Texas Contracts

Texas Contracts: TREC Promulgated Forms Exam: Texas Real Estate Salesperson Last Updated: June 2026 --- ## Overview of TREC Promulgated Forms TREC (Texas Real Estate Commission) promulgates specific contract forms that license holders must use in most residential transactions. Using non-promulgated forms when a promulgated form exists is a license law violation. | Form Type | Description | |---|---| | Promulgated | Required by TREC; must be used when applicable | | Approved | Optional; TREC has reviewed and approved for use | | TAR Forms | Texas Association of Realtors forms; for member use only | > Exam Tip: License holders can only use non-promulgated forms prepared by an attorney for a specific transaction, or when no promulgated form exists. Using a TAR form when a TREC form applies is a violation. --- ## One to Four Family Residential Contract (Resale) — Key Paragraphs This is the most tested contract on the Texas exam. Know each paragraph's purpose. ### Paragraph 1 — Parties Names the buyer and seller. The listing broker must ensure both parties are correctly identified. ### Paragraph 2 — Property Describes the property by address and legal description, including any exclusions or inclusions. ### Paragraph 3 — Sales Price Breaks down the purchase price into: cash portion + sum of all financing = total sales price. ### Paragraph 4 — License Holder Disclosure License holders with an interest in the property must disclose that interest. ### Paragraph 5 — Earnest Money | Term | Details | |---|---| | Deadline | Must be delivered to escrow agent within the time stated | | Holder | Title company or escrow agent, not the broker | | Default…