Form Updates_11-4-24

FORM UPDATES

INDEPENDENCE TITLE

E D U C A T I O N © 2022 Independence Title Education

FORM UPDATES

Forms adopted on 11/4/24 For mandatory use 1/3/25

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Agenda • The Facts • The Forms

1

The Facts Changes apply to all contract forms unless specified otherwise.

Paragraph numbers referenced are from the One to Four Family Residential Contract.

Forms are on the TREC website and in zipForms

The mandatory use date for the new forms is January 3rd, 2025.

RED = Removed BLUE = New

2

Where do I find the new forms

TREC’s Website

3

Locating new & updated forms on TREC’s website.

zipForm

4

zipForm templates are automatically updated.

The Forms FORMS

MANDATORY USE

v One to Four Family Residential Contract

01/03/2025

v Residential Condominium Contract

01/03/2025

v Farm & Ranch Contract

01/03/2025

v Unimproved Property Contract

01/03/2025

v New Home Contract (Complete & Incomplete)

01/03/2025

v Third-Party Financing Addendum

01/03/2025

v Amendment

01/03/2025

v Addendum for ”Back-Up” Contract

01/03/2025

v Condominium Resale Certificate

01/03/2025

v NEW- Addendum for Section 1031 Exchange

01/03/2025

5

Paragraph 4 is amended to add the term “geothermal”.

Paragraph 6C(1) is amended to include the option of providing the T-47.1.

6

To protect your seller’s privacy, hide their DOB and address when uploading the survey and T-47.1 to the MLS.

7

The new Paragraph 6E(11) is added to provide information regarding the mold remediation certificate.

This change does not apply to the Unimproved Property Contract.

Paragraph 6E(12) is modified to add specific examples of the types of notices.

8

Talk to your broker!

Paragraph 12. A

9

12. SETTLEMENT AND OTHER EXPENSES: A. The following expenses must be paid at or prior to closing: 1. Seller shall pay the following expenses (Seller's Expenses): Transaction items and “brokerage fees” the seller agreed to pay in the listing agreement. a) releases of existing liens, including prepayment penalties and recording fees; release of Seller’s loan liability; tax statements or certificates; preparation of deed; one- half of escrow fee; brokerage fees that Seller has agreed to pay; and other expenses payable by Seller under this contract; Use if the buyer wants the seller to pay brokerage fees agreed to in their buyer rep agreement. b) the following amount to be applied to brokerage fees that Buyer has agreed to pay q $ or q % of the Sales Price (check one box only); and Use if the buyer is asking the seller to pay other expenses such as closing costs etc. c) an amount not to exceed $ to be applied to other Buyer’s Expenses.

10

Buyers’ Agent Compensation can come from 3 places: Compensation is negotiable and will be negotiated per transaction.

Source

Method

Listing Agent

Cooperative Compensation

Forms • Listing Agreement AND • Comp Agreement Between Brokers ü (TXR 2402)

Seller

Seller Concessions

• Paragraph 12A. (1) (b) AND/OR • Comp Agreement between Broker and Owner ü (TXR 2401)

Buyer

Direct from buyer

Buyer Rep Agreement

What is Doing?

11

12

Paragraph 12. A

Amendment

13

Conforming changes were also made in the Amendment to the Contract.

The title of Paragraph 20 is changed to “Federal Requirements” from “Federal Tax Requirements.

14

Paragraph 20B of the Farm and Ranch contract has added information regarding the obligations related to the federal Agriculture Foreign Investment Disclosure Act.

Addendum for Section 1031 Exchange is added to Paragraph 22.

15

Addendum for Section 1031 Exchange

NEWAddendum for Section 1031 Exchange allows the seller or buyer to disclose an intent to use a 1031 Exchange.

16

The compensation disclosure in the Broker Information section on pg. 10 has been revised.

No changes to this page in the Farm & Ranch Contract.

Paragraph 3D is amended to include the same sales price adjustment language as in the Farm and Ranch contract.

17

Third-Party Financing Addendum

Paragraph 2A, Buyer Approval, has been changed.

18

The language in Paragraph 2B is modified.

“Requirements” in Paragraph 4 is made singular.

19

Addendum for “Back-Up” Contract

Modified to clarify the timing and payment of the earnest money and option fee.

20

250.00

7,000.00

21

Modified to clarify the timing and payment of the earnest money and option fee.

Modified to clarify the timing and payment of the earnest money and option fee.

22

Condominium Resale Certificate

The Condominium Resale Certificate is amended to conform the language in Paragraphs K and L with section 82.157, Texas Property Code.

23

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