TREC Proposal Would Restrict Brokerages From Drafting Forms

The Texas Real Estate Commission in November proposed changes to Section 537.11, Use of Standard Contract Forms. The new language amends the exceptions to the requirement that a license holder use a commission-approved contract form and clarifies what is considered the unauthorized practice of law.

The current rule allows a broker to use an attorney to draft a contract form for a party to use in a transaction when TREC has no mandatory form in place. The proposed rule removes this option and would require parties to engage an attorney to draft a contract document or for the parties to write the contract language themselves.

This proposed rule change would not apply to a contract in which the license holder is a principal.

Read the full list of rule proposals in the Texas Register, and send any comments by Dec. 25 to the Texas Real Estate Commission.

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