Find out what changed with existing Texas REALTORS® forms and what new ones were adopted.

Earlier this year, Texas REALTORS® task forces examined the association’s forms and proposed changes and new forms. Those proposals were published in April, and members were given a month to submit comments. The task forces discussed all the comments and feedback and adopted the following changes and new forms.

This article does not address every change made to every form; it is a summary of substantive changes. To see redlines of all the adopted changes, visit texasrealestate.com/adopted and look under July 8. To see the new forms, visit texasrealestate.com/realtorforms and search for the form name or number.

All adopted and revised forms went into effect July 8 and are available on texasrealestate.com, in zipForm, and with other approved Texas REALTORS® forms vendors.

Representation Agreements, Generally

  • Modernized contact information of parties.
  • Added language to clarify that a broker has a right to terminate a representation agreement if a client defaults.
  • Added a disclosure of the location of a property in a public improvement district or municipal utility district.

Q: Why were pre-checked boxes removed?

A: For many of these boxes, the parties may not be attaching that form to the contract. Having a checked box where no form is attached creates confusion and potential legal risk for you. For example, on the Information About Brokerage Services form, the agent’s first substantive communication with prospective buyers, tenants, sellers, and landlords concerning specific real property, which necessitates the form be provided, may occur prior to signing a representation agreement. While some brokerages might also include it with a representation agreement, it is not required to be provided specifically at that time.

Whose forms?

The changes and new forms in this update pertain only to forms created by Texas REALTORS®. As a member of Texas REALTORS®, you get exclusive access to more than 150 forms to assist you and your clients in a variety of situations. The Texas Real Estate Commission is currently considering updates to the forms it promulgates for use by all license holders. Any updates to TREC forms will likely be adopted in 2023.

Residential Forms

TXR 1925

Buyer’s Walk-Through and Acceptance Form

  • Added a section for the buyers to specify whether they have seen the property in person or whether they are purchasing the property sight-unseen.
  • Added a section where the buyers will indicate whether they have chosen to have the property reinspected after repairs are completed.
  • Added a section where the buyers will indicate whether they have chosen to purchase a residential service contract.
  • Updated the title to reflect these additions: Buyer’s Walk-Through, Confirmation and Acceptance Form.

TXR 1935, TXR 1936

Seller’s Estimated Net Proceeds Approximation of Buyer’s Closing Costs

The task force proposed pulling down these forms. However, members voiced overwhelming support to keep them. Therefore, these forms will remain available for use.

TXR 2301

Independent Contractor Agreement for Sales Associate

Added a place for the broker to authorize the geographic areas and disciplines in which the associate is authorized to practice.

TXR 1608, TXR 1609

New Residential Condominium Contract (Complete Construction)
New Residential Condominium Contract (Incomplete Construction)

Added that if the buyer elects to terminate pursuant to provisions related to the delivery of update of a Condominium Information Statement, the buyer will get a refund of the earnest money.

Q: On the Buyer’s Walk-Through and Acceptance Form, what if the seller paid for the residential service contract?

A: The TREC One to Four Family Residential Contract (Resale) provides that the buyer may purchase a residential service contract. If the buyer purchases such a contract, the seller shall reimburse the buyer at closing for the cost of the residential service contract. The new language in this form reflects the contract language.

New form: TXR 2405

Referral Agreement Between Brokers

An agreement for a referral fee to be paid to a broker who has referred a prospective client to another broker.

Q: Why does the Referral Agreement Between Brokers include a box to check if the referring broker provided an IRS W-9 or other IRS form?

A: A W-9 provides necessary information to a party who is required to file a 1099. That information includes identifying information and it specifies whether the payee is an individual or corporation. It is a good idea to request a W-9 from all parties you compensate to help you assess the need to file a 1099 based on the corporate or non-corporate status of the entity and to ensure you are providing accurate information on the 1099 when you do need to file. For that reason, it is included on this form.

Commercial Forms

Referral Agreement Between Brokers

An agreement for a referral fee to be paid to a broker who has referred a prospective client to another broker.

TXR 1408

Commercial Property Condition Statement

  • Clarified that this form can be used by a sublessor with a sublease.
  • Expanded the flood disclosures to mirror language in the residential Seller’s Disclosure Notice.

