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Forms Changes Coming August 23

Texas REALTORS® updated several forms after receiving feedback from members and information from NAR. View the redline versions now. 

The forms will be published for use on August 23 and will be available on the Texas REALTORS® website and through forms vendors. 

The listing agreements and buyer representation agreements published June 24 meet the requirements of the NAR rule changes. That means if a seller or buyer is already under a listing agreement or buyer representation agreement published on June 24, 2024, they will not need to sign a new agreement. 

These August 23 changes clarify items and make the forms easier to use. Below is a summary of the upcoming changes. These forms will have a publish date of August 23, 2024.

Residential Real Estate Listing Agreement, Exclusive Right to Sell (TXR 1101)
Residential Real Estate Listing Agreement, Exclusive Right to Lease (TXR 1102)
Farm and Ranch Real Estate Listing Agreement, Exclusive Right to Sell (TXR 1201)

  • Clarifies in Paragraph 5A(1) that payment of listing broker compensation will be reduced in transactions in which the listing broker does not pay all fees authorized by the seller to a buyer’s agent. This only applies if there is another broker that procures the buyer. If the listing broker does not pay the other broker the amounts stated in 5A(2), the seller gets the benefit of that lower amount, and these total compensation is reduced.
  • Clarifies in Paragraph 5A(2) that the seller authorizes and listing broker will pay amounts specified to another broker who procures a Buyer.
  • Adds a new Paragraph 5A(3) that the seller authorizes the listing broker to publicly disclose compensation for the other broker as specified in 5A(2). This authorizes the listing broker to advertise compensation being paid by the listing broker. There is no checkbox. The listing broker automatically gets this authorization when using Paragraph 5A for compensation.
  • Adds a new Paragraph 5A(4) to clarify that the listing broker keeps all amounts received from the seller specified in Paragraph 5A(1) in transactions in which the listing broker acts as intermediary or in transactions in which the buyer is unrepresented. This applies if there is no other broker that procures the buyer. Without a buyer’s agent helping with the transaction, the listing broker has more work to do and should retain the entire compensation.
  • Moves seller authorization for listing broker to disclose that the seller will consider contributions toward the buyer’s expense to the Note directly following Paragraph 5B. The authorization previously located in Paragraph 11F has been removed and replaced with this paragraph. This authorization is for the broker to disclose potential concessions paid by the seller. Note: This paragraph is not used for compensation paid by the listing broker. 

Intermediary Relationship Notice (TXR 1409)

  • Adds a required disclosure regarding broker compensation.
  • Adds an explanatory notice that this form does not satisfy the written consent requirement to act as an intermediary under Texas law. This form is intended to notify the parties that broker will act as an intermediary and whether the broker will appoint associates to communicate with either party.

Representation Disclosure (TXR 1417)

  • Adds a required disclosure regarding broker compensation. 

Residential Buyer/Tenant Representation Agreement – Long Form (TXR 1501)

  • Adds a new paragraph to allow the buyer to authorize buyer’s broker to receive Other Compensation. Any compensation included in this paragraph must be objectively ascertainable, and the specific amount or rate of compensation must be known when the agreement is executed.
  • Clarifies paragraph regarding bonus payments.

Notice from Buyer’s Agent to Seller (TXR 1504)

  • Adds a required disclosure regarding broker compensation. 

Amendment to Buyer/Tenant Representation Agreement (TXR 1505)

  • Clarifies amendments relating to compensation. Allows a change in broker compensation to apply to a specific property. For example, when a specific property offers more compensation than what’s agreed to in the agreement and the buyer/tenant agrees to increase broker compensation only for that specific property.
  • Clarifies paragraph regarding bonus payments.

General Information and Notice to Buyers and Sellers (TXR 1506)

  • Adds an additional disclosure regarding broker compensation.

Compensation Agreement Between Brokers (TXR 2402)

  • Adds a third blank line to the compensation paragraph to provide flexibility on how brokers structure their compensation arrangements. For example, this line can be used for a listing broker to agree to pay the cooperating broker a bonus.

Addendum Regarding Brokers’ Fees (TXR 2406)

  • Adds a paragraph specifically for intermediary broker transactions. In addition to any fees the seller is paying the listing broker in a listing agreement, the seller can agree to pay the listing broker additional fees to be applied to the buyer-side of the transaction. For example, if the seller did not agree to pay compensation to the buyer’s agent in the listing agreement (paragraph 5B), the buyer can request the seller pay an additional amount to the listing broker that will be applied to the compensation the buyer agreed to pay in their buyer representation agreement with the broker. This paragraph should only be used in an intermediary transaction. Otherwise, the parties should use Paragraph D, Other Broker’s Fees, to have the seller pay the buyer’s broker’s compensation.
  • Clarifies which paragraphs are for information purposes only and which paragraphs create new obligations for the seller to pay compensation.
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