Texas Real Estate Commission (TREC) and Texas Realtors (TXR) contracts are commonly used in Texas residential real estate. They are, however, optional. The only persons required to use these forms are real estate agents and brokers. Buyers and sellers are free to negotiate and modify TREC and TR forms and direct their agents to make changes and include special provisions.
TREC and TXR contracts are negotiable. Buyers and sellers who want to add special provisions should resist pressure from agents and brokers who may say “This is a standard form, just sign it.”
Consulting a real estate attorney is the best way to get an unbiased evaluation. Engage an attorney before the contract is signed. The TREC contract expressly advises this in paragraph 23.
The contract controls 90% of the rights and remedies of the parties. Neither side can add special provisions later without a signed amendment. Avoid assumptions. If a right, requirement, or condition is not expressly stated in the signed contract then it probably does not exist.
TREC and TXR contracts promote simplicity. However, signing one of these forms can be a missed opportunity to include special provisions that are essential to protecting one’s best interests.
A custom special provisions addendum can be added in order to reflect the total agreement of the parties on all the details. Get it in writing. Oral promises or assurances should never be relied upon in real estate.
Who will prepare the closing documents? Will the non-drafting party be able to review, negotiate, and approve these documents? There should be no surprises at the closing table. Never go to closing without knowing in advance what you will be required to sign.
Resolution of the 2024 NAR litigation changed the traditional practice of automatically splitting the brokerage commission between the two brokers. Now, sellers are not required to pay anything toward a buyer’s broker’s commission. This can be changed by written agreement.
It makes good sense for a buyer to add a special provision stating that the offer is contingent upon the seller’s broker paying the fees of the buyer’s broker.
We offer a review/comment consultation on earnest money contracts so long as they are unsigned and completed on a TREC or TXR form. Fees are $250 for a sales price of up to $1M; $350 for contracts from $1M to $1.5M; and $450 (our usual hourly rate) over that. Read our consultation engagement letter. You will be asked to sign and agree to these terms
