{"id":27953,"date":"2024-06-20T00:53:46","date_gmt":"2024-06-20T05:53:46","guid":{"rendered":"https:\/\/pintailcos.com\/web\/additional-updates-to-buyer-rep-agreement-amendment\/"},"modified":"2024-06-20T00:53:46","modified_gmt":"2024-06-20T05:53:46","slug":"additional-updates-to-buyer-rep-agreement-amendment","status":"publish","type":"post","link":"https:\/\/pintailcos.com\/web\/additional-updates-to-buyer-rep-agreement-amendment\/","title":{"rendered":"Additional Updates to Buyer Rep Agreement &amp; Amendment"},"content":{"rendered":"Texas REALTORS\u00ae this week modified provisions related to bonuses and other compensation in the Residential Buyer\/Tenant Representation Agreement \u2013 Long Form (TXR 1501) and the Amendment to Buyer\/Tenant Representation Agreement (TXR 1505). These changes are new and were not included in the original update last week.\nThese newly updated forms are available on texasrealestate.com.\nAfter discussions with NAR legal staff, Texas REALTORS\u00ae determined that the provisions related to bonuses and other compensation in the association\u2019s buyer\/tenant agreement did not satisfy the \u201cobjectively ascertainable\u201d requirement in the NAR settlement. Texas REALTORS\u00ae would not have made this change at this time if the association didn\u2019t feel it was necessary to protect members and the association. Here is a summary of the changes:\nResidential Buyer\/Tenant Representation Agreement \u2013 Long Form (TXR 1501)\n\nParagraphs 7E(3) dealing with bonuses and 7E(4) dealing with other compensation have been deleted.\nA note regarding bonuses and other compensation has been added. The broker must disclose the specific amount of the bonus, and the client must authorize the additional compensation after the specific amount is known. Authorization can be done by amending the agreement.\nRationale: Having blank lines to insert amounts for bonuses and other compensation would potentially lead to compensation that was not \u201cobjectively ascertainable\u201d as required by the NAR settlement. Any compensation amount in the agreement must be a definite number or a rate that can be calculated to reach a definite number, such as percent of sales price. Therefore, the blank lines to insert compensation for bonuses or other compensation were removed from the buyer\/tenant agreement. If a buyer or tenant is submitting an offer on a specific property that has a bonus or other compensation available to broker, members can use the amendment to get their clients authorization once a definite amount is known. Brokers should have a conversation about potential bonuses at the time the buyer\/tenant agreement is signed.\n\nAmendment to Buyer\/Tenant Representation Agreement (TXR 1505)\n\nParagraph E was added as a place where the broker and client can amend the Buyer\/Tenant Representation Agreement to get the client\u2019s authorization for the broker to receive a definite amount of a bonus or other compensation. The association included a line to insert the property address where the bonus is being offered since the bonus would only apply to specific properties.\n\nSee information about all the changes.","protected":false},"excerpt":{"rendered":"<p>Texas REALTORS\u00ae this week modified provisions related to bonuses and other compensation in the Residential Buyer\/Tenant Representation Agreement \u2013 Long Form (TXR 1501) and the Amendment to Buyer\/Tenant Representation Agreement (TXR 1505). These changes are new and were not included in the original update last week. These newly updated forms are available on texasrealestate.com. After [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[108],"tags":[],"class_list":["post-27953","post","type-post","status-publish","format-standard","hentry","category-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/posts\/27953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/comments?post=27953"}],"version-history":[{"count":0,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/posts\/27953\/revisions"}],"wp:attachment":[{"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/media?parent=27953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/categories?post=27953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/tags?post=27953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}