- June 08, 1992
- All Issuing Offices in the State of Texas
- New TREC Contracts
The Texas Real Estate Commission has promulgated new forms for use by brokers and agents. Use of these forms is optional, prior to September 1, 1992. Use is mandatory on or after that date.
In Paragraph 8 (Broker's Fee), the Contract says that the Escrow Agent is "directed to pay Listing Broker" one-half of the earnest money if Buyer defaults. We recommend that you always require the Listing and Selling Brokers to sign a release of earnest money under the new TREC Contract.
In Paragraph 6, the Contract requires the Seller to deliver a Commitment within 20 days after the Effective Date of the Contract. The Contract also requires the Seller to deliver copies of documents that are Exceptions. The Contract says a Buyer may not object to a stated Exception to title unless the Buyer determines that the Exception prohibits a specified use or activity.
You may wish to use an Earnest Money receipt stamp for signature or a separate Earnest Money receipt attachment instead of the preprinted receipt provision on the TREC Contract. Please see referenced forms at the end of this bulletin.
When you deliver the Commitment, you may wish to use a standard cover letter. Please see referenced forms at the end of this bulletin.
Since your receipt of the Contract and any duty to comply with its terms are not title insurance matters, you must make your own decision as to how to receipt these Contracts. These are not matters covered by your Title Insurance Agency Agreement.
Please copy and circulate to your closers.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.