TREC promulgated contract forms must be used by:
Question & Answer
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Only brokers
Limiting the requirement to brokers only would leave sales agents β who conduct the majority of day-to-day transactions β without a mandatory form requirement, creating an unacceptable gap in consumer protection; the law explicitly covers all licensees.
All Texas licensees
Only new agents
Restricting the requirement to new agents only would be arbitrary and would create a two-tiered system where experienced agents could draft their own contract language, which would constitute the unauthorized practice of law and undermine consumer protections.
Only for commercial transactions
TREC promulgated forms are specifically designed for and most commonly used in residential transactions; commercial transactions are generally not covered by TREC promulgated forms, making this answer the opposite of the correct application.
Why is this correct?
Answer B is correct because Texas Occupations Code Chapter 1101 (TRELA) and TREC Rules (22 TAC Β§537.11) require all Texas real estate licensees β both brokers and sales agents β to use TREC promulgated forms in transactions for which such forms have been approved, unless a specific exception applies (such as the transaction involving a party represented by an attorney who drafts the contract). The obligation applies universally to all licensees regardless of experience level, license type, or the nature of the transaction (as long as it falls within the scope of promulgated forms). This universal application ensures consumer protection across all residential transactions statewide.
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