{"id":28175,"date":"2024-08-26T00:40:38","date_gmt":"2024-08-26T05:40:38","guid":{"rendered":"https:\/\/pintailcos.com\/web\/trec-adopts-new-safe-harbor-rule-and-proposes-form-changes\/"},"modified":"2024-08-26T00:40:38","modified_gmt":"2024-08-26T05:40:38","slug":"trec-adopts-new-safe-harbor-rule-and-proposes-form-changes","status":"publish","type":"post","link":"https:\/\/pintailcos.com\/web\/trec-adopts-new-safe-harbor-rule-and-proposes-form-changes\/","title":{"rendered":"TREC Adopts New \u201cSafe Harbor\u201d Rule and Proposes Form Changes"},"content":{"rendered":"The Texas Real Estate Commission on August 19 adopted a new rule and proposed forms changes.\nAdopted \u201cSafe Harbor\u201d Rule\nThe new rule provides a business entity and sponsored sales agents a 14-day grace period from the day of a broker\u2019s death before the broker\u2019s license becomes inactive. This grace period will provide the entity with time to name a new designated broker.\nProposed Forms Changes\nThe commission proposed the changes listed below. You can comment at the TREC website about these changes. The public comment period will run for 30 days after the form changes are published in the Texas Register. The commission will vote on whether to adopt the proposed rules at its November 4 meeting. Any adopted changes would go into effect in early 2025.\nOne to Four Residential Contract\n\nAmends Paragraph 4 to add the term \u201cgeothermal\u201d to the definition of Natural Resource Leases.\nAmends Paragraph 6C(1) to include an option of providing the T-47.1 Declaration (which does not need to be notarized) in lieu of the T-47 Affidavit when the seller furnishes the buyer with an existing survey. This proposed rule change would make the contract consistent with a recently updated Texas Department of Insurance rule change regarding notarization requirements for the T-47 Affidavit that will go into effect in November.\nAmends Paragraph 6(C)2 to read \u201cBuyer may obtain a new survey\u201d instead of \u201cBuyer shall obtain a new survey.\u201d Add that if the buyer fails to obtain the survey, the buyer does not have the right to terminate the contract under Paragraph 2B of the Third Party Financing Addendum because the survey was not obtained.\nAdds Paragraph 6E(11) to provide information regarding the required mold remediation certificate.\nAmends Paragraph 8B to add a disclosure that brokers\u2019 fees are not set by law and are negotiable.\nAmends Paragraph 12A(1)(a) and 12A(2) to add that both parties pay the brokerage fees that they have agreed to pay.\nAmends Paragraph 12A(1)(b) to allow for a specific seller contribution to the buyer\u2019s brokerage fees.\nAdds Paragraph 12(a)(1)(c) to separately address other seller contributions and the prior language that specific the order in which any contribution was to be paid as well as the limitation on the type of fee that could be paid is removed.\nThe compensation disclosure in the Broker Information section of the contracts (except for the Farm and Ranch Contract) has been modified to remove the parenthetical referencing the MLS and to add checkboxes to allow for the fee to be reflected.\n\nThird Party Financing Addendum\n\nTo ensure the buyer is terminating appropriately, Paragraph 2A (Buyer Approval) would be changed to require both a notice of termination and a copy of a written statement of the lender\u2019s determination, like in Paragraph 2B (Property Approval).\n\nUnimproved Property Contract\n\nAmends Paragraph 3D to include the same sales price adjustment language as in the Farm and Ranch Contract.\n\nAddendum for Back Up Contract\n\nAmends Paragraph 11, Special Provisions, to provide more clarity on the timing and payment of the earnest money and option fee by incorporating similar language from Paragraph 5 of the contract and by addressing the timing and payment of additional fees.\n\nNew Addendum for Section 1031 Exchange\n\nAdds an addendum for Section 1031 Exchange that allows the seller or buyer to disclose an intent to use the property in a transaction as a 1031 exchange and includes a statement that the parties will reasonably cooperate with each other.\n","protected":false},"excerpt":{"rendered":"<p>The Texas Real Estate Commission on August 19 adopted a new rule and proposed forms changes. Adopted \u201cSafe Harbor\u201d Rule The new rule provides a business entity and sponsored sales agents a 14-day grace period from the day of a broker\u2019s death before the broker\u2019s license becomes inactive. This grace period will provide the entity [&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-28175","post","type-post","status-publish","format-standard","hentry","category-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/posts\/28175","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=28175"}],"version-history":[{"count":0,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/posts\/28175\/revisions"}],"wp:attachment":[{"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/media?parent=28175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/categories?post=28175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/tags?post=28175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}