The Texas Real Estate Commission’s Broker-Lawyer Committee (BLC) convened on January 8–9, 2026, to continue its review of TREC contract forms. The committee discussed several changes aimed at reorganizing and clarifying sections of the contracts used in real estate transactions across Texas.
One significant topic was broker compensation. The BLC recommended revising Paragraph 12 by reorganizing Paragraph 12A(1) and introducing a new Paragraph 12B focused on brokerage compensation. Additionally, the committee suggested removing Paragraph 8B.
Regarding notices, the committee proposed updates to Paragraph 21 to clarify acceptable delivery methods and specify that notices are effective when sent to a party or their agent. The revised paragraph would also offer more options for providing contact information for buyers, sellers, and agents.
To improve usability, the BLC recommended that all addenda and notices be incorporated into Paragraph 22 and organized into categories such as Financial, Leases, Additional Tests and Reports, Statutory Disclosures and Notices, and Other. Several references requiring attached addenda were removed from Paragraph 6, with subsection 6(E)(12) struck entirely to reduce redundancy.
The committee addressed governmental reporting requirements by recommending language in Paragraph 20 that would require buyers and sellers to promptly provide information requested by escrow agents for federal reporting purposes—such as those required by the Financial Crimes Enforcement Network (FinCEN). The revisions clarify that buyers would be responsible for any charges related to gathering this information.
For back-up contracts, the BLC recommended amending the final sentence of Paragraph H in the Addendum for “Back-Up” Contract so that the effective date is when the seller delivers notice of termination of the first contract. This replaces current language stating it is when the buyer receives notice. A new form titled Seller’s Notice to Buyer of Removal of Contingency under Addendum for ‘Back-Up’ Contract was also drafted; its use would be voluntary.
Other updates include adding “generator” to Paragraph 2B of contract forms and further revising a draft Water Notice along with related language in Paragraph 7I.
The committee voted to forward these updated drafts to the Commission for review at its February meeting with a request that they be proposed and published for public comment. If adopted after public input, these changes could take effect as early as June 2026.
Meeting materials and minutes are available online. The remaining Broker-Lawyer Committee meetings in 2026 are scheduled for April 10, July 10, and October 9.
