The Texas Real Estate Commission met on Feb 9 in Austin. Here are updates relevant to you.
Elections
Chance Brown, a REALTOR® from Cypress, was elected as Commission Vice Chair.
Kristi Davis, a REALTOR® from Carrollton, was elected as Commission Secretary.
REALM Portal Update
TREC Executive Director Chelsea Buchholtz gave a status update of the REALM Portal:
New license applications are currently experiencing the most challenges. Staff are manually processing applications as quickly as possible while automated system issues are being resolved. Although progress is being made, a backlog remains and some applications are still pending. Applicants are able to check the status of their application online.
Brokers are now able to download an excel report listing their sponsored license holders. An instructional video explaining how to do this is available at trec.texas.gov/lms.
The status of licenses that did not renew in November, December, or January was discussed.
An upcoming data conversion is expected to restore missing team names, DBAs, and designated brokers.
Call volume related to the new portal remains very high.
Amended Rules That Passed:
Passed unanimously (and adopted 2/9/26):
22 TAC §533.11 (Temporary Suspension) – this new rule was recommended by the Executive Committee and would clarify the process as to when and how a temporary suspension is utilized under Tex. Occ. Code §1101.662 & 1102.408. The rule requires that the Commission temporarily suspend a license when a license holder’s continued practice would constitute a continued threat to the public welfare.
22 TAC §535.214 (Real Estate Inspector License Requirements) – this amendment was recommended by the Real Estate Inspector Committee (REIC) and clarifies that qualifying education must be completed prior to beginning the Texas Practicum to ensure that applicants have foundational knowledge that can be applied to the Practicum’s required inspections.
Proposed New Rules & Amendments:
These are all proposed amendments and new rules to 22 TAC §537 that were recommended by the Broker Lawyer Committee and approved by the Commission on 2/9/26 to be published in the Texas Register and made available for public comment:
TREC 9-17 Unimproved Property Contract – See summary below. If adopted, the new form number will be TREC 9-18.
TREC 11-8 Addendum for “Back-Up” Contract –Updates the Amended Effective Date to “the date Seller delivers notice of termination of the First Contract to Buyer.” Currently, the Amended Effective Date is the date Buyer receives notice of termination of the First Contract. Capitalizes Legal Holiday and Effective Date, and changes option fee to lower case. If adopted, the new number will be TREC 11-9.
TREC 20-18 One to Four Family Residential Contract (Resale) – See summary below. If adopted, the new form number will be TREC 20-19.
TREC 23-19 New Home Contract (Incomplete Construction) – See summary below. If adopted, the new form number will be TREC 23-20.
TREC 24-19 New Home Contract (Completed Construction) – See summary below. If adopted, the new form number will be TREC 24-20.
TREC 25-16 Farm & Ranch Contract – See summary below. If adopted, the new form number will be TREC 25-17.
TREC 30-17 Residential Condominium Contract (Resale) – See summary below. If adopted, the new form number will be TREC 30-18.
TREC 36-10 Addendum for Property Subject to Mandatory Membership in a Property Owners Association – Paragraph A(2) updated so that buyer is not obligated to provide subdivision information to the seller; capitalized “Effective Date” throughout; added the statement, “If this paragraph (C.) conflicts with any allocation of charges in the Subdivision Information, this paragraph will control.” If adopted, the new form number will be TREC 36-11.
TREC 39-10 Amendment to Contract – Updated to match the new proposed Paragraph 12 in the contracts. If adopted, the new form number will be TREC 39-11.
TREC 55-0 Seller’s Disclosure Notice – The proposed amendments will be added to Paragraph 9 and arise out of the recommendation from the Sunset Commission that the seller provide additional information relating to insurance, private roads, aboveground storage tanks, and conservation easements. If adopted, the new form number will be TREC 55-1.
TREC OP-L Addendum for Seller’s Disclosure of Information on Lead-Based Paint and Lead-Based Hazards as Required by Federal Law – Changed “Other Broker” to “Buyer’s Broker” and “Listing Broker” to “Seller’s Broker.” Updated “licensees” in the footer to “license holder.” If adopted, the new form number will be TREC 56-0.
