Since TREC doesn’t offer a residential lease or commercial contracts, can my brokerage’s in-house attorney draft those forms?
Texas Real Estate Commission rules allow you to use a form drafted by a Texas lawyer—including a brokerage’s in-house counsel—for a particular kind of transaction when no mandatory TREC form exists as long as the form contains:
- The name of the lawyer who prepared the form
- The name of the broker for whom the form was prepared
- The type of transaction for which the lawyer approved the use of the form
- Any restrictions on the use of the form.
If the form is an addendum that changes the rights, obligations, or remedies of a party under a mandatory TREC contract or addendum, it must have these additional items:
- A statement about how the addendum changes the rights, obligations, or remedies of a party, with a reference to the relevant paragraph number in the mandatory use form
- A statement that the form is not a mandatory TREC form
- A statement that TREC rules prohibit real estate license holders from giving legal advice.
Members of Texas REALTORS® have exclusive access to more than 130 forms for various types of real estate transactions not covered by mandatory TREC forms, including residential and commercial forms. See if there is a form already available for your transaction in the forms section of 3588612.com.
I do not see anywhere the requirements for all of the statements you suggest being mandatory. As long as the agent/broker has evidence that the form and/or changes are recommended by an attorney that should be enough, in my opinion. Normally there is at least an email string which meets the “requirements” you are espousing. Please advise if this is incorrect.
Here is a link that talks about the proposal http://txrealtors.wordpress.com/about/texas-real-estate-commission-proposes-many-changes-at-its-august-meeting/
l too am at a loss to find a TREC Rule that mandates using TREC forms. Can someone please tell me where to find that rule? Thank you.
See TRELA §1101.155, Rule 537.11
The lack of a TREC residential lease is a cause for TREC to be ashamed of themselves. I though TREC’s purpose was to protect the residents of Texas. Since a large amount of Texans live in rental dwellings, not having a uniform TREC form is a disgrace. It is clear TREC is not trying to protect a large segment of the Texas population in this matter. This shows me that TREC’s primary purpose is to keep real estate offices in business. It is interesting that there is a TREC form for a temporary lease in case of a sale of… Read more »
You probably should become more familiar with Chapter 92 of the Texas Property Code. And actually, read lest say the Sellers Temp Lease paragraphs 21 and 22. TREC has promulgated these 2 leases for a short-term lease of less than 90 days. The Texas Property code requires security devices be installed on rental property. Under a lease for less than 90 that requirement is waived. In addition, smoke detectors must be installed, inspected and repaired regardless of the term of the lease. The temp lease waives the landlord from inspecting and repairing the smoke detectors. If you really feel a… Read more »
I just use the TAR lease… I have not really ran into anyone that doesn’t.