Trec Forms

TREC Promulgated Forms ## Why Texas Mandates Contract Forms TREC is unique among state real estate commissions in that it not only approves contract forms but actually promulgates (mandates the use of) specific forms for covered real estate transactions. Texas licensees who are parties to covered transactions must use these forms — they cannot use forms of their own creation or forms drafted by a third party (other than an attorney retained by the parties). Using a self-drafted contract instead of a promulgated form constitutes the unauthorized practice of law. The rationale is consumer protection: TREC-promulgated forms have been reviewed by the Commission, attorneys, and practitioners to ensure they are legally sound. Consumers can rely on standard forms that courts and title companies understand. ## The Main TREC Promulgated Forms | Form | Use Case | |------|----------| | One to Four Family Residential Contract (Resale) | Most common; resale of 1-4 unit residential property | | New Home Contract (Incomplete Construction) | Home under construction | | New Home Contract (Completed Construction) | Newly built but finished home | | Farm and Ranch Contract | Rural land with agricultural improvements | | Unimproved Property Contract | Land without significant improvements | Commercial transactions — office buildings, retail, industrial, multi-family of 5+ units — do NOT have a TREC-promulgated form. Those contracts must be drafted by attorneys or agreed to by the parties. ## TREC Addenda In addition to the base contracts, TREC promulgates several addenda: - Third Party Financing Addendum — governs loan approval conditions and timelines - Addendum for Sale of Other Property by Buyer — contingency on buyer selling their existing home - **Addendum for Reservation of…