True or false? You must have a real estate license to use the forms posted on the Texas Real Estate Commission’s website.
False. TREC’s forms are public record, so they are available to anyone. However, the forms are primarily intended for use by real estate license holders, who are generally required to use these forms.
However, taken directly from the TREC website where those forms are stored: “Notice Regarding Use of Contract Forms As public records, contract forms adopted by the Texas Real Estate Commission are available to any person. Real estate license holders are required to use these forms. However, TREC contract forms are intended for use primarily by licensed real estate brokers or sales agents who are trained in their correct use. Mistakes in the use of a form may result in financial loss or a contract which is unenforceable. Persons using these forms assume all risks associated with their proper use. If… Read more »
We aren’t not “required” to use these forms and in fact, I never do.
According to TREC rules, yes, real estate brokers are required to use “these forms.”
Then how do REIs buy houses without Contract form?
Unless your buyer has or their attorney has supplied one…again, not sure how you are reading this, but you can’t sell million dollar commercial properties with forms supplied by a government agency…again to be legal it needs to be drafted by a Texas attorney…the TREC forms are used in absence of drafting by an attorney…
hi, quick question, can we create our own lease agreement on a property listed on MLS? or do we have to use the forms and use special provisions for modifications? how about farmland ag lease?
Jeanette — Please post your license number on here, and the name of your Broker. ~I’m sure TREC would like to know which Agents are not using the forms promulgated by TREC, as they are MANDATORY for all licensed real estate agents to use!
My guess is going to be that she is NOT licensed!
Dude read the statute…Brokers only need to use the TREC forms when there is no Texas attorney drafting a purchase agreement…in that case you do have to use TREC forms.
The commission may not prohibit a license holder from using for the sale, exchange, option, or lease of an interest in real property a contract form that is either prepared by the property owner or prepared by an attorney and required by the property owner.
Jeanette, if you do not use TREC forms, do you use HAR forms; if not, are you using contract forms prepared by an attorney. Just curious since TREC does not allow us to “practice law”. You are correct that we are not required to use ‘TREC” forms.
All Texas Real Estate Commission license fees are required by law to use trec promulgated forms
But anyone can use TREC forms per your website:
“True or false? You must have a real estate license to use the forms posted on the Texas Real Estate Commission’s website.
False. TREC’s forms are public record, so they are available to anyone. However, the forms are primarily intended for use by real estate license holders, who are generally required to use these forms.
Nobody has answered my question: who do investors use exit strategy like Wholesale?
Wholesalers typically use their own form which they type up, or get off the web from other experienced wholesalers.
Again, please read that statute…if a Texas attorney drafts the purchase agreement it’s legal and the Broker doesn’t have use TREC forms….like the other 49 states… Seriously you think they use the same form to sell a $300K house as a $100 million dollar office building????
All Texas Real Estate Commission licensees are required by law to use TREC promulgated forms.
I liked the format of this blog better when the comments were posted IN THE ORDER in which they were written. ~It is cumbersome to skip back to an earlier post by somebody who is responding to an earlier comment. (Whose idea was this??) ~David > When is it allowed for us to use a contract form that was NOT promulgated by TREC? (Such as a builder’s contract.) Does it have to be drawn by the principle party’s attorney? ~Why should TREC be facilitating the sale of real estate by a FSBO…?? We pay to get licensed, and we pay… Read more »
As for a licensee (or whatever term they use to describe brokers & associates now) can never “use” another form such as a builder’s
You cleared up my brain fog. Thanks!
When a buyer signs a builder’s contract, it is Not being filled in by the Agent. The Agent is merely getting paid by the seller, but is not “writing the offer”…
~When an Agent “writes” an offer, it had better be on a TREC form.
Is Real Estate Investors need license to invest in real estate?
Yes, that’s correct, she’s probably having the purchase agreement drafted by a attorney like almost 99% of all commercial deals…
I don’t agree that these forms should be available to people WITHOUT a license! Since these forms are not password protected, neighbors write contracts for neighbors, friends write contracts for friends, relatives write contracts for relatives, ALL without a license! Yet, I have to keep a license to do what they do without one. Just doesn’t seem right. I have contacted TREC about this problem before and I was told they just don’t have the manpower to do their job! Huh……….not sure I have a comment for that…….
Shirley Howard, If you know that for a fact, as a broker you have an obligation to yourself and our industry to report the ones that are doing that. Doing it for someone else is the act of real estate brokerage. Without a license, that is against the law.
