TREC Form Changes - Option Fee

In response to concerns raised by TLTA's Regulatory Committee, TLTA submitted a letter to the Texas Real Estate Commission's (TREC) Broker Lawyer Committee regarding proposed changes to the termination option language included in TREC contract forms. The letter proposed revising Paragraph 23 to remove the “Option Fee” and instead have a portion of the earnest money provide the previous function of the option fee, as is the case in many commercial transactions today.

TREC has adopted changes to their residential contract forms with respect to the delivery of option fees. The updated forms become mandatory on April 1, 2021 but may be used on a voluntary basis after Feb. 19, 2021.

News

TLTA coverage and more information about this issue.  

Reference

Additional information and resources about this issue, including rules, forms, websites or other documents.

• TREC FAQs; TREC Contract Forms
• TLTA Webinar on Demand - Recent TREC Contract From Changes – recorded 2/4/21
• Texas Realtor FAQs on Timeline and Implementation – 1/27/21
• TLTA Letter to TREC – 1/6/20