Proposed TREC Form Updates: What You Need to Know

The Texas Broker-Lawyer Committee (BLC) met twice in July to review TREC’s forms and discuss potential changes to the contract forms due to the proposed NAR settlement.

Proposed Changes and Timeline

The BLC’s recommendations will be presented at the next TREC Meeting on August 19. Once proposed, there will be an opportunity for public comment, which the BLC will consider at its next meeting on October 11. The earliest any changes could be adopted is November 4 at the TREC Meeting.

Key Recommendations on Compensation Language

Paragraph 12A:

1. 12A(1)(a) and 12A(2): Each party pays the brokerage fees they have agreed to.
2. 12A(1)(b): Amended to allow a specific seller contribution to the buyer’s brokerage fees.
3. 12A(1)(c): Newly added to address other seller contributions (previously in 12A(1)(b)). The previous language specifying the order and limitations on fee payments has been removed.

Broker Information Section:

• The compensation disclosure now omits the MLS reference.
• Added checkboxes to reflect the fee either as a percentage or a dollar amount.

Stay Informed

Be sure to attend or livestream the TREC Meeting on August 19 to learn more about these and other recommendations from the BLC.