That would be a really interesting discussion – if you’re filling out a TREC form on behalf of a friend or family member, but you’re not licensed, at what point does the situation cross the threshold from being “legal” to practicing brokerage without a license??
The moment you start filling it out!
I agree completely. So how would TREC monitor this? If you’ve got a parent who’s suddenly incapable of (competently) signing a contract and you decide to sell the parent’s home as a FSBO, seems to me you would need some type of legal “blessing” to do that before going off willy-nilly and selling it without being licensed.
It doesn’t matter who you do it for (other than yourself) if you are doing it is practicing real estate brokerage. That requires a license in this state. Doing so without a license is a criminal offense.
Not if it’s your own property and the other party agrees to the use of the form…again TREC has it up there for a reason so that if the public doesn’t want to go through a RE agent if they don’t have to…create value outside the forms. Other Realtor trade groups are being sued over this, which is why in some states they make the forms available to the public for a fee…
It doesn’t matter who you do it for (other than yourself) if you are doing it is practicing real estate brokerage. That requires a license in this state. Doing so without a license is a criminal offense.
in this case power of attorney or limited power of attorney for the parent would give you the right to act for them as the owner, when doing so it is the same as if you owned the property. if they are in competent a court would have to grant it to you because them signing a document giving it to you would not be sufficient, you could probably get a way with it but it would technically not be legally binding, and could be used to invalidate the sale at a later date if they regained their faculties.
Helping someone fill out a form is not acting as a lawyer or a broker, Just ask lighthouse for the blind, they help people fill out forms for irs read contracts etc and fill in with what the person wants to have written in blanks. there is a line but simply helping someone fill something out is not crossing that line. Also in the same way giving someone legal advice is not practicing law. however you are liable for if the advice causes them harm weather you are licensed or not. helping renters fill out a lease agreement as an… Read more »
True! Correct…forms are forms for a reason, very little language can change, which is why TREC wants RE agents to use them in lieu of attorney drafted purchase agreement. You are not practicing law or real estate…
The reason we have a license is so we can get paid.
The reason we get licensed is so we can help consumers buy or sell real estate following the laws of the State of Texas.
No, the reason we are licensed is so that the government can protect the public from us, if we do the job incompetently.
My sentiments exactly L Peace, Realtor.Westchase Realty Services, Houston,TX
I agree with you. I do not think that TREC forms should be available to the public.
We are required to be licensed, complete MCE and pay dues to operate as real estate
agents. I think that the use of promulated forms by untrained consumers is an accident getting ready to happen.
This is a ridiculous statement. THE reason anyone can access them is so that a person that does not want to use a Realtor has a guide or contract to use. It does not take a rocket scientist to complete one of these purchase contracts and I am sorry, very few agents actually “know” Texas Contract Law. I know more about Texas Contract Law from Google than most Realtors. You cannot control the use of a form in Texas, hence why they are made for the public and not “just” licensed Realtors. It is NOT a problem, as this is… Read more »
Wow, finally some intelligent reasoning…my sentiments exactly, remember that your service is more than just forms, it’s about relationships and trust, if you do right by someone they will come back to you for more of that service…I’ve seen it over and over again…despite Internet, Zillow etc…
People can make a contract on a napkin. If someone is selling their own real estate, they can use whatever form they want, including a napkin. If a licensee is selling real estate for a client or customer, that is a different scenario. Without an attorney prepared form or a seller-provided form, the licensee must use the promulgated forms. The State doesn’t mandate the use of any contract form for a seller, only for a professional that is acting on behalf of someone else, unless that professional is an attorney…and then they can draft any form they want, including putting… Read more »
I agree with you Shirly, I see people use this forms to sell for themselves.and we pay to much money to allow the public to do it without a lic. and use this forms. this is very dirty I think for TAR to degrade their realtors by allowing the public to use our promulgated documents. if you compare the trec and the tar forms they are very much alike other then the emblem that they post on the page. However we are told we need to use them but then so does everyone else ,where does that separate us from… Read more »
Why would TAR post such a question & answer without also posting the same question about TAR forms…?
~Many of the forms that we use daily are issued by TAR, not TREC. The rules are different. If you are going to bring up a topic for educational purposes, you should cover the total scope of the topic.
Do you know what the answer is Rick? I’ll drop a subtle clue: It’s NOT the same! TAR forms are copyrighted!
In addition to forms from TREC, the Texas Association of REALTORS® publishes more than 120 forms that are for the exclusive use of members of the association. However, certain TAR commercial forms are available for purchase by non-member license holders.
