The Broker-Lawyer Committee met October 11 and reviewed hundreds of public comments related to form changes proposed at the August TREC Meeting. Most of BLC’s recommended changes are the culmination of two years’ worth of work on the part of the committee, with other changes recommended in response to industry practice changes around broker compensation affecting many license holders.
BLC Co-Chair John George opened the meeting by explaining TREC’s role in the industry and work of the BLC. BLC assists the Commission by developing the contract forms that the Commission ultimately adopts through rulemaking. Statute requires BLC to draft and revise contract forms that are capable of being standardized to expedite real estate transactions and minimize controversy.
After reviewing all the comments and discussing each proposal, BLC only made a few small tweaks, including removing from the proposal the Paragraph 8B change to add a statement that brokers’ fees are not set by law and are negotiable and keeping previously struck references to addenda in Paragraphs 6E(4), (7), and (9).
Since BLC did not make substantive changes, the Commission can vote to adopt the form changes during the November 4 TREC Meeting. If adopted, the earliest the form changes would be effective is January 2025.
The BLC recommended a change to the Notice of Buyer’s Termination of Contract for proposal by the Commission. In light of the recommended changes to the Third Party Financing Addendum, the recommendation adds to Paragraph 2 the following sentence: “Buyer has delivered to Seller lender’s written statement setting forth the reason(s) for lender’s determination.”
Where to Find Meeting Materials
View a recording of the meeting and download related materials.
Customer Survey
Rules and Laws
Contract Forms