April 30, 2014
TREC Adopts Changes to Forms Addressing Title Policy
At its regular meeting on April 28, the Texas Real Estate Commission (TREC) adopted changes to several of their promulgated contract forms. Changes were made in the section of the forms below addressing title policies and surveys — specifically, the Amendment of Areas and Boundaries Exception. The language in this section has been changed to include a check box to elect to purchase the additional coverage as well as determine which party will pay.
For example, in the One to Four Family Residential Contract (Resale), Section 6.A.(8), now reads:
The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements: ❑ (i) will not be amended or deleted from the title policy; ❑ (ii) will be amended to read, "shortages in area" at the expense of ❑ Buyer ❑ Seller.
You can review these changes to this form here
. Similar changes were also made to the forms below, which you can view in their entirety here
- §537.20 Standard Contract Form TREC No. 9‐10, Unimproved Property Contract
- §537.28 Standard Contract Form TREC No. 20‐11, One to Four Family Residential Contract (Resale)
- §537.30 Standard Contract Form TREC No. 23‐12, New Home Contract (Incomplete Construction)
- §537.31 Standard Contract Form TREC No. 24‐12, New Home Contract (Completed Construction)
- e§537.32 Standard Contract Form TREC No. 25‐9, Farm and Ranch Contract
- §537.37 Standard Contract Form TREC No. 30‐10, Residential Condominium Contract
- New §537.53 Standard Contract Form TREC No. 46‐0, Mutual Termination of Contract
The effective date for mandatory use of these forms is June 1, 2014. However, voluntary use will be possible as soon as these updated forms are posted on the TREC website
in the coming weeks.