The Texas Real Estate Commission’s Broker-Lawyer Committee met on January 8–9, 2026, to continue its review of contract forms used in real estate transactions across the state. The committee discussed several proposed changes aimed at clarifying and streamlining existing documents.
One significant area of focus was broker compensation. The committee recommended revisions to Paragraph 12, including reorganizing Paragraph 12A(1) and adding a new Paragraph 12B specifically related to brokerage compensation. They also suggested removing Paragraph 8B from the forms.
Changes were also recommended for Paragraph 21, which addresses notices. The updated language would clarify acceptable delivery methods and specify that notices are effective when sent to a party or their agent. Additional options for contact information for buyers, sellers, and agents were included in the revision.
To improve usability, the committee proposed consolidating all addenda and notices into Paragraph 22, organizing them into categories such as Financial, Leases, Additional Tests and Reports, Statutory Disclosures and Notices, and Other. References requiring certain addenda attachments were removed from Paragraph 6, with subsection 6(E)(12) struck entirely to reduce redundancy.
Regarding governmental reporting requirements, the committee recommended new language in Paragraph 20 that would require buyers and sellers to promptly provide information requested by escrow agents for purposes such as reporting to the federal Financial Crimes Enforcement Network (FinCEN). Under this proposal, buyers would be responsible for any charges related to gathering and reporting this information.
For contracts involving back-up offers, an amendment was suggested so that the effective date of a back-up contract is set when the seller delivers notice of termination of the first contract—not when the buyer receives it. Additionally, a new voluntary form titled Seller’s Notice to Buyer of Removal of Contingency under Addendum for ‘Back-Up’ Contract was drafted.
Other updates discussed included adding “generator” as a term in Paragraph 2B of contract forms and further revising draft language regarding water notices in Paragraph 7I.
The committee voted to forward these updated drafts to the Texas Real Estate Commission for consideration at its February meeting. If approved through public comment and adoption processes, these changes could take effect as early as June 2026.
The Broker-Lawyer Committee has scheduled additional meetings throughout the year on April 10, July 10, and October 9.
“The revised paragraph also provides more options for buyer, seller, and agent contact information.”
“The committee recommended language that would require buyers and sellers to promptly execute and deliver information requested by the escrow agent for governmental reporting purposes (for example, reporting to the federal Financial Crimes Enforcement Network). The revised language clarifies that buyers would be responsible for any charges associated with gathering and reporting this information.”