TXR 1801

Commercial Contract – Improved Property

  • Independent consideration for the feasibility period is now delivered to the title company.
  • Additional money paid by the buyer for the extension of the feasibility period may now be considered as additional earnest money and/or independent consideration.
  • Clarified that the seller is only required to deliver to the buyer property information that is in the seller’s possession.
  • Clarified that an overnight delivery service is an acceptable method to deliver notices under the agreement.
  • The term legal holiday was changed to federal reserve bank holiday.
  • Reflects the requirement of the seller to provide a public improvement district disclosure form.

TXR 2101

Commercial Lease

  • The terms contained in the Commercial Lease Addendum for Expense Reimbursement (TXR 2103) have been incorporated directly into the Commercial Lease under Paragraph 4J.
  • Landlords were given the authority to reserve portions of the common area parking for a specific tenant’s short-term use (i.e., curbside pickup spaces).

New Form: TXR 1419

Commercial Listing Agreement Termination

May be used to terminate any Texas REALTORS® commercial listing agreement.

Leasing & Property Management Forms

  • Changed all references of pets to animals.

TXR 1102

Residential Real Estate Listing Agreement, Exclusive Right to Lease

  • Added a notice making landlords aware of the risks of refusing a valid request for an assistance animal.
  • Removed pre-checked box for Information About Brokerage Services under Paragraph 19.

TXR 2001

Residential Lease

  • Clarified language about where to pay the rent, and added options about who can accept the first month’s rent.
  • Added language to clarify the tenant has to produce documentation for assistance animals.
  • Added a question for landlord to note whether the property is part of an HOA.
  • Added a prohibition against planting, growth, consumption, or distribution of cannabis plants or products.
  • Added a prohibition against listing the property on lodging/short term rental websites and added language about guest stay limits.
  • Added that all unpaid debts will bear 18% interest or the maximum allowed by law.

TXR 2003

Residential Lease Application

  • Added a question asking whether the applicant has viewed the property prior to applying.
  • Added a question asking if any animal identified is an assistance animal.

TXR 2201

Residential Leasing and Property Management Agreement

  • Added language to cover fees if the property is not leased on the date the agreement ends and owner terminates the agreement.
  • Added language to cover compensation from benefit programs or packages.
  • Added language to clarify that a broker is not responsible for performing or certifying any inspections or surveys that may be required by local, state, or federal regulations.

New Forms:

TXR 2016

Tenant and Occupant Information

Provides additional space for tenants and occupants to insert information that would not be inserted in the lease.

TXR 2017

Residential Lease Sight Unseen Addendum

Asks if the tenants have viewed the property before signing the lease, the manner in which the tenants viewed it, and provides notice that the tenants who lease the property sight-unseen do so at their own risk.

TXR 2018

Addendum Regarding Fee In Lieu of a Security Deposit

Allows the landlord and tenant to agree to a recurring monthly fee instead of a security deposit.

TXR 2228

Residential Tenant Estoppel Certificate

Asks the tenant to certify that the statements in the certificate are true.

TXR 2229

Notice of Termination Due to Casualty Loss

Allows either the tenant or landlord to terminate the lease in case of a casualty loss.

Q: Why was the term pet changed to animal in the leasing forms?

A: Tenants were confused about the term pet and what constitutes a service animal in the leasing forms. The change was made in all Texas REALTORS® leasing and property management forms for consistency.

Q: Why is there a Residential Lease Sight Unseen Addendum but not a sight-unseen form for residential sales?

A: New sight-unseen language was added to the Buyer’s Walk-Through, Confirmation and Acceptance form (TXR 1925). The lease is handled differently due to timing. Tenants indicate whether or not they viewed the property in person at the beginning of the lease, when the lease is signed. In sales transactions, buyers sign whether they viewed the property in person at the end of the sales transaction, just before closing.

Q: What is the Addendum Regarding Fee in Lieu of a Security Deposit and am I required to use it?

A: The form is optional. The Texas Legislature passed a bill to allow landlords to accept a monthly fee from a tenant instead of charging a security deposit. This form provides for that. It is optional for the landlord to even offer that option to tenants. Such a fee is monthly and non-refundable and payable at the same time as the rent. The agreement to pay a fee in lieu of a security deposit must be in writing and signed by the landlord and tenant. A landlord may not use a prospective tenant’s choice to pay a fee or security deposit in the determination of whether to approve a lease applicant.