No. The fact that a property is located within a Groundwater Conservation District (GCD) does not, by itself, require the seller to provide the Seller’s Disclosure About Groundwater and Surface Water Rights (TXR 1425, TREC 61-0).

The seller must provide the Seller’s Disclosure About Groundwater and Surface Water Rights (TXR 1425, TREC 61-0) unless all of the following are true:

• The seller is not aware of a water well on the property, in use or not in use.
• The seller is not aware of a pond, lake, or water tank on the property.
• The seller is not aware of any certificate of adjudication, certified filing, or permit for surface water rights associated with the property administered by the Texas Commission on Environmental Quality.
• The seller is not aware that any groundwater rights to the property have been severed, sold, or leased in whole or in part.
• The property receives water only from a municipality, municipal utility district or other special district, water supply corporation, or private water supply company, and the seller should indicate the source of water in the blank provided in the contract.

Whether the property is located within a GCD is one of the questions on the disclosure, but a property's location within a GCD alone does not automatically trigger the disclosure requirement.

Because determining whether groundwater rights are owned or being conveyed can involve questions of title, REALTORS® should encourage sellers who are uncertain to consult with their attorney or title company.

Yes. The contract states in Paragraph 7 that the seller must deliver the Seller’s Disclosure about Groundwater and Surface Water Rights (TXR 1425, TREC 61-0) to the buyer unless all of the conditions in 3(a)-(e) are true. Water wells, including those not in use, are addressed in subparagraph 3(a) and if the seller is aware of one, even if it has been abandoned, plugged, or capped, the seller must provide the new water disclosure form.

The seller would answer “no” to 3A and “yes” to 3B. Question 3A asks about “Surface Water Rights,” which according to the definition only includes a permit, certified filing, or certificate of adjudication. Question 3B asks about ponds, lakes, or water tanks on the Property. Question 3B should be answered independently of Question 3A. Therefore, the seller would answer “yes” to 3B if there is a stock tank on the property. Be aware that the form does not define the terms “pond”, “lake”, or “water tank,” so the seller should disclose anything that could reasonably be considered a pond, lake, or water tank, even if they are currently dry or no longer in use. If the Seller is uncertain whether a particular feature falls within one of those categories, the prudent course is to disclose the feature or consult a Texas real estate attorney. The broker should not attempt to define undefined terms in the form or determine whether a particular feature is legally required to be disclosed.

To answer this question, the seller must refer to the definition of “Surface Water Right” in Section 1D of the form, which says that a “Surface Water Right” means “a permit, certified filing, or certificate of adjudication administered by the Texas Commission on Environmental Quality (TCEQ) that authorizes the diversion, impoundment, or use of Surface Water.” It also clarifies that not all “diversions, impoundments, or uses of Surface Water require a Surface Water Right.” Therefore, if the seller currently has such a permit, certified filing, or certificate of adjudication from the TCEQ giving them a “Surface Water Right,” then the seller would answer “yes” to 3A and provide the additional information relating to the “Surface Water Right” requested in 3A(1) and 3A(2). However, if the seller does not currently have such a permit, certified filing, or certificate of adjudication administered by the TCEQ giving them a “Surface Water Right,” the seller would answer “no” to 3A.

No, you only need to sign that if your landlord and you have agreed to compensate the cooperating broker. The Agreement Between Brokers for Residential Leases (TXR 2002) is beneficial to prove the agreement for compensation between the two brokers. It also specifies a time frame for payment and covers compensation for lease renewals and sales.

When using the Texas REALTORS Residential Real Estate Listing Agreement, Exclusive Right to Sell (TXR 1101), both brokers will be paid compensation in accordance with the representation agreements signed by the clients. The Listing Broker will be paid by the seller in accordance with TXR 1101. The Buyer’s Broker will be paid in accordance with either the Residential Buyer/Tenant Representation Agreement – Long Form (TXR 1501) or the Residential Buyer-Tenant Representation Agreement- Short Form (TXR 1507), whichever one has been executed.