TREC 61-0 *New* Water Notice: Seller’s Disclosure about Groundwater and Surface Water Rights – This new form is the result of the recommendation from the Sunset Commission that contract forms provide prospective buyers with information on groundwater and surface water rights associated with a property. If adopted, the new form will be for mandatory
TREC 62-0 *New* Seller’s Notice to Buyer of Removal of Contingency Under Addendum for “Back-Up” Contract – If adopted, this new form will be for voluntary use as a notice to a buyer under a “back-up” contract that the first contract is terminated, and the back-up contract is now the primary contract.
Summary of changes to the contracts listed above:
“Generators” has been added to the list of property improvements in 2.B. to reflect the increased prevalence of generators on properties. Not included in Unimproved or New Home Contracts.
New definition: “Legal Holiday” is now a defined term in 5.A.(2) to provide better clarity. “’Legal Holiday’ means a legal holiday described in Sections 662.003(a) and 662.003(b)(4) and (6), Texas Government Code.” It includes:
Jan 1 – New Year’s Day
3rd Monday in Jan – MLK, Jr. Day
3rd Monday in Feb – President’s Day
Last Monday in May – Memorial Day
June 19 – Emancipation Day in Texas
July 4 – Independence Day
1st Monday in Sept – Labor Day
Nov 11th – Veteran’s Day
4th Thurs in Nov – Thanksgiving Day
Friday after Thanksgiving Day
Dec 25th – Christmas Day
General changes: “option fee,” “earnest money,” and “contract” are now in lower case because they are not considered defined terms. Where Seller’s Disclosure Notice is referenced, changed “Notice” to “Seller’s Disclosure Notice” to avoid confusion with Paragraph 21 notices.
New water information added in Paragraph 7 to reflect the directive from the Sunset Commission – the seller will indicate: whether the buyer has already received the Water Notice, when the seller will deliver the Water Notice, or that the seller is not required to provide the water notice.
Paragraph 12 has been reworded and reorganized “in light of changes to industry practices surrounding compensation.” Paragraph 12.A. has been titled “Expenses” and removes brokerage fees from the paragraph. “Brokerage Compensation” has been moved to a separate paragraph, Paragraph 12.B., and now provides an option for the buyer to contribute to the seller’s broker’s compensation. The excess expense paragraph has been moved to Paragraph 12.C. and reworded for clarification. Note that Paragraph 8.B. has been deleted as the statement relating to the parties’ obligations to compensate their brokers is now included in Paragraph 12.B.
New language in 20.B. that requires parties to provide information needed by the escrow agent to file any required government reports and makes the associated costs of filing a buyer responsibility. This is in response to the new FinCEN Residential Real Estate Rule reporting requirement going into effect on March 1, 2026.
Changes to Paragraph 21 allow notices to be provided to the party or the party’s agent (currently, notices are required to be provided to the party), and adds overnight courier as a delivery option.
Reorganization of Paragraph 22 so that addenda and notices are now categorized into the following categories: Financial, Leases, Additional Tests and Reports, Statutory Disclosures and Notices, and Other. References to addenda in other places in the contract were removed and consolidated in Paragraph 22.
Broker Information page has been reorganized “to better reflect industry practice.” Intermediary has been moved to a separate section on the page.
Updated references for better clarity – “Listing Broker” is now “Seller’s Broker” and “Other Broker” is now “Buyer’s Broker.”
The informational disclosure of broker compensation at the bottom of Page 10 has been removed to help eliminate confusion. Doesn’t apply to Farm and Ranch Contract.
Next Steps:
The proposed rules and amendments will be published in the Texas Register and on TREC’s website for public comment.
The Broker Lawyer Committee will meet again on April 10th, when they will consider public comments received. If recommended by the BLC for adoption, the Commission will make a decision at the May 4th Commission meeting.
Note that the May 4th Commission meeting will be held at the Marriott West Loop in Houston.