How to Use the Addendum Regarding Brokers’ Fees

The new Addendum Regarding Brokers’ Fees clarifies the payment of brokers’ fees in transactions using TREC residential sales contracts, such as the One to Four Family Residential Contract, Unimproved Property, and New Home contracts. This form specifies how listing brokers or sellers should handle payments to a buyer’s broker.

To understand how to use the Addendum Regarding Brokers’ Fees (TXR 2406) form, check out this helpful flowchart provided by Texas REALTORS®’ Legal Affairs Department.

Note: Do not use this addendum with the Farm and Ranch Contract, as it already includes broker fee provisions.

For more details and additional guidance, visit texasrealestate.com or explore our forms training classes.