A seller can offer to pay some or all of the buyer’s broker’s compensation, if desired, by agreeing to make a contribution using paragraph 12B(1) on the One to Four Family Contract. The buyer also has the option to offer to pay some or all of the Listing broker’s compensation, if desired, by using paragraph 12(B)(2). See figure.

In the buyer’s representation agreement, which is required before showing the property or presenting an offer to the seller without showing the property, the buyer agrees to pay your compensation. The agreement states that the broker will assist the buyer in obtaining a contribution from seller but buyer remains responsible for paying the compensation.

If the seller agrees to contribute to pay your compensation, use paragraph 12B(1) on the One to Four Family Residential Contract (Resale) (TXR 1601, TREC 20-19).

It is important to remember that you must disclose, orally or in writing, that you represent the buyer at the first contact with the seller. You may use the Representation Disclosure (TXR 1417 ) to satisfy this requirement. Additionally, you must provide the Information About Brokerage Services (TXR 2501, IABS 1-2) at the first substantial communication with the seller.

Paragraph 12 of the One to Four Family Contract was updated for July 1, 2026. The changes clarify the language related to seller’s contributions towards payment of buyer’s broker fees and move that language to a new paragraph. The new language regarding seller contributions to broker fees moved from 12A(1)(b) to paragraph 12B(1). Additionally, a new option was added in 12B(2) which allows a buyer to contribute funds to the seller to allow the seller to pay the listing broker.

Yes, the Texas Real Estate Commission updated Paragraph H of the Addendum for “Back-Up” Contract (TXR 1909, TREC 11-9) by changing the timing of the amended effective date. When the first contract terminates, the amended effective date of the back-up contract is now the date the seller delivers notice of termination of the first contract to the buyer (with “date of delivery” determined in accordance with Paragraph 21 (Notices) of the contract to which the addendum is attached).

Previously, the amended effective date was the date the buyer received the notice. The updated Addendum for “Back-Up” Contract will be available on all Texas REALTORS® vendor forms sites on June 15 for voluntary use and will be mandatory on July 1, 2026.

TREC has also created the Seller’s Notice to Buyer of Removal of Contingency Under Addendum for “Back-Up” Contract (TREC 62-0), which may be used to notify the back-up buyer that the first contract has terminated and the back-up contract has moved into first position. This form will be available for use as soon as TREC releases it -some time prior to July 1, 2026. Texas REALTORS® form Seller’s Notice to Buyer of Removal of Contingency Under Addendum for “Back-Up” Contract (TXR 1913) will be updated to conform with the new TREC 62-0 as well.

Unique among contract deadlines, the final day for delivery of the earnest money and option fee can move depending on the day. If the final day falls on a weekend or legal holiday, the deadline moves to the next day that is not a weekend or a legal holiday.

The term legal holiday is now defined in the contract as the following holidays described in the Texas Government Code:

• New Year’s Day (January 1)
• Martin Luther King Jr. Day (third Monday in January)
• President’s Day (third Monday in February)
• Memorial Day (last Monday in May)
• Emancipation Day in Texas (June 19)
• Independence Day (July 4)
• Labor Day (first Monday in September)
• Veterans Day (November 11)
• Thanksgiving Day (fourth Thursday in November)
• Friday after Thanksgiving Day
• Christmas Day (December 25)

The final day can move in transactions that use the following eight contracts:

• Unimproved Property Contract (TXR 1607, TREC 9-18)
• One to Four Family Residential Contract (Resale) (TXR 1601, TREC 20-19)
• New Home Contract (Incomplete Construction) (TXR 1603, TREC 23-20)
• New Home Contract (Completed Construction) (TXR 1604, TREC 24-20)
• Farm & Ranch Contract (TXR 1701, TREC 25-17)
• Residential Condominium Contract (Resale) (TXR 1605, TREC 30-18)
• New Residential Condominium Contract (Complete Construction) (TXR 1608)
• New Residential Condominium Contract (Incomplete Construction) (TXR 1609)

Other contract deadlines do not change if the final day falls on a weekend or legal holiday.

