The Texas Real Estate Commission met August 8, 2022. The Commission adopted the new Landlord’s Floodplain and Flood Notice (TREC 54-0) form and revisions to the Seller’s Temporary Residential Lease (TREC 15-6) and the Buyer’s Temporary Residential Lease (TREC 16-6) forms, as well as non-substantive rule changes from the agency’s quadrennial rule review. Read on for more takeaways.

Adopted Changes

Flood Disclosure Form for Leases

What Changes?

The Commission adopted a new form, Landlord’s Floodplain and Flood Notice (TREC 54-0), and added a new paragraph to the Seller’s Temporary Residential Lease and the Buyer’s Temporary Residential Lease.

Why the Changes?

A bill passed during the 87th Texas Legislative Session requires a landlord to disclose, in certain situations, whether the landlord is aware that the dwelling is located in a 100‐year floodplain or that the dwelling has flooded within the last five years. Using the new Landlord’s Floodplain and Flood Notice satisfies this requirement.

Because landlords of temporary residential leases are not exempted, the adopted revised forms add a new paragraph referencing the notice in the Seller’s Temporary Residential Lease and the Buyer’s Temporary Residential Lease.

When Can You Use the New and Revised Forms?

The revised Seller’s Temporary Residential Lease (TREC 15‐6) and Buyer’s Temporary Residential Lease (TREC 16-6) are available for voluntary use until September 1, 2022, at which point they become mandatory.

The Landlord’s Floodplain and Flood Notice (TREC 54-0) is for voluntary use, which means that a landlord can use this form or another similar form that meets statutory requirements.

Chapter 537, Professional Agreements and Standard Contracts

What Changes?

There were several changes to certain rules found within Chapter 537 as a result of the TREC’s quadrennial rule review. The adopted changes to the existing rules add the title of the form adopted by reference in each rule to the rule title and add clarifying language to specify which forms are for mandatory versus voluntary use by license holders. The new rules pair previously existing forms that were available for voluntary use by license holders with a rule to provide greater clarity about the forms’ purpose and use. There are no changes to the forms themselves.

Similar changes to the remainder of the rules in Chapter 537 were proposed at the August meeting and will likely be adopted at the Commission’s November meeting.

Why the Changes?

Texas law requires state agencies, including the Commission, to undergo a comprehensive rule review every four years. During this process, the Commission reviews all currently enacted rules to determine if they should be continued, amended, or repealed. This chapter was opened for quadrennial rule review at the February 14 TREC Meeting.

When Do the Rule Changes Become Effective?

These changes become effective August 30, 2022.

Broker Responsibility Course

The updated Broker Responsibility Course includes new videos, updated instructional graphics, and more. The Commission approved the course for 2023-2024, which will be effective January 1, 2023. Instructor trainings for the course will begin in October 2022.

Proposed Changes

Chapter 537, Professional Agreements and Standard Contracts

The Texas Real Estate Broker‐Lawyer Committee recommended revisions to various contract forms. The earliest these proposed changes could be adopted is at the November Commission meeting. The public comment period will open after the proposals are published in the Texas Register.

Where to Find Meeting Materials

You can find redlined versions of forms and rules in the meeting materials packet on the meeting page. The next TREC meeting is Monday, November 7, 2022, in Austin. Make sure you are following the Commission on Twitter, Facebook, and Instagram to stay updated on the latest news.