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Broker Lawyer Committee proposes contract changes including water‑rights addendum and updated paragraph on contributions
Summary
The Broker Lawyer Committee recommended multiple contract and form changes for public comment, including adding Emancipation Day to the legal‑holiday definition, five extra seller‑disclosure fields (insurance, windstorm, large tanks, conservation easement, adjoining private road) and a new groundwater addendum with trigger points; staff will publish the redlines for comment.
The Texas Real Estate Commission heard a detailed presentation from the Broker Lawyer Committee on proposed changes to standard contract forms and associated definitions and recommended that staff publish the draft language for public comment.
Committee co‑chair John George said the package ranges from minor wording edits to substantive additions required by a Sunset Commission special purpose review. Notable changes include a legal‑holiday definition expanded to include Emancipation Day, and five additional seller‑disclosure items the Sunset review asked staff to draft: whether the property is covered by insurance, windstorm coverage, presence of above‑ground tanks larger than 500 gallons that formerly held petroleum, conservation easement status, and whether a private road adjoins the property.
On water rights, the committee crafted a two‑page groundwater addendum that triggers a fuller disclosure if certain conditions exist — for example, the presence of a well, pond or holding tank, or a permit for surface water rights. "We have drafted language in to inform in the contract to start the conversation about water issues," John George said, describing the addendum as an education tool for licensees and consumers.
The committee also revisited paragraph 12 dealing with contributions toward buyer/seller commissions after the passage of Senate Bill 1968. The revised paragraph clarifies that the contribution constitutes a contribution toward amounts and does not alter other written agreements; the committee recommended mutualizing contribution options so either party could contribute to the other side's commission in limited scenarios.
General counsel Abby Lee confirmed staff will publish the committee's redlines and that the committee did not take a position on final adoption; the commission authorized staff to submit the proposed rule changes and forms for publication and public comment.
Supporters said the changes respond to industry shifts and requests from the Sunset review; skeptics cautioned about creating obligations that may exceed statutory requirements. Commissioner concerns focused on potential precedent and whether the commission is the proper forum for imposing certain disclosures without statutory change.
The committee and staff encouraged licensees and stakeholders to review and comment during the public‑comment period once redlines appear in the Texas Register.