If the listing agent and seller inadvertently failed to check either box in the “Authorization to Disclose Seller Paying Buyer’s Expenses” Note under Paragraph 5 of the Residential Real Estate Listing Agreement, Exclusive Right to Sell (TXR 1101), the omission can be corrected by using Paragraph E of the Amendment to Residential Listing, Exclusive Right To Sell (TXR 1404). If the listing agent and seller inadvertently failed to check either box in the “Authorization to Disclose Seller Paying Buyer’s Expenses” Note under Paragraph 5 of the or Farm and Ranch Real Estate Listing Agreement, Exclusive Right to Sell (TXR 1201), the omission can be corrected by using Paragraph F of the Amendment to Farm and Ranch Listing, Exclusive Right to Sell (TXR 1422).

Paragraphs E (TXR 1401) and F (TXR 1422) provide a blank section that allows the parties to clarify whether the seller authorizes the broker to disclose that the seller will consider contributing toward a buyer’s expenses, such as buyer’s broker fees or other costs payable by the buyer under a sales contract. This amendment should be signed by the listing agent and seller to properly document the seller’s intent and avoid confusion during marketing and negotiations.

Yes. Broker-to-broker compensation is not illegal. If you would like to offer broker-to-broker compensation, you may add a provision to the Texas REALTORS® form or create your own listing agreement that includes language providing for broker-to-broker compensation, since you, the broker are a principal to the listing agreement.

Consult with the brokerage’s private attorney to draft a provision to add to the Texas REALTORS® form or to draft a separate listing agreement that includes this provision to ensure the added provision or separate agreement is valid and enforceable under Texas law.

Note that the Compensation Agreement between Brokers (TXR 2402) will eventually be retired as well, so you will also need to have an agreement prepared for use between you and the buyer’s broker to evidence your agreement to share compensation.

The new Amendment to Residential Listing Exclusive Right to Sell (TXR 1404) can be used to amend both the old and new versions of the Residential Real Estate Listing Agreement Exclusive Right to Sell (TXR 1101). The parties can use Paragraph C or E of the new amendment form to amend Paragraph 5 of the old residential listing agreement. The parties should use the paragraph of the new amendment form that best fits their situation and ensure the amendment accurately reflects the change to the correct paragraph number(s) of the listing agreement.

The escrow agent should be the legal name of the title company handling the earnest money and closing of the transaction, not the name of a person.

For example, use "ABC Title Company” rather than “Jane Doe, escrow officer.” Putting an individual’s name in the escrow agent blank risks that the named person may not be available to accept delivery, may change roles, or may no longer work for the company during the transaction. Listing the title company helps avoid delivery and notice issues.

TREC added language to contract forms to provide prospective buyers with relevant information on groundwater and surface water rights that are associated with a property. Accordingly, Paragraph 7 in most residential and farm and ranch TREC contracts has been updated to include a new paragraph that states that the seller must provide the Seller’s Disclosure About Groundwater and Surface Water Rights (TXR 1425, TREC 61-0) unless all of the following are true:

• The seller is not aware of a water well on the property, in use or not in use.
• The seller is not aware of a pond, lake, or water tank on the property.
• The seller is not aware of any certificate of adjudication, certified filing, or permit for surface water rights associated with the property administered by the Texas Commission on Environmental Quality.
• The seller is not aware that any groundwater rights to the property have been severed, sold, or leased in whole or in part.
• The property receives water only from a municipality, municipal utility district or other special district, water supply corporation, or private water supply company, and the seller should indicate the source of water in the blank provided in the contract.

Note that the notice is not required for the Residential Condominium Contract (Resale) (TXR 1605, TREC 30-18) or either of the Texas REALTORS® New Residential Condominium Contract (Incomplete and Complete) (TXR 1608 & 1609).