Good to know, however I’m not sure I would use any commercial realtor form with any property over $1M, smaller deals it might be fine. I’d just have the client have their attorney draft the agreement. But good to know its available to Non-realtor commercial brokers. Is it annual fee or by piece?? Also do you have lease forms?
TAR forms are only for use by members of TAR. Says it right on the form so there really shouldn’t be any confusion on that one.
I didn’t see the Residential Lease Agreement in Public Forms. Can you explain why only some forms are public? How does a non-licensed person obtain said form to utilize for a property they own but does not want to hire a Realtor to manage the home?
TREC doesn’t have a residential lease from…only the one that is associated with the sale of a property. TAR does but it can only be used by members of TAR. If someone wants to rent their home without using a REALTOR they would be wise to get a contract written by an attorney to use for their lease.
Or download one from the internet, if I’m following the Jen person correctly, she’s a member of the public, which means she can write an agreement on a napkin and have the other party sign and it would be considered a legal document, whether it’s a good one is up the courts to say if something goes wrong…
I just answered my own question – it’s TREC forms, not TAR forms that are available publicly.
Curious as to why these forms need to be on TREC website. It just encourages public to use them rather than hiring a realtor.
Thank you, Judy!
~We pay our dues to have a license, and we are Only allowed to use the promulgated forms because we Have a license! So why should they be offered to the public??
~Many people are using the Texas forms who don’t know a darn thing about “real estate”. And some of them are showing other people how to use them without having a license.
~The doctors don’t give the public a blank prescription form to fill out on their own, so why shouldn’t we act like other professionals…?
TREC isn’t there to serve Realtors. TAR is our trade organization and exists to serve us. TREC exists to protect the public.
Can an unlicensed person manage (receive salary) a condominium complex?
Yes, but only under certain circumstances.
ddavis It is my understanding that “property managers” are now required to be licensed. You are saying that managing a condo complex is different? Please let us know what circumstances would negate this requirement.
An employee of the owner is not required to be licensed.
You are correct Shirley
The TREC forms should not be available to the Public. You and I and all of us know that
They are always misused., because like you mentioned above, friends help friends. However,
No one ever finds out about it.
TREC is a public government entity and essentially owned by the citizens of the State. I don’t have a problem with owners who want to sell their own homes using forms their tax money pays for. Of course anyone else using the forms is operating illegally but that is for the state to worry about.
TREC attorney may write a form if it intended for public user. It is confuse if licensed and non license can share a same form on TREC website. It sounds like everyone can use attorney legal form free on internet without hiring attorney
Sorry but your comment makes no grammatical sense. TREC attorneys typically do not write contracts. They serve TREC (their client). Contracts are prepared and revised by the broker-lawyer committee then submitted to the TREC directors for approval and ultimate promulgation.
I don’t think they are practicing Real Estate until they receive compensation for doing a transaction for someone other than themselves. No one will complain about their friend or family member UNTIL they discover something wasn’t completed properly and a lawsuit arises.
These forms are also used by Real Estate Licensees and remember not every Texas Real Estate Licensee is a “Realtor” but they are authorized to conduct real estate transaction because they are licensed by TREC even though they did not join a Real Estate Association such as “Realtors”.
Wrong! Compensation is NOT required to practice real estate brokerage. Simply performing the act (regardless of compensation) is the act itself.
William — When was the last time you got paid by the Buyer?? ~You are practicing Real Estate the moment you begin a discussion about a house with a buyer. You don’t get “compensated” by the Seller until the transaction closes, but you HAVE been practicing real estate the whole time, and THAT requires a license. ~The real issue here is why should we (TREC) give out the forms to the pubic for free? TREC was established to “protect” the public from unscrupulous real estate agents, not give them free forms to use when they are un-educated and un-licensed. ~The… Read more »
So the reality is anyone CAN fill out any real estate form (TREC or otherwise) for anyone else. Are they allowed to? NO. Does that mean it doesn’t happen? of course people do that all the time. As agents we should advise them of the error of their ways but if they don’t listen, sure report them. Hum, unless it’s your mom? Then just offer to fill it out for her..! And FYI, commission has nothing to do with it. If you give out free legal advise you are practicing law. If you are not an attorney, big trouble. Same… Read more »
Over all Trec is a useless and ineffective government organisation. They are only there to protect consumers and punish real estate professionals. And only the ones that they determine are to week to fight back. The reason that the forms are published is to give themselves an out if any one complains about non Realtors using the forms. I would take to muck stock in what dddavis. I’m not sure what he does but he is clueless about what goes on in real estate. Compare Trec forms to tar forms. The Trec forms look like children wrote them. If Trec… Read more »
I’ve always believed that TREC is there to protect the consumer. What’s wrong with that? I’m also grateful for HAR and TAR. They make my life easier. Now don’t get me started on NAR. Talk about a useless extension and waste of our dues, in my opinion that’s NAR, not TREC by a loooooong shot.
