Key Takeaways
- TREC promulgates (creates) standardized contract forms that license holders must use for most residential transactions
- The Broker-Lawyer Committee—6 brokers and 6 attorneys—drafts and revises promulgated forms
- License holders cannot modify promulgated forms except in limited ways: fill in blanks, check boxes, add factual statements, attach addenda
- Unauthorized practice of law (drafting contracts) is a violation of TRELA and can result in license revocation
- There are six types of promulgated forms: contracts, addenda, amendments, notices, and resale certificates
TREC Promulgated Forms Overview
One of the most distinctive aspects of Texas real estate is the use of TREC-promulgated forms. These are standardized contract forms that license holders are required to use in most residential transactions.
Important: This section covers Texas-specific contract forms. For general contract law concepts, see our Real Estate Salesperson exam prep.
What Are Promulgated Forms?
Promulgated forms are contract forms created by TREC that:
- Are mandatory for most residential transactions
- Cannot be substantially modified by license holders
- Are drafted by the Broker-Lawyer Committee
- Are regularly updated to reflect law changes
Broker-Lawyer Committee
The committee that creates promulgated forms consists of:
| Members | Number |
|---|---|
| Licensed brokers (appointed by TREC) | 6 |
| Attorneys (appointed by State Bar) | 6 |
| Total | 12 |
The committee meets regularly to draft, revise, and update promulgated forms.
Categories of Promulgated Forms
| Category | Purpose | Examples |
|---|---|---|
| Contracts | Main purchase agreements | One to Four Family, Farm and Ranch |
| Addenda | Additional terms | Financing, Property Condition |
| Amendments | Changes to contract | Amendment to Contract |
| Notices | Required notifications | Notice of Buyer's Termination |
| Resale Certificates | HOA information | Subdivision Information |
| Temporary Lease | Occupancy agreements | Seller's/Buyer's Temporary Lease |
When Promulgated Forms Must Be Used
| Transaction Type | Promulgated Form Required? |
|---|---|
| Residential 1-4 family | Yes |
| Condominium resale | Yes |
| Farm and Ranch | Yes |
| Unimproved property | Yes |
| Commercial property | No |
| New construction (builder's form) | No |
| Attorney-drafted custom contract | No |
What License Holders CAN Do
License holders are permitted to:
| Action | Example |
|---|---|
| Fill in blanks | Property address, names, dates |
| Check boxes | Select appropriate options |
| Add factual statements | Legal description, special provisions |
| Strike through items | With agreement of parties |
| Attach promulgated addenda | Financing addendum, etc. |
| Leave blanks blank | If not applicable |
What License Holders CANNOT Do
License holders are prohibited from:
| Prohibited Action | Why |
|---|---|
| Drafting contracts | Unauthorized practice of law |
| Modifying printed text | Alters promulgated form |
| Adding legal language | Practice of law |
| Giving legal advice | Not licensed attorney |
| Changing form structure | Unauthorized modification |
Unauthorized Practice of Law
If a license holder:
- Drafts contract language
- Interprets legal provisions
- Advises on legal rights
- Modifies promulgated forms
This constitutes unauthorized practice of law and can result in:
- License suspension or revocation
- Criminal prosecution
- Civil liability
Exam Tip: When in doubt, refer clients to an attorney. The safest answer on the exam is usually "consult an attorney" for legal questions.
Exceptions to Promulgated Form Requirement
Promulgated forms are NOT required when:
| Exception | Example |
|---|---|
| Parties' attorney drafts | Custom contract by attorney |
| Builder's form | New construction sales |
| Commercial transactions | Office, retail, industrial |
| Government sales | HUD, VA foreclosures |
| Court-ordered sales | Probate, divorce |
How many members serve on the Broker-Lawyer Committee that drafts TREC promulgated forms?
Which of the following can a Texas license holder legally do with a promulgated form?