A government entity is selling surplus property (a single-family home) at a public auction. A Texas license holder representing a buyer at the auction is asked to sign the government's standard contract form. The form was not drafted by an attorney but is the government's standard form used for all surplus property sales. What should the license holder do?
Correct Answer
A) Sign the government form because transactions required by a governmental agency's contract form are exempt
Under TREC Rules §537.11(b), transactions where a governmental entity requires the use of its own contract form are exempt from the mandatory use of promulgated forms. This exception applies regardless of whether the government form was drafted by an attorney.
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