A bank here in Allen wrote a contract for one of my clients.
Not for sure they didn’t have a license but they didn’t tell them they were a realtor either.
Investors use tree contracts all of the time. Texas is the wild west. Anything goes. All it take’s to start an investigation on a realtor is one phone call from a consumer about a realtor. It can be 100% fiction and you will still get investigated. BTW for all of you that don’t know. Trec considers investors as general public. If you are working with one and they complain about you to trec, an investigation will be launched against you. As a realtor you can’t file a complaint against another realtor no mater what they have done. Trec is only… Read more »
@James — Not sure what you meant by “make sure the SD gets signed…” First of all, there is no requirement to have a Buyer sign a Seller’s Disclosure Notice. ~The Law says that the Seller has to give the information to the Buyer; it doesn’t say the Buyer has to “sign it” and give it back! ~Secondly, many “Seller’s Disclosure Notice” forms have been drawn up by various parties not including TREC, so not sure what it has to do with this conversation on this blog. ~Thirdly, it sounded like you were telling licensed Agents how to defend themselves.… Read more »
Rick, when tree audits you because of a customer complaint the SD is one of the first this that the trec investigator will ask for. The buyer(investor) filed a complaint against their agent for non disclose of foundation problems. 2 years after she purchased the home as a rental. The SD wasn’t signed by the buyer. The agent had lost the emails showing proof that she informed the seller. Lucky for the agent that trec dragged me in. I had dates and times when the foundation company met the buyer, her agent and myself on site. The foundation company validated… Read more »
I read these comments and just shake my head.
there a time when location , location , location was prime. Now …document, document, document.
Scutinize your contract like you’re trying to sue yourself! Cover every detail…i’s dotted, t’s crossed…Not licensed? GOOD LUCK staying out of trouble!
The questions here is “Who can use TREC forms?” and the answer is anyone including the public, be it whether one is licensed or not because TREC Forms are accessible to the public as well. The question we really need to ask is whether the public who is not trained to use the form use it? If you read the fine print on page 8 of 9 of TREC No. 20-13 One to Four Family Resale contract it states “TREC forms are intended for use only by trained real estate license holders”. It is written it such a way that… Read more »
To my recollection, TREC forms as stated on the forms are to be used by licensed agents. We do not practice law, we fill in the blanks & add only pertinent information to the transaction. The forms ( certain forms) can be used by the public. John Doesn’t, is not held to the same standard. If John Doe, sells His own property he can write his in contract on the side of pigs belly if the person accepting his contract agreed. 1. We are kept, as licensed real estate holders, and Practioners are held to a higher “Standard.” 2. We… Read more »
I only care about TREC forms or TAR forms or basically any form that I had to pay money and time to get qualified to use. The TREC forms and other Realtor forms used by friends, aka non licensed are sent to the title companies. The public should not use these forms and the title companies shouldn’t be ok accepting these forms filled out by the public. It’s ridiculous and a double standard. It’s common sense to restrict use for those who didn’t pay to play.
Are TREC purchase contract forms “assignable”?
I recently came across a FSBO (non-licensed agent) that was using the TREC forms and executing documents. I’ve not come across this before and was curious what possible repercussions this person could face. ANyone?
I know of a company that does not use TREC contracts. Is there a fine for not using them? I have heard that TREC is not all that responsive. If I report them, what could happen?
Can an administrative assistant fill out forms on ZipForms?
TREC should seek to simplify real estate transactions, not continually complicate what has to be done to sell a house. In fact, the real estate business is so far behind in technical efficiency it has become laughable. Agents have been relieved of work by the computer. The real question remains, why is it necessary for agents to be licensed? They show a house, derived from a list the buyer provides from their Web Search. No effort here. They fill out a canned form that mostly protects agents and brokers. They tell folks these forms must be used? Really, not in… Read more »
Can REAL ESTATE INVESTORS USE TheCONTRACT FORM IN WHOLESALE DEALS?
Can a lawyer (non real estate) write contract on promulgated forms and represent himself. No commission since not licensed realtor?
I have a Right of Way/Easement License through TREC. Can this license be used to sell property or land in Texas?