New TREC contract changes become mandatory April 1st.
We sat down with Charles Kramer, Co-Chair of the Texas Real Estate Commission (TREC) Broker-Lawyer Committee, to discuss the changes and what you need to know for your business.
Contract changes include:
- Residential Lease and Addendum
- Fixture Leases and Addendum
- New Option Fee Procedures
- New Smart Home Provisions
- HOA Addendum Changes
Key changes to the new option fee procedures include:
- Buyer can now write one combined earnest money and option feed check or two separate checks.
- Checks must be made payable to the title company.
- There is a 3 day deadline for option fee and earnest fee.
- The option fee will be automatically credited at closing. If the seller would like the option fee right away, they must let the title company know.
To learn more about the changes and see the updated forms, visit the TREC website.
For the redlined version of the contract changes, where you can see what has been changed, click here.