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Commission reviews major contract-form updates and new seller water disclosure; public education planned
Summary
The Broker‑Lawyer Committee presented sweeping contract-form edits—compensation and notice clarifications, water-disclosure language developed after the Sunset review, and optional seller disclosure expansions—while Texas Realtors and others pledged education support as the commission considers public comment.
The Texas Real Estate Commission received an extensive report on proposed changes to statewide contract forms and new seller‑water disclosures, and commissioners approved publishing the proposals for public comment.
John George, co‑chair of the Broker‑Lawyer Committee, summarized revisions that address notice and contact formatting, harmonize compensation language across forms (with special treatment for farm‑and‑ranch contracts), and add a seller water‑disclosure developed during the Sunset Advisory Commission’s special purpose review. The committee removed a direct reference to FinCEN in contract language and narrowed some payment‑allocation clauses after public comment.
“Water disclosures were worked on for years,” George said. “This is a timely addition as water issues move into suburban and city contexts.”
Committee members and commissioners repeatedly stressed the need for robust outreach and training for license holders. Several speakers noted that placing detailed disclosure questions inside an offer can make fast offer formation more cumbersome and called for education rather than assuming immediate practitioner fluency.
Jennifer Wahab, chair of Texas Realtors, told commissioners her organization supported the paragraph‑12 compensation revisions and the water‑related disclosure items and offered to help Texas Realtors’ network navigate the learning curve.
The commission voted to publish the proposed amendments and associated forms for formal public comment. Staff said the changes would be posted to the Texas Register and that some voluntary forms would be available on the agency website until a mandatory effective date in July 2026.
What’s next: the commission will accept public comment on the proposed rule and form changes, staff will collate feedback and return recommendations at a future meeting, and Texas Realtors and other trade groups expect to run training for members to ease implementation.
