The Texas Real Estate Commission’s Broker-Lawyer Committee (BLC) convened on January 8–9, 2026, to continue its ongoing review of the agency’s contract forms. The committee discussed several proposed updates aimed at improving clarity and usability for real estate professionals and their clients.
A significant portion of the meeting focused on broker compensation. The committee recommended changes to Paragraph 12 of the standard contract forms, including a reorganization of Paragraph 12A(1) and the addition of a new Paragraph 12B specifically addressing brokerage compensation. Additionally, it was recommended that Paragraph 8B be removed.
The committee also addressed how notices are handled in contracts. Changes to Paragraph 21 were suggested to clarify acceptable delivery methods and establish that notices are effective when sent to a party or their agent. The revised language would also expand options for providing contact information for buyers, sellers, and agents.
To make contracts more user-friendly, the BLC proposed reorganizing all addenda and notices into Paragraph 22 under clearly labeled categories such as Financial, Leases, Additional Tests and Reports, Statutory Disclosures and Notices, and Other. Several references in Paragraph 6 that required certain addenda to be attached were removed to reduce redundancy, including the elimination of subsection 6(E)(12).
Another area of focus was governmental reporting requirements. The committee recommended updating Paragraph 20 with language requiring buyers and sellers to promptly provide information requested by escrow agents for government reporting purposes, such as those mandated by the Financial Crimes Enforcement Network (FinCEN). The updated provision clarifies that buyers would be responsible for any costs associated with collecting and submitting this information.
For back-up contracts, an amendment was proposed for the Addendum for “Back-Up” Contract. Under the revision, the effective date of a back-up contract would become the date when the seller delivers notice of termination of the first contract rather than when the buyer receives it. The committee also drafted a new form titled Seller’s Notice to Buyer of Removal of Contingency under Addendum for ‘Back-Up’ Contract; use of this form would be voluntary.
Other updates considered during the meeting included adding “generator” as a term in Paragraph 2B of contract forms and further revising draft language related to water issues in Paragraph 7I.
“The committee voted to forward the updated drafts to the Commission for review at its next meeting in February with a request that the forms changes be proposed and published for public comment. This means that if the changes are proposed and eventually adopted, the earliest the changes would go into effect would likely be June 2026.”
Materials from this meeting can be accessed through Meeting Materials and Minutes provided by TREC. Remaining BLC meetings in 2026 are scheduled for April 10, July 10, and October 9.
