2025 TREC Contract Changes: What Agents Need to Know for 2025
Sage Howell
Solutions oriented Market Center Administrator & Realtor | Serving with Integrity, Excellence, and a Servants Heart
On November 4, 2024, the Texas Real Estate Commission approved revisions to forms recommended by the Texas Real Estate Broker-Lawyer Committee. The updated Condominium Resale Certificate (TREC No. 32-5) is a voluntary-use form. All other contract forms adopted by reference will be available for voluntary use until January 3, 2025, after which their use will become mandatory. It is time to discover those changes. I will be highlighting those changes in a easy to bookmark page here on LinkedIn and my webOn November 4, 2024, the Texas Real Estate Commission approved revisions to forms recommended by the Texas Real Estate Broker-Lawyer Committee. The updated Condominium Resale Certificate (TREC No. 32-5) is a voluntary-use form. All other contract forms adopted by reference will be available for voluntary use until January 3, 2025, after which their use will become mandatory. It is time to discover those changes. I will be highlighting those changes in a easy to bookmark page here on LinkedIn and my website here site here.
Texas real estate agents are navigating significant updates to contract forms, many driven by changes in broker compensation practices and industry standards. These revisions, issued by the Texas Real Estate Commission (TREC), align with updated TAR forms and clarify existing document interpretations. This contract has not been updated since 2018 so this is going to be a significant change. All updates will become mandatory for use starting January 3, 2025. Here’s what you need to know to keep your transactions compliant and here are the following contracts that will be enforced for use in 2025.
Updated & Changed Contract Forms from TREC
Purchase Contracts:
Addendum & Amendments:
Other:
2025 TREC Contract Change Highlights
T-47 & T-47.1
Which Form(s) and Section(s)?
Unimproved Property Contract (TREC 9-17), One to Four Family Residential Contract (Resale) (TREC 20-18), New Home Contract (Completed Construction) (TREC 24-19), Farm and Ranch Contract (TREC 25-16)Paragraph 6C
What’s changed?
To be consistent with a recently updated Texas Department of Insurance procedural rule, Paragraph 6C(1) is amended to include the option of providing the T-47.1 Declaration (which does not need to be notarized)—in lieu of the T-47 Affidavit—when the Seller furnishes the Buyer an existing survey. In lieu of providing a “no survey required” option, Paragraph 6C(2) is amended to read “Buyer may obtain a new survey” instead of “Buyer shall obtain a new survey”, and adds that if the Buyer ultimately fails to obtain the survey, the Buyer does not have the right to terminate the contract under Paragraph 2B of the Third Party Financing Addendum because the survey was not obtained.
Mold Remediation Certificate
Recommended by LinkedIn
Which Form(s) and Section(s)?
Most Contract Forms including One to Four Family Residential Contract (Resale) (TREC 20-18), Paragraph 6E
What’s changed?
Because Texas law requires a seller to provide a buyer a copy of any mold remediation certificate issued during the five years preceding the sale of the property, new Paragraph 6E(11) is added to provide information regarding this requirement (except in the Unimproved Property Contract).
Termination due to lack of Buyer Approval for Third Party Financing
Which Form(s) and Section(s)?
Third Party Financing Addendum Paragraph 2A What’s Changed?
In the Third Party Financing Addendum, to ensure the buyer is terminating appropriately, Paragraph 2A, Buyer Approval, has been changed to require both a notice of termination and a copy of a written statement of the lender’s determination like in Paragraph 2B, Property Approval.
Option and Earnest Money in a Back-Up Contract
Which Form(s) and Section(s)?
Addendum for “Back-Up” Contract, Additional language added in Sections A thru F.
What’s Changed?
The Addendum for “Back-Up” Contract is modified to provide more clarity on the timing and payment of the earnest money and option fee by incorporating similar language from Paragraph 5 of the contract and by addressing timing and payment of additional fees.
Don't worry, it is a lot of information and it can be confusion what to do on what form. So TREC made it easy with this link. TREC Form Changes Effective January 3, 2025
Redline Forms
The following is a list of the contract forms with links to the files that include the above changes in blue and red. This will show the new forms with updates on the file to help indicate the changes and what you should learn to provide more value to your clients and team.
Public comment is closed after December 22 for these proposed rule changes. Follow the link here to register written comments on the rules in the Texas Register.