No, the changes are not statutory requirements. They are additional disclosures that go beyond what the law requires for further risk reduction. While using the updated form may further reduce a seller’s potential liability risk, whether to update an existing disclosure notice is ultimately a decision for the seller and the listing agent based on the circumstances of the transaction.

Paragraph 7 of the Unimproved Property Contract (TXR 1607, TREC 9-18), Farm and Ranch Contract (TXR 1701, TREC 25-17), New Home Contract (Incomplete Construction) (TXR 1603, TREC 23-20), and New Home Contract (Completed Construction) (TXR 1604, TREC 24-20) requires certain disclosure information from the seller.

Because these transactions may involve property where the seller’s disclosure notice is not required, listing brokers may find it helpful to obtain a written memorandum of the seller’s knowledge regarding the disclosure items addressed in Paragraph 7. You can use the new Texas REALTORS® Property Condition Statement (TXR 1421) for this purpose. The form is intended to assist sellers and brokers in documenting the seller’s knowledge of the disclosure information required by Paragraph 7 in contracts involving unimproved property, newly constructed property that has not been previously occupied for residential purposes, and farm and ranch property.

Note that the Property Condition Statement does not satisfy the requirements of Texas Property Code, Section 5.008, and must not be used in place of the seller’s disclosure notice when that notice is required by law.

No. Broker-to-broker compensation is not illegal. Texas REALTORS® removed broker-to-broker compensation from TXR 1101 to simplify transactions and remove confusion. If your current listing agreement provides for broker-to-broker compensation, you are allowed to continue with that current listing agreement and pay according to the terms of the listing agreement.

Note that the Compensation Agreement Between Brokers (TXR 2402) will eventually be retired but will remain available after the new forms are available to allow brokers to share compensation.

• Seller authorization for broker-to-broker compensation. If the seller authorized the listing broker to pay a buyer’s broker using part of the listing broker’s fee, the amount specified in Paragraph 5A(2) of the Farm and Ranch Listing Agreement (TXR 1201), should be entered into the Ratification of Fee section at the top of Page 11 of the Farm and Ranch Contract (TXR 1701; TREC 25-17). Be aware that any amount added to Paragraph 12 of the contract or in the Agreement for Payment of Brokers’ Fees at the bottom of Page 11 would be in addition to the amount the seller has authorized the listing broker to pay the buyer’s broker.
• Compensation using Paragraph 12B of the Farm and Ranch Contract (TXR 1701; TREC 25-17). A seller or buyer may contribute to the other party’s brokerage fees in Paragraph 12B, which has been reworded and reorganized. The option for the seller to contribute to the buyer’s brokerage compensation is now found in Paragraph 12B(1), and an option for the buyer to contribute to the seller’s brokerage compensation has been added in Paragraph 12B(2). Paragraph 12B(1) should not be filled out if the seller or seller’s broker is obligated to pay the buyer’s broker in a separate written agreement, such as in Paragraph 5A of the listing agreement or the Agreement to Pay Brokers’ Fees at the bottom of Page 11 of the contract.
• Compensation using Agreement for Payment of Brokers’ Fees on page 11 of the Farm and Ranch Contract (TXR 1701; TREC 25-17). The fee agreement on the bottom of page 11 of the contract provides an alternative way for the seller and buyer to document their agreement regarding the payment of brokerage compensation. It should not be used if there is a separate written agreement governing the payment of brokerage fees or if contributions are to be paid under Paragraph 12B of the contract.

No. Broker-to-broker compensation remains an option in the Farm and Ranch Contract (TXR 1701, TREC 25-17), and seller authorization for broker-to-broker compensation remains an option in the Farm and Ranch Listing Agreement (TXR 1201). Sellers of farm and ranch properties still have the same options in these forms to address compensation as they had prior to the most recent revisions to the TREC sales contracts. Although seller contribution to buyer’s brokerage compensation is more prominent now in Paragraph 12B(1) of the sales contract, the addition of option 12B(2) is the only substantive change to compensation, which now provides an option for the buyer to contribute to the seller’s brokerage compensation.