the Commission.

The statute affected by these amendments and new rules is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the amendments and new rules.

§537.20. Standard Contract Form TREC No. 9-18 [9-17], Unimproved Property Contract.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 9-18 [9-17] approved by the Commission in 2026 [2024] for mandatory use in the sale of unimproved property where the intended use is for one to four family residences.

§537.22. Standard Contract Form TREC No. 11-9 [11-8], Addendum for "Back-Up" Contract.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 11-9 [11-8] approved by the Commission in 2026 [2024] for mandatory use as an addendum to be attached to promulgated forms of contracts which are second or "back-up" contracts.

§537.28. Standard Contract Form TREC No. 20-19 [20-18], One to Four Family Residential Contract (Resale).

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 20-19 [20-18] approved by the Commission in 2026 [2024] for mandatory use in the resale of residential real estate.

§537.30. Standard Contract Form TREC No. 23-20 [23-19], New Home Contract (Incomplete Construction).

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 23-20 [23-19] approved by the Commission in 2026 [2024] for mandatory use in the sale of a new home where construction is incomplete.

§537.31. Standard Contract Form TREC No. 24-20 [24-19], New Home Contract (Completed Construction).

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 24-20 [24-19] approved by the Commission in 2026 [2024] for mandatory use in the sale of a new home where construction is completed.

§537.32. Standard Contract Form TREC No. 25-17 [25-16], Farm and Ranch Contract.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 25-17 [25-16] approved by the Commission in 2026 [2024] for mandatory use in the sale of a farm or ranch.

§537.37. Standard Contract Form TREC No. 30-18 [30-17], Residential Condominium Contract (Resale).

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 30-18 [30-17] approved by the Commission in 2026 [2024] for mandatory use in the resale of a residential condominium unit.

§537.43. Standard Contract Form TREC No. 36-11 [36-10], Addendum for Property Subject to Mandatory Membership in a Property Owners Association.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 36-11 [36-10] approved by the Commission in 2026 [2022] for mandatory use as an addendum to be added to promulgated forms in the sale of property subject to mandatory membership in an owners' association.

§537.46. Standard Contract Form TREC No. 39-11 [39-10], Amendment to Contract.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 39-11 [39-10] approved by the Commission in 2026 [2024] for mandatory use as an amendment to promulgated forms of contracts.

§537.62. Standard Contract Form TREC No. 55-1 [55-0], Seller's Disclosure Notice.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 55-1 [55-0] approved by the Commission in 2026 [2023] for voluntary use to fulfill the disclosure requirements of Texas Property Code §5.008.

§537.63. Standard Contract Form TREC No. 56-0 [OP-L], Addendum for Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law.

The Texas Real Estate Commission (Commission) adopts by reference standard contract form TREC No. 56-0 [OP-L] approved by the Commission in 2026 [2011] for voluntary use to comply with federal regulation to furnish a lead paint disclosure in properties constructed prior to 1978.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 12, 2026.

TRD-202600651

Abby Lee

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: March 29, 2026

For further information, please call: (512) 936-3057